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

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MONROE '

-~O-UNTY

.BOARD
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' FORSYTH,' GEORGIA

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OF THf FINANCIAi. STATEMENTS r,

.FOR THE FISCAi. YEAR,ENDED JUNE 30,' 2002

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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

10

ADDITIONAL 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

30

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

32

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

33

MONROE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

EXHIBITS

COMBINING STATEMENTS

FIDUCIARY FUND TYPES

M

COMBINING BALANCE SHEET

34

N

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

36

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

37

2 SCHEDULE OF STATE REVENUE

39

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

41

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

42

5

BY SITE

43

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 CON fROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

SECTION Ill :\UDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

MONROE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

{U~\~LL W. HINlON
STAI l AUOIT()fl
(4~) 656 21 !4

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street.SW Su1lc 214 A!lanta, Gcor~1J 10334-84()()
May 28, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendcnt and Members of the Monroe County Board ofEducallon
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen
We have audited the accompanying general-purpose financial statements of the Monroe County Board of Education, as of and for the year ended June 30, 2002, as listed m the table of contents These general-purpose financial statements are the responsibility of the Monroe County Board of Education's management Our respons1b1lity 1s to express an opm1on on these general-purpose financial statements based on our audit
Except as discussed m the following paragraph, we conducted our audll m accordance with aud!lmg standards generally accepted m the Uruted States of Amenca and the standards applicable to financial audlls contamed m Government Audnmg Standard~, issued by the Comptroller General of the Umted States Those standards reqmre that we plan and perform the audit to obtam reasonable assurance about whether the financial statements are free of material misstatement An audit includes exammmg, on a test basis, evidence supporting the amounts and disclosures in the financial statements An audit abo mcludes assessmg the accountmg pnnc1ples used and s1gmficant estimates made by management, as well as evaluatmg the overall financial statement presentation We believe that our audit provide~ a reasonable basis for our opmmn
We did not ob\ervc the takmg of either the Federal donated commodllies mventory or purchased food~ mventory at June 30, 2002, nor could we sausfy ourselves as to the accuracy of the amounts stated as mventones through alternative procedures

2002ARL-13

As descnbed in the note~ to the general-purpose financial statements, the Board of Educatwn's financial statements have been prepared using certain accounting practices and pohc1cs which. in our opinion, vary in some respects from generally accepted accounting pnnc1ples These vanance~ arc de~cnbed 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 pnnc1ples.
School act1v1ty accounts maintained at the individual schools are not included in the general-purpose financial statements To conform to generally accepted accounting pnnc1ples, these accounts should be included in the general-purpose financial statements
The Board of Education did not recognize a~ expenditures, in the year ended June 30, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002 Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded salanes and related benefits were not recorded as revenue in the year under review Conversely, the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30, 2001. were improperly recorded in the year ended June 30, 2002 To conform to generally accepted accounting pnnc1ples, revenues should be recorded when available and measurable and expenditures should be recorded when incurred. rather than when funds arc received or disbursed
The aggregate effects on the general-purpose financial statements of these variances or om1sswns have not been deterrmned. but are believed to be matenal
In our opinion, except for the effects of such adjustments, if any. on the Special Revenue Fund, a~ might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventones as discussed in the third paragraph. and except for the effect~ on the general-purpose financial statement~ of the matters referred to in the preceding paragraph. the general-purpose financial statements referred to above present fairly, in all matenal respects, the financial position of the Monroe County Board of Education as ofJune 30. 2002, and the results of 11s operallons and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with accounting pnnc1ples generally accepted in the United State~ of Amenca
In accordance with Government Auditing Standards, we have also ~sued our report dated May 28. 2003, on our cons1deratwn of the Monroe County Board of Education's internal control over financial reporting and our tests of its compliance with certain prov1s1ons of laws, regulations, contracts and grants That report 1s an integral part of an aud11 performed in accordance with Government Auditing Standards and should be read in conJuncllon with this report in cons1dcnng the results of our audit
2002ARL-13

Our audit was performed for the purpose of formmg an opinion on the general-purpose financial statements of the Monroe County Board of Education taken as a whole. The accompanymg combming statements (Exh1b1ts G through N) and the financial schedules (Schedules I through 5), which mcludes the Schedule of Expenditures of Federal Awards as requued by U. S. Office of Management and Budget Circular A-133, Aud/ls of States, Local Governments, and Non-Profit Orgamzallons, are presented for purposes of addltlonal analysis and are not a required part of the general-purpose financial statements Such information has been subjected to the aud1tmg procedures applied m the audit ofthe general-purpose financial statements and m ouropmion, except for the effect ofadjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food sel'Vlce mventones as discussed m the third paragraph, and except for the effects of the matters referred tom the fourth paragraph, such informat10n 1s fairly stated, mall material respects, m relation to the general-purpose financial statements taken as a whole.
A copy ofth1s report has been filed as a permanent record m the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
_ _R...e~s.pectfully submitted,
ul,'1d1 : ~
RWH:as 2002ARL-13

MONROE COUNTY BOARD OF EDUCATION

MONROE COUNTY BOARD QF EDUCATION
COMBINED BAl.ANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30 2002

C8$h and Cash Equivalents
Investments
Account, Recervabkt
Prepaid Item!
lnveotones
Food Donaled Commod,t,e,i Purchased Food
Amount Available Dl Debt Servk:e Fund
Amount to be Provided In Future Years
For Payment ot Bond Debt
Capital Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

s 484 150 22 s

419 045 94

s 2 204 777 87

533185 36

3 899,-464 55

496 992 68

182 193 09

&586733,,4

94 850 00

21 269 50 15 78'1 52

en s .2 701 770 55 S 1 331 432 69 S 4 103 83

UABILlUES AND FUND EOUIJY
LIAQILITifS
Cash Overdraft Account& Payable Salaries Payable Contracts Payabk! Reta1nages Payable Deferred Revenue Fund! Held for Others Capital Lease Ag.ee,1.e-r1ts General Obbgabon Bonds Payable
Total Laab1kbes
FUND EQUITY
Fund Balances
Rose,_
For Debt Serv1Ce For Endowment Corpus For Exptred Grant Balancee/Ouesffoned Costa For SPLOST For lnventones
Food Donated Commodrbes Purchased Food
For State CaprtaJ Outlay Pro,ecta Unreserved
U ncleSIQllBted
Total Fund Equrty
Total Uablllbes and Fund Equity

s

37,499 48

1286348 S

82,01348 S

20 312 72

300 004 13

140 191 98

50 349 64

19 242 65

s

!SO 382 98 S 401 260 26 s _ _~21~0~,,,.=""'--

s 3 908 863 30

s
$ 2 651 407 59 $ 2 651 407 59 $

21 269 50 15 78'1 52
89311841 930 172 43 $

647 352 00 210 114 19 4 766.329 49

s 270177055 s 1 331 432 sg s 4 977 183 83

The note-5 to the general-purpose financial statements are an integral part of thrs statement
2

DEBT
SERVICE FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum Onl~l

JUNE 30 2002

JUNE 30 2001

$

88 699 73 s

1s 099n

s 1 007 995 66 s 2 563 740 64

15 000 00

6 652 427 78

4 745 550 91

1 880 51

1 339 739 62

111488909

94 850 00

s

90 580 24

21 289 50 15 784 52
90 580 24

31 93042 21,707 26
109 3&4 42

s

90 580 24 s

31 099 n s

504 419 76 48 441 85

504 419 76 48 441 85

710 605 58 100 016 88

643 441 85 s 9 775 508 93 s 91397 835 20

s

-21,438 80

s

s

-21 438 80 s

s
48,441 85 595 000 00
643 441 85 s

37,49Q 48 s
115,189 88 300 004 13 140 191 98
50 349 64 19 242 65 -2143880 48 441 85 585 000 00
128448061 s

213 463 58 538 458 32 285 &47 52 168,013 38 278 135 19
21 69 -21 153 46 100 016 88 820 000 00
2,382 903 08

s

90 580 24

s

10 000 00

0 00

42 538 57

s

90 580 24 s

52 538 57

s

90 580 24 s

31,099 77 s

s

90 580 24 s

109 394 42

10 000 00

10 000 00

26 241 93

3 908,883 30

3 278 801 48

21 269 50 15 764 52 647 352 00

3193042 21 707 26

3 797 178 76

3,536 856 61

s 0 491 028 32 s 7,014,932 12

643 441 85 s 9 775 508 93 s 91397 835 20

- 3-

MQ!'.IBQI; COUtfiY ~Bil QF EllU~T!QN QQMBINEll TAT!a!,lEI:[ QF BEVEtM;li lalSPEND!I!JBl;li AND !,!:!e,Nl,E~ IN FUl!lll BALANCs~
AL~ l,OVERl!!MsNT~ El,IND msli ~ll ~~Nll.@LE IBUST FUl!lll
YEAR ENQED JUNE 30 2002

BEVENUES
State Funda F-.IFunds Taxes Other Funds
TolalR8Yef'IU95
lalSPEND!I!JBES
Cunent Instruction
Support SeMces
PupllSeMces
Improvement of lnstructlonal Servlcm Educa11onai Media SeMces General Administration
SChool Adminlslratlon Business Adr,mlstrallon Maintenance and ()peratJon of Plant Student Transportallon SeMceB Central Support Sennces Other Support 5eN1ces Food 5eMC8S Operation Capllal Outlay DeblSeNlce Pnncipal Interest Paying Agen1 Fees
TotalExperdltures
Exceu of Revenues owr (und) Expenditures
QTHsB EINANCll!lll liQU!lQE (UliElil
Operabng Transfers In Operala,g Tranolero Out
To1BI 01her Flnancng Sources (Uses)
Excess ol Revenues and Other Fmancmg Souroes over (ooder) Expenditures and Other Financing Uses
FiJND BALANQ~ J!.!bY 1
Food lnvenloly Nol Change In Penod Donated Convnodrt,ea Pur<:hased Food

