Peach County Board of Education, Fort Valley, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002

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REPO,RT ON A(!Drr~

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OF-THE FINANCIAL STATEMENTS '

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PEACH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE flNANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHFDULE OF EXPENDITURES OF ~EDERAL 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 GOVERNMEN rAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGEr AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STA rEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES EXPENDITURES

AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

G

COMBINING BALANCE SHEET

24

II

COMBINING STATEMENT OF REVENUES. EXPENDITURES

AND CHANGES IN FUND BALANCES

25

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND UABILllIES

AGENCY FUND

26

SCHE:.DULES

I SCHEDULE OF EXPENDITURFS OF FEDERAL AWARDS

27

2 SCHEDULE OF STATE REVENUE

29

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

3 I

PEACH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND-QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

32

5

BY SITE

33

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

SECTION III 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

Ru..SFI L W. HINlON
STATE AUDI rOA (4(),SJ (;56-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshmgton Street, SW Sunc 214 AtlantJ Gcurg1J 30334-84rn>
May 16, 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of Educatmn
and Supenntendent and Members of the Peach County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULI: OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen
We have audited the accompanymg general-purpose financial statements ofthe Peach County Board of Education. as of and for the year ended June 30, 2002, as hsted m the table of contents. These general-purpose financial statements are the respons1b1lity ofthe Peach County Board ofEducation's management Our respons1b1hty is to e:1.press an opimon on these general-purpose financial statements based on our audit
We conducted our audit m accordance with auditing standards generally accepted m the Umted States ofAmenca and the standards applicable to financial audits contained m Government Auditing Standards, issued by the Comptroller General of the Umted States Those standards reqmre that we plan and perform the audit to obtam reasonable assurance about whether the fmancial statements are free of matenal misstatement An audlt mcludes exammmg, on a test basis, evidence supportmg the amounts and disclosures in the financial statements An audit also mcludes assessmg the accountmg pnnc1ples used and significant estimates made by management, as well as evaluatmg the overall financial statement prcscntatmn We behevc that our audlt provides a reasonable basis for our opmmn
A~ de~cnbed in the notes to the general-purpose financial statements. the Board of Education's financial statement~ have been prepared usmg certain accounting practices and pohc1cs which. m our opm1on, vary in some respects from generally accepted accountmg principles These vanances are dcscnbed as follows

2002ARL-13

The general-purpose financial statements of the Board of Education did not contam a General Fixed Assets Account Group to account for property and eqwpment owned by the Board of Education which should be mcluded to conform to generally accepted accountmg principles
School activity accounts mamtamed at the mdividual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting pnnc1ples, these accounts should be included m the general-purpose fmancial statements.
The Board of Education did not recognize as expenditures, m the year ended June 30, 2002, a portion of salanes 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 sumlar expenditures and related revenues for contractual services completed pnor to June 30, 2001, were improperly recorded in the year ended June 30, 2002 To conform to generally accepted accountmg 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 vanances or omissions have not been determined, but are believed to be matenal
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to m the preceding paragraph, the general-purpose financial statements referred to above present fwrly, in all matenal respects, the financial position ofthe Peach County Board of Education as of June 30, 2002, and the results of its operations for the year then ended, in conformity With accountmg pnnc1ples generally accepted in the United States of Amenca
In accordance with Government Aud1tmg Standards, we have also issued our report dated May 16. 2003, on our consideration ofthe Peach 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 1s an integral part of an audit performed in accordance With Government Auditing Standards and should be read m conJunction With this report m considering the results of our audit
Our audit was performed for the purpose of formmg an opinion on the general-purpose financial statements ofthe Peach County Board of Education taken as a whole The accompanying combining and md1vidual fund statements (Exhibits E through I) and the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as required by U S. Office of Management and Budget Circular A-133,Audll~ a/States. local Governments. and NonProfit Orgamzatwns, are presented for purposes ofadditional analysis and are not a reqmred part of
2002ARL-13

the general-purpose financial statements Such information has been subjected to the aud1tmg procedures apphed in the audit ofthe general-purpose financial statements and m our opmion, except for the effects ofthe matters referred to in the third paragraph, such mformat10n 1s fatrly stated.mall matenal 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 Auchtorand made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24
---Respectfully submitted,

RWHas 2002ARL-13

State Auditor

PEACH COUNTY BOARD OF EDUCATION

PEACH COUNTY BOARD OF EDUCATION
COMBINED BALANCE SHEET
ALL FUND TYPES ANO ACCOUNT GROUP JUNE 30 2002

e.lilli
Cash and Cash EqurvalentS
Accounts Rece1Y8ble
tnventor1es Food Donated Commodlbes Purchased Food
Amo111I AvaMable In Debt ServlC8 Fund
Amoll'lt to be Provided In Future Years
For Payment of Bond Debt Capital Lease Agreement&

GENERAL FUND

s

557,503 32

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

s

65 683 40

1,245,425 94 $ 134 451 82

745,645 23

825,282 56

33,155 77 10,104 74

Total Aaaeta

s 2 545 51-1 49 s 11

110021914 89 s _ _ _6_s.,.6.8.3._40_,

LIABILJJIES ANO FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Deferred Revenue Capital Lease Agreements General Obhgallon Bonds Payable
Total Liabil-
FUNDEOUITY
Fl.Wld Balances Reserved For Bus Replacement Funds For Debt Service
For Inventories
Food Donated Commodities Purchased Food
For Slate Capital Outlay Pro)8CI& UnreseM>d
Undeslgnatecl
Total Fund Equity

$

54,934 78

s

3,489 57

72 287 60

14,806 7

248 870 94

15 710 19

s

s 18 278 04

789 803 51

s

64,707 93

s

33 155 77

10,104 74
s

2,485,590 52
s s 2,530,298 45

169 910 87
s 213 171 38

65,68340 000
85 683 40

Total Lieblhbes and Fund Equity

s s 2.5 8:57 9 , 1002101 89 s _ _.,,6"'5"'88'"3""40"'"

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

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY
FUND TYPE AGENCY FUND

$ 108 949 37

6 439,360 68

494 069 98 $

23,884 03

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

!Memorandum On~)

JUNE 30, 2002

JUNE 30, 2001

$

732,136 09 $

536,673 96

7 819 238 44

7,021,98519

2,088,861 BO

1,572,815 57

$ 7,042,380 03

33155 n
10 104 74
7 042,380 03

29 938 36 10,865 99
5 370 919 89

58n,619 97 753 934 21

5 677 819 97 753 934 21

7,884 080 31 673 066 50

$ 7,042,380 03 $

23 884 03 S 13,473,934 21 $ 24 157 431 05 S 23,300,125 57

$

23,884 03

$

478 818 81 $

40 084 02

75 757 17

72,273 19

261,677 41

247,354 19

15,710 19

11,584 72

$

753 934 21

753 934 21

873 066 50

12 720 000 00

12,720,000 00

13,255,000 00

$

23 884 03 $ 1347393421 $ 14,305,897 79 $ 14,499,342 62

$ 7,042,380 03
000 $ 7,042,380 03

$

84,707 93 $

78,026 65

7 042,380 03

5,370,919 69

33 155 n
10 104 74
65 683 40

29 938 38 10,665 99 n,12136

2,635,501 39

3,238,104 90

$ 9,851,533 26 $ 8,800,782 95

$ 71042,380 03 $

23 884 03 $ 13 473 934 21 $ 24 157 431 05 $ 2313001125 57

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f'EACH COUl(D' BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES. EXPENDIJIJRES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2002

