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

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
GA
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MONROE COUNTY BOARD OF EDUCATION FORSYTH, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2001
Russell W. Hinton State Auditor

MONROECOUNTYBOARDOFEDUCATION -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

AND EXPENDABLE TRUST FUND

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

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCE

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

9

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

11

ADDIDONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

MONROE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDIDONAL FINANCIAL INFORMATION

EXHIBITS

COMBINING STATEMENTS

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

30

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

31

FIDUCIARY FUND TYPES

M

COMBINING BALANCE SHEET

32

N

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

34

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

35

2 SCHEDULE OF STATE REVENUE

37

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

39

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

40

5

BY SITE

41

SECTION TI
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 Cffi.CULAR A-133

MONROE COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-
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. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 22, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Monroe 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-pwpose financial statements of the Monroe County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Monroe County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2001ARL-13

As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended
June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Monroe County Board ofEducation as ofJune 30, 2001, and the results of its operations and the cash flows of its nonexpendable trust fund 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 May 22, 2002, on our consideration of the Monroe 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.
2001ARL-13

Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Monroe County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through N) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effect ofadjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general-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:as 2001ARL-13

State Auditor

MONROECOUNTYBOARDOFEDUCATION

MQNBQE QQUNI)'. l;!OARD QF EDUQt.TIQN
QQMBl!:iED 1;!8LANQE St!E!;T
e.L!. E!.!NQ IYPE!;i ~D AQQQUNT !.'..zBQUP
JUNE30 2001

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

594,180.35 $ 1,853,925.56

$ 2,869,291.66

518,880.85

1,324,826.60

236,733.26

186,582.26

682,204.52

31,930.42 21,707.26

Total Assets

$ 3,106,024.92 $ 1:353,281.14 $ 3,860,956.68

1.~l!.!IIE 8NQ FUND EQUID'.
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
EUNQ EQUID'.
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Endowment Corpus For Expired Grant Balances/Questioned Costs ForSPLOST For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

213,463.58

321,047.21 $

132,230.82 $

85,180.29

285,947.52

168,013.36

278,135.19

21.69

$

534 510.79 $

418,200.03 $

531,328.84

$

26,241.93

$ 3,278,801.48

$ 2,571,514.13 $ 2,571,514.13 $

31,930.42 21,707.26
855,201.50
935,081.11 $

50,826.36 3,329,627.84

Total Liabilities and Fund Equity

$ 3,106,024.92 $ 1,353,281.14 $

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

-2-

3,860,956.68

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum On~l

JUNE 301 2001

JUNE30, 2000

$

109,025.37 $

6,609.36

$ 2,563,740.64 $ 3,031,595.73

32,551.80

4,745,550.91

3,776,691.24

369.05

9,000.00

1,114,889.09

1,108,851.09

$

109,394.42

31,930.42 21,707.26
109,394.42

31,567.89 12,032.95
83,152.12

710,605.58 100,016.88

710,605.58 100,016.88

956,847.88 156,059.60

$

1091394.42 $

48 161.16 $

9201016.88 $ 913971835.20 $ 9,156,798.50

$

-21,153.46

$

$

-21153.46 $

$
100,016.88 820,000.00 920,016.88 $

213,463.58 $ 538,458.32 285,947.52 168,013.36 278,135.19
21.69 -21,153.46 100,016.88 820,000.00
2,382,903.08 $

168,990.52 127,491.79 246,991.86
171,362.20
286.03 156,059.60 1,040,000.00
1,911,182.00

$

109,394.42

$

10,000.00

0.00

$

109 394.42 $

59 314.62 69,314.62

$

109 394.42 $

48 161.16 $

$

22,779.35

27,945.35

$

109,394.42

83,152.12

10,000.00

10,000.00

26,241.93

3,278,801.48

2,741,869.03

31,930.42 21,707.26

31,567.89 12,032.95

3,536,856.61

4,316,269.81

$ 7,014,932.12 $ 7,245,616.50

9201016.88 $ 9,397,835.20 $ 9,156,798.50

-3-

MONROE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDE0 JUNE 30, 2001

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

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 11,675,542.12 $ 4,750.06
9,767,376.23 229,722.91
$ 21,6n1391.32 $

938,248.36 1,885,755.07
$ 534,499.53
3,358,502.96 $

3,737,512.93 59440.09
3,796,953.02

$ 14,551,063.27 $
353,713.28 471,147.46 391,017.20 450,024.50 1,487,667.47 258,068.03 2,114,176.84 1,651,784.52 338,352.26
90,182.80
56,042.72 8,701.88