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 12,300 775 00 $ 1501106
11 077 977 !18 135J87 00
$ 23,529,050 82 $

1,038 !18 66 2 232 599 20
$ 515377.a
3,786,0336 $

3 551 331 05 207,338 36
3,758,669 1

$ 15,266 308 8 $
385,24221 92,212 69 OB 951 3 9'1383 82 1,M7 328 52 233 9'10 !18 2 307,37 66 1,607 ,9'15 08 287 705 72 82 9'IO 45
69800
51 575 03 H3537

2,067 218 69
109,581 18 .S 651 93
.. 616 51 24,52 58
$ 20,627 ~
.319 9'I
66 628 1 1.S3,55599

16510 2,526 093 55

$ 23,171,922 02 $

s

357 126 60 $

3,9'17,702 63 $ -61 269 27 $

2,526.258 65 1J32,10 76

$ $ -277 J35 1
$ -277 235 1 $

72 ~ 25 $

TM29089

72~25 $

2a.,290 89

$

79,893 .S $

2 571 51 13

11,67 98 $ 935,081 11

1,.36,701 65 33296279'1

-10,660 92 -5 922 1

EUND BALAl!ICE JUl!IE 30

$ 285U07 59 $

930 172 43 $ 4 766 329 9

. Tile no1e& to the general-purpose financial llla1ementS ara an m1egral pan of 1hb stalemeal --

EXHIBIT "Er"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS

(Memorandum On~!
YEAR ENDED

JUNE 30 2002

JUNE 30, 2001

s 13,339,231 68

s

266,444 37

838 20

2,247,810 26 14 895,752 98
s 858 841 04

s

s s 267.282 57

31 341 435 96

s
838 33

s 13,339.231 68
2,247,610 26 14,895,752 98
659 479 37

12 813,790 48 1890,50513
13 803,578 57 825 885 12

s s 638 33

31,342,074 29

29,133,759 30

s 17 353,527 17 $

494 803 39 538,864 82 40695143 538,980 33 1 571 653 10 234 105 68 2,328 002 Oil 1,612 165 Oil 287 705 72 129,566 92 1 463 555 99 2 526,791 55

s

225 ODO Oil

57 96147

3 135 28

276,575 03
63,396 84
3 135 28

s

s 266 096 75

29 63198005 s

s

s s -16 814 18

1 509.455 91

s s 0 00

17 353 527 17

18,401 669 53

494 803 39 538 864 62 408,951 43 538,980 33 1,57165310 234,105 68 2,328,002 Oil 1,612 165 00 287,705 72 129,566 92 1 463 555 99 2 526,791 55

45143449 496 382 36 391,017 20 469,559 84 1,510 529 68 256,203 15 2 143 851 53 1656,00774 338,352 26 130,270 50 1,476 822 09 3 312,081 83

276,575 03
63 396 84
3 135 26

278,042 72 62 358 68

s s 0 00

29,631,980 05

29,376,381 80

s s 638 33

151009424

-242,622 50

s

2TT 235 14

-2TT 235 14

s

0 Oil

s

s -18 814 18

1,509,455 91 $

109,394 42

6 945 617 50

-10,660 92 -5 922 74

s

s 2TT,235 14

182,384 25

-2TT.235 14

-182 384 25

s

ODO s

0 Oil

s 638 33
24 332 29

s 1,510 094 24
6 969 949 79

-242,822 50 7,202 535 45

-10,660 92 -5 922 74

362 53
9 674 31

s

90 580 24 $ 8 438 489 75 S

24 970 62 $ 8 463 480 37 S 6,969.949 79

. 5.

MONROE COUNTY BOARD OE EPUCAT/ON COMBINED STATEMENT OE REVENUES EXPENDITURES AND CHANGES IN FUNQ BALANCES
BUDGET AND ACTUAL - /NON-Gt.AP BASIS> GENERAL AND SPEClAL REVENUE FUNDS
VEAR ENPEP JUNE 30 2002

EXHIBIT ~c

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

s 12 176 832 00 s 12.300 775 00

1501106

10,619,798 00

11077977 56

100 000 00

135 287 00

s s 22 896 630 00 23 529 050 62

Curren! lnstrucbon Support Services Puptl Services Improvement of lnstruchonal SeMces
Educattooal Media SISl'VICeS
General Adrmmstreoon School AdmLlllStrebon
Business AdmuntraltOO
Maintenance and Operation of Plant S1udent Transportabon SelVIC89 Cen1ral Support 5eMces
Olhef Support SeMCe3
Food Serwces Operation Cal)llal Outley Deb<Semce

s s 15 16100700 15 286 308 48

369 075 00 23 962 95 395 038 00 512 ,49,4 00 1 4-49 19' 00
=98900 2 023 003 00 1 560,627 00
3'3 148 00 100 143 00

385 242 21 492 212 69 408 951 43 49,4 363 82 1 547 328 52 233 9'0 58 2 307 374 66 1 607 845 06 267 705 72
82 940 45

698 00 57 010 40

Total Expendrtures

s $ 221560167895

23 171 922 02

s Excess of Revenues over (under) Expenditures

335 953 05 s

357 128 60

OTHER FINANCING SOURCES (USES)

Othe<Soufces

Other Uses

$

s Total Other FIOBl'lClnq Sources (Uses)

-278 250 00 $
s -278 250 00

-277 235 14 -2n 235 14

Excess of Revenues and Other F1nanong Soun::.es

over (under) Expenditures end Other Fl/'\8ncmg

u..,

s

57 70305 $

79 893 46

.E..!.!M2 ~~NCE JULY 3 2001
Food Inventory - Net Change m Penod Donated Commodrues Pu""'"'8dFood

2 271 740 00

2 571 514 13

FUND BALANCE JUNE 30 2002

s 232944305 S 2 651 407 59

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s

988 005 00 s

1 038 ,456 6B

2 044 909 00

2 232 599 20

519 882 00

515 377 48

s

3 552 796 00 $

3 786 433 36

s s 1 905,671 00

2 067 218 69

108 158 00 60 096 00

109 561 18 46 651 93

37 947 00 22 922 00

44 616 51 24 524 58

18 437 00 1 000 00

20627 3' 4,319 94

27 969 00 1 657 230 00

66 626 47 1 463 555 99

s 3 839 430 00 s 3 847 702 63

$

-288 63' 00 s

-61 269 27

s

58 697 00 s

72 9"'4 25

$

58 697 00 s

72 94-4 25

s

-'12.7 937 00 s

1167498

0 00

93508111

~10 660 92 5 922 74

s

-221 937 oo s _ _,.930"""1",,.2.;;a,3~

The notes to the general-pur'po&e finanaal statements are an integral part of this statement 7-

MONROE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
FIDUCIARY FUND TYPE - NONEXPENQABLE TRUST FUND
YEAR ENDED JUNE 30, 2002

EXHIBIT "D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES Caprtal Outlay Operabng Income
NONOPERATiNG REVENUES Interest Earned Net Income
FUND !;!ALANCE JU6Y 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
PERSONS MEMORIAL LIBRARY FUND

TOTALS

(Memorandum On~

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

000 $

000 $

000

$

1886198 $

18 861 98 $

000

$

-18,861 98 $

-18,861 98 $

000

144760

1447 60

1 901 28

$

-17,414 38 $

-17,414 38 $

1,901 28

44 982 33

44 982 33

43 081 05

$

27 567 95 $

27 567 95 $-~~44---9.8.2..,.33..,

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 2002

EXHIBIT"E"

Cash Flows from Operabng Acl1vlbes Cash Paid for Library Equipment
Cash Flows from Investing Aclivmes Interest R8C81V8d on lnvestmen1s Net Proceeds from Purchase/Sale of Investments
Net Cash ProVJded by Investment Actn11bes
Net Increase (Decrease) In Cash
Cash and Cash Equ1VSlents - July 1
Cash and Cash Equivalents - June 30

ENDOWMENT FUND
PERSONS MEMORIAL
LIBRARY FUND

TOTALS

{Memorandum Onl~l

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

-18 861 98 $

-18 861 98 $

000

$

1,447 60 $

1,44760 $

1,901 28

17 551 80

17 551 80

-1 66660

$

18 999 40 $

18 999 40 $

23468

$

13742 $

13742 $

23468

12 430 53

12 430 53

12,19585

$

12 567 95 $

s___ 12 567 95

1_2._4.3.0--=53,;..

