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

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

OCONEE COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS-

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GE1'l"ERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATE:MENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

. 8

ADDffiONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

.SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

30

2 SCHEDULE OF STATE REVENUE

32

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

OCONEE COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDIDONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN . ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133

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

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

SECTION I FINANCIAL

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 30, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Oconee County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Oconee County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Oconee County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our .opinion.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2001ARL-13

* The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment own~d by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are hot included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended
June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose finandal statements referred to above , present fairly, in all material respects, the financial position of the Oconee County Board of Education as ofJune 30, 2001; and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated April 30, 2002, on our consideration ofthe Oconee County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Oconee County Board of Education taken as a whole. The acc9mpanying combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular. A-133, Audits of States, Lo(:al Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing
2001ARL-13

procedures applied in the audit ofthe general-pwpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-pwpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

RWH:gp 2001ARL-13

State Auditor

OCONEE COUNTY BOARD OF EDUCATION

OCONEE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,865,088.25 $ 254,910.64 $ 1,907,346.86

2,262,283A6

5,750,000.00

583,634.98

82,860.63

749,186.19

18,195.99 24,678.99

Total Assets

$ 4,711,006.69 $

380,646.25 $ ==8=.4""0=6=,5=33=.0=5=

LIABILITIES AND FUND EQUITY
LIABILIT.IES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For SPLOST Projects Unreserved Undesignated
Total Fund Equity

$

1,791.03 $

27,922.24

123,523.33

$ 33.12

112,389.00 10,200.00

$

1,791.03 $ 151,478.69 $

122,589.00

$
$ 4,709,215.66 $ 4,709,215.66 $

18,195.99 24,678.99
$
186,292.58
229,167.56 $

6,962,185.58 1,321,758.47 8,283,944.05

Total Liabilities and Fund Equity

$ 4,711,006.69 $ 380,646.25 $ 8,406,533.05

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

EXHIBIT"A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum Onl~l

JUNE 30, 2001

JUNE 30, 2000

$

372,786.86

$ 4,400,132.61 $ 3,117,866.62

8,012,283.46

6,194,047.17

71,110.69

1,486,792.49

1,004,509.94

$

443,897.55

18,195.99 24,678.99
443,897.55

18,948.52 17,736.27
434,487.41

17,796,102.45 126,740.21

17,796,102.45 126,740.21

18,710,512.59 51,859.10

$

443,897.55 $

18,366,740.21 $ 32,308,823.75 $ 29,549,967.62

$

29,713.27 $

28,382.17

.123,523.33

120,456.36

386.95

112,389.00

10,200.00

. 33.12

$

126,740.21

126,740.21

51,859.10

18,240,000.00

18,240,000.00

19,145,000.00

$

18,366,740.21 $ 18,642,598.93 $ 19,346,084.58

$

443,897.55

0.00

$

443,897.55

$

2,342.55

$

443,897.55

434,487.41

18,195.99 24,678.99 6,962, 185.58

18,948.52 17,736.27 4,351,067.84

6,217,266.71

5,379,300.45

$ 13,666,224.82 $ 10,203,883.04

$

443,897.55 $

18,366,740.21 $ 32,308,823.75 $ 29,549,967.62

-3-

OCONEE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001

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

GENERAL FUND

SPECIAL REVENUE
FUND

$ 21,539,764.17 $ 11.83
10,591,278.40 518,194.43
$ 32,649,248.83 $

395,434.52 1,320,924.29
982,289.84
2,698,648.65

$ 22,259,469.23 $
790,579.55 635,055.70 741,737.00 454,886.04 2,157,252.78 104,079.87 2,848, 146.37 1,485,268.17 12,576.76
95,044.40 10,754.45
27;519.78 12,054.67

875,169.27
6,261.17 23,751.87
7,711.13
10,291.46 3,768.00
162,804.78 1,532,119.72

$ 31,634,424.77 $ . 2,621,877.40

$ 1,014,824.06 $

76,771.25

$

102,400.89 .

