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

' ..' .
,,1 ,L., -
' ~; -

;:
..... - ,-

.,
.... ,

., ..
,.

,, : r- -
. ..., - I '., _, /

,.,
~~" ,. ; ...~-- '; "l

t\ ,-i,

. '
' .. ,, ..-, l

:, 1

j,-t 1
I

,,,.,.

,.
,, ,.. I

,: . ' \ ... ~
~ j..J

; L
... : ...

I\

,

I

I,>

r ,.,.,,,

.... _J

.,. ......;\~

,,

', '

... ',

u.,

'.-

,.

,r' ,\
... ,.:
.,., . '- -

I''

,- 'l'

.. ,: ' ,.1 ' . , ,. . . . '

- ... -......__ .'..

,,

. :.,-

/

'\ _,.\ '~

~- I'} ,~ l , ,..

,.

. ' ,

'I{

-. .
1 ;''

r, .,. \,

., -r ..,,. ,1 ' ' \I

., .. t.

: '

. , ,.

r "
'-.: I

. ,,. '
:. '

r' , '
'< -, ,. I

. 'I ' ' ' ' ,',.

Russell W.~ Hinton,

:"State Auditor



I /d

1' 'r ~ ....

,v
.. -r...
I,\
'',J. '

,, .
''"

,,-.,. .

; .
, I : r

' .i""

I,

,. t J

j , I 0

MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FlNANCIAL

lNDEPENDENT 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

ALLFUNDTYPESANDACCOUNTGROUP

B

COMBJNED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL-PURPOSE FlNANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES lN FUND BALANCES

DEBT SERVICE FUND

I

COMBJNING BALANCE SHEET

J

COMBJNING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES lN FUND BALANCES

SCHEDULES

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

Page
2 4 6
7
20
22 24
26
28 29 30 32 35

MERIWETHER COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

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 ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

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

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

SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR
(40,:) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W,1<;hmgton Street.SW Su11c 214 J\tl,.mta, Georg1.1 30334-8400
August 28, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Meriwether County Board of Education
lNDEPENDENT AUDITOR'S COMBlNED REPORT ON GENERAL-PURPOSE FlNANCIAL STATEMENTS AND SUPPLEMENTARY lNFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements ofthe Meriwether 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 ofthe Meriwether 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 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.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2002ARL-13

* 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.
* For fiscal year 2002, the School District changed its method of accounting for the final two payments on one hundred and ninety day employment contracts and the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this information was not readily available. The net effect of the above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and fourteen months of revenue from the State to fund these contracts. Generally accepted accounting principles require that expenditures 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 Meriwether County Board of Education as ofJune 30, 2002, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated August 28, 2003, on our consideration of the Meriwether 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 Meriwether County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) 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
2002ARL-13

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 of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
~-~
ll W. Hinton State Auditor
RWH:gp 2002ARL-13

MERIWETHER COUNTY BOARD OF EDUCATION

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

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Invent ones Food Donated Commod1t1es Purchased Food
Amount Available m Debt Service Fund
Amount to be Provided m Future Years For Payment of Bond Debt Intergovernmental Contract Caprtal Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

740,15326

$

454,069 26

2.837,442 29 $ 777,916.08

217,787 09

38,704 49 22,528 42

Total Assets

$ 3,577,595 55 $ 839,148 99 $

671,856 35

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Contracts Payable Retamages Payable Deferred Revenue Caprtal Lease Agreements Intergovernmental Contract General Obl1gat1on Bonds Payable
Total Llab1ht1es
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Debt Service For lnventones Food Donated Commod1t1es Purchased Food For Intergovernmental Contract For Purpose of Bond Issue Unreserved Undes1gnated
Total Fund Equity

$

$

433,046 09

2,238,560 69

14,572 29

165,327 32 $ 79,718 18
365,843 81 1,14656

41,992 72
2,973 43 455,15315

$ 2,686,179 07 $ 612,035 87 $

500,119 30

$

24,172 35

$

38,704 49

22,528 42

$

171,737 05

867,24413

165,880 21

0 00

$

891,416 48 $ 227.11312 $

171,737 05

Total L1ab1ht1es and Fund Equrty

$ 3,577,595 55 $

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

-2 -

839.148 99 $

671,856 35

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum On!}'.)