The notes to the general-purpose financial statemen1s are an Integral part of this statement -9-

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Monroe County Board of Education (School Distnct) 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 Supenntendent appomted by the Board. The School District 1s 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 Accordmgly, the School Distnct 1s a primary government and consists of all the organizations that compose its legal entity
FUND ACCOUNTING
The School D1stnct uses funds and an account group to report on its financial pos1llon and the results of1ts operations Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or act:1v1t1es. A fund 1s a separate accounting entity with a self-balancing set of accounts. An account group 1s a financial reportmg device designed to provide accountab1hty for certain assets and liabiht:Ies that are not recorded m the funds because they do not duectly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the vanous funds at the time of purchase. A General Fixed Assets Account Group is not presently mamtamed by the School District To conform to generally accepted accountmg principles, a General Fixed Assets Account Group should be mamtamed for reporting the cost of assets acquired by governmental fund types
Although "school activity accounts" are mamtained at the ind1V1dual schools. neither the assets, hab1ht1es and fund eqwty, nor the revenues, expenditures and changes m fund balances of these accounts are reflected in these financial statements To conform to generally accepted accountmg pnnciples, these accounts should be recorded in the general-purpose fmancial statements.
The general-purpose financial statements account for all State. Federal, Taxes and Other funds under control of the School District, m compliance with generally accepted accountmg principles apphcable to governmental umts, unless otherwise disclosed m these notes Funds and the account group presented m this report are as follows.
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's educat10nal activities Governmental Fund Types mclude.
GENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those required to be accounted for in another fund These transactions relate to resources obtained and used for services provided by a board ofeducation.

- 10 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUN1ING 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 restncted to expenditures for ~pecified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educat10nal objectives
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqwsitton or constructton of maJor capital facihttes.
DEBT SERVICE FUND- the fund used to account for the accumuJat1on ofresow-ces for. and the payment of, general long-term pnncipal, 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. pnvate orgaruzat10ns, 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 1s to be invested and preserved intact with the resultant income to be used to purchase hbrary books and matenals.
EXPENDABLE TRUST FUND Mary Persons Scholarship Fund- the fund used to account for the pnnc1pal and earnrngs 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 obhgat1ons
BASIS OF ACCOUNTING
The accounting and financial report:tng 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 hab1ht1cs generally are included on the balance sheet. Operating statement.~ of these funds present increases (1 e. revenues and other financing sources) and decreases (i e., expenditures and other financing u.es) in net current assets Their reported fund balance 1s considered a measure of available spendable resources.

- 11 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liabiht1es which are expected to be financed from available spendable resources are reported as liabilities m the governmental funds. Other habilities, which are not expected to be financed from available spendable resources, are reported m 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 liab1lit1es associated with the operat10n ofthese funds are mcluded on the balance sheet Operatmg statements present increases (e.g, revenues) and decreases (e.g , expenses) m net total assets.
Agency funds are purely custodial in nature and do not mvolve measurement ofresults ofoperations
Governmental and expendable trust funds are accounted for usmg the modified accrual basis of accountmg under which.
Revenues are recogruzed when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transact10n can be determmed and "available" means collectible w1thm the current penod or soon enough thereafter to be used to pay hab1hties of the current period The School Distnct considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and mterest are considered to be susceptible to accrual Nonexchange transactions, m which the School D1stnct gives (or receives) value without directly receivmg (or g1vmg) equal value m exchange, mclude property taxes, local option sales taxes, intergovernmental grants and donations Revenue for property taxes 1s recognized m the fiscal year for which the taxes are levied. Revenue from sales taxes 1s recognized m the fiscal year the resources are received or susceptible to accrual Revenue from grants and donauons is recognized m the fiscal year in wluch all eligibility requirements have been sat:Isfied
Expenditures are generally recognized when the related fund liability 1s mcurred
A departure from the above defimt1ons 1s the accounting treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts. and the resources available from the Georgia Department of Education for the State's share of these contracts Dunng fiscal year 2002, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day penod beginning in August 2001 and ending m early June 2002 Personnel contracts for this employment penod specify that compensation be paid in twelve equal monthly payments beginning m September 2001 and endmg m August 2002 State grants to fund the State's share of these contracts were chsbursed from the Georgia Department of Education to the School District in the same twelve months As of June 30. 2002, compensat10n under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made Payments for these two months were made and recorded as expenchtures by the School Distnct subsequent to June 30, 2002 Also, the State's poruon ofthe compensation paid m July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002.

- 12 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Conversely, the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30, 2001, were recorded in the year ended June 30, 2002. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed
The accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by noncxpendable trust funds Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time habiht1es are incurred.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and hab1ht1es.
BUDGET
The Monroe County Board of Education's budget is a complete financial plan for the School District's fiscal year and 1s based upon estimates of expenditures together with probable funding sources. There 1s no statutory proh1bit10n regarding overexpend1ture ofthe budget at any level The budget for all governrnental funds 1s 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 D1stnct's admuustration 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 circulat10n in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revis10ns as necessary and adopts a final school budget. This final budget is then submitted, in accordance with prov1s1ons of the Quality Basic Educat10n Act, OCGA Section 20-2-167(c), to the Georgia Department of Educat10n The Board may increase or decrease the budget at any time dunng the year All unexpended budget authonty lapses at fiscal year-end
CASH AND CASH EQUIVALENTS
COMPOSITION OJ- DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with onginal matunt1es of three months or less from the date of acquisition in authorized financial institutions Georgta Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds in one or more solvent banks or insured Federal savings and loan assoc1at10ns.
INVESTMENTS
COMPOSITION OF INVESTMENTS Inve~tments made by the School D1stnct in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-eaming
- 13 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I 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-earrung contracts and money marl.et investments with a maturity at purchase greater than one year are reported at frur value. The Official Code ofGeorgia Annotated Section 36-83-4 authonzes the School D1stnct to invest Its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate of return 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) Obhgauons issued by the United States government,
(3) Obligations fully insured or guaranteed by the Uruted States government or a United States government agency,
(4) Obligations of any corporat10n of the United States government,
(5) Pnme 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 subdivis10ns 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 informat10n avrulable Receivables are recorded when either the asset or revenue recognition cntena 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 uncollecttble receivables
PROPERTY TAXES
The Monroe County Board of Comm1ss1oners fixed the property tax levy for the 200 I tax digest year (calendar year) on November 6, 2001 (levy date) Taxes were due on January 29, 2002 (hen date) Taxes collected w1thm 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 Monroe County Tax Comm1ss1oner bills and

- 14 -

MONROE COUNTY BOARD or EDUCATION
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002

EXHIBIT "F"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

collects the property taxes for the School D1stnct, withholds 2 5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District Property tax revenues dunng the fiscal year ended June 30, 2002 for maintenance and operations amounted to $ I0.885.559 IO and for school bonds amounted to $3,215 26

The tax millage rate levied for the 200 I tax year (calendar year) for the Monroe County Board of Educalion was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

~ mills

SALES TAXES

Special Purpose Local Opuon Sales Tax revenue dunng the year amounted to $3,814,560.16 and 1s to be used for capital outlay for educational purposes or debt service. This sales tax v,as authorized by local referendum and the sales tax must be re-authonzed at least every five years

INVENTORIES

FOOD INVENTORIES Inventories of donated food commod11les 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-m. first-out) Donated food commod111es are recorded as revenues and expenditures at the ume commodity items are received Purchased foods inventones are recorded as expenditures at the time of purchase The inventones reported on the balance sheet for donated food commod111es and for purchased foods are equally offset by reservations of fund balance which md1cates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

PREPAID ITEMS

Payments made to vendors for services that will benefit penods subsequent to June 30, 2002, are recorded as prepaid items. The prepaid items reported on the balance sheet are equally offset by a rcscrvallon of fund balance which indicates that these amounts do not conslltute "available spendable resources" even though they are a component of net current assets

GENERAL OBLIGATION BONDS

The School D1stnct issues general obligation bonds to provide funds for the acqu1s1llon and construction ofmaJor capital facilities Bond premiums and discounts. as well as issuance costs. are recogmzed m the financial statements dunng the year bonds are issued In add1llon, general obhgat10n bonds have been issued to refund ex1stmg general obligation bonds General obhgallon bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds 1s recorded m the General Long-Tenn Debt Account Group.

- 15 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The School Distnct has the following types of interfund transact10ns
Reimbursements ofexpend1turei>/expenses inttially made from a fund that are properly apphcabk to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expendttures/expenses in the fund that 1s reimbursed
Operating transfers are recorded for all interfund transact10ns other than reimbursements
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general-purpose financial statements are capttoned "Memorandum Only" to indicate that they are presented only to facilitate financial analysts Data in these columns do not present financial pos11ton, results ofoperations or cash flows in conformity with generally accepted accounting pnnc1ples Neither arc such data comparable to a consohdatlon Interfund chminatlons have not been made in the aggregation of this data
Note 2 DEPOSH S AND INVESTMENTS
COLLATERALIZATlON OF DEPOSITS Official Code of Georgia Annotated (OCGA) Sectton 45-8-12 provides that there shall not be on deposit at any ttme in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond. by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of secunties pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduct10n ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 1) the aggregate of the market value of the sccunt1es pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe daily pool balance OCGA Sect10n 45-8-11 (b) provides an officer holding public funds may, in his d1scretton, waive the requirement for secunty in the case ofoperating funds placed in demand deposit checking accounts
Acceptable security for deposits consists of any one of or any combinatton of the following
(I) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia.
(2) Insurance on accounts provided by the ~ederal Deposit Insurance Corporalton,