1,850,606.26
97,221.21 25,234.90
19,535.34 22,862.21
$ 16,184.10
6,223.22
40,087.70 1,476,622.09

135.12 13,490.59
3,312,081.83

$ 22,221,942.23 $

$

-544,550.91 $

3,554,5n.o3 $ -196,074.07 $

3,325,707.54 471245.48

$

31,347.15 $

-151,037.10

$

-119,689.95 $

151,037.10 $
151,037.10 $

-31 347.15 -31 347.15

$ -664,240.86 $ 3,235,754.99

-45,036.97 $ 970,081.24

439,898.33 2,889,729.51

362.53 9 674.31

FUND BALANCE JUNE 30

$ 2i5711514.13 $

9351081.11 $ 313291627.84

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

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS

(Memorandum Onl:tl YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 12,613,790.48

1,890,505.13

$

298,689.41

13,803,578.57

1,207.89

824,870.42 $

$

299,897.30 $ 29,132,744.60 $

$ 1 014.70

12,613,790.48 $ 1,890,505.13 13,803,578.57
825,885.12

11,875,873.07 1,613,898.32 13,468,806.82
953,546.03

1 014.70 $ 29,133,759.30 $ 27,912,124.24

$ 16,401,669.53

450,934.49 $ 496,382.36 391,017.20 469,559.84 1,510,529.68 258,203.15 2,143,851.53 1,658,007.74 338,352.26 130,270.50 1,476,622.09 3,312,081.83

$

220,000.00

53,655.00

276,042.72 62,356.88

$

273,655.00 $ 29,375,881.80 $

$

26,242.30 $

-243,137.20 $

$ 16,401,669.53 $ 14,925,013.93

500.00

451,434.49 496,382.36 391,017.20 469,559.84 1,510,529.68 258,203.15 2,143,851.53 1,658,007.74 338,352.26 130,270.50 1,476,622.09 3,312,081.83

774,678.41 477,015.01 378,784.55 611,206.50 1,332,707.55 210,162.27 1,846,887.75 1,234,555.03 317,126.03 124,302.00 1,315,595.07 2,280,366.14

276,042.72 62,356.88

548,879.24 56,978.34
1 615.78

500.00 $ 29,376,381.80 $ 26,435,873.60

514.70 $

-242,622.50 $ 1,476,250.64

$

182,384.25

-182,384.25

$

0.00

$

182,384.25 $

-182,384.25

$

0.00 $

45,040.05 -45 040.05
0.00

$

26,242.30 $

-243, 137.20 $

514.70 $

-242,622.50 $ 1,476,250.64

83,152.12

7,178,717.86

23,817.59

7,202,535.45

5,745,634.55

362.53 9 674.31

362.53 9,674.31

-13,674.23 -5,675.51

$

1091394.42 $ 61945.617.50 $

241332.29 $ 619691949.79 $ 712021535.45

-5-

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

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds

$ 11.351,345.00 $ 11,675.542. 12

4,750.00

4,750.06

9,432,436.00

9,767,376.23

117,000.00

229.722.91

Total Revenues

$ 20,905,531.00 $ 21,677,391.32

EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 14,475,334.00 $ 14,551,063.27

312,413.00 394,654.00 381,578.00 419,804.00 1,443,833.00 207,428.00 1,793,803.00 1,402,317.00 331,486.00
93,300.00

353,713.28 471,147.46 391,017.20 450,024.50 1,487,667.47 258,068.03 2,114,176.84 1,651,784.52 338,352.26
90,182.80

64,744.60

$ 21,255,950.00 $ 22,221,942.23

$ -350,419.00 $ -544,550.91

OTHER FINANCING SOURCES IUSESl
Other Sources Other Uses
Total Other Financing Sources (Uses)