JUNE 30, 2002

JUNE 30, 2001

$

740,153 26 $ 1,276,621 51

$

716,546 04

1,170,615 30

5,372,179 22

287,024 91

4,120,170 37

1,642,826.12

$

750,072 16

38,704 49 22,528 42
750,072 16

27,180 70 21,390 43
806,360 06

12,194,927 84 8,710,000 00 1,252,947 16

12,194,927 84 8,710,000 00 1,252,947 16

12,588,639 94 8,810,000 00 1,405,443 32

$ 1,003,570 95 $

22,907,947 16 $ 29,000,11900 $ 31,950,641 30

$

253,498 79

$

460,818 83 $

224,889 54

512,764 27

127,318 38

2,604,404 50

353,296 78

15,718 85

34,439 25

2,973 43

455,153 15

355,841 43

6,896 97

$

1,252,947 16

1,252,947 16

1,405,443 32

8,710,000 00

8,710,000 00

8,810,000 00

12,945.000 00

12.945,000 00

13,395.000 00

$

253,498 79 $

22,907,947 16 $ 26,959,780 19 $ 24.713,12567

$

750,072 16

0 00

$

750,072 16

$

24,172 35 $

44,206 91

750,072 16

806,360 06

38,704 49 22.528 42 171,73705

27,180 70 21,390 43 5,385,984 98 22,962 39

1,033,124 34

929.43016

$ 2,040,338 81 $ 7,237,515 63

$ 1,003,570 95 $

22,907,947 16 $ 29,000.119 00 $ 31.950.641 30

-3-

MERIWETHER 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 Instruction Support Services Pupil Services Improvement of Instructional Services Educabonal Media Services General AdmImstrabon School Adm1mstratIon Business Adm1mstrat1on Maintenance and Operabon of Plant Student Transportabon Services Central Support Services Other Support Services Food Services Operabon Enterprise Operations 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 Financmg 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 Commod1tIes Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 23,011,971 35 $
6,785,812 51 377,365 87
$ 30,175,149 73 $

1,351,596 38 4,007,260 26
226,417 79
5,585,274 43

$ 20,815,99011 $
777,602 26 531,428 63 695,29717 758,112 89 1,949,234 72 428,665 04 1,963,434 65 1,645,634 65
41,221 50 163,658 37
8,710 49 16,231 59
262,135 68 74,98116

2,509,744 07 482,361 69 406,533 24 160,841 56
37,739 68 21,492 00 111,922 15 1,913,886 19
6,250 00 40,231 48
3,294 57

$ 30,132,338 91 $

$

42,810 82 $

5,694,296 63 -109,022 20

$

149,871 00

$

-27,722 32

$

122,14868 $

27,722 32 27,722 32

$

164,959 50 $

-81,299 88

726,45698

295,751 22

11,523 79 1,137 99

FUND BALANCE JUNE 30

$

891,416 48 $ ===2=2=7.l:1'=1=3~12==

The notes to the general-purpose finane1al statements are an integral part of this statement -4 -

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

396,665 05

$ 24,760,232 78 $ 23,261,062 91

4,007,260 26

4,044,644 72

$ 1,722,845 17

8,508,657 68

8,656,730 79

76,656 54

16,361 93

696,802 13

925,13861

$

473,321 59 $ 1,739,207 10 $ 37,972,952 85 $ 36,887,577 03

$ 5,710,531 91 $
$ 5,710,531 91 $ $ -5,237,210 32 $

$ 23,325,734.18 $ 19,509,120 43

1,259,963 95 937,961 87 695,29717 918,954 45
1,949,234 72 428,665 04
2,001,174 33 1,667,12665
41,221 50 275,580 52 1,913,886 19
8,710 49 16,231 59 5,716,781 91

1,230,361 44 904,092 31 592,364 78 837,212 25
1,931,13210 462,731 13
1,900,360 00 1,844,710 60
39,910 50 374,128 13 1,843,842 64
20,298 04 5,442,089 50

550,000 00 1,244.745 00
750 00

852,367 16 1,323,020 73
750 00

658,063 63 1,348,107 01

1,795,495 00 $ 43,332,662 45 $ 38,938,524 49

-56,287 90 $ -5,359, 709 60 $ -2,050,947 46

$

149,871 00 $

915,008 17

27,722 32

18,703 65

-27,722 32

-18,703 65

$

149,871 00 $

915,008 17

$ -5,237,210 32 $ 5,408,947 37

-56,287 90 $ 806,360 06

-5,209,838 60 $ 7,237,515 63

-1,135,939 29 8,386,518 05

11,523 79 1,137 99

-18,405 72 5,342 59

$

171,73705 $

750,072 16 $ 2,040,338 81 $ 7,237,515 63

-5-

- - - - - - - - - - - - - - - - - - - - - - ~ - - - --- -- --- -

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

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Taxes Other Funds

$ 20,308,460 00 $ 23,011,971 35

6,442,098 00 122,246 00

6,785,812 51 377,365 87

Total Revenues

$ 26,872,804 00 $ 30,175,149 73

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Adm1mstratIon School Adm1mstratIon Business Adm1nIstratIon Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterpnse Operations Community Services Operations
Caprtal Outlay Debt Service
Total Expenditures

$ 17,913,729 00 $ 20,815,990 11

778,310 00 609,681 00 616,409 00 623,406 00 2,012,814 00 444,270 00 1,873,483 00 1,873,495 00
71,227 00 137,944 00

777,602 26 531,428 63 695,297 17 758,112 89 1,949,234 72 428,665 04 1,963,434 65 1,645,634 65
41,221 50 163,658 37

3,13000 13,883 00 45,000 00

8,710 49 16,231 59
337,116 84

$ 27,016,781 00 $ 30 132,338 91

Excess of Revenues over (under) Expenditures

$ -143,977 00 $

42,810 82

OTHER FINANCING SOURCES (USES\

Other Sources Other Uses
Total Other Financmg Sources (Uses)