-800,000.00.

$

-697,599.11

$

317,224.95 $

4,391,990.71

76,771.25 146,206.12

-752.53 6,942.72

FUND BALANCE JUNE 30

$

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

-4-

4,709,215.66 $ ====2=2=9=1,=67==56=

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS.

(Memorandum Only) YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 21,935,198.69 $ 19,665,324.35

1,320,936.12

1,270,694.16

$ 2,766,755.72 $ 1,800,107.59

15,158,141.71

14,157,873.73

439,708.55

35,321.20

1,975,514.02

1,305,544.16

$ 3,206,464.27 $ 1,835,428.79 $ 40,389,790.54 $ 36,399,436.40

$ 23,134,638.50 $ 19,855,316.85

$

953,719.02

796,840.72 658,807.57 741,737.00 462,597.17 2,157,252.78 104,079.87 2,848,146.37 1,495,559.63
16,344.76 162,804.78 1,627,164.12 964,473.47

1,132,189.81 815,625.82 686,026.62 427,036.99
2,018,611.25 106,039.08
2,455,044.50 1,227,575.17
17,650.50 147,513.95 . 1,526,946.05 267,522.91

$

905,000.00

916,546.25

4 472.40

932,519.78 928,600.92
4 472.40

876,560.94 955,063.64
5,032.40

$

953,719.02 $ 1,826,018.65 $ 37,036,039.84 $ 32,519,756.48

$ 2,252,745.25 $

9410.14 $ 3,353,750.70 $ 3,879,679.92

$ 1,217,290.02 -417,290.02

$

800,000.00

$

102,400.89

1,217,290.02 $

-1,217,290.02

$

102,400.89 $

600,000.00 -600,000.00
0.00

$ 3,052,745.25 $ 5,231, 198.80

9,410.14 $ 3,456,151.59 $

434,487.41

10,203,883.04

3,879,679.92 6,337,050.78

-752.53 6,942.72

-9,647.78 . -3,199.88

$ . 8,283,944.05 $

443,897.55 $ 13,666,224.82 $ 10,203,883.04

-5-

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

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 20,929,632.00 $ 21,539,764.17

11.83

9,915,135.00

10,591,278.40

300,000.00

518,194.43

Total Revenues

$ 31,144,767.00 $ 32,649,248.83

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital OuUay Debt Service

$ 22,408,453.00 $ 22,259,469.23

859,618.00 577,261.00 769,028.00 454,932.00 2,096,744.00 101,479.00 2,425,146.00 1,259,191.00
18,500.00

790,579.55 635,055.70 741,737.00 454,886.04 2, 157,252.78 104,079.87 2,848,146.37 1,485,268.17
12,576.76

103,752.00 299,500.00

95,044.40 10,754.45 39,574.45

Total Expenditures

$ 31,373,604.00 $ 31,634,424.77

Excess of Revenues over (under) Expenditures OTHER FINANCING SOURC!;S (USES)

$ -228,837.00 $ 1,014,824.06

Other Sources Other Uses

$ $ -600,000.00

102,400.89 -800,000.00

Total Other Financing Sources (Uses) $ -600,000.00 $ -697,599.11

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY l, 2000
Adjustments

$ -828,837.00 $ 317,224.95

4, 127,825.66

4,391,990.71

4.76

FUND BALANCE JUNE 30, 2001

$ 3,298,993.42 $ 4.7091215.66

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 108,422.00 $ 395,434.52. 1,215,983.00 1,320,924.29

818,718.00

982,289.84

$ 2,143,123.00 $ 2,698,648.65

$ 498,505.00 $ 875,169.27

4,901.00 41,746.00 22,803.00 36,939.00

6,261.17 23,751.87
7,711.13

1,925.00
159,364.00 1,332,036.00

10,291.46 3,768.00 162,804.78 1,532,119.72

$ 2,098,219.00 $ 2,621,877.40 $ 44,904.00 $ 76,771.25

.$ 44,904.00 $ 76,771.25

148,886.55

146,206.12

-39,365.22

. 6,190.19

$ 154,425.33 $ 229,167.56

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

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Oconee County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general:..purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes.. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

- 8-

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

'JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for.financial resources to be used for the . acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP -
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e:, expenditures and other financing uses) in net current assets. Their r~ported fund balance is considered a measure of available. spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes arelevied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
-9-

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Expenditures are generally recognized when the related fund liability is incurred.