$

31,347.15

$ -114,000.00

-151 037.10

$ -114,000.00 $ -119,689.95

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

-464,419.00 $

-664,240.86

FUND BALANC!; JULY ] , 2000

2,789,555.36

3,235,754.99

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

-265.65

FUND MLANCE JUNE 30 2001

$ 213241870.71 $ 215711514.13

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,006,120.00 $ 938,248.36

1.722, 127.00

1,885,755.07

523,348.00

534,499.53

$ 3,251,595.00 $ 3,358,502.96

$ 1,898,435.50 $ 1,850,606.26

90,362.00 30,768.00

97,221.21 25,234.90

19,030.00 21,954.00

19,535.34 22,862.21

17,273.00 1,538.00

16,184.10 6,223.22

38,731.00 1,380,859.00

40,087.70 1,476,622.09

$ 3,498,950.50 $ 3,554,577.03 $ -247,355.50 $ -196,074.07

$ 114,000.00 $ 151,037.10

$ 114,000.00 $ 151 037.10

$ -133,355.50 $ -45,036.97

926,073.31

970,081.24

-27,912.36

362.53 9 674.31

$ 7641805.45 $ 9351081.11

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

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCE

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30. 2001

OPERATING REVENUES None Recorded
OPERATING EXPENSES None Recorded Operating Income
NONOPERATING REVENUES Interest Earned
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
PERSONS MEMORIAL LIBRARY FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00

1,901.28 43,081.05

1,901.28 43,081.05

1,583.92 41 497.13

$

44,982.33 $

44,982.33 $ ===4=3=10==:81=.0=5=

The notes to the general-purpose financial statements are an integral part of this statement. -8-

MONROE COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2001

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Flows from Investing Activities:
Interest Received on Investments Net Proceeds from Puchase/Sale
of Investments Net Cash Provided by Investment
Activities Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

ENDOWMENT FUND
PERSONS MEMORIAL LIBRARY FUND

TOTALS

{Memorandum Onl:i} YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

0.00 $

0.00 $

0.00

$

1,901.28 $

1,901.28 $

1,583.92

-1,666.60

-1,666.60

-1,384.02

$

234.68 $

234.68 $

199.90

$

234.68 $

234.68 $

199.90

12,195.85

12,195.85

11,995.95

$

12,430.53 $

12,430.53 $===1=2==,1=9=5.=85=

The notes to the general-purpose financial statements are an integral part of this statement. -9-

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Monroe County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
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 a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

- 11 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of 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:
NONEXPENDABLETRUSTFUND Persons Memorial Library Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to purchase library books and materials.
EXPENDABLE TRUST FUND Mary Persons Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for students who attend Mary Persons High School.
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 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 and expendable trust 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.

- 12 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option 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 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001.

- 13 -

MONROE COUN1Y BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The Monroe County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning
- 14 -

MONROE COUN1Y BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation ofthe United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions 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 Monroe County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 13, 2000 (levy date). Taxes were due on December 20, 2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Monroe County Tax Commissioner bills and collects the property

- 15 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE30.2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $9,566,973.61 and for school bonds amounted to $2,166.77.

The tax millage rate levied for the 2000 tax year (calendar year) for the Monroe County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

11.82 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational pwposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $4,034,035.57 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $10,172,899.22 has been collected or on March 31, 2004, whichever occurs first.

INVENTORIES

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

GENERAL OBLIGATION BONDS

The School District issues general obligation bonds to provide funds for the acquisition and construction 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-Tenn Debt Account Group.

- 16 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses 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, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum 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 ofor 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,

- 17 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

(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 ofthe 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, 2001, the bank balances were $3,479,173.03. The amounts ofthe total bank balances are classified into three categories of credit risk:

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

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

Risk Category

Bank Balance

1 2
3
Total

$ 307,256.37 3,171,916.66 0.00
$ 3,479,173.03

- 18 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS AND INVESTMENTS
CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $4,712,999.11 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 ofGeorgia, 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 ofGeorgia 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 ofthe 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, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months.
Note 3: NON-MONETARY TRANSACTIONS
The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories
Note 4: RISK MANAGEMENT
The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.
- 19 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

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

The School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to natural disaster in the past three years.

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the 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:

2000 2001

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$

0.00 $

390.00 $

390.00 $

0.00

$

0.00 $

3,152.00 $

3,152.00 $

0.00

The School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered

Amount

Five Principals Five Business Staff Four School Cafeteria Managers Superintendent

$ 2,500.00 $ 2,500.00 $ 2,500.00 $ 2,500.00

-20-

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Monroe County Board of Education has entered into various lease agreements as lessee for copiers and buses. 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 of the date of their inception.