- 16 -

MONROE COUNTY BOARD OF EDUCATION

EXHIRIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS
(3) Bonds, bills, notes. certificates of mdebtedness or other direct obhgation, of the United States or of the State of Georgia.
(4) Bond,. bills, notes, certificates of mdebtedness or other obhgat10ns of the counues or mumc1palit1es of the State of Georgia,
(5) Bonds of any pubhc authonty created by the laws of the State of Georgia. prov1dmg that the statute that created the authonty authonzed the use of the bonds for this purpose.
(6) Jndustnal revenue bonds and bonds of development authontles created by the laws of the State of Georgia, and
(7) Bond,, bills. notes, certificates of indebtedness. or other obhgat1ons of a subs1d1ary corporation of the Umted States government. which are fully guaranteed by the Umted States government both as to pnnc1pal and mterest or debt obhgatlons issued by the Federal Land Bank. the Federal Home Loan Bank, the Federal Intermediate Credit Ban~. the Central Bank for Cooperatives, the Farm Credit Banks. the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association
CA I EGORIZATION OF DEPOSITS At June 30. 2002, the bank balances were $2,548,039 72. The amounts ofthe total bank balances arc classified into three categories of credit nsk
Category I - Cash that 1s insured (e.g. Federal depository insurance) or collaterahzed with secunties held by the School D1stnct or by the School D1stnct's agent in the School District's name
Category 2 - Cash collaterahzed with sccunlles held by the pledgmg financial inst1tu!lon's trust department or agent in the School D1stnct's name
Category 3 - Uncollaterahzcd deposits (This mcludes any bank balance that 1, collaterahzed with sccuriues held by the pledgmg financial mst1tut10n. or by Its trust department or agent but not m the School D1stnct's name )
Tht: School D1stnct's deposits are cla.s1fied by nsk category at June 30. 2002. as follows

- 17 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2. DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

I

$ 295,835 05

2

2,026,951.14

3

225,253 53

Total

$ 2,548,039.72

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $6,637,427 78 which is materially the same as fair value Th!S 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 categonzed since the School District c!Jd not own any specific 1dent1fiable securities in the pool The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liqmd1ty Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Pnmary L1quid1ty Portfolio is as follows

The Pnmary Liquidity Portfolio consists of Georgia Fund 1, which 1s a combination local and state government investment pool, and Fund 6. Georgia Fund 1 1s a stable net asset value investment pool which follows Standard and Poor's cnteria for AAAm rated money market funds The pool is not registered With the SEC as an investment company but does operate Georgia Fund I in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and 1s considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital. investment income, liquidity and d1vers1fication while maintaining pnnc1pal ($1 00 per share value) Net asset value 1s 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 1s 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 I and Fund 6 are d1rected toward short-term instruments such as U. S Treasury obligations. secunt1es 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 l may not exceed 60 days. The weighted average matunty for Georgia Fund I on June 30. 2002. was 0.12 years The average investment duration for Fund 6 on June 30, 2002. was O75 years

- 18 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 3 NON-MONETARY TRANSACTIONS

The School District receives food commod1t1es from the United States Department of Agriculture (USDA) for school breakfast and lunch programs 1bese commodities are recorded at their Federally assigned value See Note I - Inventories

Note 4 RISK MANAGEMENT

The School District 1s exposed to vanous risks of loss related to torts, theft of, damage to, and destruction of assets, errors or om1ss10ns, job related illness or in3unes to employees, acts of God and unemployment compensation.

The School Distnct has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omiss10ns. The School D1stnct has neither sigruficantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

The School District has elected to self-insure for all losses related to acts ofGod. The School District has not experienced any losses related to this risk in the past three years

The School District is self-insured with regard to unemployment compensat10n claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when 1t 1s probable that a loss has occurred. and the amount ofthat loss can be reasonably esumatcd

Changes in the unemployment compensation claims hab1lity during the last two fiscal years are as follows

Begmnmg of Year L1ab1htv

Claims and Changes m Estimates

Claims Paid

End of Year L1ab1lrty

2001 200::

$

0 00 $

3 152 00 $

3,152 00 $

0 00

$

000 $

4 346 00 $

4 346 00 $

000

The School District participates in the Georgia Educat10n Workers' Compensation Trust, a pubhc enllty risk pool organized on December I, 1991. to develop, implement and admiruster a program of workers' compensauon self-insurance for its member organ1zauons The School D1stnct pays an annual premmm to the Trust for its general insurance coverage Add1t:10nal insurance coverage 1s provided through an agreement by the Trust with the Uruted States Fidelity and Guaranty Company to provide coverage for potenllal losses sustained by the Trust in excess of $350,000 00 loss per occurrence, up to $2,000,000.00.

The School D1stnct has purchased surety bonds to provide add1tJonal insurance coverage as follows

- 19 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 4 RISK MANAGEMENT

Posit10n Covered

Amount

Five Principals Five Busmess Staff Four School Cafeteria Managers Superintendent

$ 2,500.00 $ 2,500 00 $ 2,500.00 $ 2,500 00

Note 5. OPERATING LEASES

Monroe County Board of Education has entered mto various leases as lessee for copiers These
leases are considered for accounting purposes to be operating leases. Lease expenditures for the year
ended June 30, 2002, amounted to $5,888.00. Future mirumum lease payments for these leases are as follows.

YearEndmg

Amount

2003 2004 2005 2006 2007

$ 17,664.00 17,664.00 17,664 00 17,664.00 11,776.00

Total

S 82,432.00

Note 6: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Monroe County Board of Education has entered mto various lease agreements as lessee for buses These lease agreements qualify as capital leases for accountmg purposes and, therefore, have been recorded at the present value of the future mimmurn lease payments as of the date of their mception

GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstandmg are as follows.

Purpose

Interest Rates

Amount

General Government - Refunding - Senes 1993

3 0%-5.3% $ 595.000.0Q

The changes m General Long-Term Debt dunng the fiscal year ended June 30, 2002, were as follows

- 20-

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 6 GENERAL LONG-TERM DEBT

Balance July I. 2001

Capital Leases

General Obligation
Bonds

Total

$ 100,016 88 $ 820,000 00 $ 920,016.88

Deductions Debt Retired

51,575.03

225,000.00

276,575.03

Balance June 30, 2002

$ :18,!!il .85 $ 525,000,QQ $ ~J.~l.~~

At June 30, 2002, payments due by fiscal year which includes pnnc1pal and interest for these items are as follows

F1M:al Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2003 2004 2005

$ 5 I, 178.80 $ 250,873 53 $ 302,052.33

258,960 00

258.960 00

126,360.00

126,360 00

Total Principal and Interest $ 51,178.80 $ 636 193,53 $ 687,372,33

Deduct Imputed Interest

2,736 95

Net Present Value of Future
Mm1mum Lease Payments $ 48,441,85

Note 7 ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures m the amount of $307,113 86 for health insurance and retirement contnbut10ns pllld on the School District's behalf by the following State Agencies

Georgia Department of Education Pllld to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$267,618.86

Office of Treasury and Fiscal Services Pllld to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $39,495 00

- 21 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 8 SIGNIFICANT COMMITMENTS

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

Unearned Executed Contracts

Modifications to Mary Persons High School
Kitchen Modifications

$ 8,832.25
I, 156,094.65

$ I, i64,926,90

The amounts descnbed m 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 winch are disallowed under grant terms. The School Dtstnct believes that such
d1sallowances, if any, will be immatenal to its overall financial pos111on.

The School Distnct 1s a defendant m venous legal proceedmgs pertaming to matters mcidental to the performance ofroutine School D1stnct operations. The ultimate disposition ofthese proceedmgs is not presently determinable, but 1s not believed to be material to the general-purpose financial statements

Note 10 SUBSEQUENT EVENTS

On March 18, 2002, the voters of Monroe County voted in favor of a Special Purpose Local Opt10n Sales Tax referendum for educat10nal purposes. The 1mpos11ion of the tax approved, as stated on the Official Ballot of Monroe County, is as follows:

- 22 -

MONROE COUN1Y BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 10 SUBSEQUENT EVENTS

"Shall a special one percent sales and use tax be imposed in Monroe County for a period not to exceed 20 calendar quarters, commencing upon the expiration ofthe special one percent sales and use tax currently being levied in Monroe County, and for the raising of not more than $23,334,000 for the purpose of providing funds to pay or be applied toward the cost of (1) adding to, renovatmg, improving and equipping existing school buildings, grounds and facilities. including athleuc, band and fine arts fac1lit1es. (u) acquiring and installing certain safety, technology and transportat10n equipment and improvements, including school buses and other velucles, (iii) purchasing band instruments, textbooks, and library books, (iv) acqumng land for and constructing future schools. and (v) acqumng any property necessary or desirable therefore, both real and personal, the maximum cost of such proJects to be funded
from the proceeds of such tax not to exceed $23,334.000? If the contmuat1on of the tax is
approved by the voters, such vote shall constitute approval of the issuance of general obligat10n debt of Monroe County School District in the pnnc1pal amount of $8,000.000 for the above purposes, including capitalized interest through February I, 2004 "

Note 11 RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, admm1stral!ve and clencal personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-sharing mult1ple employer defined benefit pens10n plan TRS provides service retirement, d1sabihty retirement and survivors benefits for its members in accordance with State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audn report and a copy can be obtained from the Georgia Department of Audits and Accounts

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School D1stnct who are covered by TRS are required by State statute to contribute 5% of their gross earnmgs to TRS. The School District makes monthly employer contnbul!ons to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as advised by their independent actuary. The reqwred employer contribution rate is 9.24% and employer contribut10ns for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contnbuted