$

$

-21,220 00

$

-21,220 00 $

149,871 00 -27,722 32
122,148 68

Excess of Revenues and Other F1nanang Sources over (under) Expenditures and Other Financing Uses $ -165, 197 00 $

FUND ~ALANCE JULY 1 2001

722,119 00

AdJustments Food Inventory - Net Change m Penod
Donated CommodItIes Purchased Food

-52,935 00

164,959 50 726,456 98

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 1,277,629 00 $ 1,351,596 38

5,083,604 00

4,007,260 26

307,200 00

226,417 79

$ 6,668,433 00 $ 5,585,274 43

$ 532,185 00 $ 2,509,744 07

455,663 00 345,212 00

482,361 69 406,533 24

2,000 00

160,841 56

38,225 00 37,951 00
102,649 00 2,310,200 00

37,739 68 21,492 00
111,922 15 1,913,886 19

6,250 00 43,526 05
$ 3,824,085 00 $ 5,694,296 63
$ 2,844,348 00 $ -109,022 20

$ 27,722 32

$

27,722 32

$ 2,844,348 00 $ -81,299 88

224,703 00

295,751 22

56,732 00

11,523 79 1,137 99

FUND BALANCE JUNE 30 2002

$ 503,987 00 $ ===8=9=!1~41;,;6;.4;,;8;.,

$ 3,125,783 00 $ 227 113 12

The notes to the general-purpose financial statements are an integral part of this statement -6-

MERIWETHER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Meriwether County Board of Education (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results 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 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 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.

- 7-

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

MERIWETHER 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.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding, intergovernmental contracts 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 in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, 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.
-8-

MERIWETHER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund liability is incurred.
For fiscal year 2002, the School District changed its method of accounting for the final two payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. This change is in accordance with generally accepted accounting principles. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this information was not readily available.
The net effect ofthe above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and the related revenue due from the State to fund these contracts. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Meriwether County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.

-9-

--------

MERIWETHER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of Georgia 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:
(I) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Meriwether County Board ofCommissioners fixed the property tax levy for the 200 l tax digest year (calendar year) on August 23, 2001 (levy date). Taxes were due on December 20, 2001 (lien
- 10 -

MERIWETHER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 Meriwether County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $6,584,658.53 and for school bonds amounted to $1,385.92.

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

School Operations

16.672 mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue during the year amounted to $1,721,459.25 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

INVENTORIES

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

COMPENSATED ABSENCES

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

Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.

- 11 -

MERIWETHER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. 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 of operations 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 AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 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 of public 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 of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:

- 12 -

MERIWETHER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS AND INVESTMENTS
( l) 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 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 of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $2,861,018.22. The amounts ofthe total bank balances are classified into three categories of credit risk:
Category I - 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:

- I3 -

MERIWETHER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS AND INVESTMENTS

Risk Category
l 2 3
Total

Bank Balance
$ 212,031.81 2,648,986.41 0.00
$ 2,861.018.22

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $1,170,615.30 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

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

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2002, was 0.12 years. The average investment duration for Fund 6 on June 30, 2002, was 0. 75 years.

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

- 14 -

MERIWETHER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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; acts of God

and unemployment compensation.



The School District has obtained commercial insurance for risk of loss associated with motor vehicles. The School District has neither significantly reduced coverage for this risk nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years.

The School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July I, 1994, to develop and administer a plan to reduce risk of loss on account of general liability or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups ofself-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake) and general liability (including coverage for sexual harassment, molestation and abuse). Payment of excess insurance for the system varies by line of coverage.

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

2001 2002

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $ 11,887.00 $ 11,887.00 $

0.00

$

0.00 $ 13,962.04 $ I 3,962.04 $

0.00

The School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit.

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

- 15 -

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

MERIWETHER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4: RISK MANAGEMENT

Position Covered

Amount

Superintendent All Other Employees

$ 50,000.00 $ 50,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Meriwether County Board of Education has entered into various lease agreements as lessee for portable classrooms, school buses, fuel tanks, computer equipment, HY AC, electrical and lighting retrofits. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as ofthe date of their inception.

INTERGOVERNMENTAL CONTRACT The Meriwether County Board entered into a contract with the Meriwether County Public Facilities Authority, dated October 1, 1999, for the financing of the construction of various school facilities. Under the terms ofthe contract, the Authority issued $8,810,000.00 (less discount and issuance costs of $229,390.75) in revenue bonds on behalf of the Board to finance the costs of acquiring, constructing, furnishing and equipping a new elementary school to be owned by the Board and the costs ofmaking renovations and modifications to existing schools owned by the Board. The Board has contractually agreed to make semi-annual payments, from April 1, 2000 through October l, 2026, to the Authority sufficient to retire principal and interest on the bonds. The obligation of the Board is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the Board of Education agreed to levy an annual tax on all property within the boundaries of the Board, at such rates, within any limits prescribed by law, as may be necessary to make payments required by the contract.

