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

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PICKENS 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

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING S fATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

27

DEBT SERVICE FUND

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

K

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

30

PICKENS COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

5

BY SITE

Page
31 33 35 36 37

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 Ill AUDITEC'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV Fll''DINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

{tJ<;SH I W. I hN fON
STATi: AIJlllTOA (4:)..l 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W.i,,hmgton Street ~ W ~u,tc 214 A1lanlJ, Gcorg1J 30134-8400
July 3, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Member-, of the State Board of Education
and Superintendent and Members of the Pickens County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL Sl A1 EMENTS AND SUPPLEMENTARY INFORMATION -
SCHEDULE or FXP[NDITURES OF FEDERAL AwARDS
Ladies and Gentlemen
We have audited the accompanying general-purpo,e financial statements ot the Pickens County Board of Educalton. as of and for the year ended June 30. 2002. as listed in the table of contents
These general-purpose financial statements are the re,pons1b1hty of the Pickens County Board of
Education's management Our respons1b1hty 1, to express an optmon on these general-purpose financial statements based on our audit
We conducted our audit in accordance with aud11tng standards generally accepted in the Umted States of Amenca and the standards apphcablc to financial audit~ contained in Government Aud111ng Standards. issued by the Comptroller General ofthe Umted States Those standards reqmre that we plan and perform the audit to obtain reasonable a~suranee about whether the financial ~tatements are free of matenal misstatement An audit includes examining, on a test basts. evidence supporting the amount, and disclosures in the financial statements An audit also includes assessing the accounting pnnctple, used and ,1gmficant esltmates made by management, a, well as evaluating the overall tinanc1al ,tatement pre,entat10n We believe that our audit provides a reasonable basis for our opinion
As descnbed in the notes to the general-purpo,c financial statements. the Board of Fducatton's financial ,tatement, have been prepared using certain accounting practices and pohc1es which. in our op1mon. vary in ,ome respects from generally accepted accounting pnnc1plc, I he,e vanance, are de,cnbed as follows

2002ARL-13

The general-purpose financial statements of the Board of Educallon did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting pnnc1ples
School activity accounts maintamed at the ind1v1dual 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 port10n of salanes and the corresponding employer's cost of related benefits earned for contractual services completed pnor to June 30, 2002 Also funds received. subsequent to June 30, 2002. from the Georgia Department of Educat10n for the State's share of these unrecorded salanes and related benefits were not recorded as revenue in the year under review. Conversely, the s1m1lar expenditures and related revenues for contractual services completed prior to June 30. 2001. were improperly recorded in the year ended June 30. 2002 To conform to generally accepted accounting pnnc1ples. revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed
The aggregate effects on the general-purpose financial statements of these vanances or om1ss10ns 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 posit10n of the Pickens County Board of Education as ofJune 30. 2002. and the results of its operat10ns for the year then ended, in conformity with accounting pnnc1ples generally accepted in the Umted States of Amenca.
In accordance with Government Aud1tmg Standards, we have also issued our report dated July 3, 2003. on our consideration of the Pickens County Board of Education's internal control over financial reporting and our tests of its compliance with certam prov1s1ons 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 conJunct10n with this report in cons1denng the re~ults of our audit
Our audit will> performed for the purpose of forming an opinion on the general-purpose financial statements of the Pickens County Board of Education taken as a whole The accompanying combining and ind1v1dual fund statements (Exh1b1ts E through K) and the financial schedules (Schedule:, I through 5 ). which includes the Schedule ofExpenditures of Federal Awards as reqmred by U S Office of Management and Budget Circular A-133, Audus ofStates. lo1,a/ GovernmentJ and Non-Profit Orgam=atwn.1. are presented for purposes of add1t1onal analysis and are not a required part ofthe general-purpose financial ,tatements Such informat10n ha~ been subjected to the
2002ARL-13

aud1tmg procedures applied m the audit of the general-purpose financial statements and m our opimon, except for the effects of the matters referred to in the thud paragraph, such information 1s fairly stated.mall matenal respects, m relation to the general-purpose financial statements taken as a whole
A copy ofth1s report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State. as provided for by Official Code ofGeorgia Annotated Sect10n 506-24
Respectfully submitted,

RWHas 200:!ARL-13

l1:Jl~
ell W. Hmton State Auditor

PICKENS COUNTY BOARD OF FDUCATION

PICKENS COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2002

=w
Ca5h and Gash Equrvalenta
lnvesonents
AcctJISlts Recerval:Me
Prep&d Items
InFood DonaledComPurchaaed Food
Amount AV8ileble r, Debt 5eMce Fund
Amount to be Provided 1n Future Years For Payment of Bond Debt Cap,tal LoueAglvemonts
TotalAaeet>

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

s 4 097 557 12 s

62 219 90 s 2 144,789 08

3857 24

3 505 51

609 258 09

39887505

788 031 83

12409640

14 398 go 15 438 09

s 4,634.58885 s 490 732 54 s 2 014 326 42

LlABILmES AND FUND EOUlTY
LIABILITTES
Accounts Payable Salanea Payable Contradll P Retal"- Payable Funds Held for Olher8 Caplt8' LeaseAyree11ie:1ts General Obllgabon Bonds Payable
Tolol Uat,,lrt>es
FUND EQUITY
F\Mld Balances Reserved For Debt SeMce FOi' tnventone!. Food Dona1ed C o m PurchaaedFood For SPLOST Pn::iteeta For State C8pll8l Oullay Projeds Unreserved UrdN,gnated
TOlal Fund Equity

s

75 313 53 s

2e 536 43

188,647 89
s

193 71Q 58

404,851 83

s

75 313 53 s 193184 32 s

598 571 41

s

14 398 80

1543809

$ 2 31S 75S 01

s 4i759~S32 s 4 751i12S5 32 s

267 711 23
297 ~a 22 s

000 2 315 755 01

Total LJablMlln and FlMld Eqaty

s 4 834 5615 85 s 4go 732 54 s 2 014 328 42

The notes to the genen11-purpoae flnanaal statements are an :ntegral part of this statement. -2-