Required Contnbution

2002 2001 2000

I 000/o 100% 100%

$1,380,100 57 $ 1,590,698 73 $ 1,506,754.60

- 23 -

ASSETS Cash and Cash Equivalents lnvesbnents Accounts Receivable Prepaid Items lnventones
Food Donated Commodrties Purchased Food
Tolal Assets

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

425,224 34 $

129,865 00

533,185 36

7,693 04

2126950 1578452

s_ _ $ 100315676

1_2_9__86_5_oo_

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Deferred Revenue
Total L1ablhlles
FUND EQUliY
Fund Balances Reserved
For Expired Grant Balances/Quesboned Costs For lnventones
Food Donated Commodrties Purchased Food
Unreserved Undas,gnated
Total Fund Equity
Tolal Llab1htJes and Fund Equity

$

19,871 55 s

28,183 74

82,105 09

101,681 26

$

101 976 64 $

129 865 00

$

21,269 50

15,784 52

86412610 $

000

$

901 180 12 s

000

s_ _ $ 100315576

1_29_..86_5__oo_

See notes to the general-purpose financial statements

-24 -

EXHIBIT "G"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

555 089 34 $

594,180 35

533,185 36

518,880 85

$

174,500 05

182,193 09

186,582 26

94,85000

94,850 00

21,269 50 15 784 52

31,930 42 2170726

$

269 350 05 S 1 402 371 81 $ 1 353 281 14

$

70,93912 $

70,939 12

33,95819

82,013 48 $

132 230 82

116,217 78

300,00413

285,947 52

19.242 65

1924265

21 69

$

240 357 74 $

472199 38 $

41820003

$

2624193

$

21,269 50

15,784 52

31 930 42 21,707 26

89311841

855 201 50

$

28 992 31 $

930 172 43 $ ---'9"'3~5-=08~1~1~1~

$

269 35005 $ 1 402 371 81 $ 1 353 281 14

- 25 -

MONROE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES ANO CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENOEP JUNE 30 2002

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current lnstruct,on Support SeMces Pupil Services Improvement of Instructional Services General Admm1stra11on School Adm1mstrabon Maintenance and Operation of Plant Student Transporlatlon Services Other Support SeMces Food SeMCeS Operabon
Total Expendrtures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expendrtures
FUND BALANCE JULY 1
Food Inventory - Net Change ,n Penod Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

108,210 00 $

848,893 11

515 377 48

$ 1,472,480 59 $

930,24668 930,246 68

$

841,567 75

109,031 67 2,081 81

$ 1,463,555 99

24,524 58 20,627 34
1,366 02 3,991 76

$ 1463555 99 $ 1,003, 190 93

$

8,924 60 $

-72,944 25

$

8,924 60 $

908,83918

-10,660 92 -5 922 74

72 944 25
000 000

$

901 118012 $--~--o_o_o_

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

EXHIBIT "H"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 1,038,456 68 $

938,248 36

$ 1,383,706 09

2,232,599 20

1,885,755 07

515 377 48

534499 53

$ 1,383,706 09 $ 3,786,433 36 $ 3,358,502 96

$ 1,225,650 94 $ 2,067,218 69 $ 1,850,606 26

529 51 44,570 12 44,616 51
2,953 92 62,634 71

109,561 18 46,651 93 44,616 51 24,524 58 20,627 34
4,319 94
66,626 47
1,463,555 99

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

$ 1,380,955 71 $ 3 847 702 63 $ 3 554 577 03

$

2,750 38 $

-61,269 27 $

-196,074 07

72 944 25

15103710

$

2,750 38 $

11,67498 $

-45,036 97

26,241 93

935,081 11

970,081 24

-10,660 92
-5 922 74

362 53 9674 31

$

28 992 31 $

s _ _ 930 112 43

935="-,_oa_1-=-11._

- 27 -

MONROE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2002

ASSETS Cash and Cash EquM1lents Investments Accounts Receivable
Total Assets

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

210,11419 $

647,352 00

s

210 114 19 $ -==64-=7_35_2_00....,

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Reta,nages Payable
Total llabolltles
FUND EQUITY
Fund Balances Reserved For SPLOST ProJecls For State Capital Outlay Proiects Unreserved Undesognated
Total Fund Equity
Total Loabtlmes and Fund Equity

$

647,352 00

0 00

$

210 114 19 s _ _-=54=1"'3"'s2~00~

$

210 114 19 s _ _ _64_7.._35_2=-00=-

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

EXHIBIT "I"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30. 2001

$

857,46619 $ 1,853,925 56

$ 3,899,464 55

3,899,464 55

1,324,826 60

658 673 34

658,673 34

682,204 52

$ 4,558,137 89 $ 5,415,604 08 $ 3,860,956 68

$

438,420 25 $

438,420 25

20,312 72

20,312 72 $

85,180 29

140,191 98

140,191 98

168,013 38

50 34984

50 349 84

278 135 19

$

849 274 59 $

849 274 59 $

531,328 84

$ 3,908,863 30 $ 3,908,863 30 $ 3,278,801 48 847,352 00

000

21011419

50,826 36

$ 3,908,863 30 $ 4,766,329 49 $ 3,329,627 84

$ 4,558,137 89 $ 541560408 $ 3,860,956 68

- 29 -

MONROE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDiTURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2002

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Adm1n1Strat1on Maintenance and Operation of Plant
Caprtal Outlay Bu1ld1ng and Building Improvements
Total Expendttures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES /USES)
Operabng Transfers In Operabng Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Flnanong Uses
FUND BALANCE JULY 1

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT
COMMISSION

$

000

$

4 309 54

$

4 309 54 $

000

$

62 58 $

000

49250 02

$

49 312 60 $

000

$

-45 003 06 $

000

$

204,290 89 $

647,352 00

$

204,290 89 $

647,352 00

$

159,287 83 $

50626 36

647,352 00 000

FUND BALANCE JUNE 30

$

210 114 10 s _ _.6.4.1..1.:3:;;:;s2=-oo--

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

EXHIBIT "J"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 3,551,331 05 $ 3,551,331 05 $ 3,737,512 93

203,028 82

207,338 36

59440 09

$ 3,754,359 87 $ 3,758,669 41 $ 3,796,953 02

$

102 52 $

s 165 10

135 12

13,490 59

2 476 843 53

2,526,093 55

3,312,081 83

$ 2 476 946 05 $
s 1,277,413 82 $

2,526,258 65 $ 1,232,410 76 $

3,325,707 54 47124548

$

851,642 89

$

-647 352 00

-647,352 O!) $

$

-647 352 00 $

204,290 89 $

-31 347 15 -31 347 15

s

s 630,061 82

1,436,701 65 $

439,898 33

3,278,801 48

3,329,627 84

2,889,729 51

$ 3,908,863 30 $

3,329,627 84

- 31 -

MONROE COUNJY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 2002

EXHIBIT "K"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2002 JUNE 30, 2001

s

88.699 73 $

000 $

s 88.699 73

109,025 37

168051

1 880 51

36905

Total Assets

s

s 001580 24

000 $

109 394 42

FUND EOUIJY
Fund Balances Reserved For Debt Service Unreserved Undes,gnaled

$

90,580 24 $

0 00

000 $ 000

90.580 24 $ 000

109,394 42 000

Total Fund Equrty

$

90 580.24 $

000 $

90,58024 $ 109 394 42

See notes to the general-purpose finanaal statements - 32 -

MONROE COUNTY BOARD OF EDUCATION

EXHIBIT "L"

COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES

DEBT SERY!CE FUND
YEAR ENDED JUNE 30 2002

REVENUES Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Pnncipal Interest Peyn,g Agent Fees
Total Expend~ures
Excess of Revenues OYef (under) E,tpenchtures
FUND BALAN!;;E JUI,Y l

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED
JUNE 30. 2002 JUNE 30 2001

$ 3,215 26 $ 838 20
$ 4 05346 $

263,229 11 $ 263.229 11 $

266,444 37 $ 83820
267 282 57 $

298,689 41 1 207 89
299 897 30

$

000 $

$

000 $

$ 4,053 46 $

86,526 78

225,000 00 s
57,961 47 3135 28
28609675 $
-22,867 64 $
22 867 64

225,000 00 $ 57,961 47 3 135 28
286,096 75 $
-18,814 18 $
109 394 42

220 00000 5365500
273855 00 26 242 30 83 152 12

FUND BALANCE JUNE 30

$ 90,580 24 $

000 $

90 580 24 $ 109 394 42

See notes to the general-purpose financaal statements

- 33 -

MONROE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES
JUNE 30. 2002

ASSETS Cash and Gash Equivalents Investments Accounts Rece,vable

NONEXPENDABLE TRUST FUND ENDOWMENT FUND
PERSONS MEMORIAL LIBRARY FUND

EXPENDABLE TRUST FUND MARY PERSONS SCHOLARSHIP
FUND

$

12,567 95 $

24,970 62

15,000 00

Total Assets

$

27 567 95 $-~=2=4..:,9.;,;70::.6:,.2.,.