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

Purpose

Interest Rates

Amount

General Government - Series 1996

3.65%- 7.0% $12,945.000.00

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

- 16 -

MERIWETHER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5: GENERAL LONG-TERM DEBT

Balance July I, 200 I
Additions Capital Leases
Deductions Debt Retired
Balance June 30, 2002

Capital Leases

Intergovernmental Contract
Meriwether County Public Fac11it1es Authority

General Obligation
Bonds

Total

$ 1,405,443.32 $

8,810,000.00 $13,395.000 00 $23.610,443.32

149,871.00

149,871.00

302,367.16
$-1.252 241 16 $

100,00000

450,000 00

852,367.16

8 7!0,000,0Q $12 245000 QQ $22 907 247.16

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
2003 2004 2005 2006 2007 2008 - 2012 2013 - 2017 2018 - 2022 2023 - 2027
Total Principal and Interest
Deduct Imputed Interest
Net Present Value of Future Minimum Lease Payments

Capital Leases

Intergovernmental Contract
Meriwether County Public Facilities Authonn

General Obligation
Bonds

Total Debt

$ 267,794.56 $ 267,794.56 215,493.76 170,393.25 170,393 31 420,799 67

604,035.00 $ 1,254,910.00 $ 2,126,739 56

603,360.00 1,295,447.50 2, 166,602.06

602,330 00 1,329,847.50 2,147,671.26

600,935 00 1,368,997 50 2,140,325.75

599,165 00 1,357,197 50 2,126.755 81

3,280,053 75 6,851,065 00 10,551,918.42

3,445,08 I 25 5,680,650.00 9. 125,731.25

3,426,458.75

3,426,458.75

3,407,058.75

3,407,058 75

$ 1,512,669.11 $ 16,568,41150 $12 138 115 QQ $31212261 61

259,721.95

$~2,24716

Note 6: SHORT-TERM DEBT

The School District issues tax anticipation notes and 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 ofthe Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-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 than December 31 ofthe calendar year in which the debt was incurred.

Tax Anticipation Notes

Beginning Balance

Additions

Payments

Ending Balance

$.====="0..,.,0!=!,0 $ 450,000.00 $ 450.000,0..0 $======0-,0==0

- 17 -

MERIWETHER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 7: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $379,697.04 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $319,208.04

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 $60,489.00

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2002:

Project

Unearned Executed Contracts

01 LW/00S-699-005 Manchester High School Gymnasium
and Classroom Addition

$ 38,946.94 405,269.91

$ 444,216.85

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

Note 9: 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.

- 18 -

MERIWETHER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 10: ACCUMULATED EMPLOYEES' LEAVE

The School District's administrative staff and certain other full-time employees earn one day per month ofannual leave. Annual leave may be accumulated to a maximum often days and an amount based on unused leave, up to the maximum accumulation, is paid at the current rate of pay to employees upon retirement or termination of employment. See Note 1 - Compensated Absences

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 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%

$ 1,754,083.17 $ 1,996,216.99 $ 1,868,067.12

- 19 -

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

109,281 86 $

61,828.43

170,445.27

90,099.48

38,70449 22,528 42

Total Assets

$

340,960.04 $ ==1=5=1;,;;9=27=9;;;.1;,,,,

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Commodities Purchased Food Unreserved Undes1gnated
Total Fund Equity

$

19,119.31 $

27,589.53

94,727 61

124,338.38

$

113,846 92 $

151,927 91

$

38,704.49

22,528 42

165,880 21 $

0.00

$

2271113.12 $

0.00

Total Liabilities and Fund Equity
See notes to the general-purpose financial statements. - 20-

$

340,960.04 $ ==1=5=1:l:,9=:27====91=

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

171,110.29 $

502,74849

$

517,371.33

777,916.08

628,812 71

38,70449 22,528.42

27,180.70 21,390 43

$

517,371.33 $ 1,010,259.28 $ 1,180,132.33

$

336,437.61 $

336,437.61 $

380,365.91

33,009 34

79,718 18

115,625 58

146,777 82

365,843 81

353,296 78

1,146 56

1,146.56

28,19587

6,896.97

$

517,371.33 $

783,14616 $

884,381 11

$
$ _ _ _ _0_._00_
$ _ _ _ _o_o_o_ $

38,704.49 $ 22,528.42

27,180.70 21,390 43

165,880.21

247,180 09

227,113 12 $ _ _2_9_5_,7__5_1._22_

$

517,371 33 $ 1,010,259.28 $ 1,180,132.33

- 21 -

-------------------------------------
MERIWETHER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional SeMces General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Pnnc1pal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change m Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose finanetal statements - 22 -

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

142,894.00 $ 1,208,702.38

1,463,274 52

226,417 79

$ 1,832,586.31 $ 1,208,702 38

$

905,365.41

229,868.43 1,533.89
33,100 73

$ 1,913,886.19

2,082.86 6,250 00

40,231 48 3,294 57

$ 1,913,886 19 $ 1,221,727.37

$

-81,299 88 $

-13,024 99

$

-81,299.88 $

295,751.22

11,523.79 1,137.99

13,024 99
0.00 0.00

$ 221. 113.12 $ =-=====o==oo=

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 1,351,596 38 $ 1,249,832 89