REVENUES
S1a1e Funds
Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current lnslrudlon Support Se!Vlcea PupiServlces Improvement of lnstructlonel Service& Educabonal Medi& SeMCeS General Adm.,,.trabofl School Admlnlslrabon Business Adm111istratlon Maintenance end Operebon of Plant Student Trensportalloll Services Central Support Service&
FoOodthSereSMucpepsorOt p- erel- loll Enterpnse Operations Cepltel Outley Debt Service Pnncpel lnteiest Pey,ng Agent Fees
TotalElq)endttures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES CUSES)
Capital Leases Operating Transfer& In Operebng Trensfero OUt
Total Other Financing Sources (Llaea)
Ex0888 of Revenues end Other Flnl!lndng Sources over (under) Expendttures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change In Penod Donated Commodities Purchased Food

GcNERAL FUND

SPECIAL REVENUE
FUND

s 18,127,603 36 $
4,73 90 5,219,45815
222,259 82
$ 23,574,058 23 $

239 794 74 4,070,852 01
490878 00
4,801,322 75

$ 16,169,311 90 s
607,692 84 197,034 34 532,048 85 482,291 94 1 769,255 71 193,440 21 2,032 929 32 1,605,812 28
6,237 98 10,355 04
9,345 60 50,420 96
418 207 29 46,881 93

2,311,11527
90 560 58 214,831 42
1,429 88 213,276 56
36 815 21
3 765 30 94,893 59
9,028 30 2 055,188 91

' $ 24,131,065 99

$

-557 009 78 $

5,032.905 02 -231 58227

s

299,075 00

s

-183 952 18

$

11512282 $

61,546 98 61 546 98

$

-441 886 94 s

2,972,185 39

-170,035 29 380,550 51

3 217 41 -561 25

FUND BAl,AHCE JUNE 30

S

The notes to tho QenOrel-purpooe linanc1SI sta1ements are en lnleRral part of this statement

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2,530i298 45 $ _..,:2.:,1~3.:,17:.,1:,;38::::,..

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only) YEAR ENDED

JUNE 30. 2002

JUNE 30, 2001

$

219 240 00

s s 18,586,638 10

18721,45186

4,075,586 91

3 451 458 47

s 2,752 834 98

7 972,293 13

8,016 680 80

1 093 04

136 481 1B

850 510 02

923 453 93

s

s 220.33304 s 2 889 316 14

31,485.028 16 s 31113 045 06

s s 18 480 427 17

16,986,306 57

s

354,182 20

698,253 42 41186576 533478 53 695,568 50 1 808 070 92 193,440 21 2,036,694 62 1,700,505 87
B 237 98 19 363 34 2,055,188 91
9,345 60 404,603 16

635,915 44 367 551 21 564 144 59 678,439 41 1 851,364 95 189,333 58 2 037,551 83 1,422,597 64
108,078 40 1,935,142 16
7,992 42 303,94543

$

535,000 00

676,020 50

B 835 30

953,207 29 722,902 43
6 835 30

861,964 34 749,834 98
3 368 85

$

s s s 354.182 20

1 217 855 80

30,736.009 01

28 701 531 58

s -133 849 16 s 1 671 480 34 s

s 74901915

241151348

$

122 405 20

$

122 405 20

s

299 075 00 s

239,260 00

183 952 18

227 876 65

-183 952 18

-227 876 65

$

299 075 00 $

239.260 00

s

s s s -11,443 96

1,671,460 34

1,048,094 15

2,650,773 48

77,127 36

5,370 919 69

8,800,782 95

6 164 99719

321741 -581 25

-8 64648 .jj 341 24

s

s 65 683 40 $ 1 042 360 03

91851 1533 26 $ e,8001182 95

. 5.

PEACH COUNTY BOARD Of EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AHP CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - <NON-GAAP BASIS) GENERAL ANP SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT c

GENERAL F~ND

BUDGET

ACTUAL

REVENUES
State Funds
Federlll Funds
Taxes
Other Funds
Total Revenuee
EXPENDITURES

s 17,878,345 00 s 18 127 603 38

405,000 00

4 734 80

,4,388,243 00

5 219,458 15

166 566 00

222.259 82

22 936 1S4 00 s 23,574,056 23

Cum,nt lnstn.clJOn SupportSorviats
P<ox!SeMces
lrnprovemontoflnatrucllonal SeMces Educabonal Media 8eMces General Admnatrabon Schoo1Admntltr1lb0n Business .Adrnln18traron Malntenonce and Operabon of Plant Student Tranapol18b0n SeMces Centnll Suppon SeMces Ott-er 5ul)port SeMces Food SeMcea Operabon Enlelpme ()poratJonl ~Outlay Debt Service
T01111 Expondrtures
Excess of Rovanuas CMll (under) Expondrtures

s 15 934,724 00 s 16 189 311 90

560 366 00 186,99200 598 217 00 486 822 00 188270500 179 312 00 2 030 582 00 1 325 809 00
208,187 00

607 892 84 197,034 34 532,048 85 482,291 94 1 769,255 71 193 440 21 2,032 9.11 32 1,6051512 215
6 237 98 10 355 04

10 642 00 293,612 00

9 345 80 5042096 465.089 22

s ;23,693 750 00 s 2-1, 131,085 99

s -757 596 00 s -557 009 78

QTl:tEB EINANCING SQUBCES (USES:>
Othar Sources Othar Uses
TOIBI Ott-er F,nanang Soo.- (U...)

s 61 237 00 s 299 075 00

-245 035 00

-183,952 18

s -183 798 00 s 11512282

Excess of Revenuas and Otl,ar Financing Soo"""
over (under) Expendrtures and Other Fuianclng Uses

s -941 394 00 s

-441,eee 94

EUNP BALA~CE JUL:! l zgg1

2,11943602

2 972 185 39

Adju,trnants
Food Inventory - Net Change mPenod Donated Com~
Purchn&d Food

FU~Q ~~CE JU~E ;;}Q ;zQQ:i?

s 1 178 042 02 S 2 530 298 45

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s 241,327 00 s 239 794 74

4 221,163 00

4 070,852 01

454 825 00

490 676 00

s 4 917 315 00 s 4 801 322 75

s 2,264,875 00 s 231111527

188,261 00 2TT,9'800
224 221 00 48,501 00

80,560 58 21-4,831 42
142988 21s 2115 se
381515 21

64 380 00

3 765 30 9" 893 69

27 090 00 1,966,031 80

8 028 30 2 055, 188 91

s 505911760 s 5,032.805 02 s -1-41 802 80 s -231,582 27

s 85 198 00 S

61 546 98

s 85 19'100 S

81 548 98

s -78 604 80 s -170 035 29

447 606 79

380,550 51

-10,146 34

3 217 41 -581 25

s 380 855 85 S 213 171 38

The notes to the general-purpoae finana8I atatementa are an integral part of this statement. -8 -

PEACH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Peach County Board ofEducation (School Distnct) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Supenntendent appointed by the Board. The School D1stnct 1s organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget 1s not subject to approval by any other enl!ty Accordmgly, the School District is a primary government and consists of all the organ1zat10ns that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial pos1t10n and the results of its operal!ons Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental funcl!ons or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group 1s a financial reporting device designed to provide accountab1hty for certam assets and liabiliues 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 maintamed by the School District. To conform to generally accepted accountmg principles, a General Fixed Assets Account Group should be ma.mtained 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 m fund balances of these accounts are reflected m these financial statements To conform to generally accepted accounting pnnciples, 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 D1stnct, in compliance with generally accepted accounting pnnc1ples 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 educatlonal activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those required to be accounted for in another fund These transactions relate to resources obtained and used for services provided by a board of education.