TYPES DEBT
SERVICE FUND

FIDUCIARY FUND TYPE AGENCY FUND

$

4271 $

1 647 46

17 4"8 55

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30 2002

JUNE 30 2001

$ 6,300 258 27 S

457,644 10

7 162 75

6 718,144 08

1,79143412

1 ro6 g75-45

124 096 O

14 398 90 15 438 09

13,188 87 7 492 29

$

42 71

4271

468'7

8,574 957 29 589140'46

8,574,957 29 589140 46

8 869 531 53
ssee1sn

s

4271 S

19 116 01 $

916414046 S 11,,22,02e 99 S 18133.323 57

$

101,849 96 $

90 497 32

1ee 647 sg

157 BQ1 59

193 71Q 58

39 248 30

404 851 83

4 285 70

$

1911601

s

58914048

1911601 5Sg 140 -46

559,875 77

8 575,000 00

8 575 000 00

8 870 000 00

s

1911801 $

9 164 140 48 s 10 050 325 73 s 9 72179668

s

42 71

000 $

$

4271 $

000 000

$

42 71 s

46847

14 398 90 15 438 og 2 315 755 01

13,18887 7,482 29 4 099,910 88 947 501 42

5,026,966 55

3 342 964 ge

s s 7 372 601 26

841152889

s

42 71 $

1911801 s

9 164 140 48 s 17,422 928 99 s 18133 323 57

-3-

PICKENS COUNJY BOARD OF EDUCATION
COMBINED SJAJEMENJ OF REVENUES EXPENDITURES AND CHANGES IN FUND Be,1.ANCES
/\1,L GQYERNMENlAL FUND TYPES
YEAR ENDED JUNE 30 2002

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Cumm1 lnstrucbon Suppo,tSelvlces PupllSeMces
- - lmprovemen1 of lnstrucbon8I Services
E - Media 5eMces General Adm1nlltration
Buslness Adm1n1Stretlon Mamtenance and Operabon of Plant Student Tranapona11on Services Other Support SeMces Food 5ervK:eo Operabon EnterJ>1se OperabOna Communrty 5eMce6 Clpenlbons capital Dullay Deb1Se!vlce Principal Interest Pay,ng Agent Fees
Total Expendituraa
E<CeSs of Revenues over (under) ~ltures
OTHER FINANCING SOURCES {USES}
Cap,tel Lea... Operabng Transfers In ()perabng Transfers Ou1
Total Dlher Flnanalg Sources (U""5)
Excess of Revenues and Other Rnandng SOurces over (under) Expondltlnla and 01her Flnanang Uee1
FUND B/11.ANCE JULY 1
Food lnvemcry - Ne1 Change In Penod Dona1ed Comroodrtles Purchll&Bd Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 15,548 456 86 $
12 088,447 94 227,308 21
$ 27,864~13 01 $

230,418 00 2,508,753 97
827 685 06
3,566,857 03

$ 18,941 90817 $
932 868 53 513,184 32 485 670 35 680,4n41 1,571 829 88 229 970 09 2844,63954 1,827 702 31
17 070 40 37,587 34 32,855 30 48 TT4 22 5681133
236,810 31 33,314 37

1,830 52917
75,979 92 296,743 53
69,814 15 26,143 19
763 20 2,967 95
253 18 1 436,031 89
3,032 42

s s 28,470,884 87 s $ 1,393,348 14

3,542.278 58 24 57845

$

286,075 00

$

-58,417 00

$

207,65800 $

58,417 00 58 417 00

$ 160100814 s
3 158 249 18

82 995 45 205 396 94

1 210 03 7 945 90

FUND BALANCfi JUNE 30

s ..,1se:3ss 32 s___2_e_1_5..4.8...2_.2..

The nolaa 10 the general-i)urpose financial statemen1ll are an lnlel1BI part of this slBtement
-4 -

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Momoranch.rn Only)

YEAR ENDED

JUNE 30 2002

JUNE 30 2001

s

1.7 3411 00

s 2 37 616 90
119 650 1

s s 237 676 31

s
760 232 50
56 2

s 17 522.285 86
2.508.753 97 15.223.297 3
1,175,207 92

1 .663.923 96 2.232.725 11 14,124 095 56 1 255 019 11

s s 760 796 7

36, 29,5 5 09

32 275 763 76

s

4,366 66

6 96 ,9 8 7
s
s 6 969,335 60 s s s -2 731,857 29

s s 18,572, 35 3

17.250,828 56

1,006,88 5
809,927 85 65,870 35 730,266 56 1,597 n3 01 23 ,356 95
2,8 5,22 7
1,830,870 28 17 323 56
1, 7361923
35,667 72
en 22
7021,76007

1,071, 31 16 888, 50 67 509,086 36
88,0064
1,583 320 12 317 508 53
2 662 93 6 1 326 309 16
35 73 50 1 18 353 00
83,82088 913,179 29

295 000 00 6 832 50
1 590 00

531,810 31 97,96 87
1 590 00

46,482 6 5 3,62 7

s s 761J22 50

37 743 701 55

29 58 006 53

s s -25 76

-1 31 156 6

2 817 757 23

s -2 731 857.29 s
5,047 412 30
s 231575501 S

s

266 075 00 s

132 320 31

56, 17 00

-58 17 00

s

s 286 075 00

132,320 31

s s -425 76

-1 048 081 6

66 7

8 1152889

2 950 077 5 5,6 ,766 18

1 210 03 7 9 5 80

n -1 3 5
-1 991 06

2 71 $ 737280128 $ 8. 11,528 89

-5-

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

EXHIBIT"C'"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal FundS Taxes Other Fund
Total Revenues
EXPENDITURES

s 1 166 346 00 s 1S5-4845686

1179090900 40 000 00

12 088,,4,47 94 22.7 308 21

s s 2S1997 255 00

27 864 213 01

Current Instruction SupportSeMces Pup.I SeMces Improvement of ln5trucbonel ServlC98 Educabonal Media ServlCes Genml /VJm1rustrat1on School Adm111Strabon Business Adm1ntstrabon Mamtenance and Open,tJon of Plant Student T ~ n SeNlcet. Other Support SeMces Food SeMces Operat,on Enterpnse Ope:rabons Comioontty SeNoces Operauons
Capital Outley Debt SeMa,
Total Expendrt~
Excess of Revenues over (under) Expendrtutes

s 17 499 999 00 s 16 9,41 90617

1 100 355 00 480 000 00 522 000 00 723 737 00
1 859 790 00 299 835 00
2 913 319 00 1 627,551 00
18 000 00 40 000 00
235 000 00