A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compens_ation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School . District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

BUDGET

The Oconee County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in-a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS

.

Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with

original maturities of three months or less from the date of acquisition in authorized financial

- 10 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

.institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

(1) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,

(3) Obligations fully insured or guaranteed by the United. States government or a United States government agency,

(4) Obligations of any corporation of the United States government,

(5) .Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and.

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

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures

made but not reimbursed and other receivables disclosed from information available. Receivables

are recorded when either the asset or revenue recognition criteria has been met. Receivables

recorded on the general-purpose financial statements do not include any amounts which would

necessitate the need for an allowance for uncollectible receivables.



- 11 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The. Oconee County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on September 5, 2000 (levy date). Tax.es were due on November 15, 2000 (lien date). Tax.es collected within the current fiscal year or within 60 days after year-end are reported as. revenue in fiscal year 2001. The Oconee County Tax Commissioner bills and collects the property tax.es for the School District, withholds 2.5% oftax.es collected as a fee for tax collection and remits the balance of tax.es collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $10,513,386.76 and for school bonds amounted to $1,614,545.82.

Tax millage rates levied for the 2000 tax year (calendar year) for the Oconee County-Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

14.25 mills 2.15 mills

16.40 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $2,941",755.72 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $4,533,850.95 has been collected or on . December 31, 2002, whichever occurs first.

INVENTORIES

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

GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are

- 12 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on .deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
- 13 -

OCONEE COUNTY BOARD OF EDUCATION .

EXHIBIT "D"

NOTES TO 1HE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS AND INVESTMENTS

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations. of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt pbligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $13,803,312.65. The amounts ofthe total bank balances are classified into three categories of credit risk:

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

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

Risk Category

Bank Balance

1

$ 400,000.00

2

13,403;312.65

3

0.00

Total

$13.803.312,65

- 14 -

OCONEE COUNTY BOARD OF EJ)UCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the fair value of the School District's total investments was $762,283.46 and this entire amount consisted of a U. S. Government Security which was insured or registered, or securities held by the School District or the School District's agent in the School District's name.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions;job related illness or injuries to employees; natural disaster and unemployment compensation.

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

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

The Schooi District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

2000 2001

$

0.00 $

1,100.00 $

1,100.00 $

0.00

$

0.00 $

2,141.80 $

2,020.00 $

121.80

The School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premiw to the Fund for its general insurance coverage. Additional insurance

- 15 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit.

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

Position Covered

Amount

Superintendent All Employees

$ 100,000.00 $ 10,000.00

Note 5.: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Oconee County Board ofEducation has entered into various lease agreements as lessee for copy machines. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception.
/
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Series 1995

4.25% - 5.25%

General Government - Refunding - Series 1993A 3.00% - 5.00%

$ 9,340,000.00 8,900,000.00

$18.240.000.00

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

- 16 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

. NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 5: GENERAL LONG-TERM DEBT

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 2000

$ 14,767.98 $19,145,000.00 $19,159,767.98

Retroactive Restatement of Prior Year Balances

37,091.12

37,091.12

Balance July 1, 2000 Restated

$ 51,859.10 $19,145,000.00 $19,196,859.10

Additions Capital Leases

102,400.89

102,400.89

Deductions Debt Retired

27,519.78

905,000.00

932,519.78

Balance June 30, 2001

$ 126,740.21 $18.240.000.00 $18.366.740.21

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

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2002 2003 2004 2005 2006 2007 - 4011 2012 - 2016