LIABJUTIES AND FUND EOUJTY LIABILITIES
Gash Overdraft Funds Held for 01hers
Total LJab1ld18S
FUND EQUITY Fund Balances Reserved For Endowment Corpus Unreserved Undes1gnated Total Fund EqUJty
Total L1abdllles and Fund Equity

s

10,000 00

17 567 95 $ _ _..,,2c:.4..:<9.:.:7O,:.;6e,2,_

$

27 567 95 S _ _..:,2c:.4"'97.:.:O,:.;Be,2,_

$

21 567 95 $ _ _ _2_4._0_1o_e_2_
1

See notes to the general-purpose financial statements - 34 -

EXHIBIT "M"

AGENCY FUNDS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

000 $

37,538 57 $

36,762 82

15,000 00

32,551 80

9 000 00

$

000 $

52,538 57 $ _ _ _7_8._3.,14_6_2_

$

21,438 80 $

21,438 80 $

30,15346

-21,438 80

-21,438 80

-21,15346

$

000 $

ooo $ __~e~ooo~~oo~

$

10,000 00 $

10,000 00

42 538 57

59 314 62

$

52 538 57 $ _ _~6=9=3~14~6=2~

$

000 $

52,538 57 $ _ _ _7_8_3_14_6_2.,.

- 35 -

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

EXHIBIT "N"

FLOWER FUND
ASSETS Gash and Cash Equivalents

BALANCE
JULY 1, 2001

ADDITIONS

DEDUCTIONS

BALANCE
JUNE 30, 2002

$

726 21 $

177 00 $

509 67 $~-~;:;;39_3;..;;54_,

LIABILITIES Funds Held for Others

$

726 21 $

177 00 $

509 67 $~-~-39_3_54_

FAMILY CONNECTIONS
ASSETS Cash and Cash Equivalents Accounts Receivable

$ -30,879 67 $ 91,526 51 $ 9 000 00

82.479 18 $ 9 000 00

-21,832 34 0 00

$ -21 879 67 $ 91,526 51 $

9147918 $~--21_.8;;;3;,;;2,;.:34_

LIABILITIES

Funds Held for Others

$

0147018 s_~--2.10._3_,2=34-

TOTALS -AGENCY FUNDS
ASSETS Cash and Cash EquivaleotS Accounts Receivables

$ -30,15346 $ 91,70351 $ 9,000 00

82,988 85 $ 9,000 00

-21,438 80 000

$ -21.15346 $ 9170351 $

91 988 85 s _ _ _-2_1.4_3_0_ao_
1

LIABILITIES

Funds Held for Others

$

91,988 85 $ _ _-.2.1.,..4_._38_80_

See notes to the genera~purpose financial statements - 36 -

MONBOECOUNTYBOARDOFEPUCATION
SCHEDULE OE EXPENDITURES OF FEDERAL AWARDS YEAR ENPEP JUNE 30 2002

SCHEDULE "1"

FUNDING AGENCY
PROGRAM/GRANT
Agncu\turo U S Department of
Child Nutnbon Cluster Pass-Through From Georgia Department of Educ:abon Food end Nutnbon Program Food 5eMces
School Breakfast Program Nshonal Sdlool Lunch Program
Total Child NutnbOn Cluster
Cl1her Programs Pass-Through Fran Georgi.a Department of EducabOn Food end Nutrrtton Program Food Dlelnbubon Program (1) Pass-Through From Office o! School ReadJness Food and Nutnl:lon Program Child and Adult Care Food Program Pass-Through From Office o1 Treasury and Fiscal Services National Forest Reserve Funds
Total U S epa,o,..,t of Agncu\M!
Educabon U S Departmertt ol
Spoaal Educabon Cluste< Pass-Through From Georg,a Department ol EducallOn lnd1V1duala With Disablhbes Educetion Ad Part B - Spoaal Educaton F""" Through Preschool Bulldlng Capacrty Grant
Total Speoal Educabon Cluster
Other Proglllms Pass-Through From Georg,a Department ol Educabon Elernen1ary and Secondary EducabOn Ad Trtle I Acaxmtabolty Gnln1s Grant> lo Local Educatonal Agencies Trtlell Ersenhower Professlonal De\ielopment Trtle VI \ma,abve Educabon Program Strau,g,es
Class Size RodUCl!on Vocabonal EducabOn - Ba5IC Grams 10 S""8s
H,gh 5chool Program Ba51cGrant
Toca.I U S ()epabnttnl of Educabon
Nabonal Endowmont for the Arts Pass-Through From Georgia Office of Planning and Budget Arts Challenge Gram

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555

NIA

s 21176356

(2)

NIA

s 565,395 96

1 398 451 92 (3)

s m 15952 s

1 398,451 92

10 550
10 558 10665

NIA

65,104 07

65 104 07

NIA

6,629 52

(2)

NIA

11 06

4

s $ 848 904 17

1,463.555 99

84 027 84 173 84 027

NIA

s s 405 756 52

NIA

33 088 00

NIA

9 388 05

s 448,232 57 $

405,167 93 33,676 59 9 388 05
448,232 57

84 348 84 010 84 281 84 298 84 340
84 048

NIA

65 266 08

NIA

671 327 44

NIA

22 591 00

NIA

2416000

NIA

101 263 00

65266 08 666,577 06
22,591 00
24,16000 101 263 00

NIA

50,866 00

50 86600

s $ 11383170609

1 380 955 71

450FA

NIA

s 15 000 00

(4)

Total Federal Frnanaal Ass1stance NIA = Not AVSJlable

- 37-

284451170

MONROE COUNTY BOARD OF EPVCATlON SCHEDULE OF EXPENOITVRES OF FEDERAL AWARDS
YEAR ENPEP JUNE 30 2002

SCHEDULE "1"

Notes to tho dlodule of Exoend1rures of Federal Awards
(1) The amounts shown for the Food Dlstnbutlon f>roi7am represents the Fecler.il~y &!Signed value of r...:w 101et:ary
ass,stance lor donated commod1beS recetwd end/or consumed by the system oortng the a.T9f1t fiscal year (2) Expenditures for the Child and Adult Care Food Program nd the School Braaklast Program were not mamtamed
separately and are included 1n the 2002 Natlcnal Sc:hcd Lunch Progl'liilm (3) Expenditures for thrs program include State, and/or Other Funds
Expenditures are not mamtallled by fund BOUal (4) ExpendrtLres on this program were not m81ntalnecl by fund source
Ma]or Programs are Ldentrtied by an astensk (") m front of the CFDA n . . -
The School 0,91nc1 did not prov,de F - AeJstanc:e to any Subrecll)<ont
The accompenylng schedule of expendrtures of Fedm'al awards includes the Federal grant ecl:Jv1ty of the MorYoe County Board of Educat:Jon and Is presented on the modified accrusl baSJs of accounbng whld1 is the bass of accounbng used In the presentaoon of the general-purpose finanoal statements

See notes to the general-purpose finanael ;;tete11ietlts

-38 -

MONROE COUNTY BOARD OF EDUCATION
SCHEDULE OE STAIE REVENUE YEAR ENPEP JUNE 30 2002

SCHEDULE "2"

AGENCY/FUNDING
GRANTS
Commuroty Afla,rs, Goorg,a Department of Local Assistance Grant
Educallon Geof\1Ie Department of
Oualrty Basic Educallon
Direct lnstrudlonal Cost Kmde1vanen Program Kindergarten Program - Ear1y Intervention Program PnlT\SfY Grades (1-3) Program Pnma,y Grades Ea:ty lntelvenbon (1-3) Program Upper Elementa,y Grades (4-5) Program Upper Elernenbuy Grades - Early lnterventon (4-5) Program ..dcllo School (6-8) Program High School General Educat,on (9-12) Program Vocallonel Laborato,y (9-12) Program Students with OISSbhbeS
Cetego,yl Gifted Sh.dent - Category VI Remedal Educallon Program AltematM! Eoocatlon Program Sparsrty - Altemat,ve Program T-,Y Deya Adcl1bona1 lnstrucllon Mecua Center Program Staff and Professional Development lndrroct Cost Ca1egoncal Grants Pupol Transpol1abon
Regular Bus Replacement
N,.-smgSeMces PnnopaJ Supplements Voce1:Jonal Supervrsors Mid term AdJUstment Hofd-Harmless Food SeMces VocabonaJ Eduamon
Other State Programs
Agncutture Conatrucllon Related Equipment He.atth Insurance -Teachol,
Preschool Handicapped Program
Lotlel)'Programs Assr.olve Technology
COl'TlJ)uters 1n the Classroom Post Seconda,y Options
Office of School Readiness
Pre-Kmdo111erten Program
Office of Treasury end Fiscal 5efvlces Public School Employees Ret,rement
f,tddJo Goofv,a RES>.
DrugProvenbon

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

10,000 00

$

10 000 00

627 150 00 98,210 00
1,686 378 00
229 412 00 852 913 00
146 864 00 1 561,220 00 1-478261 00
378,761 00
1 081,306 00 137 790 00 45 215 00 128 146 00 20 000 00 83 968 00 266 640 00 47 584 00
1,665,685 00

627,150 00 98 210 00
1,686 378 00 229 412 00 852 913 00
146 864 00 1,581,22000
1 478,261 00 378 761 00
1 081 306 00 137 790 00
45 215 00
128 146 00 20,000 00 83,96800
266,64000 47,584 00
1665685 00

713,787 00 184 299 00
84 425 00 18 419 00 14 299 00
181 016 00
$ 26664 00

108 210 00

100 000 00 267 618 86
1,530 00 32 227 00

2,277 00

9 166 00 164 547 00

713 787 00 184 299 00
84,425 00
18,419 00 14,299 00 181,016 00 108 210 00 26,664 00
100,000 00 267,618 86
1,530 00 32 227 00
9 166 00 164 547 00
2 277 00