932 886 53 513 184 32 ,485 670 35 660 472 41 1 571,629 88 229 970 09 2 8",639 54 1 827,702 31
17,070 40 37,5!7 34 32 655 30 -48 774 22. 5681133 270 124 68

s 27 099 586 00 s 26-470 864 87

s -1 102 331 00 s 1 393 348 14

OTHER FINANCING SOURCES <USES>

OtherSo=eo

s

Other Uses

Total Other Financing Sources (Uses)

s

0 00 s
0 00 $

266,075 00 -5841700
207 656 00

Excess of Revenues and Other F1nanc:mg Sources

s s over (under) Expenditures and Other F1nanong Uses

-1 102 331 00

1,601 006 14

FUND llei~Q~ JULY 1 ZQQl

2 710 823 19

3,15! 249 18

FUND BALANCt; JUNE 30 2002

$ 1608-49219 $ .. 7592S532

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s 192,399 00 s 230,-418 00

\,829,072 00

2 508,753 97

613 !500 00

827 685 06

s 2 834 971 00 s 3 566 857 03

s 67S 250 92 s 1 630 52917

56 690 00 254 700 08

75 979 02 296 743 S3

74 334 00 1 397 00
20 100 oo
86,10000 1,390,10000

6981415 26 143 19
783 20 2 967 95
25316 1 436,031 89

92 525 00

3 032 42

s 2 651 197 00 s 3 542 278 58 s -16 226 00 s 24 578 45

s

0 00 s 58 417 00

s

0 00 s S841700

s -16 226 00 $ 82 995 45

000

184 71S 78

$ -18 226 00 $ 267 711 23

The notes to the general-pul'JXl88 finanaal lblt8men1a are an integral part of UllS statement 7-

PICKENS 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 Pickens County Board ofEducation (School Distnct) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Supenntendent appomted by the Board The School Distnct 1s organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subJect to approval by any other enllty Accordmgly, the School D1stnct 1s a pnmary government and consists of all the orgamzat10ns that compose its legal entity.
FUND ACCOUXTING
The School D1stnct uses funds and an account group to report on its financial pos1t10n and the results of its operations. Fund accountmg is designed to demonstrate legal compliance and to aid financial management by segregatmg transact10ns related to certam governmental functions or activities A fund 1s a separate accountmg entity with a self-balancing set of accounts An account group 1s a financial reporting device designed to provide accountability for certam assets and hab1hties that are not recorded m the funds because they do not directly affect expendable available financial resources
General Fixed Assets are recorded as expenditures m the vanous funds at the time of purchase A General Fixed Assets Account Group 1s not presently maintained by the School D1stnct To conform to generally accepted accountmg pnnciples, a General Fixed Assets Account Group should be mamtained for reportmg the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the ind1v1dual schools, neither the assets, hab1lit1es 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 pnnc1ples, these accounts should be recorded m 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, m compliance with generally accepted accounting pnnc1ples apphcable to governmental units, unless otherwise disclosed in these notes Fund~ and the account group presented m this report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's educational activities Governmental Fund Types include.
GENERAL FUND - the fund used to account for all financial resources of the School Distnct except those required to be accounted form another fund These transactions relate to resources obtwned and used for services provided by a board of education

. 8.

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE rlNANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUN rING 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 Education and from the Federal government to accomphsh specific educatmnal obJcctivcs
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqms1uon or construction of maJor capital facihlles
DEBT SERVICE FUND- the fund used to account for the accumulation ofresources for, and the payment ot: general long-term principal, interest and paying agent fees
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a tru,tee capacity or as an agent for ind1v1duals, pnvate organ1zat1ons, 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 individuals
ACCOUNT GROUP
GENl:-.RAL LONG-TERM DEBT ACCOUNT GROUP - A tinanc1al reporting device used to account for general obhgauon debt outstanding and capital lease obhgauons
BASIS OF ACCOUNTING
The accounting and financial reporting treatment apphed to a fund 1s 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 liab1li11es generally are included on the balance sheet Operating statements ofthese funds present increases (1 e. revenue, and other financing source~) and decreases (1 e, expenditures and other financing uses) in net current assets 1 heir reported fund balance 1s considered a measure of available spendable resources
L1ab1hlle, which are expected to be financed from available spendable resources are reported as hab1ht1es in the governmental funds Other liabiliues, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperation~
Governmental funds are accounted for using the modi ficd accrual basis of accounting under which
Revenues are recognized when su,cepllble to accrual (1 e, when they become both mea,urablc and available) "Measurable" means the amount of the transactmn can be determined and "available" means collectible within the current penod or soon enough thereafter to be used to pay liab1ht1es of
-9-

PICKENS COUNTY BOARD OF EDUCATION

EXHIBI I "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
the current period The School Distnct considers receivables collected withm sixty days after yearend to be available Property taxes, sales taxes and mterest are considered to be susceptible to accrual. Noncxchange transactions, in which the School D1stnct gives (or receives) value without directly rece1vmg (or g1vmg) equal value m exchange, include property taxes. local option sales taxes, intergovernmental grants and donations Revenue for property taxes is recognized m the fiscal year for which the taxes are levied Revenue from sales taxes is recogmzed in the fiscal year the resources are received or susceptible to accrual Revenue from grants and donations 1s recognized m the fiscal year in which all ehg1bility requirements have been :.ausfied
Expenditures are generally recogmzed when the related fund hab1hty is mcurrcd
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 of personnel of the School D1stnct were employed for a one hundred and nmet) day penod beginning in August 2001 and ending m early June 2002 Personnel contracts for this employment penod specify that compensat10n be paid in twelve equal monthly payments beginning in September 2001 and ending tn August 2002. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School Distnct in the same twelve months As of June 30, 2002, compensat10n under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002. had not been made Payments for these two months were made and recorded as expenditures by the School D1stnct subsequent to June 30, 2002 Also, the State's portion of the compensation paid m July and August 2002 was rece1Ved and recorded as revenue m the fiscal year subsequent to June 30, 2002 Conversely, the similar expenditures and related revenues for contractual services completed pnor to June 30. 2001. were recorded in the year ended June 30, 2002 Generally accepted accounting pnnc1ples require that revenues be recorded when available and measurable and that expenditures be recorded when mcurred, rather than when funds are received or disbursed
Agency funds are accounted for using the modified accrual basis of accountmg m recogmzing assets and hab1ht1es
BUDGET
The Pickens County Board of Educat10n's budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s based upon estimates of expenditures together with probable fundmg source~ There 1s no statutory proh1b1tion regarding overe>-pend1ture of the budget at any level The budget for alt governmental funds is prepared by fund '";nct10n and object The legal level of budget control was established by the Board at the aggi~;;ete level The budget for governmental funds was prepared on a basis other than generally accepted accounting pnnc1ples

