': 'x \ ,,..1- , J ,.... , ,"',, \ t ! .. 1.<.:'~. 'i; :! . . ,., ( .: ),i... ,... ---1,: .. .. . I '' , ,, '"1' J. .., ' . , ' '' ..,. ' ,, 'I' ( __... ,, ',' . I '.. ", ,-,-- .- .:., ' 1 ~- . , ..... ',-. .... ''_ '. ' ... ,,' ' : , .,..-. ,.'>- ~:I', 'r., .... ', ,.'.,, , ,. ,,I"" l r . . ;, . ' ......,. I, . , :' '' I :. '~-" ,' r-, :. : ' ,-. I .' ~-t. '7l'.:' . . I ... f ,, r ,, .. - 1-:j',;: \ ' - : / , ,.... ,,. '; '..... ~ .: ' . ' : ' ' .' ,,, .,_-.' ; ...... .-'. ..... , ,. ' .. ,1 ,.: .. '~ I ''"I\. -:- , ' 1 ' ,. ., , ._ ',.' , ,. - .: .., ,. 'J .:.R-~ss~1i :w; Hinton...,,: . ., -~~~t-~- ~~-~it~r . _ , .','- ., t' ,.' . ,. , '.' , , ., , ' ', ~,. . ,,.' ,... .. r .. . . , ' ,;, .... ;y ; .... , -\ :', OGLETHORPE COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL-PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 6 D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 7 ADDIDONAL 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 SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 28 2 SCHEDULE OF STATE REVENUE 30 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 31 ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALTIY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 32 5 BY SITE 33 OGLETHORPE COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- 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 O:MB CIRCULAR A-133 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL R11<;SEI.L \\'. HINTON STATE AUDITOR (404) 656-2174 DEPART1\1ENT OF AUDITS AND ACCOUNTS 254 WJ~hrng1on S1rce1. SW. Su11c 214 A1lanta. Georgia 30334-8400 February 6, 2003 Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Oglethorpe 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 ofthe Oglethorpe County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Oglethorpe County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 2002ARL-13 * The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. * School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. * The Board of Education did not recognize as expenditures, in the year ended June 30, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002. Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were improperly recorded in the year ended June 30, 2002. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Oglethorpe County Board of Education as ofJune 30, 2002, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated February 6, 2003, on our consideration of the Oglethorpe County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part ofan 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 Oglethorpe County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing 2002ARL-13 procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. ~-Respectfully submitted, . RWH:gp 2002ARL-13 Rus ell W. Hinton Stat Auditor OGLETHORPE COUNfY BOARD OF EDUCATION OGLETHORPE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2002 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Prepaid Items lnventones Food Donated Commod1bes Purchased Food Amount Available m Debt Service Fund Amount to be Provided m Future Years For Payment of. Bond Debt Capital Lease Agreements GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 109,321 98 $ 1,690,643 53 $ 2,034,474 89 4,836,072.65 258,208 76 207,459 74 146,075 48 10,766 00 17,680.37 5,437.58 Total Assets $ 2I303i449 65 $ 339,899 67 $ 6,672?91.66 LIABILITIES AND FUND EQUI!)'. LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Capital Lease Agreements General Obhgabon Bonds Payable Total Llablht1es FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Cont1nuat1on of Federal Programs For Debt Service For lnventones Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay ProJects Unreserved Designated for Salary Supplements Undesignated Total Fund Equity $ 988,326.72 12,696.12 $ 34,545 06 121,679.50 8,840 60 38,625 74 $ 100,000.00 $ 1,009,863 44 $ 194,850.30 $ 100,000 00 $ 50,290.96 s 24,053 29 1,219,241 96 s 1,293,586.21 $ 17,680 37 5,437.58 $ 4,873,779 49 1,279,746 61 8,949 00 121,931 42 145,049 37 $ 410 316 56 6,572,791 66 Total LIablhties and Fund Equity s 2,3031449.65 $ The notes to the general-purpose finanaal statements are an Integral part of this statement. -2 - s 3391899 67 6,672?91 66 EXHIBIT "A" DEBT SERVICE FUND $ 509,500.00 ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS {Memorandum Onl~l JUNE 30, 2002 JUNE 30, 2001 $ 1,799,965 51 $ 1,738,576.32 7,380,047.54 1,273, 150.00 611,743 98 322,276.58 10,766.00 7,048.00 $ 509,500.00 17,680.37 5,437.58 509,500 00 16,689 53 3,604 81 4,490,500 00 141,050 84 4,490,500 00 141 