756 533 68

756 533 68

39 495 00

39 495 00

2,499 99

2 499 99

- 39 -

MONROE COUNTY BOARD OE EDUCATION SCHEDULE Of STATE REVENUE
YEAR ENDED JUNE 30 2002

SCHEDULE"2"

AGENCY/FUNDING

CONTRACTS

Education GeorQ,a Department of

Academic DecatnloO ., Help -

Student

Actvevement ln Secondar; Sdlools

Georgoa'o Read>ng Challenge

K-3 SUltewode Readong Program 4-8 Statewide After School Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

15,000 00

-137 54

37 327 69

3' 525 00

s

15 000 00

-137 54

37,327 69

3' 525 00

S 12,3001775 00 $ 1.038 456 68 $ 13,339,231 68

See no1e9 ., the goneral-c>t>pose finanael Slatemen1s

- 40-

MONROE COUNTY BOARD OF EDUCATION SCHEDULE OF Af'PRQYED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2002

SCHEDULE "3"

PROJECT
Payments m luD of lhe pnndpal and Interest due on 1he Monroe County Scl1ool Dislnd's Serles 1993 General Obigatlon Bonds from January 1, 2000 lhrough and lndudmg final ma1Urily of January 1 2005
Acqulslbon, construc1Jon and equipping addlbonal clasSrooms 1nstn.1ctional and support space, as 'NSII as remode~ng. renovatmg, improving, furnishing and equipping exlsttng school dlSlncl faaUlleS
1ndudblg classrooms, rnstruc:Uonel areas aupport space phyS1cal education and alhleUc facihttes, edmmlstratrve facillbes and grounds, acquiring any necessary personal propeny includmg computer, end other technology and pB)'lng expenses lf'Odent thereto

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

s s s 1,439,905 00 s 1,439 905 00

286,096 75

520 750 00 Ongoing

17 ,485 095 00 17,485 095 00 2 47694605 5,473,562 41 Ongoing

S 18,925,00000 $ 18925,00000 $ 2,78304280 $ 5,994,31241

(1) The School Olslrlct's orlglnal cosI estimate es specltled In 1he resokJbon caHing for 1he lmposlllon of lhe Local Opllon
Soles Tex
(2) The Scl1ool Olslricl's rurren1 esbmete of lolal cost for 1he ptOjOds lnc:ules el cost from pro)ecl lncepllon lo complebon
(3) The voters of Monroe County approved 1he Imposition of a 1% sales lax lo fund 1he above projects Amounts expended for these projects may mdude sales lex proceeds, slate local propeny taxes and/or other funds over the life of the Protects

See notes 10 1he general-purpose flnenael slelemenlll

- 41 -

MONROE COUNTY BOARD OF EDUCATION GENERAL FUND OUAUTY BASIC EDUCATION PROGRAM IOBEl
ALLOTMENTS AND EXPENDJTURES BY PROGRAM YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPIION

AUDTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Dr'ect lnstrudlonal Programs

Kindergarten Program

s

Kndergarten Program-Eal1y Intervention Program

Pnmary Grades (1-3) Program

Primary Grades-Earty lntervenbon (1-3) Program

Upper Elementary Graclell (4-5) Program

Upper Elementary Grades-Ea~y lnlefventi<>n (4-5)

Program

Middle School (6-8) Program

H-.gh School General Educatlon (9-12) Program

Vocahonal Laboratory (9-12) Program

Studenta wrth Dlaabthtie&

category 11

category Ill

category IV

Gifted S1u<lent. Ca1egory Vt

Ramedlal Education Program

Alternative Educat1011 Program

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

s

888,600 00 s 942 382 82 s

139,152 00

107 073 38

2 389406 00

2,502,555 15

325 051 00

181,38111

1,208,481 00

1,261,426 63

14,984 96 s
1 397 68 69 898 38
3,444 38 41,980 05

957,387 78 108,471 04 2 572 453 53 184,805 47 1,303,406 68

208,089 00 2,212,071 00 2,094 528 00
538,661 00 t ,532,086 00
195 233 00 84,065 00 181 568 00

137 763 65 238906110 2,193,816 23
563 729 62
510,471 13 887,262 17 164 068 13 231,978 86 115,045 02 228,010 9!5

11,974,991 00 s 12 396,026 13 s

218 04 101 066 95 134,554 01
52,494 25

137 981 89 2,470,128 05 2 328,370 24
616 224 07

25 751 53 190 00
2 275 90 614 63
6 922 60

536 222 68 887 472 17 164 068 13 234,254 78 115,659 85 236,933 55

457 793 54 s 12,853,819 67

Madia Center Program Staff and Profeaalonal Development

3n60000 67 422 00

318,290 30 24,507 11

65,569 55 58,623 9!5

403,659 65 83,131 06

TOT.O.L QBE FORMULA FUNDS

$

121420,21300 $ 12,738182354 $ 601,98704 $ 13,34081058

(1) Comprised of State Funds plus Local F,ve MIi Share

See notes to the general-purpose linanclal statements

-42 -

MONROE COUNTY BOARD OF EDUCATION
GENERAL FUND - QUALIJY BASIC EDUCATION PROGRAM !QBE)
ALLOTMENTS AND EXPENPIJURES - BY SITE
YEAR ENDED JUNE 30 2002

SCHEDULE "5"

SITE Monroe County Middle School Mary Persons High School Hubbard Pnmary School Hubbard Elementary School Monroe County Altemabve Center Central Office (Altemebve Education Program) Other Auxiliary Facilrty
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Shere

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,623,486 00 $

2,945,095 65

3, 136,806 00

3,531,300 54

3,139,094 00

3,239,213 32

2,894,037 00

2,956,717 91

135,247 65

181,568 00

8,700 03

37 544 57

$

11 974.991 00 $ 12,8531819 67

See notes to the 9enera~pur]l0Se financial stetements -43 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

t1~~t.LL W. Hlr.TON
STATE AUDITOR
(4~) 656-2\74

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W.ishrngum Street.SW Suuc 214
AIIJnlJ, Georg1J 30334-8400
May 28. 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the Monroe County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
r ACCORDANCE WITH GOVERNMEN AUDITING STANDARDS
Ladies and Gentlemen
We have audited the financial statements of Monroe County Board ofEducat10n as of and for the year ended June 30, 2002, and have issued our report thereon dated May 28, 2003. ThJS report was qualified for a scope lim1tat10n and for vanous departures from generally accepted accounting pnnc1ples, 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 Umted States
We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2002, nor could we satisfy ourselves as to the accuracy of the an1ounts stated as inventones through alternative procedures
Compliance
As part of obtaining reasonable assurance about whether Monroe County Board of Educat10n's financial statements are free of matenal misstatement, we performed tests of its compliance with certain prov1s1ons oflaws, regulations, contracts and grants, noncompliance With which could have a direct and matenal effect on the determinat10n of financial statement amounts However_ providing an opimon on compliance With those pro\ 1s10ns was not an objective of our audit, and accordingly, we do not express such an op1mon The results ofour tests disclosed no instances ofnoncompliance thctt are reqmrcd to be reported under Government Auditing Standards.
2002YB-40

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Monroe County Board of Education's internal control over financial reporting m 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 certain matters involving the internal control over financial reporting and its operalion that we consider to be reportable conditions. Reportable conditions mvolve matters coming to our attenhon relatmg to significant deficiencies in the design or operauon of the internal control over financial reporting that, in ourjudgment, could adversely affect Monroe County Board ofEducat10n's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable cond11ions are described in the accompanymg Schedule ofFindings and Quest.10ned Costs as items FS-7021-02-01 and FS-7021-02-02.
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 relalively 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 m the normal course of performing their assigned functions. Our consideration of the mternal control over financial reporting would not necessarily disclose all matters m the internal control that might be reportable conditlons and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable cond1Uons descnbed above, we consider items FS-7021-0201 and FS-7021-02-02 to be material weaknesses.
This report 1s intended solely for the information and use of the management, members of the Monroe County Board of Education. Federal awarding agencies and pass-through enlilies and 1s not intended to be and should not be used by anyone other than these specified parties
Respectfully submitted,
--- ~..J:;\.~:Q
RWHas 2002YB-40

lu,,u.L w. Hl:STON
STAIE AUrJITOO
(4041656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshmgton Street ~ W Suite 214 AtlJnta, Gcorg1J 30334-8400
May 28, 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the Monroe County Board of Educat10n
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, 2002 Monroe County Board of Education's maJor Federal programs arc identified in the Summary of Auditor's Results Section of the accompanying Schedule ofFindmgs and Questioned Cost, Compliance with the requirements of laws, regulat10ns, contracts and grants applicable to each of its maJor Federal programs 1s the rcspons1b1lity of Monroe County Board of Educat10n's management Our rcspons1b1lity is to express an opmion on Monroe County Board of Education's compliance based on our audit
We conducted our audit of compliance in accordance ~1th aud1tmg standards generally accepted in the Umted States of Amenca, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Umted States, and 0MB Circular Al 33, Audlls of States. Local Governments, and Non-Profit Orgamzatwns 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 ofcomphance rcqmrements referred to above that could have a direct and material effect on a maJor federal program occurred An audit includes examining, on a test ba~1s, evidence about the Monroe County Board of Education's compliance with tho.e requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opin10n Our audit does not provide a legal determination on Monroe County Board of Educat10n's compliance with those reqmremcnts
2002SA-35