- IO -

PICKENS COUNTY BOARD OF EDUCA1 ION

EXHIBIT"[)"

N01 ES TO THE GENERAL-PURPOSE FINANCIAL STATEMl~NTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOL'NTING POLICIES

The budget proces, begms when the School Dtstnct's admm1stratton prepare, a tentauve budget for the Board', approval After approval ofthts tentaltve budget by the Board, such budget 1s advertised at least once ma newspaper of general circulatton m the locahty At the next regular meetmg of the Board after advemsement, the Board receives comments on the tentative budget, makes rev1s10ns as necessary and adopts a final school budget. This final budget is then submitted, m accordance with prov1s1ons 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 authonty lapses at fiscal year-end

1 he Statement of Revenues, Expenditures and Changes m Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund To fac1htate compan,on with the budget, the following adjustment, have been made to fund balance ru, reflected on Exh1b1t "B" ofthts report

Special Revenue
Fund

fUND BALANCE JULY I. 2001

$ 205,396 94

Ad1ustments Inventones - July I. 200 I Food Donated Commodtttes Purehased Foods

-13,188 87 -749229

Fund Balance July I. 2001 (Budget Basts)

$ 184,71578

Excess of Revenues over (under) Expenditures

82 995 45

~UND BALANCE JUNE 30. 2002 (Budget Bast,)

$ 267,71 ).23

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term mvi.:stmcnts with ongmal matunttes of three months or less from the date of acqu1s1t1on m authonzed financial m,tttut10ns Georgia Laws OCGA 45-8-14 authon7e the School Dtstnct to deposit ti, funds m one or more solvent banks or m,ured Federal savmgs and loan aoc1at1ons

-II -

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonpart1c1pating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost Parllc1pating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earmng contracts and money market investments with a matunty at purchase greater than one year are reported at fau value. The Official Code ofGeonna Annotated Section 36-83-4 authonzes the School District to invest its funds and in selecting am01J, option~ for investment or among inslltut10nal bids for deposits, the highest rate of return shall be :J, objective. given equivalent cond1t10ns of safety and liquidity Funds may be invested in the following
(I) Obhgallons issued by the State of Georgia or by other states,
(2) Obligallons issued by the United States government,
(3) Obliga11ons fully insured or guaranteed by the Umted States government or a Umted States government agency,
(4) Obligallons of any corporation of the United States government.
(5) Pnme banker's acceptances,
(6) The Local Government Investment Pool admimstered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obhgallons of other pohllcal subd1v1s1ons of the State of Georgia
RECEJV ABLES
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 cntena has been met Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollecllble receivables

- I2 -

PICKENS COUNTY BOARD OF EDUCATION

EXIIIBI I "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Pickens County Board of Comm1ss10ners fixed the property tax levy for the 200 I tax digest year (calendar year) on November 29. 2001 (levy date) Taxes were due on January 29. 2002 (hen date). Tru,.e, collected w1thm the current fiscal year or w1thm 60 days after year-end on the 2001 tax digest are reponed as revenue m fiscal year 2002 The Pickens County Tax Comm1ss10ner bills and collects the propeny taxes for the School D1stnct, withholds 2 5% oftID.es collected as a fee for tax collccllon and remits the balance of taxes collected to the School D1stnct. Property tax revenues dunng the fiscal year ended June 30, 2002 for mamtenance and operations amounted to $11.964.106 79

The tax millage rate levied for the 2001 tax year (calendar year) for the Pickens County Board of Educallon was as follows (a mill equals $1 per thousand dollars of assessed value)

School Operalions

~ m1lb

SALES TAXES

Special Purpose Local Opllon Sales Tax revenue dunng the year amounted to $3,134,849 40 and 1s to be used for capital outlay for educallonal purposes or debt service This sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years

INVENTORIES
rooo INVENTORIES
lnventones of donated food commod11ies used in the preparat10n of meals are rcponed on the Combmed Balance Sheet at their Federally assigned value Purchased foods mvcntones are reponed on the Combmed Balance Sheet at cost (first-in. first-out) Donated food commod1t1es are recorded as revenues and expenditures at the lime commodity items are received. Purchased foods mventones arc recorded a~ expenditures at the time of purchru.e The mventones reponed on the balance sheet for donated food commodities and for purchased foods are equally offset by reservalions of fund balance which md1cate~ that these amounts do not constitute "available spendable resources" evt=n though they arc a component of net current assets.

PREPAID ITEMS

Payment, made to vendors for ,erv1ces that will benefit penods subsequent to June 30. 2002, are recorded as prepaid llems

COMPENSATED ABSENCES

Compem,ated absences represent obligations of the School Distnct relatmg to employees' rights to receive compen,ation for future absences ba~ed upon service already rendered. Thi, obhgalion

- 13 -

PICKENS COUNTY BOA RD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
relates only to vestmg accumulating leave in wluch payment is probable and can be reasonably estimated. No liab1lity has been recorded in the mdiv1dual funds for the current portion of this obligation as this amount 1s deemed immatenal to the general-purpoM: financial ~tatements
Add1ttonally, the dollar value of accumulated compensated absences at June 30, which WIii be payable from future resources has not been recorded in the General Long-Term Debt Account Group as th1s liability 1s also deemed to be immaterial to the fair presentation ofthese financial statements
GENERAL OBLIGATION BONDS
The School Distnct issues general obligal!on bonds to provide funds for the acqu1s1t10n and construcuon of maJor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized m the financial statements dunng the year bonds are issued General obligation bonds are direct obligations and pledge the full faith and credit ofthe government The outstanding amount of these bonds 1s recorded m the General Long-Term Debt Account Group
JNTERFUND TRANSACTIONS
The School D1stnct has the followmg types of mterfund transacttons
Reimbursements ofexpenditures 1ruually made from a fund that are properly applicable to another fund are recorded as expenditures m the re1mbursmg 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 facilitate financial analysis Data in these columns do not present financial position or results ofoperations m conformity with generally accepted accounting prmc1ples Neither are such data comparable to a consolidation Interfund ehminallons have not been made m the aggregation of this data
Note 2 DEPOSITS AND INVESTMENTS
COLLA I ERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Sectton 45-8-12 provides that there shall not be on deposit at any time many depository for a time longer than ten days a sum of money which has not 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 secunttes pledged shall be equal to not less than 110 percent of the public funds bemg secured after the deduct10n ofthe amount ofdepo~1t insurance If a depository elects the pooled method (OCGA 45-8-13 1) the aggregate of the market value ofthe
- 14 -

