Marion County Board of Education, Buena Vista, Georgia, report on audit of the financial statements for the fiscal year year ended June 30, 2002

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MARION 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

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDITTONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

K

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

30

MARION COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDffiONAL FINANCIAL INFORMATION

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

31

2 SCHEDULE OF STATE REVENUE

33

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

35

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALTIY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

36

5

BY SITE

37

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 ACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133

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

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

SECTION I FINANCIAL C

RussELL \V. H1NTON
STATE AUDITOR
(4()4) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
'.!54 Wa~htngton S1rce1, S W, Suite 214 A1lanta, Georgia 30334-8400
January 31, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Marion 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 Marion County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Marion County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2002ARL-14
l

* 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, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002. Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were improperly recorded in the year ended June 30, 2002. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Marion County Board of Education as ofJune 30, 2002, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note 1 to the general-purpose financial statements, during fiscal year 2002, the Board of Education changed its method of accounting to include revenues and expenditures associated with Federal donated commodities in its general-purpose financial statements. This change is in accordance with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2003, on our consideration of the Marion County Board ofEducation's internal control over financial reporting and our 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.
2002ARL-14

Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Marion County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through K) and the financial schedules (Schedules I 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 effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
RWH:gp 2002ARL-14

MARION COUNTY BOARD OF EDUCATION

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

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
lnventones 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

$

963,04861 $ 311,548 94 $ 491,257 17

58,03463

90,610.01

241,624.18

9,968.70 9,190 78

Total Assets

$ 1,0211083.24 $ 421131843 $ 732,881.35

LIABIL!IIES ANQ FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grants Balance Payable Contracts Payable Retainages Payable Funds Held For Others General Obhgabon Bonds Payable
Total l.Jab1llbes
FUND EQUITY
Fund Balances Reserved For Debt Service For Expired Grant Balances/Quesboned Costs For Inventories Food Donated Commodities Purchased Food For SPLOST ProJeds For Tn-County High School Building Faallt:es For State Capita! Outlay ProJects Unreserved Undeslgnated
Total Fund Equity

$

3,431.83 $

61,67304 $

37,226.76

136,251.47

14,151.48 100,747.29

$

3,431.83 $ 197,924 51 $ 152,125.53

$
$ 1,017,651.41
s 1,017,651.41 $

9,988.70 9,190 78
$
204,234.44 223,393.92 $

501,52603 54,17028 25,059.51
0.00
580,755.82

Total l.Jabllitles and Fund Equity

$ 1,0211083.24 $ 4211318 43 $ 7321881 35

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

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE
AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum Onl~l

JUNE 30, 2002

JUNE 30, 2001

$ 72,385.30

$ 1,838,240.02 $ 1,810,797.78

$ 28,601.60

28,601.60

1,307,373.22

6,401 59

6,925TT

403,59618

299,541.98

$

78,786.89

2,941,21311

9,968.70 9,190 78 78,786.89
2,941,21311

10,247.88 9,617.06 130,673.13
3'39,326.87

$ 78?86 89 $ 35,527.37 $

31020,000 00 $

513091597.28 $

6160715n 92

$

6,925n

28,601.60 $
$ 35,527.37 $

$
3,020,000 00
s 3,020,000 00

6,925.n 102,331.63 $ 136,251.47
14,151.48 100,747.29 28,601.60 3,020,000 00
3,409,009.24 $

79,189.23 142,842.47
1,298.64 141,38215
15,70913 27,979.81 3,170,000 00
3,578,401 43

$ 78,786 89
000 $ 78?86 89

$

78,786.89 $

130,673.13

15,235.13

9,968 70 9,19078 501,526.03 54,170.28 25,059 51

10,247.88 9,617.06 1,4TT,162.64 54,170.28

1,221,885.85

1,332,070.37

$ 1,900,588 04 $ 3,029,17649

$ 78,786 89 $ 351527 37 $

31020100000 $ 513091597 28 $ 6,so11sn.02

-3-

MARION COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2002

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current lnstrud1on Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Admm1strabon School Admimstrabon Business Adm1mstrat1on Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Pnncipal Interest Escrow Agent
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 Penod Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 8,083,189.47 $

426,347.38

1,334,005 27

1,560,331.61

285,10319

135,650.04

$ 9,928,624.27 $ 1,896,002.69

$ 6,288,069.67 $
197,530 50 129,545.22 253,679.79 505,233.39 700,149 09 111,517.26 1,027,31819 681,909.20 42,474.50
997.51