$ 50,697.26 $ 955,000.00 $ 1,005,697.26 47,117.31 1,015,000.00 1,062,117.31 32,588.77 1,080,000.00 1,112,588.77 18,457.79 1,150,000.00 1,168,457.79 3,839.11 1,235,000.00 1,238,839.11 7,300,000..00 7,300,000.00 5,505,000.00 5.505.000.00

Total Principal and Interest Deduct: Imputed Interest

$ 152,700.24 $18.240.000.00 $18.392.700.24 25,960.03

Net Present Value of Future Minimum Lease Payments $ 126,740.21

- 17 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $457,016.36 for

health insurance and retirement contributions paid on the School District's behalf by the following

State Agencies.



Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$354,218.05

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount. of $26,112.31

Office of Treasury and Fiscal Services

Paid to the Public School Employees Retirement System

For Public School Employees Retirement (PSERS) Employer's Cost

In the amount of $76,686.00



Note 7: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

Funding Available From State

02G-01S-708-034 New Elementary School

$5,057,466.00 $2,819,578.00

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

Note 8: CONTINGENT LIABILITIES

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

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

- 18 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 9: SUBSEQUENT EVENTS

On March 19, 2002, the voters of Oconee County voted in favor o( a Special Purpose Local Option Sales Tax referendum for educational purposes. The imposition ofthe tax approved by the voters, as stated on the Official Ballot of Oconee County, is as follows:

"Shall a one percent sales and use tax for educational purposes be imposed, levied and collected in Oconee County School District for a period of time not to exceed five years commencing on the expiration of the one percent sales and use tax for educational purposes which was approved by a majority ofthe voters ofOconee County in September 1997, and for the raising ofnot more than $25,000,000.00 for the purpose ofproviding funds to pay a portion ofthe costs of constructing and equipping a second high school in the School District, and for the purpose of retiring a portion of the School District's previously issued Series 1993A General Obligation Bond Debt for the years 2004, 2005, 2006, 2007, and 2008, in amount equal to $1,000,000.00, representing a portion ofthe principal and interest due thereon during such years, and, to the extent there are sufficient funds available, providing funds to pay for the cost ofconstructing new educational facilities and adding to, modifying, renovating, repairing, improving and equipping existing educational buildings, properties and facilities ofthe School District, including the acquisition of any necessary real property, making system-wide technology improvements, and paying expenses incident to any of the foregoing thereto?"

Note 10: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

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

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

- 19 -

100% 100% 100%

$ 2,336,634.54 $2,108,305.14 $ 2,038,657.21

OCONEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

265,525.05 $

0.00

5,381.90

18,195.99 241678.99

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

313,781.93 $====0==00=

$

16,474.78

68,139.59

$

84,614.37

$

18,195.99

24,678.99

186,292.58 $

$

229,167.56 $

0.00 0.00

$

313,781.93 $====0.....0..0:::::

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

EXHIBIT"E"