PICKENS COUNTY BOARD OF EDUCA I ION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL Sl ATEMENl S

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS
secuntles pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe daily pool balance OCGA Sect10n 45-8-1 l(b) provides an officer holding pubhc funds may, in his d1scret10n, waive the reqmrement for security in the case of operating funds placed in demand deposit checking accounts
Acceptable security for deposits consists of any one of or any combinat10n of the following
(I) Surety bond signed by a surety company duly qualified and authorized to transact business v.1thin 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 obligat10ns of the Umted States or of the State of Georgia,
(4) Bonds, bills. notes. certificates of indebtedness or other obhgatlons of the counties or mumc1pahlles of the State of Georgia.
(5) Bonds of any pubhc 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 subs1d1ary corporation of the United States government. which arc fully guaranteed by the Umted States government both a~ to principal and interest or debt obhgations 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 $8.590,943 11 The amounts ofthe total bank balances are classified mto three categories of credit nsk
Category I - Cash that 1s insured (e.g.. Federal depository insurance) or collaterahzed with securities held by the School District or by the School D1stnct's agent in the School D1stnct's name
Category 2 - Cash collateralized with securities held by the pledging financial inst1tut10n's trust department or agent in the School District's name
Category 3 - Uncollateral1zed deposits (This includes any bank balance that 1s collateral1zed with sccuntles held by the pledging financial inslltullon, or by its trust department or agent but not m the School D1stnct's name )
- 15 -

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

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

Risk Category

Bank Balance

$ 100,042.71

2

0 00

3

8,490,900 40

Total

$ 8.~90,943.1 !

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $7,162.75 which 1s matenally the same as fair value. This investment consisted entirely offunds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categonzed since the School District did not own any specific 1denufiable securities in the pool. The mvestment pohcy of the State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in denvat1ves or similar investments A description of the Pnmary Liquidity Portfolio 1s as follows.

The Pnmary L1qu1dity Portfolio consists of Georgia Fund I, which is a combination local and state government investment pool, and Fund 6 Georgia Fund I 1s a stable net asset value investment pool which follows Standard and Poor's cntena for AAAm rated money market funds The pool 1s not registered with the SEC as an investment company but does operate Georgia Fund I in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and 1s considered to be a Rule 2a7 hke pool. The pool's pnmary obJecUves are safety of capital, investment income, hqu1d1ty and d1vcrs1ficallon while maintaming pnnc1pal ($1 00 per share value). Net asset value is calculated weekly to ensure stability The pool d1stnbutes earnmgs (net of management fees) on a monthly basis and values part1c1pant'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 docs not issue any legally binding guarantees to support the value of the shares Part1c1pat10n in the pool 1s voluntary and deposits consist of funds from local governments. operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund

Investments in Georgia Fund I and Fund 6 are directed toward short-term instruments such as U S Treasury obhgat1ons, sccunties issued or guaranteed as to pnnc1pal and interest by the U S Government or any of its agencies or instrumentaht1es, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund I may not ell.ceed 60 days The weighted average matunty for Georgia Fund I on June 30, 2002, was 0.12 years The average investment duration for Fund 6 on June 30, 2002, was 0.75 years

- 16 -

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 3 NON-MONETARY TRANSACTIONS

The School D1~tnct receives food commochues from the Umted 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 D1stnct 1s exposed to various rish of loss related to torts. theft of, damage to. and destruction of assets, errors or om1ss10ns, Job related illness or inJuries to employees; acts of God and unemployment compensat10n.

The School D1stnct has obtained commercial insurance for risk ofloss associated with torts. as<;ets and errors or om1ss10ns. The School D1stnct has neither s1gmficantly reduced coverage for these nsks nor incurred losses (settlements) which exceeded the School D1stnct's insurance coverage in any of the past three years

The School Distnct has elected to self-insure for all losses related to acts of God The School D1stnct has not expenenced any losses related to this nsk in the past three years

The School D1stnct is self-insured with regard to unemployment compensation claims The School D1stnct accounts for claims within the General Fund with expenditure and liability being reported when 1t 1s probable that a loss has occurred. and the amount of that loss can be rea'iOnably estimated

Changes in the unemployment compcnsat10n chums liability dunng the last two fiscal years arc as follows

2001 2002

Begmnmg of Year L1ab1l11y

Claims and Changes m Estimates

Claims Paid

End of Year L1ab1hty

$

0 00 $

2 904 00 $

2 904 00 $

000

$

000 $

2,926 00 $

2,926 00 $

0 00

The School District part1c1pates in the Georgia Educat10n Workers' Compensat10n Trust, a public enuty nsk pool organized on December I, 1991. to develop. implement and adm1mster a program of workers' compensation self-insurance for ns member organ1zat10ns. The School District pays an annual premium to the Trust for its general insurance coverage. Addiuonal insurance coverage 1s provided through an agreement by the Trust with the Umted States F1dehty and Guaranty Company to provide coverage for potential losses sustained by the Trust m excess of $350.000 00 lo~s per occurrence, up to $2.000.000 00

The School District has purchased surety bonds to provide add111onal insurance coverage as follows

- 17 -

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4 RISK MANAGEMENT

Pos11lon Covered

Amount

Supcnntendent All Other Employees

$ 25.000.00 $ 5.000.00

Note S GENERAL LONG-TERM DEBT

CAPITAL LEASES The Pickens County Board of Educatmn has entered mto venous lease agreements as lessee for buses. These lease agreements quahfy 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 mceptmn