869,646.76
98,598.36 37,276.13
65,621.46
28,961.01 6,826.89
369.31 850,173 87

$ 9,938,424.32 $ 1,957,473.79

$

-9,800 05 $

-61471.10

$

-54,148.50

$

-54,148.50

$

-63,948.55 $

1,081,599.96

-61,471 10 285,570.48
-279 18 -426.28

FUND BALANCE JUNE 30

$

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

1,017,651 41 $ =-==22=3==,3a:9=3.=-92_,

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 301 2002

JUNE 301 2001

$

670,778 03

386,799.93 $ 37,563 46

$ 1,095,141 42 $

$
244,808 84 89242

9,180,314.88 $ 1,334,005 27 2,191,940 38
459,209 11

8,173,231.22 1,404,997.55 2,184,678.79
434,765.58

245,701.26 $ 13,165,469.64 $ 12,197,67314

$ 2,099,867.02 $
$ 2,099,867.02 $ $ -1,004,725.60 $

$ 7,157,716.43 $ 6,942,392.28

296,128 86 166,821.35 253,679.79 570,854 85 700,149.09 111,517.26 1,056,279 20 688,736.09 42,474.50
369 31 851,171 38 2,099,867.02

267,299.49 258,761.46 253,090.20 524,505.20 729,632.29 107,18841 1,119,772.91 704,067.02
38,602.50 819 10
780,732.36 237,716.53

150,000.00 145,857.50
1 730.00

150,000.00 145,857.50
1,730.00

140,000.00 153,342.50
53000

297,587.50 $ 14,293,352.63 $ 12,258,452.25

-51,886.24 $ -1,127,882.99 $

-60 77911

$

54,148 50

$

54148 50

$, -950,577.10 $ 1,531,332.92

$

54,148.50

-54,148 50

$

000

-51,886.24 $ 130,67313

-1, 127,882.99 $ 3,029,176.49

-60,779.11 3,089,928.10

-279.18 -426.28

-1,414.03 1 441.53

$

78 786 89 $

-5-

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

EXHIBIT "C"

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current lnstrud1on Support SeMces Pupil SeMces Improvement of lnstrud1onal SeMces Educational Media Services General Adm1rnstrat1on School Admm1strat1on Business Admirnstrallon Maintenance and Operallon of Plant Student Transportation SeMces Central Support SeMces Other Support Services Food SeMces Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING USES
Other Uses
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY :] 2001
AdJustments Food Inventory - Net Change m Period
Donated Commod11Jes Purchased Food

GENERAL FUND

BUDGET

ACTUAL

$ 7,943,553.00 $ 8,083,189 47

1,320,000.00 176,350.00

1,560,331.61 285,103 19

$ 9,439,903 00 $ 9,928,624.27

$ 6,465,746 37 $ 6,288,069.67

192,751.28 129,140.76 268,444 98 521,694.87 807,527.99
99,094.77 1,064,855.64
684,449.06 42,000.00

197,530.50 129,545 22 253,679.79 505,233.39 700,149.09 111,517.26 1,027,318.19 681,909.20 42,474.50

78,000.00

997.51

$ 10,353,705.72 $ 9,938,424 32

$ -913,802.72 $ -9,800.05

-54,148 50
$ -913,802 72 $ -63,948.55 1,005,631.71 1,081,599 96 73.50

FUND BALANCE JUNE 30. 2002

$

91 190249 $ 1m11s51_41

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 389,456 56 $ 426,347.38 1,528,915.40 1,334,005.27

162,651 08

135,650.04

$ 2,081,023.04 $ 1,896,002 69

$ 783,970.00 $ 869,646 76

40,552.00 207,568.00

98,598.36 37,276.13

51,530.00

65,621.46

17,040.00 3,206.00
80020 1,060,855.56

28,961.01 6,826.89
369.31 850,173.87

$ 2,165,521.76 $ 1,957,473.79 $ -84,498 72 $ -61,471.10

$ -84,498.72 $ -61,47110

288,379.64

285,570.48

-279 18 -426.28

$ 2031880.92 $ 2231393.92

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

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Marion County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results 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 affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. 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 the 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.