$ 2,543,985 74

4,007,260 26

3,982,385 11

226,417 79

194,301 25

$ 2,543,985 74 $ 5,585,274 43 $ 5,426,519 25

$ 1,604,378 66 $ 2,509,744 07 $ 2,376,128 00

252,493 26 404,999.35 127,740.83
37,739 68 21,492.00 109,839 29

482,361.69 406,533 24 160,841.56
37,739.68 21,492.00 111,92215 1,913,886.19
6,250 00

428,306 64 347,148.30 143,377 39
31,124 75 26,206.10 174,449 97 1,843,842 64 95,59840

40,231.48 3,294 57

36,72410 19,988.15

$ 2,558,683 07 $ 5,694,296 63 $ 5,522,894.44

$

-14,697.33 $

-109,022 20 $

-96,375 19

14,697 33

27,722.32

18,703.65

$

000 $

-81,299 88 $

-77,671.54

000

295,751.22

386,485 89

11,523.79 1,13799

-18,405 72 5,342 59

$

0.00 $

227, 113.12 $ ==2=9=5=,7=51=.2=2=

- 23 -

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

INTERGOVERNMENTAL CONTRACT
MERIWETHER COUNTY
PUBLIC FACILITIES AUTHORITY

BOND PROCEEDS

$

0.00

$

374,271.74

Total Assets

$

374,271.74 $-=====0===00=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Contracts Payable Retamages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Contract - Menwether County Public Facdrt1es Authonty For Purposes of Bond Issue Unreserved Undes1gnated
Total Fund Equity

$

65,105.01

2,973.43

134,456.25

$

202,534 69

$

171,73705

000 $

000

$

171,737 05 $

000

Total Liabilities and Fund Equrty

$

374,271.74 $==:ao,=0===00=

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

EXHIBIT HG"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

23,112.29 $

000 $

23,112 29 $

909,584.64

79,797.52

454,069.26

4,559,125.69

217,787 09

217,787.09

296,078.47

$

320,696 90 $

0.00 $

694,968.64 $ 5,764,788.80

$ _ _ _32_0.._,6_96_._90_ $ _ _ _32_0.._,6_96_._90_

$

65,105.01

2,97343

455,153 15 $

355,841 43

$

523,231 59 $

355,841.43

$

171,737.05 $ 5,385,984 98

22,962.39

$

0 00 $ ____o_oo_ - - - - -0 0-0

0.00

$

0.00 $

0.00 $

171,737.05 $ 5,408,947.37

$

320,696.90 $

0.00 $

694,968 64 $ 5,764,788 80

- 25 -

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

REVENUES
State Funds Other Funds
Total Revenues
EXPENDITURES
Capital Outlay Professional and Technical Services Land and Land Improvements Building and Building Improvements Equipment
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

INTERGOVERNMENTAL CONTRACT
MERIWETHER COUNTY
PUBLIC FACILITIES AUTHORITY

BOND PROCEEDS

$

76,656 54 $

000

$

76,656 54 $

000

$

32,18610

17,274.80

2,119,843.66

24,401.80 $

000

$

2,193,706.36 $

0.00

$

-2,117,049.82 $

0 00

$

-3,097. 198 11 $

-22,962.39

$

-3,097,198.11 $

-22,962.39

$

-5,214,247.93 $

-22,962.39

5,385,984 98

22,962 39

FUND BALANCE JUNE 30

$

171,737 05 $===--=0===00=

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

EXHIBIT "H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

396,665.05

$

396,665.05 $ 2,537,996 95

$ _ _ _ _....;o;...o;;..;;o_

76,656 54

342,082.50

$

396,665 05 $

000 $

473,321 59 $ 2,880,079 45

$

$

33,062.22

3,251,463.28

175,404.01

$ 3,459,929.51 $

$ -3,063,264 46 $

10,809.94 $
485 39 45,600 71

42,996.04 50,337.02 $ 5,371,792.33 245,406.52

488,246 07 4,165,508.32
415,754 13

56,896 04 $ 5,710,531.91 $ 5,069,508.52

-56,896 04 $ -5,237,210.32 $ -2, 189,429.07

$ 3,063,264 46 $

$ 3,063,264 46 $

$

0.00 $

0 00

56,896 04 $

$ 3,120,160 50 -3, 120,160.50

56,896 04 $

000 $

570,257.60 582,898.87 -582,898 87
570,257.60

0.00 $ -5,237,210.32 $ -1,619,171 47

0.00

5,408,947 37

7,028,118 84

$

0.00 $

0 00 $

171,737 05 $ 5,408,947.37

- 27 -

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

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30. 2002

JUNE 30, 2001

$ 59,439 61

$

59,439 61

79,655 74 $

636,890 30

716,546 04 $

773,172 13

5117

286,973 74

287,024 91

258,077 47

$ 139,14652 $

923,864 04 $ 1,063,010 56 $ 1,031,249 60

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft
FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undes1gnated
Total Fund Equity