050 84 69,090.20 $ 5091500 00 $ 511411050.84 $ 1419661691.82 $ 314301435 44 $ 988,326.72 $ 47,241.18 121,679.50 47,466.34 100,000.00 $ 141,050 84 141,050.84 5,000,000 00 5,000,000 00 $ 5,141,050.84 $ 6,445,764 58 $ 17,869.05 29,858 88 99,521.37 4,375.08 69,090.20 220,714.58 $ 509,500.00 $ 509,500 00 $ 50,290 96 $ 126,584.26 8,659 50 509,500.00 17,680.37 5,437.58 4,873,TT9.49 1,279,746.61 8,949.00 16,689.53 3,604.81 854,374.32 39,951.00 24,053.29 1,751,489.94 23,398.54 2,136,458 90 $ 8,520,927.24 $ 3,209,720.86 $ 5091500 00 $ 5J411050 84 $ 1419661691.82 $ 314301435 44 -3 - OGLETHORPE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2002 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educabonal Media Services General Admin1strat1on School Administrabon Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Capital Outlay Debt Service Pnnc1pal Interest Total Expenditures Excess of Revenues over (under) Expenditures QTt!ER FINANCING SOURCES (USES} Proceeds from General Obhgat1on Bonds Par Value 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 Change in Penod Donated Commod1bes Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 10,114,791 89 $ 158,813.10 3,526,506 80 120,307 46 $ 13,920,419.25 $ 215,292 00 1,664,266 68 232,336 39 2,111,895.07 $ 9,217,087.07 $ 555,820 87 396,384.37 353,463.23 218,478 68 982,909.11 229,013.21 842,987.51 915,674.76 271,575 03 922,651.05 106,969 80 192,978.11 3,628.56 7,473.60 92,797 46 74,49900 779,543.61 54,598.36 6,452.94 $ 14,044,445 14 $ $ -124,025.89 $ 2,180,54119 -68,646.12 $ 126,559 00 -100,000.00 $ 26,559 00 $ -97,466.89 $ 1,391,053.10 -68,646 12 210,871.88 99084 183277 FUND BALANCE JUNE 30 $ 112931586 21 $ =z:za1=4=5=04..,9..,3..,7.., The notes to the general-purpose financial statements are an integral part of this statement. -4- EXHIBIT"B" CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 166,184.00 614,722.24 145 876.61 $ $ 926,782.85 $ $ 9,500 00 10,496,267 89 $ 1,823,079 78 4,141,229.04 508,02046 9,914,257.42 1,166,233.18 3,567,473.22 404,910.90 9,500 00 $ 16,968,597 17 $ 15,052,874 72 $ $ 157,750.00 404,037.07 $ 561,787 07 $ $ 364,995 78 $ 0 00 $ 10,139,73812 $ 9,102,297.94 662,79067 589,362.48 353,463.23 222,107.24 990,382 71 386,763.21 842,987 51 1,008,472.22 346,074.03 779,543.61 404,037.07 709,988 39 430,928.09 390,939 47 220,316.71 1,054,599 15 139,308.59 761,635.26 718,325 70 187,660.42 702,679 41 302,275.83 54,598.36 6452 94 68,029.88 6,616.59 0.00 $ 16,786,773 40 $ 14,795,601.43 9,500 00 $ 181,823.77 $ 257,273.29 $ 5,000,000 00 100,000.00 $ -500,000.00 $ 4,600,000.00 $ $ 4,964,995.78 $ 1,607,795 88 $ 500,000.00 500,00000 $ 5,000,000 00 126,559.00 $ 600,000.00 -600,000 00 5,126,559.00 $ 88,141 50 71,612.92 -71,612 92 88,141 50 509,500 00 $ 0.00 5,308,382.77 $ 3,209,720 86 345,414.79 2,860,022.06 99084 1 832.77 5,551.91 -1,267.90 $ 6,572,791 66 $ 509,500.00 $ 8,520,927 24 $ 3,209,720 86 -5- OGLETHORPE 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 2002 EXHIBIT"C" GENERAL FUND BUDGET ACTUAL REVENUES Slate Funds Federal Funds Taxes Other Funds Total Revenues $ 9,976,141 00 $ 10,114,79189 158,813 10 3,271,979 00 3,526,506 80 74 000 00 120 307 46 $ 13,322,120 00 $ 13,920,419 25 EXPENDITURES Current Instruction Support Ser111ces Pupil Services Improvement of Instructional Services Educational Media Services General Adm1mstrat1on School Adm1mstra!Jon Business Adm1mstratJon Maintenance end Operation of Plant Student Transportation Ser111ces 01her Support Services Food Services Operation Caprtal Outlay Debt Service $ 9,087,953 00 $ 9,217,087 07 657,139 00 449,995 00 374,498 00 230,143 00 999,067 00 225,402 00 1,085,346.00 987,119 00 264,110 00 555,820 87 396,384.37 353,463 23 218,478 68 982,909 11 229,013 21 842,987.51 915,674 76 271,575.03 40,000 00 61 051 30 Total Expenditures $ 14,400,772 00 $ 14 044 445 14 Excess of Revenues over (under) Expenditures $ -1,078,652 00 $ -124,025 89 QTHEB FINANCING SOURQES MiESl 01her Sources 01her Uses $ 126,559.00 -100,000 00 Total 01her Fmancmg Sources (Uses) $ 26 55900 Excess of Revenues end 01her Financing Sources over (under) Expenditures and Other Financing Uses FUND l;!ALANCE JUL)'. J 200] AdJustments Food Inventory - Net Change 1n Penod Donated Commod1t1es Purchased Foods $ -1,078,652 00 $ -97,466 89 1,310,837.75 1,391,053 10 9600 FUND 1:!ALANCE JUNE 30 2002 $ 2321281 75 $ 112931586 21 SPECIAL REVENUE FUND BUDGET ACTUAL $ 193,786 00 $ 215,292 00 1,451,223 00 1,664,266 68 225,000 00 232,336 39 $ 1,870,009 00 $ 2 111 895 07 $ 790,832 00 $ 922,651 05 118,959 00 198,182 00 106,969 80 192,978 11 1,250 00 24,812 00 337 00 3,628 