- 8-

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally 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.
FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
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.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:

-9-

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, 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.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2002, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2002, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2002, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2002. Also, the State's portion ofthe compensation paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were recorded in the year ended June 30, 2002. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The Marion County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
- 10 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget process begins when the School District's administration prepares ~ 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 finafbudget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation ofthe United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services,
- 11 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Marion County Board ofCommissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 1, 2001 (levy date). Taxes were due on December 20, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Marion County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes 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, 2002 for maintenance and operations amounted to $1,543,788.81 and for school bonds amounted to $234,808.84.

Tax millage rates levied for the 2001 tax year (calendar year) for the Marion County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

12.00 mills 1.75 mills

13...1.S. mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue during the year amounted to $396,799.93 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be reauthorized at least every five years.

- 12 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost first-in, first-out. Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
For fiscal year 2002, the School District began accounting for donated food commodities by recording revenues and expenditures associated with donated food commodity items received and consumed by the School District. The reporting of the revenues and expenditures associated with donated commodities is a change in accounting principles.
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. Interfund eliminations have not been made in the aggregation of this data.
- 13 -

------------------ ----- -------~=~----

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(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 ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $2,869,589.59. The amounts ofthe total bank balances are classified into three categories of credit risk:

- 14 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS

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

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

Risk Category

Bank Balance

1

$ 262,385.30

2

2,607,204.29

3

0.00

Total

$ 2.869.589,59

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 and acts of God.

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 acts of God. The School District has not experienced any losses related to this risk in the past three years.

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

- 15 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4: RISK MANAGEMENT

Position Covered

Amount

Board Chairman Superintendent Assistant Superintendent Each Principal Each Lunchroom Manager

$ 12,000.00 $ 50,000.00 $ 25,000.00 $ 2,000.00 $ 1,000.00

Note 5: OPERATING LEASES

Marion County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2002, amounted to $40,823.28. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

2003 2004 2005

$ 40,823.28 40,823.28 30,617.46

Total

$ 112,264.02

Note 6: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1994

5.45%-6.00%

General Government - Refunding - Series 1998 4.05% - 4.65%

$ 280,000.00 2,740,000.00

$3,020,000.00
The changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows:

- 16 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 6: GENERAL LONG-TERM DEBT

General Obligation
Bonds

Balance July 1, 2001

$ 3,170,000.00

Deductions Debt Retired

150,000.00

Balance June 30, 2002

$3,020,000.00

At June 30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

General Obligation
Bonds

2003 2004 2005 2006 2007 2008 - 2012 2013 - 2014

$ 307,682.50 308,300.00 313,182.50 320,187.50 326,367.50
1,712,387.50 722.265.00

Total Principal and Interest

$ 4.010.372,50

Note 7: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1999, the School District defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for a portion of the debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School District's general-purpose financial statements. At June 30, 2002, $2,470,000.00 of bonds are outstanding and are considered defeased.

Note 8: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $164,141.72 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

- 17 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 8: 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 $146,706.72

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 $17,435.00

Note 9: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

Funding Available From State

01 LW/00S-696-004

$ 36t:Z22.Q3 $ :ZQtQ52.lQ

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

Note 10: 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 11: 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

- 18 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 11: RETIREMENT PLANS

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 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2002 2001 2000