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

Purpose

Interest Rates

Amount

General Government - Refunding - Series 1993

3.0%- 5.3% $ 820,000.00

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 2000

$ 156,059.60 $ 1,040,000.00 $ 1,196,059.60

Deductions Debt Retired

56,042.72

220,000.00

276,042.72

Balance June 30, 2001

$ 100.016.88 $ 820,000.00 $ 920,016.88

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

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2002 2003 2004 2005

$ 57,010.40 $ 267,655.00 $ 324,665.40

51,178.80

266,180.00

317,358.80

258,960.00

258,960.00

126,360.00

126,360.00

Total Principal and Interest $ 108,189.20 $ 919,155.00 $ 1,027,344.20

Deduct: Imputed Interest

8,172.32

Net Present Value of Future Minimum Lease Payments $ 100,016.88

- 21 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $339,830.81 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies.

Georgia Department ofEducation Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $271,350.53

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $9,491.28

Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$58,989.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001:

Project

Unearned Executed Contracts

99G/98S-702-062 Middle School Soccer Field Modifications To Mary Persons High School Fieldhouse Project

$ 74,700.71 1,712.93
477,920.48 117,694.00

$ 6721Q2,l2 The amounts described in this note are not reflected in the general-purpose financial statements.

Note 8: CONTINGENT LIABILITIES

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

-22-

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 8: CONTINGENT LIABILITIES

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

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

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

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 1,590,698.73 $ 1,506,754.60 $ 1,487,948.65

- 23 -

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

466.142.03 $

122.377.61

518,880.85

13,848.26

31,930.42 21.707.26

Total Assets

$ 1,052,508.82 $ _ _1_2.2.,._3=77=.6_1=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general-purpose financial statements.
-24-

$

61,155.38 $

30,343.75

82,514.26

92,033.86

$

143,669.64 $

122,377.61

$

31,930.42

21,707.26

855,201.50 $

0.00

$

908,839.18 $

0.00

$ 1,052,508.82 $-=1=2=2=,3=77=.6=1=

EXHIBIT"G"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

5,660.71 $

594,180.35 $

599,062.64

518,880.85

490,140.52

172,734.00

186,582.26

193,064.78

31,930.42 21,707.26

31,567.89 12,032.95

$

178,394.71 $ 1,353,281.14 $ 1,325,868.78

$

30,199.01

$

40,731.69 $

132,230.82

78,596.67

111,399.40

285,947.52

246,991.86

21.69

21.69

$

152,152.78 $

418,200.03 $

355.787.54

$

27,945.35

$

26,241.93 $

26,241.93

31,930.42 21,707.26

31,567.89 12,032.95

0.00

855,201.50

898,535.05

$

26,241.93 $

935,081.11 $

970,081.24

$

178,394.71 $ 1,353,281.14 $ 1,325,868.78

-25-

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

104,990.00 $

793,949.01

534,349.53

$ 1,433,288.54 $

833,258.36 833,258.36

$

$ 1,476,622.09

$ 1,476,622.09 $

$

-43,333.55 $

825,459.32
97,221.21 941.04
22,862.21 16,184.10
1,559.86 3,142.74
967,370.48
-134,112.12

134,112.12

$

-43,333.55 $

0.00

942,135.89

0.00

362.53 9,674.31

$

90B,B39.1B $====o=.o==o=

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

EXHIBIT"H"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

938,248.36 $

874,345.36

$ 1,091,806.06

1,885,755.07

1,608,969.80

150.00

534,499.53

552,706.24

$ 1,091,956.06 $ 3,358,502.96 $ 3,036,021.40

$ 1,025,146.94 $ 1,850,606.26 $ 1,531,063.22

24,293.86 19,535.34
4,663.36 36,944.96

97,221.21 25,234.90 19,535.34 22,862.21 16,184.10
6,223.22 40,087.70 1,476,622.09

87,919.90 26,435.14 19,971.99 20,042.22 16,248.54 2,954.03 19,113.59 1,315,595.07

$ 1,110,584.46 $ 3155415n.03 $ 3,039,343.70

$

-18,628.40 $ -196,074.07 $

-3,322.30

16,924.98

151,037.10

45,040.05

$

-1,703.42 $

-45,036.97 $

41,717.75

27,945.35

970,081.24

947,713.23

362.53 9,674.31

-13,674.23 -5,675.51

$

26,241.93 $

935,081.11 $ -===9==1=0.,.,0_81=.2=4=

-27-

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

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2001 JUNE 30, 2000

$ 88,081.65 $ 1,765,843.91 $ 1,853,925.56 $ 2,344,841.33

1,324,826.60

1,324,826.60

682,204.52

682,204.52

716,250.38

Total Assets

$ 88,081.65 $ 3,772.875.03 $ 3,860,956.68 $ 3,061,091.71

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For SPLOST Projects Unreserved Undesignated
Total Fund Equity