In our opmion, the Monroe County Board of Education complied, mall matenal respects, with the reqwrements referred to above that are applicable to each oflls major Federal programs for the year ended June 30, 2002.
Internal Control Over Compliance
The management of Monroe County Board of Education 1s responsible for establishmg and mamtaming effecllve mtemal control over compliance with reqmrements of laws, regulations, contracts and grants applicable to Federal programs In planning and pcrforrnmg our audit, we considered Monroe County Board ofEducation's internal control over compliance with reqmrements that could have a direct and material effect on a maJor Federal program m order to deterrnme our aud1tmg procedures for the purpose of expressmg our op1mon on compliance and to test and report on mternal control over compliance m accordance with 0MB Circular A-133
We noted a certain matter mvolvmg the internal control over compliance and its operation that we consider to be a reportable cond111on Reportable conditions mvolve matters commg to our attention relatmg to significant defic1enc1es m the design or operation of the mternal control over compliance that. m our Judgment, could adversely affect Monroe County Board of Education's ability to admmister a maJor Federal program m accordance with applicable requirements oflaws, regulations. contracts and grants The reportable cond1t10n 1s descnbed m the accompanying Schedule of Findmgs and Questioned Costs as Ilem FA-7021-02-01.
A material weakness 1s a cond1t10n in which the design or operat10n of one or more of the internal control components does not reduce to a relatively low level of nsk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be matenal m relat10n to a maJor Federal program being audited may occur and not be detected withm a timely penod by employees m the normal course of perforrnmg their assigned funct10ns. Our consideration of the mternal control over compliance would not necessarily disclose all matters m the mtemal control that might be reportable cond1t10ns and, accordingly. would not necessanly disclose all reportable conditions that are also considered to be matenal weaknesses. However. the reportable cond1t1on noted above 1s not considered to be a matenal weakness.
This report 1s mtended solely for the mforrnatlon and use of the management, members of the Monroe County Board ofEducat10n, Federal awardmg agencies and pass-through entitles and is not mtcnded to be and should not be used by anyone other than these specified parties
RWHas 2002SA-35

SECTION III 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. 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7021-00-0 I FS-7021-01-01

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 200 I, the School Distnct began the process by having an outside firm conduct a prehmmary inventory of all fixed assets. A new software program under implementation for the School District for fiscal year 2003 will provide the vehicle to maintam the General Fixed Assets Account Group. Movement toward resolving the finding will take place dunng fiscal year 2003

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-7021-01-01

Previously Reported Corrective Action Implemented

SECTION IV FINDINGS AND QUESTIONED COSTS

MONROE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002

SUMMARY OF AUDITOR'S RESULTS

Type of Report Issued on the Financial Statements The auditor's op1mon on the Monroe County Board ofEducat10n's financial statements was quahfied for a scope hm1tat10n and for vanous departures from generally accepted accounting principles

2 Reportable Cond11tons in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Monroe County Board of Education disclosed financial statement reportable cond11tons related to the followmg control categones

Cash and Cash Eqwvalents General Ledger

Expend1tures/L1ab1l1t1es/D1sbursements General Fixed Assets

All of the reportable cond11tons descnbed above are considered to be matenal weaknesses

3 Noncompliance Malena! to the F1nanc1al 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 Condillons in Internal Control Over Ma1or Programs The audit report for the Monroe County Board ofEducallon disclosed a reportable condition in internal control over maJor programs for the followmg comphance reqmrements

Allowable Costs/Cost Pnnctples

The reportable cond1t10n described above ts not considered to be a material weakness

5 Type of Report Issued on Compliance for Ma10r Programs The auditor's opm10n on the Monroe County Board ofEducation's report on comphancc with requirements applicable to maJor programs was unquahfied

6 Audit Findings Required to be Reported by Section 51 0(a) of 0MB Circular A-133 The Monroe County Board of Educallon's audit disclosed an audit finding required to be reported by secllon .51 0(a) ofOMB Ctrcular A-133 This audit finding ts included in secuon IV of tlus report

7 Ma1or Programs Federal awards audited as maJor programs are as follows 10 553 Food and Nutntion Program - Food Services - School Breakfa~t Program IO 555 Food and Nutrit10n Program - Food Services - Nat10nal School Lunch Program

8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000 00

- 1-

MONROE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
SUMMARY OF AUDITOR'S RESULTS
9 Low R.tsk Aud1tee The Monroe County Board of Education qualified as a low nsk auditee as defined by Sect10n .530 ofOMB Circular A-133
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Accounting Procedures Reportable Condition - Matenal Weakness Fmding Control Number: FS-7021-02-01
Accountmg procedures for Monroe County Board of Education were found to be deficient m the followmg control categones
Cash and Cash Eqmvalents
Bank reconc1liat1ons for the operating account were not properly completed for the year under review. The School District did not proVJde a list of outstandmg checks or a hstmg of deposits m transit for the operating account at June 30, 2002. Due to the poor conchuon ofthe accounting records, cash could not be properly reconciled from the bank statement balances to the general ledger Work performed by the auditor revealed that the cash balance for the operating account as reported on Exhibit "A" ofth1s report 1s understated approxtmately $168,000.00 at June 30. 2002
Bank reconc1Iiattons for the School Nutrition account were not properly completed for the year under review The reconciliation performed did not reconcile from the bank statement to the general ledger Work performed by the auditor revealed that the cash balance for the School Nutrition account is overstated approximately $11,000 00 at June 30, 2002
Expend1tures/l,iabiht1es/01sbursements
There was no documentation of review or approval for School Food Services Fund expenditures Purchase orders, contracts, and mvoices were attached to the voucher package \\ithout any approval pnor to disbursements being made
General Ledger
There was no documentation of review and approval ofJournal entries, other than School Food, pnor to entry into the accountmg records.
-2-

MONROE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUfVALENTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Accountmg Procedures Reportable Cond1t10n - Matenal Weakness Findmg Control Number FS-7021-02-0 I
These defic1enc1es were a result of management's decision to hmlt the number ofadmmistrauve staff made responsible for the accountmg functions and their failure to ensure established controls were funct10mng as designed
The management should implement appropnate procedures and controls to ensure that all bank statements are reconciled to the general ledger m a timely manner and ensure that reconc1lmg !terns are identified and corrected promptly. The School Distnct should review the accountmg procedures m place, design procedures relative to the above control categones and implement procedures to strengthen the mtemal controls over the accounting funcl!ons to ensure that School Food Services Fund expenditures are reviewed and approved pnor to disbursement and that all Journal entnes are approved prior to postmg.
Management's Response
In July of 2002, the Monroe County Board of Education converted its system-wide financial software to a new system While the fiscal year had ended, the system closed its fiscal year 2002 books on the new system The reconcilial!on of bank statements to general ledger proved to be a difficult and lime-consuming effort wluch was greatly complicated by the conversion ofdata and files to the new software system In addit10n, although employees had been trained to operate the new system pnor to its mstallalion, the practical operation ofthe system was somewhat an add11ional leammg process and, admittedly. errors were made and had to be corrected
The School D1stnct has reviewed its accountmg procedures and made adjustments necessitated by the new software system and, \\1th a year's leammg and practical expenence behmd It, believes such occurrences w1 II not be repeated
-3-

MONROE 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 Mamtam General Fixed Assets Account Group Reportable Condition - Matenal Weakness Repeated from Pnor Year Fmdmg Control Number FS-7021-02-02
The Monroe County Board of Education fwled to mamtain a system-wide General Fixed Assets Account Group withm the formal accounting records as required by generally accepted accountmg principles This conditJon results m the general-purpose financial statements of the School D1stnct being incomplete and not m accordance with generally accepted accountmg principles. Appropriate act10n should be taken by the School D1stnct to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group These subs1d1ary records should mclude an inventory of land. buildmgs and equipment owned by the School District and should mclude, but may not be limited to, date acquired, acquisiuon cost, estimated replacement cost. location and descnpt1on. Detailed records should be maintamed of all additions and deletions to the General Fixed Assets Account Group
Management's Response.
This findmg will be corrected in fiscal year 2003 The new software purchased by the School Distnct includes a fixed asset module which is bemg utilized to mamtain the Fixed Assets Account Group Efforts are underway to fully 1mplement this process under GASB 34 guidelmes.
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
ALLOWABLE COSTS/COST PRINCIPLES Inadequate Accountmg Procedures Reportable Condition U S Department of Educat10n Through Georgia Department of Educat10n Fmdmg Control Number FA-7021-02-01
An exammatlon of expenditure vouchers revealed there was no documentation of formal review or approval process for Child Nutnt1on Cluster (CFDA IO 553 and IO 555) expenditures Purchase orders, contracts and invoices were attached to the voucher package without any md1cat10n of approval pnor to disbursements being made.
This deficiency occurred because of management's failure to establish procedure~ to review and approve documentation to support expenditures pnor to the disbursement of funds.
-4-

MONROE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS ALLOWABLE COSTS/COST PRINCIPLES Inadequate Accountmg Procedures Reportable Condition U S. Department of Educat10n Through Georgia Department ofEducatton Fmdmg Control Number FA-7021-02-0 I The School D1stnct should implement appropnate procedures and controls to ensure expenditures are approved pnor to disbursement Management's Response The School D1stnct has reviewed the reasons for this findmg with the school nutnt1on director and bookkeepmg staff and internal controls are being reviewed and revised Necessary steps will be implemented and monitored to assure that such a findmg WIil not be repeated
-5-