100% 100% 100%

$ 655,490.33 $ 721,549.74 $ 664,129.34

- 19 -

MARION COUNTY. BOARD OF EDUCATION

COMBINING
-

BALANC- E

S'71EET

SPECIAL REVENUE FUND

JUNE 30, 2002

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

277,848.56 $

27,763.71

400.00

10,856.00

9,968.70 9.190.78

$

297,408.04 $ c:z===3=8=,6=1-=9=.7.,..1

$

31,764.59 $

8,750.97

42,249.53

29,868.74

$

74,014.12 $

38,619.71

$

9,968.70

9,190.78

204.234.44 $

0.00

$

223,393.92 $

0.00

$

297,408.04 $ =-==="""""38=,6=1=9=7.,_1

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

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 301 2002

JUNE 30, 2001

$

5,936.67 $

311,548.94 $

425,345.62

79,354.01

90,610.01

40,922.68

9,968.70 9,190.78

10,247.88 9,617.06

$

85,290.68 $

421,318.43 $==,..48iii::6=,1=3=3=.2=4

$

21,157.48 $

64,133.20

$ _ _...8.;5;.,.2;;9=0.68 $

61,673.04 $ 136,251.47
197,924.51 $

56,421.65 142,842.47
1,298.64
200,562.76

$

$ _ _ _ _ _o_.o_o

$

0.00 $

9,968.70 $ 9,190.78

10,247.88 9,617.06

204,234.44

265,705.54

223,393.92 $ _ _=28;;;;.;5;.i.;,5;a.;.7.aa.0-'48~

$

85,290.68 $

421,318.43 $ ===48=6='1=3=3-.2=4

- 21 -

MARION COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPEC~LREVENUEFUND
YEAR ENDED JUNE 30, 2002

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

58,986.00 $

367,361.38

594,066.73

135,650.04

$

788,702.77 $

367,361.38

$

304,807.58

21,700.00

$

850,173.87

9,282.48
28,961.01 2,241.00 369.31

$

850,173.87 $

367,361.38

$

-61,471.10 $

0.00

285,570.48

0.00

-279.18 -426.28

$

223,393.92 $ ==-=0==00=

See notes to the general-purpose financial statements,
- 22-

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 301 2002

JUNE 301 2001

$

426,347.38 $

397,058.54

$

739,938.54

1,334,005.27

1,404,997.55

135,650.04

148.411.02

$

739,938.54 $ 1,896,002.69 $ 1_950,467.11

$

564,839.18 $

869,646.76 $

891,080.48

76,898.36 37,276.13 56,338.98
4,585.89

98,598.36 37,276.13 65,621.46 28,961.01
6,826.89 369.31
850,173.87

76,346.24 149,035.44 47,262.99 40,219.30
13,101.95 819.10
779,548.52

$

739,938.54 $ 1,957.473.79 $ 1,997.414.02

$

0.00 $

-61,471.10 $

-46,946.91

0.00

285,570.48

332,489.89

-279.18 -426.28

-1,414.03 1 441.53

$

0.00 $

223,393.92 $ =-===28==5-,5=7=0=.4_8

- 23-

MARION COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

54,170.28 $

36,856.04

140,329.00

Total Assets

$

54,170.28 $ = =..1.=77::!:':=18=5=.04=

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For SPLOST Projects For Tri-County High School Building Facilities For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

37,226.76

14,151.48

100,747.29

$

152,125.53

$

54,170.28

$

0.00

$

54,170.28 $

25,059.51 0.00
25,059.51

$

54,170.28 $ =====11..1..,,.1, =8=5=.04-

See notes to the general-purpose financial statements. -24-

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 301 2001

$

400,230.85 $

491,257.17 $

510,489.19

1,014,503.01

101,295.18

241,624.18

163,432.00

$

501,526 03 $

732,881.35 $

1,688.424.20

$

37,226.76

14,151.48 $

141,382.15

100,747.29

15,709.13

$

152,125.53 $

157,091.28

$

501,526.03 $

501,526.03 $ 1,477,162.64

54,170.28

54,170.28

25,059.51

0.00

0.00

0.00

$

501,526.03 $

580,755.82 $ 1,531,332.92

$

501,526.03 $

732,881.35 $ 1,688,424.20

- 25-

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

REVENUES
State Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Capital Outlay Building and Building Improvements Equipment
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

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

670,778.03

$

0.00

$

0.00 $

670,778.03

$

1,902,331.06

$

0.00

116,348.98

$

0.00 $

2,018,680.04

$

0.00 $ -1,347,902.01

$

1,372,961.52

$

1,372,961.52

$

0.00 $

54,170.28

25,059.51 0.00

FUND BALANCE JUNE 30

$

54,110.2s $ -=====2..s.o!::,o=s=9.s.=1

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

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 301 2002

JUNE 301 2001

$

670,778.03 $

143,985.71

$

386,799.93

386,799.93

409,008.51

37,563.46

37,563 46

25,858.68

$

424,363 39 $ 1,095,141.42 $

578,852.90

$

81,186.98 $ 1,983,518.04 $

237,716.53

116,348.98

$

81,186.98 $ 2,099,867.02 $ _ _ _23_7..._,7_1_6__...5.....3.....

$

343,176.41 $ -1,004r725.60 ,$ ____34......1._._,1.;.;3;.;;.6.;.;;.3.;..7

$ 1,372,961.52

$ -1,318,813.02

-1,318,813.02

$ -1,318,813.02 $

54,148.50

$

-975,636.61 $

-950,577.10 $

341,136.37

1,477,162.64

1,531,332.92

1,190,196.55

$

501,526.03 $

580,755.82 $ 1,531,332.92

- 27 -

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

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Accounts Receivable

DEBT SERVICE
FUND

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2002 JUNE 30, 2001

$ 72,385.30

$

72,385 30 $

116,403.26

6401 59 $

0.00

6 401 59

14,269 87

Total Assets

0.00 $

78 786 89 $======13=0=,6=7=3=13...