$ 37,255.29 $ $ 37,255.29 $

47,925.00 $ 168,013.36 278,135.19
494,073.55 $

85,180.29 168,013.36 278,135.19 $
531,328.84 $

171,362.20 171,362.20

$ 3,278,801.48 $ 3,278,801.48 $ 2,741,869.03

$ 50,826.36

0.00

50,826.36

147,860.48

$ 50,826.36 $ 3,278,801.48 $ 3,329,627.84 $ 2,889,729.51

Total Liabilities and Fund Equity

$ 88,081.65 $ 3,772,875.03 $ 3,860,956.68 $ 3,061,091.71

See notes to the general-purpose financial statements.

-28-

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

EXHIBIT "J"

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

REVENUES

State Funds Taxes Other Funds

$ $ 12,212.33

$ 505,325.00

3,737,512.93 $ 3,737,512.93

3,571,390.25

47.227.76

59,440.09

32,218.12

Total Revenues

$ 12,212.33 $ 3,784,740.69 $ 3,796,953.02 $ 4,108,933.37

EXPENDITURES

Current Support Services Business Administration Maintenance and Operation of Plant
Capital Outlay Professional and Technical Services Land and Land Improvements Building and Building Improvements Equipment

$

61.74 $

73.38 $

135.12 $

13,490.59

13,490.59

224.84

109,184.71

3,202,897.12

3,312,081.83

65,012.89 477,387.80 1,728,310.51
7,900.00

Total Expenditures

$ 109,246.45 $ 3,216,461.09 $ 3,325,707.54 $ 2,278,836.04

Excess of Revenues over (under) Expenditures

$ -97,034.12 $ 568,279.60 $ 471,245.48 $ 1,830,097.33

OTHER FIN8tl!CING SOURCES (YSES}

Operating Transfers In Operating Transfers Out

$ 1,639,920.50

$

-31,347.15 $ -31 347.15 -1,639,920.50

Total Other Financing Sources (Uses)

$

-31,347.15 $ -31 347.15 $

0.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -97,034.12 $

536,932.45 $ 439,898.33 $ 1,830,097.33

FUND BALANCE JULY 1

147,860.48

2,741,869.03

2,889,729.51

1,059,632.18

FUND BALANCE JUNE 30

$ 50,826.36 $ 3,278,801.48 $ 3,329,627.84 $ 2,889,729.51

See notes to the general-purpose financial statements.

-29-

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

EXHIBIT"K"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2001 JUNE 30, 2000

$ 86,157.73 $

22,867.64 $ 109,025.37 $

81,591.30

369.05

369.05

11560.82

Total Assets

$ 86,526.78 $

22,867.64 $ 109,394.42 $ ====8,...3,..,1.5..2....1..;;2.,.

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ 86,526.78 $ 0.00

22,867.64 $ 0.00

109,394.42 $ 0.00

83,152.12 0.00

Total Fund Equity

$ 861526.78 $

221867.64 $ 1091394.42 $ ===8=31.,.1=52....1=2=

See notes to the general-purpose financial statements. - 30 -

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

EXHIBIT "L"

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

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2001 JUNE 301 2000

$ 2.166.77 $ t207.89
$ 3,374.66 $

296.522.64 $ 296,522.64 $

298,689.41 $ 1 207.89
299,897.30 $

261,837.96 1,579.22
263,417.18

$

$

0.00

$

0.00 $

$ 3,374.66 $

83,152.12

220,000.00 $ 53,655.00
273,655.00 $ 22,867.64 $ 0.00

220,000.00 $ 53,655.00
273,655.00 $ 26,242.30 $ 83,152.12

215,000.00 32,095.00 1,615.78
248,710.78
14,706.40
68,445.72

FUND BALANCE JUNE 30

$ 86,526.78 $

22,867.64 $ 109,394.42 $====8=3'=1=52=.1=2=

See notes to the general-purpose financial statements.