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PEACH 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 restncted to expenditures for specified purposes These funds are received primarily from the Georgia Department of Educauon and from the Federal government to accomplish specific educat10nal obJecllves
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the
acqu1s1t10n or construcuon of major capital fac1hues
DEBT SERVICE FUND- the fund used to account for the accumulat1on ofresources for, and the payment of, general long-term principal. interest and paying agent fees.
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government umt in a
trustee capacity or as an agent for individuals, pnvate orgamzauons, other government umts and/or other funds This fund includes.
AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds. governments, or ind1v1duals
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obhgallons.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund ts determined by its measurement focus All governmental funds are accounted for using a current financial resource~ measurement focus W11h this measurement focus. only current assets and current habihties generally are included on the balance sheet Operating statements of these funds present increases (1e , revenues and other financing sources) and decreases (1 e. expendnures and other financing uses) in net current assets Their reported fund balance 1s considered a measure of avmlable spendable resources
L1ab1hlles which are expected to be financed from avmlable spendable resources are reported as
hah1ht1es in the governmental funds Other hab1ht1es. which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group
Agency tunds are purely custodial m nature and do not involve measurement ofresults ofoperat10ns
Governmental funds are accounted for usmg the modified accrual basis ofaccounting under which
Revenues are recognized v hen suscepllble to accrual (1 e , when they become both measurable and avmlable) "Measurable" means the amount of the transact10n can be determmed and "available" means collectJble within the current penod or soon enough thereafter to be used to pay hab1hhes of
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PEACH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
the current penod. The School D1stnct considers receivables collected within sixty days after yearend to be available Property taxes, sales taxes and mterest are considered to be susceptible to accrual. Nonexchange transactions, m which the School District gives (or receives) value without directly reee1vmg (or giving) equal value m exchange, mclude property taxes, local opt10n sales taxes, mtergoverrunental grants and donations Revenue for property taxes is recognized in the fiscal year for which the taxes are leVIed. Revenue from sales taxes 1s recognized in the fiscal year the resources are received or susceptible to accrual Revenue from grants and donations 1s recognized m the fiscal year m which all eligibility requirements have been satisfied
Expenditures are generally recognized when the related fund liability 1s incurred.
A departure from the above definitions 1s the accounting treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts During fiscal year 2002, a substantial number ofpersonnel ofthe School District were employed for a one hundred and mnety day period beginrung m August 2001 and endmg in early June 2002 Personnel contracts for this employment period specify that compensat10n be paid m twelve equal monthly payments beginnmg in September 2001 and endmg 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 m 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 Distnct subsequent to June 30, 2002 Also, the State's portion of the compensation paid m 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, 200 I, were recorded m the year ended June 30, 2002 Generally accepted accounting pnnc1ples require that revenues be recorded when avmlable and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed
Agency funds are accounted for usmg the modified accrual basis ofaccountmg in recogmzmg assets and liabihties.
BUDGET
The Peach County Board ofEducat10n's budget is a complete financial plan for the School D1stnct's fiscal year and is based upon estimates of expenditures together with probable fundmg sources There 1s no statutory prohibition regarding overexpend1ture of the budget at any level. The budget for all governmental funds is prepared by fund, funct10n and obJeet 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

-9-

PEACH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget process begms when the School Distnct's adnunistratlon 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 of general 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 lime dunng the year All unexpended budget authonty 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 ongmal maturities of three months or less from the date of acqmsition in authorized financial mstitullons Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savmgs and loan associations
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School Distnct m nonpartic1patmg interest-earnmg contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost Participating mterest-eammg contracts and money market mvestments wtth a matunty at purchase of one year or less are reported at amortized cost Both participating mterest-eammg contracts and money market mvestments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authonzes the School D1stnct to mvest its funds and in selecting among opt10ns for mvestment or among institutional bids for deposits, the highest rate of return shall be the obJecllve. given equivalent conditions of safety and liqmdity. Funds may be mvested m the following
(I) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the Umted States government,
(3) Obhgat10ns fully msured or guaranteed by the United States government or a United States government agency,
(4) Obhgallons of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool admmistered by the State of Georgia, Office of Treasury and f1scaJ Services,
- IO -

PEACH COUNTY BOARD or EDUCATION

EXHIBIT "D"

NOTES TO THE GENf.RAL-PlJRPOSf. FINANCIAL STATEMEN rs

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(7) Repurchase agreements. and

(8) Obligations of other poht1cal subd1v1sions of the State of Georgia

RECEIVABLES

Rccc1vablcs consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available Rccc1vables arc recorded when either the asset or revenue recognition critena has been met Receivable~ recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectlble receivables

PROPERTY TAXES

The Peach County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on December I I. 2001 (levy date) Taxes were due on February 21, 2002 (hen date) Ta'\es collected w1thm the current fiscal year or within 60 days after year-end on the 2001 tax digest arc reported as revenue in fiscal year 2002 The Peach County Tax Comm1ss1oner bills and collects the property taxes for the School Distnct, withholds 2 5% of ta'\es collected as a fee for tax collection and remits the balance of ta'les collected to the School District Property ta'\ revenue~ dunng the fiscal year ended June 30, 2002 for maintenance and operations amounted to $5.186,275 09 and for school bonds amounted to $45,096 46

The tax m1llage rate levied for the 2001 tax year (calendar year) for the Peach County Board of Educallon wa\ as follows (a mill equals $1 per thousand dollars of assessed value)

School Operations

~ mills

SALES TAXES

Special Purpose Local Opllon Sales Tax revenue dunng the year amounted to $2. 707,738 52 and,~ to be used for capital outlay for educational purpose~ or debt service This sales tax was authonLed by local referendum and the sales ta'\ 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 a~~1gned value. Purchased foods inventorics 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 inventones

- 11 -

PEACH COUNTY BOARD OF EDUCAl ION

EXIIIBI f "D"

NOTES TO 1 ME GENERAL-PURPOSE FINANCIAL STATEMEN IS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
are recorded as expenditures at the lime of purchase The mventones reported on the balance sheet for donated food commod111e~ and for purchased foods are equally offset by reservauons 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 D1stnct issues general obhgallon bonds to provide funds for the acquis11lon and construction of maJor capital fac1h11es Bond premiums and discounts, as well as issuance costs, arc recognized m the financial statements durmg the year bonds arc issued In addition, general obhgauon bonds have been issued to refund existing general obligation bonds General obhgauon bonds are direct obhgat1ons and pledge the full faith and credit of the government. The outstanding amount of these bonds 1s recorded m the General Long-Term Debt Account Group
INTERFUND TRANSACTIONS
The School District has the following types of mterfund transactions
Reimbursements of expenditures mitially made from a fund that are properly applicable to another fund arc recorded as expenditures in the rc1mbursmg fund and as reductions of expenditures m the fund that 1s reimbursed
Operating transfers are recorded for all mterfund 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 fac1htate financial analysis Data m these columns do not present financial position or results of operation~ m conformity WIth generally accepted accounting pnnc1ples Neither are such data comparable to a consolidation lnterfund ehmmallons have not been made m the aggregation ofth1s 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 lime many dcposltol) for a time longer than ten days a sum of money which h~ not been ~cured 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 ~cunties pledged shall be equal to not less than 110 percent of the pubhc funds bemg secured after the deduction ofthe amount ofdeposit insurance.

- 12 -

PEACH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS
Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value ofthe secunties 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 holdmg pubhc funds may, m his discretion. waive the reqmrement for secunty in the case of operating funds placed in demand deposit check.mg accounts
Acceptable secunty for deposits consists of any one of or any combmatlon ofthc following:
(I) Surety bond signed by a surety company duly qualified and authorized to transact business withm the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of mdebtedness or other direct obligations of the Umted States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obhgallons of the counties or mumc1pahties of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia. providmg that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authontles 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 Umted States government both as to pnncipal 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 Nat10nal Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $1,933,932.18 The amounts ofthe total bank balances arc classified mto three categories of credit nsk:
Category I - Cash that 1s 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 D1stnct's name.
Category 2 - Cash collaterahzcd with secunties held by the pledging financial institution's trust department or agent in the School D1stnct's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that 1s collateralized with securities held by the pledging financial institution, or by its trust department or agent but not m the School D1stnct's name )
- 13 -

rEACH COUNTY BOARD OF l:.DUC ATION

EX! IIBIT "D"

NOTES 10 THE GENERAL-PURPOSE FINANCIAL Sl ATEMEN rs

JUNr. 30, 2002

Note 2 DI:rOSITS AND INVESTMENTS

The School D1stnct's deposits are classified by nsk category at June 30, 2002, as follows.