$
$ 139,146 52 $ 000
$ 139,146 52 $

312,938 40 $

312,93840 $

224,889 54

610,925 64 $ 0 00
610,925 64 $

750,07216 $ 0 00
750,072 16 $

806,360 06 000
806,360 06

Total L1ab1ht1es and Fund Equrty

$ 139,146 52 $

923,864 04 $ 1,063,010 56 $ 1,031,249 60

See notes to the general-purpose financial statements

- 28-

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

EXHIBIT "J"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

REVENUES

Taxes Other Funds

$ 1,385 92 $ 1,721,459 25 $ 1,722,845 17 $ 1,713,109 51

335 04

16,026 89

16,361 93

36,827 50

Total Revenues EXPENDITURES

$ 1,720 96 $ 1,737,486 14 $ 1,739,20710 $ 1,749,937 01

Debt Service Pnncipal Interest Paying Agent Fees

$

0 00 $

550,000 00 $ 550,000 00 $ 390,000 00

1,244,745 00

1,244,745 00

1,264,615 00

750 00

75000

Total Expenditures Excess of Revenues over (under) Expenditures

$

000 $ 1,795,495 00 $ 1,795,495.00 $ 1,654,615 00

$ 1,720 96 $

-58,008 86 $

-56,287 90 $

95,322 01

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$ 57,698 92 $

$ -57,698 92

57,698 92 $ -57,698 92

249,523 36 -249,523 36

Total Other Financing Sources (Uses)

$ 57,698 92 $

-57,698 92 $

0 00 $

0 00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

$ 59,419 88 $ 79,726.64

-115,707 78 $ 726,633 42

-56,287 90 $ 806,360 06

95,322 01 711,038 05

FUND BALANCE JUNE 30

$ 139,146 52 $

610,925 64 $ 750,072 16 $ 806,360 06

See notes to the general-purpose financial statements

- 29-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agnculture, U S Department of Child Nutnllon Cluster Pass-Through From Georgia Department of Education Food and Nutnt1on Program Food Services School Breakfast Program National School Lunch Program

. 10_553 . 10 555

NIA

$ 352,771 13

(2)

NIA

996,941 16 $

1,800,323 96 (3)

Total Child Nutnt1on Cluster

$ 1,349,712 29 $

1,800,323.96

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutnbon Program

Food Dlstnbut1on Program (1)

10 550

NIA

113,562 23

113,562.23

Total U S Department of Agnculture

$ 1,463,274 52 $

1,913,886 19

Education, U S Department of Special Education Cluster Pass-Through From Georgia Department of Education lnd1v1duals with D1sab1ht1es Education Act Part B - Special Education capacity Building Improvement Flow Through Preschool

. . .

84 027 84 027 84173

NIA

$ 18,447 98 $

NIA

529,239 90

NIA

48,436 62

18,447 98 531,670 48 (3)
48,436 62

Total Special Education Cluster

$ 596,124 50 $

598,555 08

Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Even Start Grants to Local Educational Agencies Title II Eisenhower Professional Development Title Ill Technology Literacy Challenge Fund Grants Title VI lnnovattve Education Program Strategies Class Size Reduction Safe and Drug-Free Schools and Communities Voca!Jonal Education - Basic Grants to States High School Program Basic Grant

84 213 84 010
84 281
84 318
84 298 84 340 84186
84 048

NIA

250,000 00

261,476 73 (3)

NIA

1,212,470 79

1,212,487 86 (3)

NIA

43,938 97

44,000 50 (3)

NIA

126,500 00

126,500 00

NIA

36,030.06

36,089 30 (3)

NIA

189,442 42

189,442 42

NIA

17,343 00

17,543 00 (3)

NIA

72,136 00

72,588.18 (3)

Total U S Department of Education

$ 2,543,985 74 $

2,558,683 07

Total Federal Fmanaal Assistance
NIA = Not Available

$ 4,007,260 26 $====4,=47=2=,56==9==2=6

- 30 -

MERIWETHER 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 D1stribut1on Program represents the Federally assigned value of nonmonetary assistance for donated commod11les received and/or consumed by the system dunng the current fiscal year
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2002 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 1dent1fied

by an

astensk

(0 )

in

front of the

CFDA number

The School D1stnct did not provide Federal Assistance to any Subrec1p1ent

The accompanying schedule of expenditures of Federal awards includes the Federal grant act1v1ty of the Menwether County Board of Education and 1s presented on the modified accrual basis of accounting which 1s the basis of accounting used in the presentation of the general-purpose financial statements

See notes to the general-purpose financial statements

31 -

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

SCHEDULE "2''

AGENCY/FUNDING
GRANTS Community Affall'S, Georgia Department of Local Assistance Grant
Educabon, Georgia Department of Qualrty Basic Educabon Direct lnstrucllonal Cost Kindergarten Program Kmdergarten Program - Early lntervenbon Program Pnmary Grades (1-3) Program Pnmary Grades - Early lntervenbon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades (4-5) Early lntervenbon Program Middle School (6-8) Program High School General Educabon (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1l1bes Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Educabon Program Altemabve Educabon Program Speaal Education Itinerant Speaal Education Supplemental Speech Media Center Program 20 Days Add1bonal Instruction Staff and Professional Development Indirect Cost Deferred Summer Salaries - Current Year Categoncal Grants Pupil Transportabon Regular Bus Replacement Sparsity - Alternative Program Nursing Services Pnnapal Supplements Vocational Supervisors Educabon Equalization Funding Grant Food Services Other State Programs Extended Day - Agnculture Extended Day - Technology I Career Extended Year - Agnculture Grades 4-8 Statewide After School Program Health Insurance K-3 Statewide Reading Program Mentor Teachers Post Secondary Opbon - Spnng Preschool Handicapped Program Short-Term Agnculture Student Achievement - Fourth Thru Eight Grade Tests Student Achievement - NCEE Contract Student Achievement - Travel Technology/ Career High Schools That Work Technology I Career Other - Youth Apprenbcesh1p Vocational - Industry Certificabon Lottery Programs Ass1st1ve Technology Computers in the Classroom