- 31 -

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

MONROE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES
JUNE 30. 2001

NONEXPENDABLE TRUST FUND ENDOWMENT FUND
PERSONS MEMORIAL LIBRARY FUND

EXPENDABLE TRUST FUND MARY PERSONS SCHOLARSHIP
FUND

$

12,430.53 $

24,332.29

32,551.80

Total Assets

$

44,982.33 $ ===2=4=,3=3=2.=29=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Funds Held for Others
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Endowment Corpus Unreserved Undesignated
Total Fund Equity

$

10,000.00

34,982.33 $ _ _--=2..;.4,,=3;:a.:32:.:;.2:.:9:...

$

44,982.33 $ _ _--=2..;.4,,=3;:a.:32:.:;.2:.:9:...

Total Liabilities and Fund Equity

$

44 982.33 $ ===2=4='=,3=3.;.,;2-=29=

See notes to the general-purpose financial statements.
- 32-

EXHIBIT"M"

AGENCY FUNDS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

36,762.82 $

36,299.47

$ ______s.,..0...0....0__._o_o__

32,551.80 9,000.00

30,885.20

$

9,000.00 $

781314.62 $....,...__6...,1..,1....,8..,4..,67...,

$

30,153.46 $

-21,153.46

$

9,000.00 $

30,153.46 -21,153.46 $ _ _ _ _2_8_.6...._0_3__
9,000.00 $ _ _ _ _2_8_6._03_

$

10,000.00 $

10,000.00

59,314.62

56,898.64

$

69,314.62 $ _ _ _6__6...._,_89__8._6_4_

$

9,000.00 $

78,314.62 $-===-===6=7=,1=84==67=

-33-

MONROE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE AGENCY FUNDS YEAR ENDED JUNE 30. 2001

EXHIBIT"N"

FLOWER FUND ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
FAMILY CONNECTIONS ASSETS
Cash and Cash Equivalents Accounts Receivable
LIABILITIES Funds Held for Others
TOTALS AGENCY FUNDS ASSETS
Cash and Cash Equivalents Accounts Receivables
LIABILITIES Funds Held for Others

BALANCE JULY1,2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2001

$

286.03 $

579.28 $

139.10 $ ===7=2=6-,..2==1

$

286.03 $

579.28 $

139.10 $===-7=2=6.=2=1

$

0.00 $ 34,209.27 $

_ ____,;;.o=.o_o_

9,000.00

65,088.94 $ 0.00

-30,879.67 9,000.00

$

0.00 $ 43,209.27 $

65,088.94 $ ==2=1=,8=7=9=.6=7

$

0.00 $ 43,209.27 $

65,088.94 $==2=1=,8=7=9=.6=7

$

286.03 $ 34,788.55 $

65,228.04 $

-30,153.46

0.00

9,000.00

0.00

9,000.00

s,...___28..,.6,....0,_3 s 43,788.55 s 65,228.04 $ ==2..,1..,.1..,5.3...,.4,..,6

s_ _ _28..6._.0_3 s s 43.788.55

65,228.04 $

-21,153.46

See notes to the general-purpose financial statements.

34.

MONROE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program

10.553 10.555

NIA $ 191,588.30

(2)

NIA

513,743.53 $ 1,393,390.28 (3)

Total Child Nutrition Cluster

$ 705,331.83 $ 1,393,390.28

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds
Total U. S. Department of Agriculture

10.550
10.558 10.665

NIA

83,231.81

83,231.81

NIA

5,385.37

(2)

NIA

0.06

!4l

$ 793,949.07 $ 1,476,622.09

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Ad Part B - Special Education Flow Through Preschool

* 84.027 * 84.173

NIA $ 324,889.08 $

NIA

32,427.00

332,194.89 (3) 39,495.84 (3)

Total Special Education Cluster

$ 357,316.08 $

371,690.73

Other Programs

Pass-Through From Bibb County Board of Education

Vocational Apprenticeship Program

84.048

NIA

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Ad

Title I

Grants to Local Educational Agencies

* 84.010

NIA

Tltlell

Eisenhower Professional Development

84.281

NIA

TiUe VI

Innovative Education Program Strategies

84.298

NIA

Class SIZe Reduction

84.340

NIA

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84.048

NIA

4,750.00
575,554.21 17,040.00 19,979.77 81,168.00
40,748.00

(4)
574,638.55 19,151.76 (3) 23,187.42 (3) 81,168.00 (3)
40748.00

Total U. S. Department of Education

$ 1,096,556.06 $ 1,110,584.46

Total Federal Financial Assistance NIA = Not Available

$ 1,890,505.13 $ 2,587,206.55

-35-

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

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The School Distrid did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Monroe County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general-purpose financial statements.