56 7,473 60 7,500 00 22,637 00 705,500 00 92,797 46 74,499 00 779,543 61 $ 1,870,009 00 $ 2,180,541 19 $ 000 $ -68,646 12 $ 000 $ -68,64612 213,124 73 210,871 88 -878 96 99084 1 832.77 $ 2121245 77 $ 145 049 37 The notes to the general-purpose financial sta1ements are an m1egrel part of this sta1ement -6- OGLETHORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Oglethorpe County Board ofEducation (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. FUND ACCOUNTING The School District uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. -7- OGLETHORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. Governmental funds are accounted for using the modified accrual basis ofaccounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. - 8- OGLETHORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2002, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2002, compensation under these employment contracts had been earned, but two 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 expenditures by the School District subsequent to June 30, 2002. Also, the State's portion ofthe compensation paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were recorded in the year ended June 30, 2002. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. BUDGET The Oglethorpe 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 -9- OGLETHORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 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 are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: (1) Obligations issued by the State of Georgia or by other states, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) Obligations of any corporation 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. - 10- OGLETHORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PROPERTY TAXES The Oglethorpe County Board ofCommissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on December 6, 2001 (levy date). Taxes were due on February 28, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Oglethorpe County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $3,367,033.25. The tax millage rate levied for the 2001 tax year (calendar year) for the Oglethorpe County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations .ll...00 mills SALES TAXES Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $614,722.24 and is to be used for capital outlay for educational purposes. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. INVENTORIES FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time 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. PREPAID ITEMS Payments made to vendors for services that will benefit periods subsequent to June 30, 2002, are recorded as prepaid items. - 11 - OGLETHORPE COUNfY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES COMPENSATED ABSENCES Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements. Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements. GENERAL OBLIGATION BONDS The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the 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. 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 - 12 - OGLETHORPE COUNfY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 Note 2: DEPOSITS AND INVESTMENTS been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $2,130,650.74. 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. - 13 - OGLETHORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2: DEPOSITS AND INVESTMENTS Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) The School District's deposits are classified by risk category at June 30, 2002, as follows: Risk Category Bank Balance 1 $ 114,852.38 2 2,015,798.36 3 0.00 Total $2,130,650.74 CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $7,356,897.54 which is materially the same as fair value. The investments are classified as to risk categories as follows: Type of Investment Carrying Amount Fair Value Investments Not Subject to Categorization Local Government Investment Pools Guaranteed Investment Contract $6,847,397.54 $6,847,397.54 509,500.00 509,500.00 Total Investments $ 7.356.897,54 $ 7.356.897,54 The carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury_and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: The Primary Liquidity Portfolio consists of Georgia Fund l, which is a combination local and state government investment pool, and Fund 6. Georgia Fund I is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and - 14 - OGLETHORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2: DEPOSITS AND INVESTMENTS is considered to be a 