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

121,000 00

$

121,000 00

812,938 00 259,490 00 1,861,079 00 769,769 00 959,422 00
378,174 00 2,118,759 00 1,484,018 00
562,047 00
168,701 00 1,578,664 00 1,542,144 00
185,509 00 151,455 00 204,482 00 116,975 00 150,237 00
32000 9,44300 363,815 00 104,056 00 76,246 00 2,578,786 00 2,366,164 00

847,689 00 246,603 00
35,889 00 89,423 00 17,422 00 22,799 00 2,058,504 00
$

142,894 00

6,330 00 44,838 00
2,552 00 43,857 00 319,208 04 64,547 54
2,295 00 1,188 00 53,048 00 1,095 00 1,331 24 50,000 00 6,243 38 8,000 00 2,000 00 15,427 71

29,258 00 171,870 48

812,938 00 259,490 00 1,861,079 00 769,769 00 959,422 00
378,174 00 2,118,759 00 1,484,018 00
562,047 00
168,701 00 1,578,664 00 1,542,144 00
185 509 00 151,455 00 204,482 00 116,975 00 150,237 00
320 00 9,44300 363,815 00 104,056 00 76,246 00 2,578,786 00 2,366,164 00
847,689 00 246,603 00
35,889 00 89,423 00 17,422 00 22,799 00 2,058,504 00 142,894 00
6,330 00 44,838 00
2,552 00 43,857 00 319,208 04 64,547 54
2,295 00 1,188 00 53,048 00 1,095 00 1,331 24 50,000 00 6,243 38 8,000 00 2,000 00 15,427 71
29,258 00 171,87048

32-

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Georgia State Financing and Investment Comm1ss1on Reimbursement on Construction ProJects
Human Resources, Georgia Department of Family Connection
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Rebrement
CONTRACT Educabon, Georgia Department of Middle School After School Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 396,665 05 $

396,665 05

$

49,999 44

49,99944

$ 1,007,573 90

1,007,573 90

60,489 00

60,48900

37,500 00

37,500 00

$ 23,011,971 35 $ 1,351159638 $ 396,66505 $ 24,760,23278

See notes to the general-purpose financial statements

- 33 -

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

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COSTp)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS(3)

ProVJding for the retirement of 1998 through 2002 calendar year annual payments in the amount of $5,616,331 25 for the pnnapal and interest on previously incurred general obhgatmn bond debt issued in November, 1996

s $ 5,616,331 25 $ 5,616,331 25 $ 1,210,835 00

3,861,638 54

Addrt1onal construc:llon costs related to the construcbon of a new North Elementary School, a new North High School, a new South Elementary School and equipping the facilities and certain repairs, equipping and renovations to existing fac1ht1es and paying the expenses incident thereto

2,383,668 75

38,501,122 55

6,294,441 91

31,832,924 76

PROJECT STATUS
Ongoing
Ongoing

$ 8,000,000 00 $ 44,117,453 80 $ 7,505,276 91 $ 35,694,563 30

( 1) The School D1stnct's ongmal cost estimate as specified m the resolubon calling for the lmpos1bon of the Local Option Sales Tax
(2) The School D1stnct's current estimate of total cost for the projects Includes all cost from pro)ed mcep!Jon to completion
(3) The voters of Menwether County approved the 1mposrtlon of a 1% sales tax to fund the above proiects and retire asSOCJated debt Amounts expended for these proJeCIS may include sales tax proceeds, state, local property taxes and/or other funds over the hfe of the prOjE!ds

See notes to the general-purpose financial statements

- 35 -

MERIWETHER 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 lnstructJonal Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early lntervenbon (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with DIsab1ht1es Category I Category II Category Ill Category IV Category V Gifted Student - Category VI Remedial Education Program Altemallve Education Program English Speakers of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION !1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

895,009 00 $ 1,199,16503 $

33,642 59 $ 1,232,807 62

285,687 00

293,706 14

36 75

293,742 89

2,048,963 00

2,835,489 29

66,047 33

2,901,536 62

847,480 00

516,364 40

1,265 69

517,630 09

1,053,267 00

1,429,10900

57,975 39

1,487,084 39

419,365 00 2,332,657 00 1,633,835 00
618,788.00 4,003,327 00
225,125 00 128,785.00 165,404 00

165,655 45
3,190,653 35 2,909.301 50 1,060,891.93
17,302 25 1,389,886 54 2,453,055 48
269,812 19 175,779 92 162,818 48 176,432 09 287,658 26
22088