FEDERAL
PROGRAMS

$

77,478.73

TOTALS

JUNE 30, 2001

JUNE 301 2000

265,525.05 $

180,344.79

82,860.63

86,699.60

18,195.99 24,678.99

18,948.52 17,736.27

$

77 478.73 $

391,260.66 $ ==3=0=3,==7=29....1=8=

$

10,614.41 $

10,614.41 $

8,684.53

11,447.46

27,922.24

28,382.17

55,383.74

123,523.33

120,456.36

33.12

33.12

$

77 478.73 $

162,093.10 $

157,523.06

$

2,342.55

$

18,195.99

24,678.99

18,948.52 17,736.27

$

0.00

186,292.58

107,178.78

$

0.00 $

229,167.56 $

146,206.12

$

77 478.73 $

391,260.66 $ ====3=0=3=7,=29==18=

21

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

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

SCHOOL FOOD
SERVICES FUND

. LOTTERY PROGRAMS

$

108,422.00 $

520,521.68

982,289.84

$ 1,611,233.52 $

287,012.52 287,012.52

$

287,012.52

$ 1,532,119.72

$ 1,532,119.72 $

$

79,113.80 $

143,863.57

287,012.52 0.00 0.00

-752.53 6,942.72

$

229,167.56 $=====0.=00=

See no~es to the general-purpose financial statements. -22-

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 301 2001

JUNE 301 2000

$

395,434.52 $

252,133.53

$

800,402.61

1,320,924.29

1,270,582.05

982,289.84

848,621.03

$

800,402.61 $ 2,698,648.65 $ 21371,336.61

$

588,156.75 $

875,169.27 $

710,192.41

6,261.17 23,751.87
7,711.13
10,291.46 3,768.00 162,804.78

6,261.17 23,751.87
7,711.13
10,291.46 3,768.00 162,804.78 1,532,119.72

26,852.05 22,313.79
8,073.94 900.00
5,750.86
147,513.95 1,431,627.00

$

8021745.16 $ 2,6211877.40 $ 2,353,224.00

$

-2,342.55 $

76,771.25 $

18,112.61

2,342.55

146,206..,12

140,941.17

-752.53 . 61942.72

-9,647.78 -3,199.88

$

0.00 $

229,167.56 $==1=4=6'=20=6=.1=2=

- 23-

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$ 1,321,758.47 $

575,388.39

5,750,000.00

749 186.19

$ 1,321,758.47 $ 7,074,574.58

LIABILITIES AND FUND EQUITY LIABILITIES
Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For SPLOSTProjects Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

$

112,389.00

$

112,389.00

$ 6,962,185.58

$ 1,321,758.47

0.00

$ 1,321.758.47 $ 6,962,185.58

$ 1,321,758.47 $ 7,074,574.58

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

EXHIBIT"G"

LOTTERY PROJECT

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

10,200.00 $ 1,907,346.86 $

344,839.41

5,750,000.00

4,400,000.00

749,186.19

486,359.39

$

10,200.00 $ 8,406,533.05 $ 5,231. 198.80

$ $ _ _ _1_0__=,2..c...00_.o_o_

112,389.00 10,200.00

$

10,200.00 $ ____1_2___2__,_,5;..;.8""'9.""-00"'-

$ $ _ _ ___,;o;;.;..o;;;..;;o;... $ _ _ _---'o'"'".o"-'o_ $

6,962,185.58 $ 1,321,758.47 8,283,944.05 $

4,351,067.84 880 130.96
1
5,231,198.80

$

10,200.00 $ 8,406,533.05 $ 5,231,198.80

-25-

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

REVENUES Taxes Other Funds Total Revenues
EXPENDITURES Capital Outlay Land and Land Improvements Building and Building Improvements Total Expenditures
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$ 2,766,755.72

$

59,617.53

380,091.02

$

59,617.53 $ 3,146,846.74

$

700.00

$

542,566.00

$

700.00 $

542,566.00

$

58,917.53 $ 2,604,280.74

$

800,000.00 $

-417,290.02

$

382,709:98 $

6,837.00 6,837.00

$

441,627.51 $ 2,611,117.74

880,130.96

4,351,067.84

$ 1,321,758.47 $ 6,962,185.58

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

EXHIBIT"H"

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30 1 2000

$
$ _ _ _ _o_._o.o.......
$ _ _ _ _o_.o_o_ $

2,766,755.72 $ 439,708.55
3,206.464.27 $

2,531,109.95 66,584.90
21597.694.85

$

286,295.52 $

286,995.52

124,157.50

666,723.50 $

117,989.55

$

410.453.02 $ _ __;.9..5..a3.,a7;.1~9.02 $

117,989.55

$ -410.453.02 $_--"'2-,"2=5"2-,"745.25 $ 2,479.705.30

$

410A53.02 $ 1,217,290.02 $

600,000.00

-417,290.02

$

410.453.02 $

800,000.00 $" 600,000.00

$

0.00 $ 3,052,745.25 $ 3,079,705.30

0.00

5,231.198.80

2,151,493.50

$======o=.o=o= $ a,283,944.05 $ 5,231 119a.ao

-27-

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

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$ 372,786.86 $

0.00 $

372,786.86 $

376,355.51

71,110.69

71,110.69

58,131.90

Total Assets

$ 443,897.55 $

0.00 $

443,897.55 $=====43=4=,4=8=7=41.,..