See notes to the general-purpose financial statements.

- 36-

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Dired lnstrudional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Gifted Student Category VI Remedial Education Program Altemative Education Program Media Center Program Staff and Professional Development lndired Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Food Services Vocational Education Other State Programs At-Risk Summer School Program Environmental Science Program Health Insurance Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Applied Technology Labs Computers in the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
Division of Family and Children Services Workforce Training
Middle Georgia RESA Drug Prevention
Office of Planning and Budget Georgia Council for the Arts - Challenge

GOVERNMENTALFUNDTYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

596,572.00

82,460.00

1,628,237.00

237,451.00

813,436.00

1,539,072.00

1,499,992.00

329,674.00

13,593.00 348,638.00 632,409.00
69,473.00 98,652.00 192,428.00 121,588.00 261,368.00 69,582.00 1,654,325.00

$

596,572.00

82,460.00

1,628,237.00

237,451.00

813,436.00

1,539,072.00

1,499,992.00

329,674.00

13,593.00 348,638.00 632,409.00
69,473.00 98,652.00 192,428.00 121,588.00 261,368.00 69,582.00 1,654,325.00

657,616.00 172,260.00
86,894.00 15,842.00 14,842.00 54,928.00
$ 32,373.00

104,990.00

6,056.47 750.00
271,350.53 50,166.00 5,584.07 9,491.28

100,000.00 74,258.00

657,616.00 172,260.00
86,894.00 15,842.00 14,842.00 54,928.00 104,990.00 32,373.00
6,056.47 750.00
271,350.53 50,166.00 5,584.07 9,491.28
100,000.00 74,258.00

659,000.36

659,000.36

58,989.00

58,989.00

9,990.02

9,990.02

10,910.75

10,910.75

5,000.00

5,000.00

37-

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

SCHEDULE "2"

AGENCY/FUNDING
CONTRACTS Education, Georgia Department of Academic Decathlon to Help Promote Student Achievement in Secondary Schools Georgia's Reading Challenge

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

15,000.00

8,549.00

$

15,000.00

8,549.00

$ 11,675,542.12 $ 938,248.36 $ 121613,790.48

See notes to the general-purpose financial statements.

-38-

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

SCHEDULE "3"

PROJECT
Payments in full of the principal and interest due on the Monroe County School District's Series 1993 General Obligation Bonds from January 1, 2000 through and induding final maturity of January 1, 2005
Acquisition, construction and equipping additional dassrooms, instructional and support space, as well as remodeling, renovating, improving, furnishing and equipping existing school district facilities, induding dassrooms, instructional areas, support space, physical education and athletic facilities, administrative facilities and grounds, acquiring any necessary personal property, induding computers and other technology and paying expenses incident thereto

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS(2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 1,439,905.00 $ 1,439,905.00 $ 273,655.00 $ 247,095.00 Ongoing

17,485,095.00

17,485,095.00

3,216,461.09

2,257,101.32 Ongoing

$ 18,925,000.00 $ 18,925,000.00 $ 3,490,116.09 $ 2,504,196.32

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

See notes to the general-purpose financial statements.

- 39-

MONROE COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM CQBEl
ALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle Grades (6-8) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category II

Category Ill

Category IV

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

849,385.00 $ 117,405.00 2,318,245.00 338,077.00 1,158,150.00

900,378.70 $ 113,336.37 2,524,717.74 301,623.52 1,347,277.42

2,191,294.00 2,135,652.00
469,382.00 1,515,057.00
140,458.00 273,975.00 173,114.00

2,330,596.40 2,142,378.93
607,963.40
393,677.25 913,780.60
46,161.08 198,374.02 257,831.42 280,268.76

9,056.26 $ 406.18
39,686.00 34.54
21,846.78 9.96
87,912.49 90,468.48 37,318.04

909,434.96 113,742.55 2,564,403.74 301,658.06 1,369,124.20
9.96 2,418,508.89 2,232,847.41
645,281.44

6,166.21 14,574.78
1,378.32 1,862.09 1,057.85 7,707.96

399,843.46 928,355.38 47,539.40 200,236.11 258,889.27 287,976.72

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

11,680,194.00 $ 12,358,365.61 $ 319,485.94 $ 12,677,851.55

Media Center Program Staff and Professional Development

372,128.00 99,069.00

309,385.96 26,586.57

75,898.92 82,976.84

385,284.88 109,563.41

TOTAL QBE FORMULA FUNDS

$

12,151,391.00 $ 12,694,338.14 $ 478,361.70 $ 13,172,699.84

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

See notes to the general-purpose financial statements.