2 00
8890
109,354 34 159,974.83
76,091 60
3,249 02 24,538 83 69,254 00
3,124 11 10,634 50
5,193 16 1,425 24 19,479 63 9,098 34

165,657 45
8890
3,300,007 69 3,069,276 33 1,136,983 53
20,551 27 1,414,425 37
2,522,309 48
272,936 30 186,414 42 168,011.64 177,857 33 307,137 89
9,319 22

$

14,657,692 00 $ 18,533,302 18 $ 650,476 25 $ 19,183,778 43

400,544 00 83,943 00

596,676 24 45,352 56

76,456 37 75,179 04

673,132 61 120,531 60

TOTAL QBE FORMULA FUNDS

$

15,142,17900 $ 19,175,33098 $ 802,11166 $ 19,977,44264

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

See notes to the general-purpose finanoal statements

- 36 -

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

SCHEDULE "5"

SITE
Unity Elementary School Mountain View Elementary School Greenville High School Greenville Middle School Greenville Elementary School Manchester High School Manchester Middle School Woodbury Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,825,463 00 $

2,406,873 02

3,171,476.00

3,600,768.11

1,917,856.00

2,658,762 09

1,582,685 00

2,402,536.49

1,310,746 00

1,589,291.93

1,922,254.00

2,601,556 84

1,833,621 00

2,389,612.53

928,187.00

1,225,256.38

165,404 00

309,121 04

$

14,657,692.00 $ 19,183,778.43

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

Russm.L w. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, SW Suite 214 Atlanta, Georgia 30334-8400
August 28, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Meriwether 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 Meriwether County Board of Education as ofand for the year ended June 30, 2002, and have issued our report thereon dated August 28, 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 Meriwether County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Meriwether 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-40

control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. 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 our judgment, could adversely affect Meriwether County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule of Findings and Questioned Costs as items FS-6991-02-01 and FS-6991-02-02.
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, ofthe reportable conditions described above, we consider item FS-6991-0202 to be a material weakness.
This report is intended solely for the information and use of the management, members of the Meriwether County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~~

RWH:gp 2002YB-40

State Auditor

RUSSELL W. HINTON
STATE AUDITOR 1404) 656 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa~hmgton Street, S.W Suite 214 A1lanla, Georgia 30334-8400
August 28, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Meriwether County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Meriwether County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2002. Meriwether County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofMeriwether County Board of Education's management. Our responsibility is to express an opinion on Meriwether County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular Al 33. Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Meriwether County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

2002SA-10

We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Meriwether County Board of Education's compliance with those requirements.
In our opinion, the Meriwether County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2002.
Internal Control Over Compliance
The management of Meriwether 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 Meriwether County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose 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 of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the Meriwether County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 2002SA-10

State Auditor

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

MERIWETHER 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-6991-00-01 FS-6991 -01-01 FS-6991-01-02

Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - No Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6991-01-02

We concur with this finding. Due to staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staffat this time, the School District has decided not to pursue the recording of General Fixed Assets until the year 2003, when it will comply with this requirement.

SECTION IV FINDINGS AND QUESTIONED COSTS

MERIWETHER 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 Meriwether County Board of Education'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 Meriwether County Board ofEducation disclosed financial statement reportable conditions related to the following control categories.

Employee Compensation

General Fixed Assets

Of the reportable conditions described above, General Fixed Assets is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit of the Meriwether 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 Meriwether 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 Meriwether County Board of Education's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .51 0(a) of 0MB Circular A-133 The Meriwether County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB 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 84.027 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool

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

- 1-

MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS
9. Low Risk Auditee The Meriwether County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EMPLOYEE COMPENSATION Failure to Maintain Annual Leave Records Reportable Condition Finding Control Number: FS-6991-02-0 I
A review ofthe School District's internal control polices and procedures for employee compensation noted deficiencies in annual leave records documentation. Testing of the Superintendent's salary revealed that annual leave records did not exist to support the payment of $15,579.76, which is compensation for 35 days of accumulated annual leave at the Superintendent's daily rate of pay as stated in the Superintendent's contract. Compensation paid to the Superintendent, in accordance with provisions of his employment contract provides as follows:
"In the final year of employment, the Superintendent shall be compensated for a maximum of thirty-five (35) days of accumulated annual leave. The compensation for these days shall be spread across the final twelve (12) months ofthe Superintendents' contract. This compensation shall be in addition to the regular annual salary and shall be based on the daily rate of pay for the final contract year."
This condition occurred because the School District failed to maintain annual leave records documenting the Superintendent's annual leave balance at the beginning of the fiscal year, annual leave earned and used during the fiscal year, and annual leave remaining at the end ofthe fiscal year. The members of the Board of Education of the School District should examine the accrued annual leave compensation paid to the Superintendent and determine if a refund to the School District is required.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6991-02-02
The Meriwether 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
-2-

MERIWETHER 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-6991-02-02 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. Management's Response: We concur with this finding. Due to staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff at this time, the School District has decided not to pursue the recording of General Fixed Assets at this time. However, a system-wide General Fixed Assets system is planned for Fiscal Year 2003. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-3 -