Risk Category

Bank Balance

$ 23,417 55

2

1.910.514.63

3

0.00

Total

$ 1,933 912, 18

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categones descnbed below

Category 1 - Insured or registered, or securities held by the School District or the School D1~trict's agent m the School D1stnct's name
Category 2 - Umnsured or unregistered, with securities held by the counterparty's trust department or agent in the School Distnct's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty. or by its trust department or agent but not in the School District's name.

At June 30. 2002, the carrying value of the School District's total investments was $7,819.238 44 which 1s matenally the same as fair value The rnvestments arc classified as to nsk categones as follows

1 ype of Investment L ~ Cio\"emmcnt LOl.J.I (Jovcmment
lmc::.tml!nt Pool,;;
lot.JI (mi!",lmcnts

Risk Catc:gone<;
2

Carrying
Amount

Fair Value

s 1311619 s=--~--000 s~~o.oo s 1s11019 s 18.11619

7,801.122 25 7 801 122 25 S 7,819 2JS_H S 7 819 238.44

l he carrying amounts shown above includes amounts mamtamed in an investment pool by the State of Georgia, Office ofl reasurv and Fiscal Services in which the School D1stnct owns no 1denllfiable sccunhes !"he investment policy ofthe State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Pnmary Liquidity Portfolio) does not provide for investment in derivallves or sim!lar investments A descnptlon of the Pnmary L1quid1ty Portfolio 1s as follows

The Pnmary L1quid1ty Portfolio consists of Georgia Fund I. which 1s a combination local and state
government investment pool, and Fund 6. Georgia 1-und I 1s a ~table net asset value investment pool which follows Standard and Poor's critena for AAAm rated money market funds The pool is not registered with the Secunties and Exchange Commission as an investment company but does operate

- 14 -

PEACH COUNTY BOARD OF EDUCATION

CXHIBI I "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DI .POSITS AND INVESTMl:NTS
Georgia Fund I m a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and 1s considered to be a 2a-7 hke pool. The pool', primary obJccuves are safety of capital. mvestmcnt mcome. hqmd1ty and diversification while mamtammg prine1pal ($1.00 per share value) Net asset value 1s calculated weekly to ensure stability The pool dtstnbutes earmngs (net of management fees) on a monthly basis and values part1c1pant's shares sold and redeemed ba,;ed on$ I 00 per share. Pooled cash and cash equivalents and mvestments are reported at cost which approximates fair value. The pool does not issue any legally bmdmg guarantee, to support the value of the ,hare, Part1c1patton m the pool is voluntary and deposits consist of funds from local governments. opcratmg and trust funds of Georgia's state agencies. colleges and umvers1ttes. and current opcratmg funds of the State of Georgia's General Fund
Investment~ m Georgia Fund I and Fund 6 are directed toward short-tenn mstrurnents such as U S I re~ury obhgattons. secunlles issued or guaranteed as to pnnc1pal and mtere~t by the U. S Government or any of its agencies or mstrumentaht1es. banker's acceptances and repurchase agreements fhe weighted average maturity of Georgia Fund I may not exceed 60 day, The weighted average maturity for Georgia Fund I on June 30, 2002. was 0.12 years The average mvestment durauon for Fund 6 on June 30. 2002. was O75 years.
Note 3 NON-MONETARY TRANSACTIONS
The School D1stnct receives food commod1ttes from the Umtcd States Department of Agriculture (USDA) for school breakfast and lunch programs These commod1ttes are recorded at their Federally assigned value See Note I - Inventories
Note 4 RISK MANAGEMENT
I he School D1~tnct ts exposed to various risks of loss related to torts. theft of. damage to. and destructwn of assets. errors or om1ss10ns, Job related illness or inJuric, to employees. acts of God and unemployment compensation
I he School D1 ~!net has obtamed commercial insurance for risk of loss associated with torts. assets. errors or om1ss10n, and Joh related illness or mJunes to employees However. the errors or om1,s1on, pohcy excludes coverage for sexual harassment !'he School District has neither s1gmficantly reduced coverage for these risks nor mcurred los.es (settlements) which e'\.cecded the School D1stnct's msurance coverage m any of the past three years.
The School D1stnct ha, elected to self-msure for all losse, related to acts ofGod The School D1stnct has not expenenced any losses related to this nsk m the pa~t three years
The School D1,tnct 1s self-msured with regard to unemployment compcnsatwn claim~ fhe School D1stnct accounts for claims withm the same fund that the employee', salary and benefits were paid Claims arc accounted for with expenditure and habthty bemg reported when It is probable that a loss has occurred. and the amount of that loss can be reasonably estimated
- 15 -

PEACH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 4 RISK MANAGEMENT

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

2001 2002

Begmnmg of Year L1abihty

Claims and Changes m Esttmates

$

000 $

000 s

$

000 $

3,64 I 00 $

Claims Paid

End of Year L1ab1hty

Q00 $

000

3,641 00 $

000

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

Pos1t10n Covered

Amount

Supenntendent Business Manager Each Employee

$ 50.000.00 $ 50,000.00 $ 25.000.00

Note 5 GENERAL LONG-TERM DEBT

CAPITAL LEASES The Peach County Board ofEducation has entered into various lease agreements as lessee for buses and computers These lease agreements qua!tfy as capital leases for accounting purposes and. therefore. have been recorded at the present value of the future mtrumum lease payments as of the date of their mceptton

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

Purpose

Interest Rates

Amount

General Government - Series 1994

510%- 6.50% $ 3,695,000 00

General Government - Refundmg - Series 1998 3 70% -4.80%

9,025,000 00

$ I2,120,000.00
The changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows.

- 16 -

PEACH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMLNTS

JUNE 30. 2002

Note 5 GENERAL LONG-TERM DEBT

Capital Leases

General Obhgat10n
Bonds

Total

Balance July I. 200 I

$ 873.066 50 $13.255.000 00 $14.128,066 50

Additions Capital Leases

299,075 00

299,075 00

Deductions Debt Retued
Balance June 30. 2002

418.207 29

535,000 00

953,207 29

$ ZSJ,23:l,i I s1~.zio,QQQ,QQ $13,'l:ZJ,,2J4,;U

At June 30. 2002. payments due by fiscal year which includes pnnc1pal and interest for these items are as follow~

Fiscal Year Ended June 30

Capital Leases

General Obhgat10n
Bonds

Total Debt

2003 2004 2005 2006 2007 2008 - 2012 2013-2017 2018
Total Principal and Interest

$ 465,089.19 $ 1.208,212 50 $ 1,673,301.69 172.290 72 1,198.375.00 1,370.665 72 118,80156 1.201,890.00 1.320.691 56 65,312 40 1.193.002 50 1.258,314 90 1.188.932 50 1.188,932 50 5,822, I25 00 5,822,125 00 5.656,850.00 5,656.850 00
I.I 10.880 00 I.I 10,880 00
$ 821.493 87 $ I8,58Q,26Z.SQ $12,;!Q l,Z6 I,37

Deduct Imputed Interest

67 55Q 66

Net Present Value of 1-uture
Mm1mum Lease Payments S----153,934,2 I

Note 6 PRIOR YEAR DEFFASEMENT OF DEBT

In fiscal year 1999, the School D1stnct defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds Accordingly. the trust account assets and the hab1hty for the defeased bonds are not included m the School District's general-purpose financial statements At June 30. 2002, $8.225.000.00 of bonds are outstanding and are considered defeased

- 17 -

PEACH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 7. ON-BEHALF PAYMENTS

The School Distnct has recognized revenues and expenditures m the amount of $290,382.11 for health msurance and retirement contnbutions prud on the School D1stnct's behalf by the followmg State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Cert1fied Personnel In the amount of $240,212.11

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 $50.170 00

Note 8 SIGNIFICANT COMMITMENTS

The followmg 1s an analysis of sigrnficant outstandmg construction or renovation contracts executed by the School District as of June 30, 2002:

Project

Unearned Executed Contracts

Hunt Pnmary School Renovation

$ 59,945.80

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

Note 9 CONTINGENT LIABILITIES

Amounts received or receivable pnnc1pally from the Federal government are subject to audit and review by grantor ag~nc1es. This could result m requests for reimbursement to the grantor agency for any expenditures wluch are disallowed under grant terms The School District believes that such d1sallowances, if any, will be nnmatenal to its overall financial position.