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

Purpose

Interest Rates

Amount

General Government - Senes 1995

3 90%- 5 65% $ 8.575.000.00

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

Capital Leases

General Obhgatmn
Bonds

Total

Balance July I, 2001

$ 559,875 77 $ 8,870,000.00 $ 9.429,875.77

Add1tmns Capital Leases

266,075.00

266.075.00

[)eductmns Debt Retired

236.810 31

295.000 00

531,810.31

Balance June 30, 2002

$ 5l!2, 110,~6 $ ,sz~.QOO OQ $ 2, I64. !~Q-~!i

At June 30. 2002. payments due by fiscal year which includes pnnc1pal and interest for these Items arc a~ follows

- I8 -

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5 GENl:.RAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

General Obhgation
Bonds

Total Debt

2003 2004 2005 2006 2007 2008 - 2012 2013 - 2016

$ 215,770.80 $ 796,800.00 $ 1,012,570 80

179,850 25

836,447 50 1,016,297 75

141.942 61

878,247.50 1,020,190 11

82.167 79

881,627 50

963,795.29

50,284 00

888,347 50

938,631 50

4,534.147 50 4,534,147 50

3,757,990.00 3,757,990 00

Total Pnncipal and Interest $ 670,015 45 $ I2,573,607.50 $ 13.243 622.95

Deduct. Imputed Interest

80 874 99

Net Present Value of Future Minimum Lease Payments $ 589.)40,46

Note 6 SHORT-TERM DEBT

The School D1stnct obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt 1s to provide cash for operations until property tax collections are received by the School D1stnct Article IX, Sect10n V, Paragraph V of the Constitution of the State of Georgia hmns the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred

Temporary Loans

Begmnmg Balance

Add1t1ons

Payments

Endmg Balance

$~_...,o...o..o. ss 000,000 oo ss.ooo ooo oo $__......0....,..,00

Note 7 ON-BEHALF PAYMENTS

The School D1stnct has recognized revenues and expenditures m the amount of $429,361.70 for health insurance and retirement contributions paid on the School Distnct's behalf by the following State Agencies

Georgia Department of Educat10n Paid to the Georgia Department ofCommumty Health For Health Insurance of Non-Certified Personnel In the amount of$375.633 70

- 19 -

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 7 ON-BEHALF PAYMENTS

Office of Treasury and Fiscal Services Pwd to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$53,728.00

Note 8: SIGNIFICANT COMMITMENTS

The following 1s an analysis of significant outstandmg construction or renovation contracts executed by the School District as of June 30, 2002, together With fundmg available:

PrO(ect

Unearned Executed Contracts

Fundmg Available From State

02G-01S-712-037/SA 0IS-712-123

$ I 12,747.17 $ 2IQ.906.70

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

Note 9 CONTINGENT LIABILffiES

Amounts received or receivable prmcipally 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 expenchtw<;,, which are disallowed under grant terms. The School Distnct believes that such disallowances, if any, will be immatenal to its overall fmancial position

Note IO ACCUMULATED EMPLOYEES' LEAVE

The School District's admirustratlve and certain other full-time employees earn up to one and one quarter days per month of annual leave. In the event of retirement, res1gnat1on, or termination of employment, individuals are eligible for payment of earned but unused annual leave accumulated pnor to July I, 2000 at the current daily rate of pay. See Note 1 - Compensated Absences

Note 11. 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-shanng multiple employer defmed benefit pens10n plan TRS provides service retirement, disability rellrement 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.

- 20-

PICKENS COUNTY BOARD 0~ EDUCATION

EXI IIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL S'I ATEMENTS

JUNE 30, 2002

Note 11 RETIREMENT PLANS

l RS CONTRIBUTIONS REQUIRED AND MADE Employees of the School D1stnct who are covered by TRS are required by State statute to contnbutc 5% of their gross earnings to TRS The School D1~tnct makes monthly employer contnbut1ons to I RS at nites adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary The required employer contribut10n rate 1s 9 24% and employer contnbuuon~ for the current fiscal year and the prt:ceding two fiscal years arc as follows,

Fiscal Year

Percentage Contnbuted

Required Contnbution

2002 2001 2000

100% 100% 100%

$ 1.448,547 54 $ 1,673,325 51 $ 1,538,567 59

- 21 -

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

ASSETS
Cash and Cash Equivalents
Accounts Rece,vable
lnventones Food Donated Commodmes Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

354,764 70

$

28,876 00

14,398 90 15,438 09

Total Assets

$

384,601 69 $ ~-,;;;28da8;;,;7,;:6.,;;00.;;..

LIABILITIES AND FUND EQUITY
LIABIUTIES
Cash Overdraft Accounts Payable Salaries Payable
Total L1ablllbes
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Commod1t1es Purchased Food Unreserved Undeslgnated
Total Fund Equity
Total L1abtht,es and Fund Equrty

$

28,876 00

$

7,626 01

79427 46

$

87,05347 $

28,876 00

$

14,398 90

15,438 09

267,711 23 $

000

$

297,548 22 $

000

$

384 001 69 s~~=2=a=a1..6_00_,,

See notes to the general-purpose flnanc,al statements
- 22

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30 1 2002

JUNE 30, 2001

$

354,764 70 $

272,328 19

$

369,799 65

398,675 65

244,769 19

14,398 90 15,438 09

13,188 87 7,492 29

$

369,799 65 $

783,277 34 $ ==5-3-7 -77=8 5=4

$

263,668 80 $

292,544 80 $

146,643 78

18,910 42

26,536 43

27,987 89

87,22043

166,647 89

157 749 93

$

369,799 65 $

485,729 12 $ _ ___;3:..:3c:2c:,38-=.1.:..60:..::.._

$

$ _ _ ____;0=-.0:..:0:.._

$

000 $

14,398 90 $ 15,438 09

13,18887 7,492 29

267,711 23

184,715 78

297,548 22 $ _ ___;2:..:0c.=.5c:,3-=.96=--94"-'-

$

369,799 65 $

783,277 34 $ --=:=a5=3"-7._77_8=54===

- 23 -

PICKENS 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 lnstrucl!Or. Suppon 3cMces Pupil Services Improvement of Instructional Services General Adm1nrstration School Adm1nrstration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations
Total Expendrtures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expendrtures
FUND BALANCE JULY 1
Food Inventory - Net Change m Penod Donated Commodrt1es Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

98,824 00 $

752,583 52

663,11362

$ 1,514,521 14 $

131,594 00 164,571 44 296,165 44

$

266,182 77

87,293 00

33242

$ 1,431,525 69

77425

$ 1431,52569 $

$

82,99545 $

354,582 44 -58,417 00

$

82,995 45 $

205,396 94

1,210 03 7,945 80

58 417 00
0 00 0 00

FUND BALANCE JUNE 30

See notes to the general-purpose financial statements

- 24 -

$

2971548 22 $ ~~~....,;0;.;00:;;..