2a-7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase - agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2002, was 0.12 years. The average investment duration for Fund 6 on June 30, 2002, was 0.75 years. Note 3: NON-MONETARY TRANSACTIONS The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGEMENT The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. The School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. The School District 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 ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the last two fiscal years. - 15 - OGLETHORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 4: RISK MANAGEMENT The School District has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Amount Superintendent All Employees $ 100,000.00 $ 100,000.00 Note 5: GENERAL LONG-TERM DEBT CAPITAL LEASES The Oglethorpe County Board ofEducation has entered into various lease agreements as lessee for buses and office equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates Amount General Government - Series 2001 0% $ 5,000,000.00 The changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows: Capital Leases General Obligation Bonds Total Balance July 1, 2001 $ 69,090.20 $ 69,090.20 Additions Capital Leases G.O. Bonds 126,559.00 $ 5,000,000.00 126,559.00 5,000,000.00 Deductions Payments 54,598.36 54,598.36 Balance June 30, 2002 $ Bl,0SQ.~~ $ 5,QQ0.000.00 $ 5,Bl,050.8~ At June 30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows: - 16 - OGLETHORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 5: GENERAL LONG-TERM DEBT Fiscal Year Ended June 30 Capital Leases General Obligation Bonds Total Debt 2003 2004 2005 2006 2007 - 2013 $ 48,661.70 $ 48,661.70 36,671.70 36,671.70 34,273.70 34,273.70 34,273.70 34,273.70 $ 5,000,000.00 5,000,000.00 Total Principal and Interest $ 153,880.80 $ 5.000.000.00 $ 5,153,880.80 Deduct: Imputed Interest 12,829.96 Net Present Value of Future Minimum Lease Payments $ 141,050.84 Note 6: ON-BEHALF PAYMENTS The School District has recognized revenues and expenditures in the amount of $152,856.59 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 $135,421.59 Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $17,435.00 Note 7: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2002, together with funding available: - 17 - OGLETIIORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 7: SIGNIFICANT COMMITMENTS Project Unearned Executed Contracts Funding Available From State LW00/99S-709-010 $ 157.565 ,QQ $ 265,315.QQ 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. Note 9: ACCUMULATED EMPLOYEES' LEAVE The Superintendent earns twenty days of annual leave each year with a maximum accumulation of forty-five days. The Superintendent will be paid at his current rate ofpay for unused accumulated annual leave upon retirement or termination ofemployment. See Note 1 - Compensated Absences 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 of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: - 18 - OGLETHORPE COUNfY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 10: RETIREMENT PLANS Fiscal Year 2002 2001 2000 Percentage Contributed 100% 100% 100% Required Contribution $ 865,419.78 $ 998,371.72 $ 906,282.55 - 19 - OGLETHORPE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 177,139.38 $ 0.00 668.46 17,680.37 5 437.58 Total Assets $ 2001925.79 $ =====0.==00= LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable 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 $ 15,261.30 40,615.12 $ 55,876.42 $ 17,680.37 5,437.58 121,931.42 $ 0.00 $ 145,049.37 $ 0.00 $ 200,925.79 $ ===-==o..._oo= See notes to the general-purpose financial statements. - 20- EXHIBIT"E" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS JUNE 301 2002 JUNE 30, 2001 $ 177,139.38 $ 267,262.37 $ 153,113.30 $ 53,677.98 207,459.74 87,975.42 17,680 37 5,437.58 16,689.53 3 604.81 $ 153,113.30 $ 53,677.98 $ 407 717.07 $===3=7=5=,5=32==13= $ 14,139.42 $ 19,283.76 81,064.38 38,625.74 $ 153,113 30 $ 53,677.98 $ 53,677.98 $ 67,817.40 $ 34,545.06 121,679.50 38,625.74 262,667.70 $ 41,149.49 22,406.24 99,521.37 1,583.15 164,660.25 $ 8,659.50 $ 17,680.37 5,437.58 16,689.53 3,604.81 $ 0.00 $ 0.00 121,931.42 181,918.04 $ 0.00 $ 0.00 $ 145,049.37 $ 210,871.88 $ 153,113.30 $ 53,677 98 $ 407 717.07 $==3=7=5=,5==32==13,... - 21 - OGLETHORPE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration . School Administration Student Transportation Services Other Support Services Food Services Operation Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 56,006.00 $ 431,214.60 232,336.39 $ 719,556.99 $ 