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ 443,897.55

$

o.oo $ ___-'o__.o_o_

443,897.55 $ 0.00

434,487.41 0.00

Total Fund Equity

$ 443,897.55 $

0.00 $

443,897.55 $ ==4=3=4=4=87==41.,..

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

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "J"

COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

YEAR ENDED JUNE 30, 2001

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

REVENUES

Taxes Other Funds

$ 1,625,107.59 $ 35,321.20

175,000.00 $ 1,800,107.59" $ 1,807,311.72

35,321.20

38,237.09

Total Revenues EXPENDITURES

$ 1,660,428.79 $ 175,000.00 $ 1,835,428.79 $ 1,845,548.81

Debt Service Principal Interest Paying Agent Fees

$ 821,000.00 $ 825,546.25 4472.40

84,000.00 $ 91,000.00

905,000.00 $ 916,546.25
4472.40

860,000.00 952,342.50
5,032.40

Total Expenditures

$ 1,651,018.65 $ 175,000.00 $ 1,826,018.65 $ 1,817,374.90

Excess of Revenues over (under) Expenditures $

9,410.14 $

FUND BALANCE JULY 1

434 487.41

0.00 $ 0.00

9,410.14 $ 434,487.41

28,173.91 406,313.50

FUND BALANCE JUNE 30

$ 443,897.55 $

0.00 $ 443,897.55 $ =====434==,4=8=7.=41=

See notes to the general-purpose financial statements.

-29-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education . Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Fresh Produce Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds
Total U. S. Department of Agriculture
Corporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Capacity Building Improvement Grant
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States High School Program Basic Grant
Tota( U. S. Department of Education

CFDA NUMBER
. 10.553 . 10.555
10.550 10.550 10.665
94.004
84.027 84.173 84.173
84.010 84.281 84.298 84.340 84.186 84.048

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NIA $ 72,860.26

(2)

NIA

348,362.05 $ 1,432,820.35 (3)

$ 421,222.31 $ 1,432,820.35

N/A

83,153.37

83,153.37

NIA

16,146.00

16,146.00

NIA

11.83.

!4l

$ 520,533.51 $ 1,532,119.72

NIA $

729.88 $

3,072.43

NIA $ 359,294.80 $

NIA

22,384.83

NIA

9,678.00

$ 391,357.63 $

359,294.80 22,384.83 9,678.00
391,357.63

NIA

255,692.10

NIA

17,555.00

N/A

22,803.00

N/A

63,688.00

N/A

20,354.00

NIA

28,223.00

$ 799,672.73 $

255,692.10 17,555.00 22,803.00 63,688.00 20,354.00
28,233.00 799,682.73

Total Federal Financial Assistance
NIA = Not Available

- 30-

$ 1,320,936.12 $ 2,3341874.88

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

SCHEDULE 1

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program and the Fresh Produce Pilot Program represents the Federally assigned

value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.

(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2001 National School

Lunch Program.



(3) Expenditures for this program include State, and/or Other Funds..

Expenditures are not maintained by fund source.

(4) Funds earned on this program do not require reporting of expenditures.

Major Programs are identified by an asterisk (*) in front of the CFDA number.

The School District did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Oconee County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general-purpose financial statements.

See notes to the general-purpose financial statements.

31

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001 .