EXHIBIT "F"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

230,418 00 $

221,417 00

$ 1,756,17045

2,508,753 97

2,232,725 11

827,685 06

771,586 13

$ 1 756,170 45 $ 3,566,857 03 $ 3,225,728 24

$ 1,364,346 40 $ 1 630,529 17 $ 1,468,924 37

75,979 92 209,450 53
69,814 15 26,143 19
450 78 2 967 95
253 16 3,731 95 3 032 42

75,979 92 296,743 53
69,814 15 26,143 19
78320 2,967 95
25316 1,436,031 89
3,032 42

75,662 06 270,724 47
39,164 83
1,18315 17,672 56 1,379,968 32

$ 1,756,170 45 $ 3,542,278 58 $ 3,253,299 76

$

0 00 $

24,578 45 $

-27,571 52

58 417 00

$

000 $

82,99545 $

-27,571 52

000

205,396 94

236,305 29

1,210 03 7,945 80

-1,345 77 -1,991 06

$

0 00 $

297,548 22 $ _ _2_0_5.=3=96"'94="'

- 25 -

PICKENS COUNTY BOARD Of EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30 2002

EXHIBIT "G"

~
Cssh and Cash Equivalents Investments Accol."1tS Receivable Due from Other Funds

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS JUNE 30, 2002 JUNE 30, 2001

$ 2,144,78908

$ 2,144,789 08 $ 570,035 06

3,505 51

3,505 51

4,430,849 87

766,031 83

766,031 83

636,337 81

$ 598 57141

59857141

Total Assets

$ 2,914,326 42 S 598 571 41 $ 3,512,897 83 $ 5,637 222 74

LIMlblTIES AND FUND EQUITY
LIABILITIES
Cull Overdraft Contrado Payable Retalnage Payable Due to Other Funds
Talsl Llab:kbes
FUND EQUITY
Fund Balarats ReaeM!d
For SPLOST Protects
For State Caprtal Outlay PrOjOdS Urveserved
Undes,gnated
Total Fund Equ:ty

$ 54627844

$ 193,719 58 $ 193,719 58

39 246 30

404,851 83

404,851 83

4 285 70

$ 598 571 41

598 571 41

$

s 598 571 41 $ 598 571 41

1 197 142 82 $ 589 810 44

$ 2,315,755 01
000 $ $ 2 315 755 01 $

$ 2,315,755 01 $ 4,099 910 88 947,501 42

000

000

000

000 $ 2 315,755 01 $ 5 047 412 30

Total Llabllrtles and Fund Equ:ty

$ 2,914,326 42 $ 598 571 41 $ 3,512,897 83 $ 5,637 222 74

See notes to the general-purpose ftnandal statements

- 26 -

PJCKENS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPIJAL PROJECTS FUND YEAR ENDED JUNE 30 2002

EXHIBIT "H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

REVENUES
State Funds Taxes O11-..rFunds
TotaJ Revenues

s s s 1,743,411 00

1,74341100

154 749 30

s 2,374,616 90

2,374 616 90

2 089 373 31

119,650 41

11965041

197 831 71

s s s s 2 494 267 31

174341100

4,237,678 31

2,441,954 32

EXPENDITURES
Current
Support Sen,,ces Business /vJmln,stration
Ceprtal OUtlay Professional end Tecm,cal Services Land and Land Improvements BUIiding end Bi.nd1ng Improvements
T01al ~ndrtures
Excess of Revenues over (under) Expenditures

s

4,386 86

s

4 386 86

30000 s

67 213 36

700,000 00

60 622 ~2

6136 812 86

67,513 36
s 700,000 00
6,197,435 38

313,n8 oo
276 032 44

s

s s 765 309 38

s 6,204,026 22

6 969,335 60

589 810 44

s s s s 1,728,957 93

-4,460,615 22

-2 731,657 29

1852,14388

OTHER FINANCING SOURCES <USES)
Opera1mg Transfero In Operabng Transfers Out
Total Other Financing Sources (Uses)

s s $ 3,513 113 80

3,513,113 80

s -3 513113 80

-3,513,113 80

s s -3,51311380

3,513,11380 $

000 s

933 92 -933 92
000

Excess of Revenues and Other F111anang Sources over (under) ExpendituTeS and Other F,naoong Uses

s s -1784,15587

s s -947 501 42

-2,731,657 29

1,852143 88

FUND BALANCE JULY 1

4,099 910 88

947 501 42

5 047,412 30

3,195,26842

FUND BALANCE JUNE 30

s 2 315 755 01 s____o__oo_ s 2 315 755 01 s 5 041,412 30

11

1

1

See notes lo the generm-pul'J)()Se finanoat statements

- 27 -

PICKENS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 2002

EXHIBIT "I"

ASSETS Cash and Cash Equivalents

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

000 s

42 71 $

42 71 $

46847

FUND EQUITY

Fund Balances

Reserved

For Debt Service

$

Unreserved

Undeslgnated

Total Fund Equity $

000 $ 000
000 $

42 71 $ 000
42 71 $

42 71 $ 000

468 47 000

4211 s_ _~468=-_4_1_

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

P!CKENS COUNJY BOARD PE EDUCATION
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
QEBT SERVICE FUND YEAR ENDED JUNE 30 2002

EXHIBIT "J"