Note IO SUBSEQUENT EVENTS

The School Distnct 1s invesngating illegal acts made by School District employees. The ultimate disposition of the investigation is not presently determinable, but 1s not beheved to be material to the general-purpose financial statements.

- I8 -

PEACH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 11 : RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school distncts are covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-shanng multlple employer defined benefit pension plan. TRS provides seTVJce 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 D1stnct who are covered by TRS are required by State statute to contribute 5% oftheu gross earrungs to TRS The School Distnct makes monthly employer contnbut10ns to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by theu independent actuary The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows

Fiscal Year

Percentage Contnbuted

Reqmred Contribution

2002 2001 2000

100% 100% 100%

$ 1,515,518 95 $ 1,751,295 08 $ 1,758,621 76

- 19 -

PEACH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL RE\JENUE FUND JUNE 30. 2002

ASSETS Cash and Cash Eqwvalents Investments Accounts ReceNable lnventones
Food Donated Commod1t1es Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

64,548 19

134,451 82

51,280 59 $

20,98597

33,155 77 10 104 74

$

293 541 11 s _ _-2_0..,ss=5=9~1

LIABILITIES AND FUND EQUITY
LIABIUTIES
Cash Overdraft Accounts Payable Salanes Payable Deferred Revenue
Total L1ab11rt1es
FUNDEOUITY
Fund Balances Reserved For lnventones Food Donated Commod1t1es Purchased Food Unreserved Undes,gnated
Total Fund Equdy
Total L1ab1ht1es and Fund Equity
See notes to the general-purpose financial statements
- 20 -

s

20 985 97

$

26,794 79

51,786 99

178795

s

80 369 73 $

20 985 97

$

33,155 77

10,104 74

169 910 87 $

000

$

213 171 38 $

000

$

293 541 11 $ ___2_0_9_85_9,_7..,

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30 2002

JUNE 30, 2001

$

64,548 19 $

237,612 27

134,451 82

131,244 10

$

752,996 00

825,262 56

529 979 81

33,15577 10 104 74

29,938 36 1066599

$

752 996 00 $ 1,067,523 08 $ _ ....9._3_9.,.44""'0._5._3._

s

498,497 00 $

519,482 97 $

244,434 00

45,492 81

72,287 60

69,145 57

195,083 95

246,870 94

233,725 73

13 922 24

15 710 19

1158472

s

752 996 00 $

854 351 70 $

558,890 02

$

33,15577 $

29 938 36

10,104 74

10,665 99

16991087

339 946 16

$

000 $

213 171 38 $ -~38=0=55=0~5~1~

$

752 996 00 $ 1 067 523 08 $ --=-9_3.,.96'440=-o5_3._

- 21 -

PEACH 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 lnstrucbonal Services Educational Media Services General Admm1strat1on School Adm1rnstrat1on Maintenance and Operatton of Plant Student Transportation Services Other Support SelVICeS Food Services Operabon
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Fmancmg Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change 1n Penod Donated Commodrtles Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

135,464 00 $

1,260,618 62

489 071 00

$ 1,885,153 62 $

104,330 74 104 330 74

$

104,330 74

s 2,055,188 91

$ 2,055,188 91 $

$

-170,035 29 $

104 330 74 000

$

-170,035 29 $

000

380,550 51

000

3,217 41 -561 25

FUND BALANCE JUNE 30

$

213 171 38 $ ~=-_;0:.,00='=,

See notes to the genera~purpose financial statements - 22 -

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

239,794 74 $

326,139 53

$ 2,810,233 39

4,070,852 01

3 439,010 87

1 605 00

490 676 00

48831011

$ 281183839 $ 4,801,322 75 $ 4,253,460 51

$ 2,206,784 53 $ 2,311,11527 $ 1,814,603 26

90,560 58 214,831 42
1,429 88 213,276 56
38,815 21 3,765 30
94,893 59 9,028 30

90,560 58 214,831 42
1,429 88 213,276 56
38,815 21 3,765 30
94,893 59 9,028 30
2,055, 188 91

61,61509 221,768 47
196,684 60
2,666 45 75,215 39 67,507 87 1 935 142 16

$ 2 873 385 37 $ 5,032,905 02 $ 4,375,203 29

$

-61,546 98 $

-231,582 27 $

-121,742 78

6154698

6154698

62,876 65

$

000 $

-170,035 29 $

-58,866 13

000

380,550 51

454,404 36

3,217 41 -561 25

-8,646 48 -6 341 24

$

000 $

213171 38 $-~aa380=5_5_0_5_1_

- 23

PEACH COUNTY BOARD OF EDUCATION
COMBINING ~LANCE SHEET DEBT SER")CE FUND JUNE 30 2002

EXHIBIT "G"

ASSETS Cash and Cash Equivalents lnves1ments Accounts Receivable

PROPERTY TAXES
FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

40,66095 $

6828842 $

108,949 37 $

53,256 71

59 71

6,439,300 97

6,439,360 68

4,825,209 95

4 081 11

489 988 87

494,069 98

492 453 03

T01al Assets

$

44 801 77 $

619971578 26 $ 7 042 380 03 $ 513701919 69

FUND EQUITY

Fund Balances

Reserved

For Debt Service

s

Unreserved

Undes,gnaled

Tolal Fund Equity

$

44,801 77 $ 000

6,997,578 26 $ 7,042,380 03 $ 5,370,919 69

000

000

000

s n 44 801

s s 6 997 578 26

710421380 03

5 13101919 69

See notes to the general-purpose financial statements

- 24 -

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

EXHIBIT "H"

PROPERTY TAXES
FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30 2001

REVENUES
Taxes
Other Funds
Total Revenues
EXPENDITURES

$

45 09646 s 2,707,738 52 $ 2,752 834 98 s 2 823 237 14

615 33

135 865 83

136 481 16

222.726 60

$

45.711 79 $ 2 843 604 35 $ 2,889,316 14 $ 3,045,963 74

Debt Service

Pnncipal

Interest

$

Paying Agent Fees

Total E,pendrtures

$

Excess of Revenues over (under) Expenditures $

FUND BALANCE JUL)'. 1

$ 61 375 86

535,000 00 s
614 644 64
6 835 30

535 000 00 $ 676 020 50
6 835 30

510,000 00 702 022 50
3 368 65

61 '375 86 $ 1 156 479 S. $ 1 217 855 80 $ 121539115

-15 664 07 $ 1687124 41 $ 1,671,460 34 $ 1 830,572 59

60 465 84

5,310 453 85

5,370,919 69

3 540 34710

FUND BALANCE JUNE 30

$

44 801 77 $ 6,997 578 26 $ 7,042.380 03 $ 5,370.919 69

See notes lo the general-purpose finanaal statements

-25-

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

EXHIBIT 1"

BALANCE JULY 1. 2001

ADDITIONS DEDUCTIONS

BALANCE JUNE 30. 2002

CAMP JOHN HOPE - VOCATIONAL EDUCATION

ASSETS Cash and Cash Equivalents Accounts Recetvable

s -33,242 29 $ 238,241 71 $ 228,88345 $

33,242 29

9,358 26

-23,884 03 23 884 03

Total Assets

s_ _ _ s_ _ _ ,::0.::00;;:. S 238,241 71 S 238,241 71

.,...::D.::O;;:,O

LIABILITIES Fund& Held for Others

s_ _ _ s_ _ _ ,::0~OO~ $ 238,241 71 $ 238.24171

...,.;;0.::OOa.