SCHEDULE 2

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Migrant Education Education Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Mentor Teachers National Teacher Certification Grant PayforPertormance Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Applied Technology Labs Assistive Technology Computers in the Classroom
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Reading First Program
State of Georgia, Governor's Office Department of Public Safety Office of Highway Safety Traffic Crash and Incident Reduction for Novice Drivers Project Number 2003-J:3-01-104

See notes to the general-purpose financial statements.

-32-

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 1,130,615.00 79,604.00
3,041,206.00 213,127.00
1,614,406.00 3,023,464.00 2,728,546.00
766,118.00
56,973.00 246,638.00 1,005,235.00 237,814.00
20,179.00 775,991.00 103,165.00 237,809.00
18,847.00 490,796.00 126,831.00 3,053,827.00

$ 1,130,615.00 79,604.00
3,041,206.00 213,127.00
1,614,406.00 3,023,464.00 2,728,546.00
766,118.00
56,973.00 246,638.00 1,005,235.00 237,814.00
20,179.00 775,991.00 103,165.00 237,809.00
18,847.00 490,796.00 126,831.00 3,053,827.00

661,225.00 159,158.00 121,183.00 22,159.00 31,148.00
512.00 739,760.00
$ 65,211.00
35,000.00 4,113.50
354,218.05 5,000.00
11,084.00 6,477.00
100,000.00 51,215.00 4,231.39 26,112.31

108,422.00
175,000.00 852.52
111,160.00

661,225.00 159,158.00 121,183.00
22,159.00 31,148.00
512.00 739,760.00 108,422.00
65,211.00
35,000.00 4,113.50
354,218.05 5,000.00
11,084.00 6,477.00
100,000.00 51,215.00 4,231.39 26,112.31
175,000.00 852.52
111,160.00

76,686.00

76,686.00

79,453.00

79,453.00

14,626.92

14,626.92

$ 21,539,764.17 $ 395,434.52 $ 21,935,198.69

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

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR(3)

AMOUNT EXPENDED
IN PRIOR YEARS(3)

PROJECT STATUS

For the retirement of a portion of the School District's previously issued Series 1993A general obligation bond debt for the years 1999, 2000, 2001, 2002 and 2003, in the amount of $1,000,000.00, representing a portion of the principal and interest due thereon during such years

$ 1,000,000.00 $ 1,000,000.00 $ 175,000.00 $ 600,000.00 Ongoing

For the payment of the costs of acquiring real property as a site for a new high school and creating a project fund in which to esaow moneys to be used to pay a portion of the costs of acquiring, constructing and equipping a new high school in the School District and to the extent there are sufficient funds available,
to provide for the costs of adding to,
modifying, renovating, repairing, improving and equipping existing educational buildings and facilities

12,750,000.00 12,750,000.00

542,566.00 1,428,369.67 Ongoing

$ 13,750,000.00 $ 13,750,000.00 $ 717,566.00 $ 2,028,369.67

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

See notes to the general-purpose financial statements.

- 33 -

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

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1).

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program.

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category I

Category II

Category Ill

Category IV

CategoryV

Gifted Student .- Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other Languages (ESOL)

1,313,078.00 $ 92,452.00
3,532,007.00 247,521.00
1,874,944.00 3,511,402.00 3,168,889.00
889,757.00 1,819,701.00
901,223.00 119,814.00 276,188.00
21,889.00

1,411,711.96 $ 164,343.96
4,010,849.87 429,480.67
2,541,952.65 3,870,207.78 3,371,222.80
808,070.17
52,542.12 260,856.90 1,185,197.30 234,367.69
11,481.71 898,330.95 270,352.44 324,926.51
52,819.45

28,427.92 $ 9,139.24
146,394.28 13,953.24 48,455.62
156,474.03 160,463.18 144,998.16
1,881.15 4,968.68 22,095.67 2,456.82
14,033.06 2,317.97 2,927.22
228.37

1,440,139.88 173,483.20
4,157,244.15 443,433.91
2,590,408.27 4,026,681.81 3,531,685.98
953,068.33
54,423.27 265,825.58 1,207,292.97 236,824.51
11,481.71 912,364.01 272,670.41 327,853.73
53,047.82

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

17,768,865.00 $ 19,898,714.93 $ 759,214.61 $ 20,657,929.54

Media Center Program Staff and Professional Development

570,002.00 147,300.00

596,133.23 62,836.62

133,033.81 84,463.38

729,167.04 147,300.00

TOTAL QBE FORMULA FUNDS

$

18,486,167.00 $ 20,557,684.78 $ 976,711.80 $ 21,534,396.58

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

See notes to the general-purpose financial statements.