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undes1gnated

$ 78,786.89

$

0 00 $ ______0_._00~

78,786 89 $ 000

130,67313 000

Total Fund Equity

0.00 $

78?86 89 $===1=30=,6=7=3=13=

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

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

EXHIBIT "J"

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

DEBT SERVICE
FUND

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS
YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$ 234,808.84 $ 892.42
$ 235,701.26 $

10,000 00 $ 10,000.00 $

244,808.84 $ 89242
245,701 26 $

231,749 13 3,887 34
235,63647

$ 140,000 00 $ 145,857.50 1,730.00
$ 287,587.50 $
$ -51,886 24 $
130,673.13

10,000 00 $
10,000 00 $ 0.00 $ 0 00

150,000 00 $ 145,857.50
1,730 00
297,587 50 $
-51,886.24 $
130,673 13

140,000 00 153,342.50
530 00
293,872.50
-58,236.03
188,909.16

FUND BALANCE JUNE 30

$ 78,786.89 $

000 $

78,786.89 $ 130,673 13

See notes to the general-purpose financial statements.

- 29-

MARION COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE -AGENCY FUNDS YEAR ENDED JUNE 30. 2002

EXHIBIT"K"

SCHOLARSHIP FUND ASSETS
Investments
LIABILITIES Funds Held For Others

BALANCE JULY 11 2001

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2002

$

11000 oo s_=-=::;2..;;;8..;;,6.;.01;,;,;.6~0

$ 27,979 81 $ 1,621.79 $

1,000.00 $ ~--=28=-,6=0..1._.6..,0

TWO RIVERS MIGRANT EDUCATION AGENCY

ASSETS Cash and Cash Equivalents Accounts Receivable

$

0 00 $ 873.011 11 $

_ _ _.::.0..a:;0=-0

6 1925.77

879,936.88 $

-6,925 77 6,925.77

s_,__,.;;o_o=o s 879,936.88 $ 8791936 88 $-=-====-==o..o.=o

LIABILITIES Funds Held for Others

$....,....,.,,.......0....0..0.. s 8791936 88 s 879,936.88 s-===ec,,_.....,..,o=oo=

TOTALS -AGENCY FUNDS
ASSETS Cash and Cash Equivalents Investments Accounts Receivable

$

0.00 $ 873,011 11 $

27,979 81

1,621.79

_ _ _..;ao..aao..a.o

6,925.77

879,936.88 $ 1,000.00

-6,925.77 28,601.60
6 925 77

LIABILITIES Funds Held for Others

$ 271979.81 $ 881.55867 $ 8801936.88 $====-~28=,6;;,;0.,,;1=6;;.,.0 $ 21:979 81 $ 881,558 67 $ 8801936.88 $ _ _~28_1.6_0.,;1"""6i.i:,0

See notes to the general-purpose financial statements.

- 30-

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

SCHEDULE "1

FUNDING AGENCY PROGRAM/GRANT
Agnculture, U S. Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutnbon Program Food Serv1ces School Breakfast Program Natlonal School Lunch Program
Total Child Nutntlon Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Dlslribubon Program (1) Pass-Through From Office of School Readiness Food and Nutrlbon Program Child and Adult Care Food Program
Total U S. Department of Agnculture
Education, U S. Department of Speaal Education Cluster Pass-Through From Georgia Department of Education Individuals wrth D1sabilllles Education Ad Part B - Special Educabon Flow Through Preschool Capacity Building Grant
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Educabon Elementary and Secondary Education Ad Trtlel Grants to Local Educabonal Agenaes Trtlell Eisenhower Professional Development TiUe VI Innovation Program Class Size Reduction Vocational Education - Baslc Grants to States High School Program Baste Grant Pass-Through From Chattahoochee-Flint Regional EducatJonal Serv1ce Agency Elementary and Secondary Educabon Ad TiUe I Migrant Education
Total U.S. Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