See notaS to the genera~purpose finanaal stataments

-26 -

PEACH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE "1~

FUNDING AGENCY PROGRAM/GRANT
Agncutture U S Department of Ch1k1 Nutnllon Cluster Pass-Through From Georgia Department of Education Food and Nutr1lt0n Program Food ServtCeS School Breakfast Program Nabonal SchOOI lunch Program
Total Chlkl NutnbOn Cb.Jster
Other Programs Pass-Through From Georgia Department of EducabOn Food and NutnbOn Program Food 01stnbution Program (1)
Total U S Department ct Agnculture
Corporatt0n for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve Amenca School and Community Based Programs
Education U S Department of Special EducetlOfl Cluster Pass- Through From Georgl& Department of Educabon
lndIvIduals with Otsabd1hes Educabon Act. Part B Spec,al Educat>on Flow Througn Preschool
Capac,ty Building Improvement
Total SpecJal Education Cluster
Othef Program, D,,ect 21st Century Community Leaming Center Pass-Through From Chattahoochee Fhnt Regl008I Educat101'l81 Service Agency Elementary and Secondary Educat10n Act Trtle I Migrant Educabon Pass-Through From~ Department of Education Comprehens,ve School Reform Elementary and Secondary Educatton Act Title I Adm1n1stratIve Srte Evatuabon Even Start Grants to Local Educa11011al Agenaes Trtle ll Eisenhower Profe5SIO!lal Development Tille VJ lnnovetrve Educabon Program Strat~ Class Size Reduction Vocauonal EducatK>n Basic Granl!I to State!I High School Program BaSIC Grant
Total U S Department or Educahon

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555

NIA

s 312 431 70

(2)

NIA

842 32066 s

1 949 322 65 (3)

s 1 154 752 36 s

1 949 322 65

10 550

NIA

105 866 26

105 866 26

s s 1 260 618 62

2 055 168 91

94 004

NIA

s

4,734 90

14)

84 027 84 173 84 173

NIA

s 349 546 77 s

NIA

28 898 27

NIA

54 425 01

s 432 870 05 s

349 546 77 28 898 27 54 425 01
432 870 05

64 287

334 495 53

336 100 53 (3)

84 011 64 332
84 010 84 213 84 010 84 281 64 298 64 340
64 048

NIA

90 853 78

90 853 78

NIA

78,399 05

78 399 05

NIA

4 000 00

4 000 00

NIA

223 921 00

223 921 00

NIA

1 305 746 61

130574661

NIA

14 140 84

14 140 84

NIA

37 885 00

37 895 00

NIA

174 909 87

174 909 87

NIA

68 014 48

68 014 48

s 2 765 246 21 s

276685121

- 27

PEACH COUNTY BOARD OE EDUCATION SCHEDULE OF EXPENDITURES QF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE "1"

FUNDING AGENCY
PROGRAM/GRANT
OTHER FEDERAL ASSISTANCE
Defense U S Department of Direct
Depanrnent or the Army
R O T C Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL
REVENUE
IN PERIOD

EXPENDITURES IN PERIOD

s 4498718 S

106 534 16 (3)

Total Federal F1nanaal AUlstance

4 s 07s 586 91 s __.,.2,.a,.5..,1...2...

NIA = Not Availabte

Notes ID the Scheduto of Exoendrturn of Federal Awards

I1) The amount! shown for the Food Olstnbut1on Program represents the Fadaralty a,signed value of nonmonetary BS8l5tance for donated COIINOOChbeB {8C8Jl/9d and/or conauned by the system dumg the current ft5cal ye8f'
(2) Expenditures for the School B~kfast Program 'M3t8 not ma1nta1ned separatety and are 1nciudad ., the 2002 Nat1()1"181
School Lunch Program
(3) Expeodrtures for this program include State and/or Other Funds Experdtures are not maintaned by fund 80UO!
(4) Expenditures on this program""""' not maintained by fund source

Ma,or Programs are ldenbfied by an astensk (") m front of the CFOA number

The School Dl:stnc:1 did not prOY1de Federal AsSIStance lo any Subreapcerrt

The accompany1ng schedule of expenditures of Federal awards 1nc:1uctes the Federal grant ac!Nrly of the Peach County Board of Educebon and e preaerrted on the modified accrual baStS of eccounlLng whd"I 1s the bastS o1 acoountmg used Ill lhe presentation of the ger,erel-purpoae fnanciel st.elements

See notes to the general-purpose finenaal statement,

- 28-

PEACH 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 Affatrs, Georgia Department of FFA l.Nestock Proteci

s

25 000 00

s

25,000 00

Educabon Geo,g,a Department of Qu,allty BaslC Educallon Direct lnstrucbOnal Cost Kindergarten Program Pnmary Grades (1-3) Program Upper Elemen1ary G.-. (4-5) Program Mld~eSchool(6--8)PfO!llllm High School General Education (9-12) Program Voca1mnal Laboratcxy (9-12) Program Students wrth [)jsabl~ties Ca1egoryl Gifted Studen1 - Calegory VI Remedial Educa1Jon Program Altematrve Educatk>n Program EngUsh Speakers of Other Languages (ESOL) Media comer Program S1aff end Pro"'5slonal Developmen1 Twemy Days Addlllon,al lnslructlon Indirect Cost Categortc.al Grants Pupil Transporta11on Regular Bus Replacement Spar,1ty Nur.;lngSeMces Pnnc,pal Supplements Vocattonal Supen,1sors Mtd-term Acttustrnent Hold-Ham,less Educ:abOnal Equalization Funding Grant Food SeMces VOCObonOI Educabon Other Stale Programs ConstlUCbon Rala1ed Equipment Health Insurance Post Secondary OpUons Presdlool Handicapped Program Student Achievement - Team Leader Student Achievement - Lrteracy Institutes
Lottery Programs
AssJstrve Techr<>logy Computers in the Classroom

1 006 855 00 2,620 728 00 1 521,619 00 2,379 278 00 2 060 897 00
512 730 00
1,458 475 00 203 598 00 6 585 00 18111200 63,154 00 388 017 00 67,810 00 121,827 00
2 320,600 00
593 022 00 163,047 00 20 000 00 93 874 00
16,161 00 20 103 00 109 398 00 1 524 045 00
s 135 464 00
48 747 34
185 000 00 240,212 11
594 00 42,998 00
5,412 82 452 00
5,183.20 99,147 54

1 006 855 00 2 620 728 00 1 521 619 00 2 379 278 00 2 060 897 00
512 730 00
1458475 00 203 598 00 6 585 00 18111200 63 154 00 388 017 00 67 810 00 121 827 00
2 320 600 00
593,022 00 163,047 00 20 000 00 93 874 00
16 161 00 20 103 00 109 398 00 1 524 045 00 135 464 00 48 747 34
185 000 00 240 212 11
594 00 42 998 00
5 412 82 452 00
5,183 20 99,147 54

Georgre State Fmaoong and Investment Comm1SS1011 Re1mbu.rsement on ConstrucbOn Projects

s 219 240 00

219,240 00

Office of Treasury and Fiscal Services Public School Employees Rebrement

5017000

50 170 00

CONTRACTS Education Georgia Department of K-3 Statewide Reading Program 4-8 Statewide After School Program

33 252 89 42 829 20

33 252 89 42 829 20

See notes to the general-purpooe finanoal statements

s s s 18 127 603 36

239 794 74

s 219 240 00

18 588 638 10

- 29-

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

SCHEDULE "3"

PROJECT
Partially finance the retirement of tile School Dlstr1d's General Obhgat1on School Bonds Senes 1994

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 13.740 500 00 S 13 740,500 00 S 1217,85580 S 4,037 113 94 Ongomg