60,786.00 60,786.00 $ 60,786.00 $ 779,543.61 $ 779,543.61 $ $ -59,986.62 $ 202,212.38 990.84 1,832.77 60,786.00 0.00 0.00 FUND BALANCE JUNE 30 $ 145,049.37 $ ====-=0==00= See notes to the general-purpose financial statements. - 22- EXHIBIT "F" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ $ 1,233,052.08 $ 1,233,052.08 $ 98,500.00 $ 98,50000 $ 215,292.00 $ 1,664,266.68 232,336.39 2,111,895.07 $ 297,787.00 1,144,780.77 225,926.02 1,668,493.79 $ 851,865.05 $ 18,469.80 192,978.11 3,628.56 7,473.60 92,797.46 74,499.00 $ 1,241,711.58 $ $ -8,659.50 $ 8,659.50 10,000.00 $ 88,500.00 98,500.00 $ 0.00 $ 0.00 922,651.05 $ 106,969.80 192,978.11 3,628.56 7,473.60 92,797.46 74,499.00 779,543.61 2,180,541.19 $ -68,646.12 $ 210,871.88 703,063.32 138,955.19 58,001.89 21,849.83 12,665.94 7,950.48 3,318.33 21,538.51 702,679.41 1,670,022.90 -1,529.11 208,116.98 990.84 1,832.77 5,551.91 -1,267.90 $ 0.00 $ 0.00 $ 145,049.37 $ ===2=1=0=,8==71==88..., -23- - - - - - - - - - - - - - - - - - - - - - -- - - - - OGLETHORPE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002 ASSETS Cash and Cash Equivalents Investments Accounts Receivable REGULAR BOND PROCEEDS GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 510,316.56 $ 37,706 84 4,836,072.65 _ _ _ _ _ _ $ _ _----=3-'-7"",9.a;.93:.a.a;.oo:a... Total Assets $ 510,31656 $ 487377949 $===3=7=,9=93=.o=o... LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Deferred Revenue Total Liabilities FUND EQUITY Fund Balances Reserved For Purposes of Bond Issue For SPLOST ProJects For State Capital Outlay Projects Unreserved Undes1gnated Total Fund Equity $ 100,000.00 $ 100,000.00 $ 29,044 00 $ 29 044 00 $ 4,873,779.49 $ $ 410,316.56 000 $ 410,316.56 $ 4,873,779 49 $ 8,94900 0.00 8,949.00 Total L1abiht1es and Fund Equity $ 510,316 56 $ 4,873,77949 $=====3=7'=99=3=0=0= See notes to the general-purpose financial statements. - 24- EXHIBIT"G" SPECIAL PURPOSE LOCAL OPTION SALES TAX $ 1,171,66413 $ 108,082 48 LOTTERY PROJECT TOTALS JUNE 30, 2002 JUNE 30, 2001 0.00 $ 1,719,687.53 $ 1,512,46344 4,836,072.65 146 075 48 95,332.44 $ 11279,74661 $--===o=o=o= $ 61701,83566 $ 1,607,795 88 $ 29,044 00 100,000 00 $ _ _1=2=9.i.;;;,044-'-'-=oo;;._ $ 1,279,746.61 0.00 $ $ 1,279,746.61 $ $ 000 0.00 $ 4,873,779 49 1,279,746.61 $ 8,949.00 410,316 56 6,572,791.66 $ 854,374.32 39,951.00 713,470 56 1,607,795.88 $ 1,279,746 61 $====0=.0=0= $ 6,701,835.66 $ 1,607,795 88 - 25- OGLETHORPE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2002 REGULAR BOND PROCEEDS GEORGIA STATE FINANCING AND INVESTMENT COMMISSION REVENUES State Funds Taxes Other Funds $ 105,795.00 $ $ 40 081 61 37,993 00 Total Revenues $ 105,795.00 $ 40 081.61 $ 37,993.00 EXPENDITURES Current Support Services Business Administration Capital Outlay Salanes Employee Benefits Land and Land Improvements Building and Building Improvements Equipment Debt Service Pnncipal Interest $ 000 $ 157,750.00 8,552.12 $ 63,700.00 Total Expenditures $ 000 $ 166,302 12 $ 63,700.00 Excess of Revenues over (under) Expenditures $ 105,795.00 $ -126,220.51 $ -25,707.00 OTHER FINANCING SOURCES (USES} Proceeds from General Obligation Bonds Par Value Capital Leases Operating Transfers In Operating Transfers Out $ 5,000,000.00 $ 100,000 00 $ -508,949.00 8,949.00 Total Other Financing Sources (Uses) $ -408,949.00 $ 5,000,000.00 $ 8,949.00 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ FUND BALANCE JULY 1 -303,154.00 $ 713 470 56 4,873,779.49 $ 000 -16,758.00 25,707 00 FUND BALANCE JUNE 30 $ 4101316.56 $ 41873,779 49 $ ........,...,..,,..8=-94.,.9=.""oo== See notes to the general-purpose financial statements -26- EXHIBIT"H" SPECIAL PURPOSE LOCAL OPTION SALES TAX LOTTERY PROJECT TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 128,191 00 $ 166,184 00 $ 614,722.24 614,722 24 $ 560,344 90 145,876 61 $ 614 722 24 $ 128,191 00 $ 926,782.85 $ _ _5...,_60_..__,34__4__9__0__ $ 157,750.00 $ 83,028 07 11,426.88 34,466 74 60,428.26 $ 142,435.00 83,028.07 $ 11,426.88 34,466.74 275,115.38 79,675.92 14,722 45 7,097.00 96,675.68 103,064 78 59,889 18 2,767.29 $ 189,349.95 $ 142,435 00 $ 561,787.07 $ 363,892 30 $ 425,372 29 $ -14 244 00 $ 364,995.78 $ 196,452 60 $ 5,000,000.00 $ 108,949.00 -508,949.00 $ 4,600,000.00 $ 54,603.03 374,045.22 -302,432.30 126,215.95 $ 425,372.29 $ -14,244 00 $ 4,964,995.78 $ 322,668.55 854 374 32 14 244 00 1,607,795 88 1,285,127.33 $ 1,279:746 61 $ 000 $ 6,572:791 66 $ 1,607,795.88 -27 - OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2002 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Agnculture, U S. Department of Child Nutnbon Cluster Pass-Through From Georgia Department of Educabon Food and Nutntion Program Food Services School Breakfast Program Nabonal School Lunch Program . 