. 10.553
. 10.555

NIA $ 154,883.77

NIA

390,139.54 $

$ 545,023.31 $

(2) 806,302 76 (3)
806,302.76

10.550 10.558

NIA

43,871.11

43,871.11

NIA

5,172 31

$ 594,066.73 $

!2) 850,173 87

84.027 84.173 84.173

NIA $ 128,813.45 $

NIA

8,653.00

NIA

2,852.00

$ 140,318.45 $

128,81345 8,653.00 2,852.00
140,318.45

84.010

NIA

84.281

NIA

84.298

NIA

84.340

NIA

84.048

NIA

381,173.32 17,500.00 11,896 00 56,580.89
81,320 00

381,173 32 17,500.00 11,896.00 56,580.89
61,32000

84.011

NIA

71,149.88

$ 739,938.54 $

71,149 88 739.938 54

Total Federal Financial Assistance
NIA = Not Available

31-

$ 1,334.005 27 $ 1i590,112.41

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

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food D1stnbu!lon Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system dunng the current fiscal year
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are mduded m the 2002 Natlonal School Lunch Program.
(3) Expenditures for this program mdude State, and/or Other Funds. Expenditures are not ma1nta1ned by fund source
Major Programs are identified by an astensk c) m front of the CFDA number
The School D1stnd did not provide Federal Assistance to any Subreap1ent.
The accompanying schedule of expenditures of Federal awards mdudes the Federal grant ac!Jvrty of the Manon County Board of Education and 1s presented on the modified acaual basis of accounting which Is the basis of accounting used m the presentation of the general-purpose financial statements

See notes to the general-purpose finanaal statements

- 32-

MARION COUNTY BOARD OF EDUCATION CHEDUb!; OF TATE RfilNUE YEAR ENDED JUNE 30 2002

SCHEDULE "2''

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early lnterventron Program Pnmary Grades (1-3) Program Pnmary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students wrth D1sab1hties Category I Category II Category Ill Category IV Gifted Student - Category VI Altema1ive Education Program Media Center Program Staff end Professional Development Indirect Cost 20 Days Addrt1onal lns1ruct1on Categoncal Grants Pupil Transportation Regular Bus Replacement Nursing Services Pnncipal Supplements Voca11onal Supervisors M1d-tenn AdJustment Hold-Hannless Education Equa11Zat1on Funding Grant Food SeMCes Vocatronal Education Other State Programs Health Insurance Mentor Teachers Ou1door Classrooms Grant Preschool Handicapped Program 4-8 Statewide After School Program K-3 Statewide Reading Program Young Farmers Lottery Programs Ass1stive Technology Compu1ers in the Classroom
Georgia State F1nanang and Investment Comm1ss1on Reimbursement on Construction Proj8cts
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 427,629 00 25,058 00
985,319 00 63,804 00 540,678 00 102,106 00
803,463 00 917,884 00 404,881 00
25,641 00 163,250 00 341,514 00
97,121.00 40,460 00 116,307 00 161,444 00 28,09500 1,091,716 00 52,179 00

402,946 00 95,725 00 50,334 00 6,554 00 15,274 00 41,552 00
749,432.00 $
34,924 55
146,706 72 2,142 00 750 00
14,327 00 28,041 58 17,299 62 71,197 00

58,986 00
4,864 00 53,331 00

$ 427,629 00 25,058 00
985,319 00 63,804 00
540,678 00 102,106 00 803,463.00 917,884 00 404,881 00
25,641 00 163,250 00 341,514 00
97,121 00 40,46000 116,307 00 161,444 00 28,09500 1,091,716 00 52,179 00
402,946.00 95,725 00 50,334 00 6,554 00 15,274 00 41,552 00
749,432 00 58,986 00 34,924 55
146,706 72 2,142 00 750 00
14,327 00 28,041 58 17,29962 71,197 00
4,864.00 53,331 00

$ 670,778 03 309,166 38 17,435 00

670,77803 309,166 38
17 435 00

$ 810831189 47 $ 4261347 38 $ s1oi718 03 $ 911801314.88

See notes to the general-purpose financial statements

- 33

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

SCHEDULE "3"

PROJECT
Provide funding for the renovations, repairs, improvements and equipment for the existing school buildings in the amount of $1,400,000.00
To be used to pay the 1994 bond sanes in the amount of $1,000,000.00

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR(3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 1,400,000.00 $ 2,036,700 02 $ 2,036,700 02 $

0 00 Completed

1,000,000 00 1,000,000.00

10,000 00 _ _ _0.;;.;..;;.00~ Ongoing

$ 2,400,000.00 $ 3103s,100.02 $ 2,04s,100.02 $==--===ao=oo=
(1) The School Distnct's original cost esbmate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School District's current esbmate of total cost for the projects. Includes all cost from proJect incepbon to completion (3) The voters of Manon County approved the 1mposrbon of a 1% sales tax to fund the above projects and retire
associated debt. Amounts expended for these proJects may include 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.