(1) The S ~ Dlstrld's onglna\ CO!t e,.bmate as gpeofied 1n \he ,esohmon calllng for \he 1mposl\lon of the Lor.al OpUon Sales Tax
(2) The Sd"lool Dtstnct's current estmate of total cost for the projed lnciudes au cost from protect. 1nceptJon to complebOn
(3) The voter& of Pesch County approved the 1111posrtK>n of a 1% sales tax to fund the above projed Amounts expended for thtS pro,ect may 1ndude s.ek!s lax proceed!!., stale local property taxes and/or other funds over the hfe of the prOject

See notes to the general-purpose finanoat statements -31

PEACH COUNTY BOARD OF EDUCATION
GENERAL FUND - QUALITY BASIC EDUCAT)ON PROGRAM IOBEl ALLOTMENTS AND EXPENDITURES - BY PROGRAM
YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPT)ON

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION /1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Dv"ed Instructional Progrsm&

Kindergarten Program

$

Pnrnary G.-S (1-3) Program

Pnmary Grades-Early lntervenhon (1-3) Program

Upper Elementary Grades (4-5) Program

Upper Elementary Gra<leo-Ear1y lnterven11on (4-5)

Program

Middle School (6-8) Program

High Sd"lool General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students Wllh Olsab1hbes

Category I

Category II

Category Ill

Category IV

Gifted Studen1 - Category VI

Remedial Educabon Program

Attemattve Educahon Program

Enghsh Speaker., of Other Languages (ESOL)

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

1 127,695 00 $ 2 858 855 00
78 408 00 1,604 383 00

1 067 665 06 $ 2 941,352 75
69 896 03 1,607 34611

11311066 $ 158,589 72
7 191 32 40 114 15

1 160 775 92 2 999 942 47
77 087 35 1 647 460 26

99 857 00 2,664 834 00 2 308 242 00
574 267 00 1 633 518 00
228,033 00 7 375 00
202 849 00 70 733 00

140 253 73
2 651,298 04
2 685 535 68 497 500 77
3 396 20 444 254 19 985 522 69
77 493 82 331 231 85
8,262 65 201 523 29
71 823 74

13457,049 00 $ 13 664 156 40 $

237 92 85,999 34 135 957 23 87 723 94

140 491 65 2 717,297 38 2,801 492 91
585 224 61

873 35 20 782 15 50,243 61 65 442 85
4,367 93
1 858 64 1 169 50

,269 55 465 016 34 1 035 766 30 142 938 47 335,599 78
8 262 65 203 381 93
72 793 24

s 753,642 41

14 417,798 81

Media Center Program Staff and Profess,onal Development

434 586 00 75 948 00

447,950 44 73,827 81

77 576 51 79 221 91

525 526 95 152,949 52

TOTAL DBE FORMULA FUNDS

s

13 967,583 00 $ 14 185 734 45 $ 910 440 83 S 15,096 175 28

(1) Compnsed of State Fund& plua Local F1Y8 MIii Share

See not~ to \he genera\-purpo&e financal statements

- 32 -

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

SCHEDULE "5"

SITE
Fort Valley Middle School Byron Middle School Hunt Pnmary School Hunt Elementary School Byron Elementary School Peach County High School CrossRoads Alternative School Central Office (Alternative Educabon Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,864,329 00 $

1,898,099 62

1,425, 186 00

1,524,730 18

2,029 409 00

2,067,505 31

1,863,938 00

2,081,14745

2,678,724 00

2,764,497 97

3,392,614 00

3,853,081 84

228,736 44

202 849 00

$

13,4571049 00 S 14.417,798 81

See notes to the general-purpose finane1al statements - 33 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

l.u~,~-LL W. HINl O"
STAI[ AU01TQR
(404) 656-?174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJ~hmgton Street, SW Su11c 214 Atl,mt.i Georgia .J0"\ -8400
May 16. 2003

I lonorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of Educat10n
and Supcnntendent and Members of the Peach County Board ofEducat10n
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVl:.R FINANCIAi RI:PORTING BASED ON AN AUDIT OF rINANCIAL STATEMENTS PERFORMCD IN ACCORDA.NCE WITH GOVERNMEN1 AUDITING STANDARDS
Ladies and Gentlemen
We have audited the financial statement, of Peach County Board of E:ducat10n as ol and for the year ended June 30. 2002, and have issued our report thereon dated May 16. 2003 Thi-, report was qualified for various departures from generally accepted accounting principles. as 1dent1fied m the auditor', report on the general-purpose financial statement, We conducted our audit in accordance with auditing standards generally accepted in the Untied States of America and the standard, applicable to linanc1al audits contained in Government Auditing Standards. 1s-,ued by the Comptroller General of the United States
Compliance
A, part of obtaining rea-,onablc a-,-,urance about whether Peach County Board of Education'-, financial ,tatcmcnt., are free of material m1-,statemcnt. wc performed tests of its compliance with certain prov1s10ns oflaws. regulat10ns. contracts and grant-,, noncompliance with \\h1ch could have a direct and matenal effect on the dctcrminallon of financial statement amounts However. providing an opin10n on compliance with those prov1>1ons was not an obJect1ve of our audit. and accordmgl). \ve do not e,press -,uch an opin10n The results of our te-,1-, d1,closed no instances ofnoncompliance that arc required to be reported under Government Aud1tmg Standards
Internal Control Over Financial Reporting
In planning and performing our audit. we considered Peach County Board of Education's internal control over financial reporting in order to determine our auditing proce.:lures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2002YB-40

control over financial reporting I Iowever. we noted certain matters involving the internal control O\er financial reporting and Its operat10n that we consider to be reportahle cond111on~ Reportable cond1t1on, involve matters coming to our attenllon relating to s1gmficant defic1cnc1cs in the design or operation of the mtemal control over financial reporting that. in ourJudgment. could adversely affect Peach County Board of Education's ability to record, process. summari7.e and report financial data con~istent with asscrt10ns of management in the financial ,tatcments Reportable cond1!1ons are descrihed m the accompanying Schedule of Findings and Quc,t1oned Costs a~ items FS-7111-02-01 and lS-7111-02-02
A material weakness 1s a cond1t1on in which the design or operallon of one or more of the internal control components doe~ not reduce to a relatively low level the risk that misstatements in amounb that would be material in relat10n to the financial statements being audited may occur and not be detected within a timely period by employee, in the normal course of performing their assigned functions Our cons1derat10n of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable cond1t10ns and, accordingly. would not necessarily disclose all reportable cond11Ions that are also considered to be material weakne%cs However. ofthe reportable condmons described above. we consider Item FS-7111-0202 to be a material weaknes~
1 h1~ report 1s intended solely for the mformat10n and u,c of the management. members ofthe Peach County Board of EducatJon. Federal awarding agencies and pas~-through ent11Ies and 1s not intended to he and ,hould not be used by anyone other than these spec1 fied parties
ectfully submitted,
~~
Hinton State Auditor
RWII as 2002Yl3-40

STAT[ 4,l.Jn1TOn

DEPARTMENT OF AUDITS AND ACCOUNTS
2.c;4 W.i.,hmgton ~1rect, ~ W "iultc :214 Atlantd Georgia 303 l4-84(Ml
May 16. 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Member; of the State Board of Education
and Supenntendent and Members of the PeaLh County Board of Education
Rl:.PORT ON COMPLIANCC WITH REOlllREMENTS APPLICABLC TO EACII MAJOR
PROGRAM <\ND ON INTERNAL cor-.. I ROL OVER COMPLIANCE IN ACCORDANCL WI rH
0MB CIRClJI AR A-133