- 34-

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

SCHEDULE "5"

Oconee County Primary School Oconee County Middle School Malcom Bridge Elementary School Malcom Bridge Middle School Oconee County High School Oconee County Elementary School Colham Ferry Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,895,542.00 $ 2,280,589.01

2,433,632.00

2,772,107.23

2,372,306.00

2,856,654.64

1,911,899.00

2,102,427.58

4,820,846.00

5,637,535.70

1,797,495.00

2,274,866.95

2,260,957.00

2,733,748.43

2761188.00

$ 17,768,865.00 $ 20,657,929.54

See notes to the general-purpose financial statements.
- 35.-

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 30, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Oconee County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Oconee County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated April 30, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the audit.or's report on the general-purpose financial statements. We conduct~d our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether .Oconee County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Oconee County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2001YB-41

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable ~onditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Oconee County Board ofEducation's ability to record, process, summarize and report financial data consisten.t with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7081-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financiaJ reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7081-01-01 to be a material weakness.
This report is intended solely for the information and use of the management, members of the Oconee County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 2001YB-41

Ru sell W. Hinton St te Auditor

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

OF DEPARTMENT AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 30, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Oconee County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofOconee County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Oconee County Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Oconee County Board of Education's management. Our responsibility is to express an opinion on Oconee County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Oconee County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Oconee County Board ofEducation's compliance with those requirements.
2001SA-10

In our opinion, the Oconee County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001.

Internal Control Over Compliance

The management of Oconee County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Oconee County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.

Our consideration ofthe internal control over compliance would not necessarily disclose all matters

in the internal control that might be material weaknesses. A material weakness is a co~dition in

which the design or operation ofone or more ofthe internal control components does not reduce to a

relatively low level of risk that noncompliance with applicable requirements of laws, regulations,

contracts and grants that would be material in relation to a major Federal program being audited may

occur and not be detected within a timely period by employees in the normal course ofperforming

their assigned functions. We noted no matters involving the internal control over compliance and its

operation that we consider to be material weaknesses.



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

Respectfully submitted,

RWH:gp 2001SA-10

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7081-99-01 FS-7081-00-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7081-00-01

On July 10, 2001, the School District entered into an agreement with VRM-Maximus to
an conduct inventory and appraisal of the Oconee County School District assets at the
$1,000.00 capitalization level and to itemize that data to conform to GASB S-34 requirements. This summary of assets will be available for the Fiscal Year 2002 audit of the School District.

SECTIONN FINDINGS AND QUESTIONED COSTS

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Oconee County Board of Education's financial statements was qualified for various departure~ from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Oconee County Board ofEducation disclosed a financial statement reportable condition related to the following control category.

General Fixed Assets

The reportable condition described above is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit of the Oconee County Board of Education disciosed no instances of noncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Oconee County Board ofEducation did not disclose any reportable conditions in internal control over major programs.

5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Oconee County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Oconee County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.

7. Major Programs

.

Federal awards audited as major programs are as follows:

10.553 Food and Nutrition Program - Food Services - School Breakfast Program

10.555 Food and Nutrition Program - Food Services - National School Lunch Program

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

9. Low Risk Auditee The Oconee County Board of Education qualified as a low risk auditee based on a waiver granted by the U.S. Department of Education.

- 1-

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS . GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition- Material Weakness Repeated From Prior Year Finding Control Number: FS-7081-01-01 The Oconee County School District did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-