10.553 . 10.555 NIA $ 86,964.08 NIA 301,04648 $ (2) 736,339.57 Total Child Nutribon Cluster $ 388,010.56 $ 736,339 57 Other Programs Pass-Through From Georgia Department of Education Food and Nutribon Program Food Dlstnbutlon Program (1) 10.550 NIA Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds 10.665 NIA 43,204 04 8,813 10 43,204.04 (3l Total U. S. Department of Agriculture $ 440,02770 $ ne,543.61 Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Dlsabilibes Education Act Part B - Speaal Education Flow Through Preschool Capacity Improvement Grant . 84.027 . 84173 . 84.173 NIA $ 262,522.88 $ NIA 34,441.92 NIA 6,422.00 262,522.88 34,441.92 6,422.00 Total Special Educabon Cluster $ 303,386.80 $ 303,386.80 Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Educabon Act Titlel Accountability Grants Grants to Local Educational Agencies Title II Eisenhower Professional Development Title Ill Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Title X Charter Schools Safe and Drug-Free Schools and Communities Vocational Educabon - BaSlc Grants to States High School Program Basic Grant 84348 NIA 84.010 NIA 84.281 NIA 84.318 NIA 84.298 NIA 84340 NIA 84.282 NIA 84.186 NIA 84.048 NIA 53,686.00 497,121.67 16,947.75 125,000.00 73,882 00 13,432.71 107,845.85 6,730.30 35,019.00 53,686.00 497,121.67 18,603.45 (3) 125,000.00 73,882.00 13,432.71 114,849.65 (3) 6,730.30 35,019.00 Total U. S. Department of Educabon $ 1,233,052 08 $ 1,241,711.58 -28- OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS VEAR ENDED JUNE 30, 2002 SCHEDULE "1 FUNDING AGENCY PROGRAM/GRANT Labor, U S. Department of Pass-Through From Georgia Department of Technical and Adult Education Employment SeMces and Job Training PIiots Demonstrabon and Research CFOA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 17.249 NIA s 150,00000 s 150,000 00 Total Federal Flnanaal Assistance S 1,8231079 78 S NIA = Not Available Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Dlstnbubon Program represents the Federally aSS1gned value of nonmonetary assistance for donated commodibes received and/or consumed by the system dunng the current fiscal year. (2) Expenditures for the School Breakfast Program were not maintained separately and are lnduded in the 2002 National School Lunch Program. (3) Funds earned on this program do not reqwre reporbng of expenditures. Major Programs are identified by an asterisk c> In front of the CFDA number. The School Oistnd did not pl'OVlde Federal Assistance to any Subreap1ent The accompanying schedule of expenditures of Federal awards includes the Federal grant adlvlty of the Oglethorpe County Board of Education and is presented on the modified acaual basis of accounbng which IS the basis of accounbng used In the presentation of the general-purpose finandal statements. 2,171,25519 See notes to the general-purpose finandal statements -29- OGLETHORPE COUNTY BOARD Of EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002 SCHEDULE "2" AGENCY/FUNDING GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL GRANTS Community Affairs, Georgia Department of Local Assistance Grant $ 10,000 00 $ 10,000 00 Educatron, Georgia Department of Quality Basic Education Direct lnstrucbonal Cost Kindergarten Program $ 497,115 00 Kindergarten Program Earty Intervention Program 61,119 00 Pnmary Grades (1-3) Program 1,279,185 00 Pnmary Grades - Earty Intervention (13) Program 167,605 00 Upper Elementary Grades (4-5) Program 704,085 00 Upper Elementary Grades (4-5) Program Earty Intervention 100,687.00 Middle School (6-6) Program 1,099,817.00 High School General Education (9-12) Program 811,675 00 Vocational Laboratory (9-12) Program 425,253 00 Students wrth D1sab11ities Category I 140,858 00 Category II 215,767.00 Category Ill 890,522 00 Category IV 151,035 00 CategoryV 23,985 00 Gifted Student Category VI 115,16300 Remedial Education Program 52,855 00 Alternative Education Program 83,936 00 Media Center Program 202,952 00 Staff and Profess10nal Development 39,229 00 Indirect Cost 1,388,495 00 20 Days AddrtJonal Instruction 60,431.00 Categoncal Grants Pupil Transportation Regular 428,870 00 Bus Replacement 109,936 00 Sparsity 20,000 00 Nuramg Services 59,454 00 Pnncipal Supplements 9,305 00 VocabonalSupervtsors 17,633 00 Education EquahzabOn Funding Grant 613,914 00 Food Services VocabOnalEducation 16,471 00 Other State Programs Health Insurance 135,421.59 Mentor Teachera 10,098.00 Outdoor Classrooms 750 00 PayforPerfonnance 78,000 00 Preschool