Compliance
We have audited the compliance of Peach County Bo!lrd ol Lducatlon with the types of compliance requirements descnbed in the [ S Of/he of Munagemenl um/ Budgd (0MB; Circular A-/33 ( omp/Janu! ,\upplemenl that are apphcahle to each of IN maJor Federal programs for the year ended June 30. 2002 Peach Count) Board ol [ducat1on', maJor F<..-dcral program, arc 1dent1licd in the ~ummary ol Auditor\ Re,ults Section of the accompanying Schedule of Finding, and Questioned Costs Compliance with the requirements of laws. regulation,. contracts and grants applicable to each of its maJor ~cderal programs 1, the re,pons1b1lity of Peach County Board of l:.ducauon's management Our respons1b1lity 1s to express an opinion on Peach County Board of Education', compliancc based on our audit
We conducted our audit of compliance in accordance \\Ith auditing standards generally accepted in the l 1mted State~ of Amenca. the ~tandards applicable to financial audits contained in Gmcrnmcnt Auditing Standards. issued hy the Comptrolkr General of the United States. and 0MB Circular A133. AuJ111 of S1a1e.1. Local Govern111en11. und ,\'on-Pro/ii Orgamza/1011.1 rhose standards and OM13 Cm:ular A-133 reqwre that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance rcqu1remenL~ referred to alxl\e that could have a direct and matenal eflect on a m3:1or Federal program occurred An audit mcludes exarnining. on a test ha,1,. evidence about the Peach Count~ Board of Education's compliance with those reqwrements and perforrmng such other pruc<..-durc, a., we com,1dcr<..-d necessary in the c1rcum,tance, We believe that our audit pnn ides a rea,on 1hlc has1s for our opinion Our audit does not provide a legal determination on Peach County Board ofEducatwn\ compliance \\Ith those requm:mcnts
2002SA-f 0

In our op1mon, the Peach County Board of Education comphed, m all material respects, with the requirements referred to above that are apphcable to each ofns maJor federal programs for the year ended June 30, 2002

Internal Control Over Comphance

The management of Peach County Board of Education 1s responsible for establishmg and mamtaming effective mtemal control over compliance w11h requirement, of laws, regulation,, contracts and grants applicable to Federal program, In plannmg and performmg our audit. we considered Peach County Board of Education's mtemal control over compliance with requirements that could have a duect and material effect on a ma1or Federal program m order to determme our auditmg procedures for the purpose of expres,mg our opimon on comphance and to test and report on mtcmal control over compliance m accordance with 0MB Cucular A-133

Our cons1dcrat10n ofthe internal control over compliance would not necessarily disclose all matters m the mtemal control that might be material weaknesses A material weakness is a cond11Ion in which the design or operation of one or more of the mtemal control components does not reduce to a relallvely low level of risk that noncompliance with applicable requirements of laws, regulauons, contracts and grants that would be material m relation to a ma1or federal program bemg audited may occur and not be detected withm a timely period by employees m the normal course of performing their assigned funct10ns We noted no matters mvolvmg the mtemal control over compliance and its operat10n that we consider to be material weaknesses

This report 1s mtended solely for the informauon and use of the management, members of the Peach County Board ofEducallon, ~ederal awardmg agencies and pa~s-through ent11Ies and 1s not intended to he and should not be used by anyone other than these spec1 lied part1e,

Respectfully ,ubmllted,

-

Lc).43~

Hinton State Auditor

RWII a~ 2002SA-10

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

PEACH 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-7111-00-01 FS-7111-01-01 FS-7111-01-02 FS-7111-01-03

Further Act10n Not Warranted Prev10usly Reported Corrective Action Implemented Unresolved - See Corrective Action Plan Unresolved - See Corrective Act10n Plan

CORRECTIVE ACTION/RESPONSES

REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Fmanc1al Statements Not Supported by Subs1d1ary Records Reportable Condition Fmdmg Control Number. FS-7111-01-02

The Peach County Board of Education 1s m the process of implementing procedures to ensure that subsidiary ledgers are reconciled to the general ledger

GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group Reportable Cond1t10n - Material Weakness Fmdmg Control Number FS-7111-01-03

The Peach County Board of Education has implemented the General Fixed Assets Account Group per GASB 34 reqwrements. The General Fixed Assets Account Group should be included as part of the School Distnct's records in fiscal year 2003

SECTION IV FINDINGS AND QUESTIONED COSTS

PEACH COUNTY BOARD OF FDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED cos rs
YEAR ENDED JUNE 30. 2002

I SUMMARY OF AUDITOR'S RESULTS

Type of Report Issued on the financial Statements The auditor's opin10n on the Peach County Board of Education's financial statements was qualified for vanous departures from generally accepted accounting principles

2 Reportable Cond1t1ons in Internal Control Disclosed by the Audit of the Financial Statement~ The audn report for the Peach County Board of Education disclosed financial statement reportable conditions related to the following control categones

Expenditures/L1ab1l1t1es/D1sburscments General Fixed Assets

Revenues/Rece1vables/Rece1pts

Of the reportable cond1ttons descnbed above, General Fixed Assets 1s considered to be a material weakness.

3 Noncompliance Material to the Financial Statements Inc audit of the Peach County Board of Education disclosed no instances of noncompliance that were deemed to be matenal to the financial statements

4 Reportable Cond1t10ns in Internal Control Over Ma10r Programs The audit report for the Peach County Board of Education did not disclose any reportable cond1t1ons in internal control over maJor programs

5 l ypc of Report Issued on Compliance for Ma10r Programs The auditor's opinion on the Peach County Board of Education's report on compliance with requirements applicable to maJor programs was unqualified

6 Audit Findings Required to be Reported by Section .5\0(a} ofOMB Circular A-133 "The Peach County Board of Education's audit did not disclose audit findings required to be reported by sect10n .51 0(a) of 0MB Circular A-133

7 Ma1or Programs Federal awards audited as major programs are as follows 84 0 IO Elementary and Secondary Education Act - Title I - Grants to Local Educallonal Agencies 84 010 Elementary and Secondary Education Act - Title I - Administrative Site Evaluation 84 287 21st Century Community Learning Center

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

- I-

PEACH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
SUMMARY OF AUDITOR'S RESULTS
9 Low Risk Aud1tee The Peach County Board ofEducat10n qualified as a low risk aud1tee as defined by Section 530 ofOMB Circular A-133
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Financial Statements Not Supported By Subsidiary Records Reportable Condillon Repeated From Prior Year Finding Control Number FS-7111-02-01
The Peach County Board of Educat10n's internal controls over the subsidiary records which are necessary to support the amounts reported on the general ledger were detenmned to be msuffic1ent Comparison of the School D1stnct's year-end accounts payable and accounts receivable subs1d1ary listmgs to the accountmg records (general ledger) in the School Food Services Fund revealed variances of$2,115.90 and $2,784.22, rcspecllvely
These discrepancies occurred due to improper accountmg procedures and failure to rcconc1le the subs1d1ary ledgers to the general ledger. Procedures should be established by the School D1stnct to ensure that subsidiary ledgers are reconciled to the accountmg records
GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group Reportable Cond1t10n - Malena! Weakness Repeated from Pnor Year Fmdmg Control Number. FS-7111-02-02
The Peach County Board of Educat10n did not maintain a system-wide General F1xed Assets Account Group withm the formal accounting records as reqmred by generally accepted accounting prmc1ples This cond1t1on results m the general-purpose financial statements of the School D1stnct bemg incomplete and not m accordance with generally accepted accountmg pnnc1ples Appropnate act10n should be taken by the School District to establish accountmg controls and procedure~ to provide for mamtenance ofa General Frxed Assets Account Group These subs1d1ary records should mclude an inventory of land, bu1ldmgs and eqmpment owned by the School Distnct and should mcludc. but may not be limited to, date acqmred, acqms11Ion cost. estimated replacement cost. locallon and descnption Detailed records should be mamtamed ofall add1t10ns and deletJons to the General Fixed Assets Account Group
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PEACI I COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002 lII FEDERAL AWARD FINDINGS AND QUESTIONED COS IS No matters were reported
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