-40-

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

SCHEDULE "5"

SITE Monroe County Middle School Mary Persons High School Hubbard Primary School Hubbard Elementary School Central Office (Alternative Education Program) Other Auxiliary Facility
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,610,667.00 $

2,881,626.79

3,093,341.00

3,396,308.00

2,933,944.00

3,229,581.77

2,869,128.00

2,990,178.32

173,114.00

21,695.57

158,461.10

$

11,680,194.00 $ 12,677,851.55

See notes to the general-purpose financial statements. - 41 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

w. RUSSELL

HINTON

STATE AUDITOR

(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 22, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Monroe County Board ofEducation
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 Monroe County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated May 22, 2002. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether Monroe County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
2001YB-41

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Monroe County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Monroe County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7021-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7021-01-01 to be a material weakness.
This report is intended solely for the information and use of the management, members of the Monroe County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:as 200IYB-41

State Auditor

RussELL W. HtNTON
STATE AUDITOR
1404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 22, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Monroe 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 Monroe County Board ofEducation with the types ofcompliance requirements described in the US. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Monroe 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 of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Monroe County Board of Education's management. Our responsibility is to express an opinion on Monroe 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 of the 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 Monroe 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 Monroe County Board of Education's compliance with those requirements.
2001SA-30

In our opinion, the Monroe County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Monroe 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 Monroe 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.
We noted a certain matter involving the internal control over compliance 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 compliance that, in our judgment, could adversely affect the Monroe County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-7021-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, 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. Our consideration of the internal control over compliance 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 believe the reportable condition described above is not a material weakness.
This report is intended solely for the information and use of the management, members of the Monroe County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:as 2001SA-30

State Auditor

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7021-99-01 FS-7021-00-01

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-7021-00-01

At the end of Fiscal Year 2000, there was no widely accepted software program for the recording ofGeneral Fixed Assets. During Fiscal Year 2001, the School District began the process by having an outside firm conduct a preliminary inventory of all fixed assets. A new software program under implementation for the School District for Fiscal Year 2003 will provide the vehicle to maintain the General Fixed Assets Account Group. Movement toward resolving the finding will take place during Fiscal Year 2003.

SECTIONN FINDINGS AND QUESTIONED COSTS

MONROE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Monroe County Board ofEducation's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Monroe 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 Monroe 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 Monroe County Board ofEducation disclosed a reportable condition in internal control over major programs for the following compliance requirement.
Cash Management
The reportable condition described above is not considered to be a material weakness.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Monroe CountyBoard ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Reguired to be Reported by Section .510(a) ofOMB Circular A-133 The Monroe County Board of Education's audit disclosed an audit finding required to be reported by section .510(a) of0MB Circular A-133. This audit finding is included in section N ofthis report.
7. Major Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 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
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MONROE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
I SUMMARY OF AUDITOR'S RESULTS
8. Type "A" Progratn Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Monroe County Board of Education qualified as a low risk auditee based on a waiver granted by the U.S. Department ofEducation.
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-7021-01-01
The Monroe County Board of Education failed to 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-pwpose 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
CASH MANAGEMENT Excessive Cash Balances Reportable Condition U.S. Department ofEducation Through Georgia Department ofEducation Finding Control Number: FA-7021-01-01
A review ofcash management procedures for the Part B - Special Education - Flow Through (CFDA 84.027) and the Part B - Special Education - Preschool (CFDA 84.173) at the Monroe CountyBoard ofEducation disclosed that cash draws were made in advance ofimmediate cash needs, resulting in the accumulation of excessive cash balances. During fiscal year 2001, the program had an average cash balance of$17,083.33 and had excessive ending monthly cash balances in nine months. The
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MONROE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
CASH MANAGEMENT Excessive Cash Balances Reportable Condition U.S. Department ofEducation Through Georgia Department ofEducation Finding Control Number: FA-7021-01-01
excessive cash balances are a result ofmanagement's failure to accurately forecast the cash needs of this program. The School District should implement procedures to minimize the time that elapses between the transfer offunds from the Georgia Department ofEducation and disbursement ofsuch funds.

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