Handicapped Program 17,899 00 Special EducabOn Low Incidence Grant 29,601 00 Statewide After School Program 4-B 19,892.20 Statewide Reading Program K-3 18,543 10 Lottery Programs AsalSbve Technology Computers In the Classroom Exceptlonal Growth-Capital Outlay 56,006 00 7,18600 53,600 00 $ 128,191 00 497,115 00 61,11900 1,279,185 00 167,605 00 704,085 00 100,687 00 1,099,817 00 811,675 00 425.253 00 140,858 00 215,767 00 890,522 00 151,035 00 23,985 00 115,163 00 52,655 00 83,936.00 202,952 00 39,229 00 1,388,495 00 60,431 00 428,870 00 109,938 00 20,000.00 59,454 00 9,305 00 17,633 00 613,914.00 56,006 00 16,471 00 135,421 59 10,098 00 750 00 78,000 00 17,899 00 29,601.00 19,892 20 18,543 10 7,18600 53,600 00 128,191 00 Georgia State Financing and Investment Commission Reimbursement on Construcbon Projects 37,993 00 37,993 00 Office of Treasury and Fiscal Servtces Public School Employees Retirement 17,435 00 17,435 00 CONTRACT Human Resources, Georgia Department of FamUy Connecbon 88,500 00 8B,soo oo $ 101114,791 89 $ 215,292 00 $ 1681184 oo $ 10,4961267 89 See notes to the general-purpose financial statements. -30- OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2002 SCHEDULE "3" PROJECT Remodehng, renovatmg, expandmg and equippmg eXJstmg classrooms, 1nstruct1onal and support space and grounds at the pnmary, elementary, middle and high schools, as well as the bus garage, acqumng any necessary real and personal property, purchase of school buses and paying any expenses mcident thereto Rehab1htatmg, repamng, renovating, extending and 1mprov1ng Oglethorpe County M1ddle/H1gh School, Oglethorpe County Pnmary School and related facilities useful or desirable m connecbon therewrth, mcluding wrthout limrtat1on roof replacements and repairs, mechanical system repairs and replacements, add1t1onal parking and paving and security systems, acquinng technology add1t1ons and improvements, purchasing school furnishings, equipment and fixtures and paying expenses incident to accomplish the forgoing ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS (3) PROJECT STATUS $ 3,100,000 00 $ 3,100,000.00 $ 189,349 95 $ 953,092 30 Ongoing 4,000,000 00 4,000,000 00 Ongoing $ 1,100,000.00 $ 7,100,000.00 $ 189,349.95 $ 953,092.30 (1) The School D1stnct's ong1nal cost estimate as specified 1n the resolution calling for the imposition of the Local Option Sales Tax (2) The School District's current estimate of total cost for the projects. Includes all cost from project 1ncep1ton to completion. (3) The voters of Oglethorpe County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these proJects may include sales tax proceeds, state, local property taxes and/or other funds over the lrfe of the projects. See notes to the general-purpose financial statements. - 31 - OGLETHORPE COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2002 SCHEDULE 4 DESCRIPTION Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with 01sab1htles Category II Category Ill Category IV Category V Gifted Student - Category VI Remedial Education Program Altematrve Education Program TOTAL DIRECT INSTRUCTIONAL PROGRAMS Media Center Program Staff and Professional Development ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS SALARIES OPERATIONS TOTAL $ 560,615 00 $ 619,843.27 $ 22,694 75 $ 642,538.02 68,926 00 144,645 82 2,358 95 147,004 77 1,442,585 00 1,392,939.33 57,990.19 1,450,929.52 189,014.00 243,319 34 2,283.95 245,603 29 793,571 00 941,275 03 28,067.30 969,342.33 114,001.00 1,240,305 00 915,356 00 479,574 00 1,603,832.00 129,874.00 59,381.00 941658.00 74,384 75 1,313,146.72 1,219,248.31 445,891 85 193,832.52 1,007,768 81 148,052 88 39,421.49 145,067.25 46,989.96 119,671.36 1,596.82 49,495 62 73,662.95 52,487.29 2,441 49 72,673.56 3,770.83 3,373.33 4,599.20 75,981 57 1,362,642 34 1,292,911.26 498,37914 196,274.01 1,080,442.37 151,823.71 39,42149 148,440 58 46,989.96 124,270.56 $ 7,691,692.00 $ 8,095,498.69 $ 377,496.23 $ 8,472,994 92 228,876.00 44 240 00 269,925 13 11,067.09 78,132.84 33,919.32 348,057.97 44,98641 TOTAL QBE FORMULA FUNDS $ 7,964,808 oo $ 81376,490.91 s 489,548 39 s 8,8661039 30 (1) Compnsed of State Funds plus Local Five Mill Share. See notes to the general-purpose financial statements. - 32 - OGLETHORPE COUNTY BOARD OF EDUCATION GENERAL FUND-QUALITY BASIC EDUCATION PROGRAM {QBE} ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002 SCHEDULE "5" SITE Oglethorpe County Elementary School Oglethorpe County Pnmary School Oglethorpe County High School Oglethorpe County Middle School Cross Roads 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 $ 