- 35-

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

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Pnmary Grades (1-3} Program Pnmary Grades-Earty Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Earty lntervenllon (4-5) Program Middle Grades (6-8) Program High School General Education (9-12} Program Vocallonal Laboratory (9-12) Program Students with D1sablht1es Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Altemallve Education Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

465,135.00 $ 41g,227.57 $

19,025 60 $

438,25317

27,256.00

41,126.32

4,605 17

45,731 49

1,071,737.00 1,086,491.09

37,191.58

1,123,682 67

69,400.00

55,208 11

4,396.72

59,604 83

588,093.00

583,980.04

26,800.65

610,780 69

111,067.00 873,931.00 998,388.00 440,391.00 682,564.00
44,008.00 87,471.00

94,881.69 920,100 69 1,100,453.38 364,767.52
66,534.02 144,554.62 304,228.08
86,937.99 36,322.35 10,494.50 104,246.34

3,680.83 55,871.91 62,902.09 40,779.72
4,640 79 10,174.22 10,306.81
1,443.02 3,347.21
180442

98,562.52 975,972 60 1,163,35547 405,547.24
71,17481 154,728 84 314,534.89
88,381.01 39,669.56 10,494 50 106,050.76

$

5,459,441.00 $ 5,419,554.31 $ 286,970.74 $ 5,706,525.05

175,604.00 30,559 00

213,783.69 16z731.12

35,721 39 13,988.51

249,505.08 30,719.63

TOTAL QBE FORMULA FUNDS

$

5,665,604.00 $ 5,650,069 12 $ 336,680 64 $ 5,986,749.76

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

See notes to the general-purpose financial statements.

- 36-

MARION COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE}
ALLOTMENTS AND EXPENDITURES - BY SITE
YEAR ENDED JUNE 30, 2002

SCHEDULE "5"

SITE Manon County Elementary School L. K. Moss Primary School Tri-County High School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Fun_ds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,540,625.00 $ 1,711,547.17

1,868,423.00

1,858,214.44

1,962,922.00

2,136,370.65

87,471.00

392.79

$

5,459,441.00 $ ====5,l,,;7,'=06::l:,5=2=5=.0=5

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

SECTION II COMPLIANCE AND INTERNAL CONI'ROL REPORTS

RussEu. \\1 H1NmN
STATE AUDITOR (404) 656-2174

DEPART1\1ENT OF AUDITS AND ACCOUNTS
254 Wa~hmgton S1rcc1. S.W. Su11c 214 Atlanta. Georgia 30334-8400
January 31, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Marion County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Marion County Board of Education as of and for the year ended June 30, 2002, and have issued our report thereon dated January 31, 2003. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Marion 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 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Marion 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
2002YB-41
L

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 Marion 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-6961-02-01.

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-6961-02-01 to be a material weakness.

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

Respectfully submitted,

.-

~~

RWH:gp 2002YB-41

foSSl,.LL \\'. HINTON STATE AUDITOR (404) 656-2174

0EPART1\1ENT OF AUDITS AND ACCOUNTS
254 Wm,hmgton Street, S W. Suite 214 Atlanta, Georgia 30334-8400
January 31, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Marion 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 ofMarion 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, 2002. Marion County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section ofthe 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 Marion County Board of Education's management. Our responsibility is to express an opinion on Marion County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Marion 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 Marion County Board of Education's compliance with those requirements.
2002SA-10
...

In our opinion, the Marion County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2002.
Internal Control Over Compliance
The management of Marion 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 Marion 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 determine 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 ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the Marion 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.

RWH:gp 2002SA-10

e Auditor

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6961-99-02 FS-6961-00-02 FS-6961-01-01

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

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6961-01-01

The Marion County Board ofEducation concurs with this recommendation. However, due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the School District has decided not to pursue the recording of general fixed assets on the financial statements. We are in hopes that the Georgia Department of Education will assist in securing software to accomplish this procedure.

SECTION IV FINDINGS AND QUESTIONED COSTS

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

MARION COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6961-02-01 The Marion County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe 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 ofa 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 records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-