1,900,338.00 $ 2,142,566.92 1,967,437.00 2,112,374.59 1,981,456.00 2,296,522.67 1,747,803.00 1,782,785.55 138,745.19 941658 00 $ 7,691,692.00 $==-=8=,4=72=,9=94......,,.9=2 See notes to the general-purpose financial statements. - 33- SECTION IT CO:MPLIANCE AND INTERNAL CONTROL REPORTS RussELL \\'. H1NTON STATE AUDITOR (404} 656-2174 DEPART1\1ENT OF AUDITS AND ACCOUNTS ~54 WJ~hing1on S1ree1. S W. Suuc 214 AtlantJ., Georgia 30334-8400 February 6, 2003 Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Oglethorpe 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 ofOglethorpe County Board ofEducation as ofand for the year ended June 30, 2002, and have issued our report thereon dated February 6, 2003. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Oglethorpe County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination 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 Oglethorpe County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 2002YB-41 l control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Oglethorpe County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7091-0201. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7091-02-01 to be a material weakness. This report is intended solely for the information and use of the management, members of the Oglethorpe County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 11)_4~ Respectfully submitted, RWH:gp 2002YB-41 State Auditor w. R11SSELL HINTON STATE AUDITOR (404) 656-2174 DEPARTl\'IENT OF AUDITS AND ACCOUNTS 254 Wa~hmgton Street. S W.. Sune 214 Atlanta, Georgia 30334-8400 February 6, 2003 Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Oglethorpe County Board of Education REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 Ladies and Gentlemen: Compliance We have audited the compliance of Oglethorpe County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. Oglethorpe County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofOglethorpe County Board of Education's management. Our responsibility is to express an opinion on Oglethorpe County Board of Education's compliance based on our audit. We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Oglethorpe County Board ofEducation'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 Oglethorpe County Board ofEducation's compliance with those requirements. 2002SA-10 In our opinion, the Oglethorpe County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2002. Internal Control Over Compliance The management of Oglethorpe 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 Oglethorpe County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course 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 Oglethorpe 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, ~ . .:t.lk RWH:gp 2002SA-10 State Auditor SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS OGLETHORPE 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-7091-00-01 FS-7091-01-01 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-7091-01-01 We have contracted with MAXIMUS to implement the Fixed Assets Accounting Program. This should be implemented in Fiscal Year 2003. SECTION IV FINDINGS AND QUESTIONED COSTS OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 I SUMMARY OF AUDITOR'S RESULTS 1. Type of Report Issued on the Financial Statements The auditor's opinion on the Oglethorpe County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. 2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Oglethorpe County Board of Education 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 Oglethorpe County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. 4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Oglethorpe County Board of Education did not disclose any reportable conditions in internal control over major programs. 5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Oglethorpe County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. 6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Oglethorpe 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 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84.173 Individuals with Disabilities Education Act - Part B - Special Education Capacity Improvement Grant 8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. - 1- OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 I SUMMARY OF AUDITOR'S RESULTS 9. Low Risk Auditee The Oglethorpe County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. Il 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-7091-02-01 The Oglethorpe County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. -2-