REVENUES Taxes Other Fund:S
Total Revenues
EXPENDITURES
-DebtSeMce Pnnclpal
Paying Agen1 Fees
Total Expenditures
Excess of Reveooes over ( ~ Expendltur9s
OTHER FINANCING SOURCES ruses>
Opera1lng Transfers In Openmng Transler.i Out
Tolal Other Financing Sources (Uses)
Excess of Revenues and Other Fi:nanClng Sources over (under) Expendrtu,.,. and Other Financing Uses
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30 2001

s

760.232 50 s

760,232 50 s 724,500 00

s

56 24

56 24

501TT

s

s 56 .24

s 760 232 50

760 796 74 s

725 001 77

s

000 s

295 000 00 s

295,000 00 s 250,000 00

6 ,632 50

6 ,632 50

475.257 50

159000

159000

s

000 s

s 761 222 50

s 761~50

725,257 50

s

s 56 24

-990 00 s

s - 2576

-255 73

s

s

-56 24

s s -564 24

s

000 s

0 00

s 56 24 s 56 .24 s -25 76
468 47

s 56 24
-564 24
0 00 s
s - 25 76
468 47

501 77
-501 n
0 00
-255 73 724 20

FUND BALANCE JUNE 30

s

000 S

42 71 S

s_ _ 42 11

--'468_..4_1_

See noteo to the genen,1-!)urpooe flnarodat ,tatemena

. 29.

PICKENS COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FlpUC~RY FUND TYPE -AGENCY FUND
YEAR ENDED JUNE 30 2002

EXHIBIT "K"

FAMILY CONNECTION ASSETS
cash and cash Equrvalents Accounts Receivable
Total Aasets
LIABILITIES Funds Held for Others

BALANCE JULY 1, 2001

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2002

s

000 s

110,988 45 s

109,320 99 s

1,647 46

000

17 468 55

0 00

17 468 55

s

000 S

128 437 00 S

1091320 99 s _ _ _1_e_1_1s,_0_1'-

s

000 S

128 437 00 S

1091320 99 s _ _ _1_e_1_1e,..o.1'-

See notes to the general-purpose financial statements

- 30 -

PICKENS COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENP1TURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002

SCHEDULE"1"

FUNDING AGENCY
PROGRAM/GRANT
Agncuhure U S Department of Child Nutntion CIU9tef Pass-Through From Georgia Department of Educauon Food and NutnttOn Program FoodServrces Sd"lool Breakfast Program Na\1ona\ School Lunch Program
Total Child Nulnbon Cluster
Other Programs Pass Through From Georg&a Department of Education Food end Nutnbon Program Food Di.stnblll1on Program (1)
Totllll U S Department of Agnculture
Educa1>oo U S Departmon\ of Speoal Educabon Cluster Pass-Through From Georgia Department of EducahOn Individuals wrth D1!.lDlrtl&S Ectucalton Act Part B - Spelclal Education Flow Through Capaoty Bu,ld,ng Preschool
Total Specral EducaltOn Cluster
Other Programs Pass-Through From G801'Q1S Oepanment of Educabon Elementary and Secondary Education Ad Titlel Grants to Local Educabonal Agencies Title II E1Senhower ProfesslOnal Development Title Vl lnnovat,ve Educatoo Program Stral8gleS Class Size Reducbon Safe and Drug Free Schools Vocational EducatlOn-BaSIC Grants to States High School Program Baste: Grant
Total u s Department of Educalron
Health and Hi.man ServlCeS U S Department of Pass-Through From Ninth Distnct Opportunity Incorporated Head Start Progr,im Pass-Through From Offtee of Planna,g and Budget Abstinence Educ,.tion Block Grant Teen Lde Challenge
Total U S Department of Health and Human 5eMces

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL
REVENUE
IN PERIOD

EXPENDITURES IN PERIOD

10 553 10555

NIA

s 173 980 64

(2)

NIA

465 135 72 s

1 338 058 53 (3)

s 659116 36 s

1 338 058 53

10 550

NIA

93 467 16

93 467 16

s 752 583 52 s

1 431 525 69

84 027 84 173 84 173

NIA

s 397 883 00 $

NIA

9 432 00

NIA

33 550 00

$ 440 865 00 s

397,883 00 9 432 00
33 550 00
440 865 00

84 010 84 281 84 298 84 340 84 188
84 048

NIA

597 587 98

597 587 98

NIA

20 147 00

20 147 00

NIA

6811200

6811200

NIA

82 587 00

82 587 00

NIA

8 070 01

8 070 01

NIA

28 921 00

28 921 00

s 1 2-46 289 99 $

1 246 289 99

93600 93 235

NIA

$ 499 880 46 $

-499 880 46

NIA

10 000 00

$ 509 880 46 s

10 000 00 509 880 -46

Total Federal Ftnencial Asstatance NIA = Not Available

- 31 -

S 21508 753 97 $

3 187 696 14

PICKENS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENPIIYRES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002
Notu to the Schedule of ExPftndrtucn of Federgj AwardA
(1) The amounts shown for the Food Oistrlbubon Program represents the Federany aasigned value of nonmonetary aaalatance for donetecl comrnoddtea recaved and/or consumed by the system dunng the 0..1rrent fiscal year
(2) ExpendltU1'81, tor the School Breakfast Program were not ma,ntared geparately and ere included in the 2002 Nabonel School Lunch Progrem
(3) ExpendllureS lor th~ program rdude Slate and/or Other Funds Expenditures are not me1ntamed by fund eource
Ma,or Programs am Identified by en astanak r) ll fron1 of the CFDA number
The Schoo4 DTstnct dKI not prov,de Fodoral AasJotance to any S u - n t
The aa:on-c,any,ng schedule ol oxpendrtlxes of Fodoral awards mdudtes the Federal grent actlvrty of the Pickens Coooty Board of Educabon and IS presented on the moc:htiecl accrual bas1s of acc:ount.-.g wtuc:h IS the b814s of ec:c:ounting used 11 the preaentatJon of the general-purpoae fn:ll"dal statements

SCHEDULE "1"

See notes to the generaJ-pUrpose financ:ral statements

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

SCHEDULE"Z-

AGENCY/FUN PING
GRANTS Education Georgia Department of
QuahtY Ba.sac Educ:abon
D.-ect lnstrucbonal Coat Kindergarten Program Kindergartlln Program Ear1y lntervent,on Program Primary Graoes (1-3) Progr11m Pnmary Gractn- Earty lnt8rVenbOn (13) Program Upper Elementary Grades (4!5) Program Upper Elementary Grades (4-5) Program Early
p_..,, lnterventron Progl'llm
Middle Grades (6-8) t-{Jgh School Ganenll Education (912) Program Vocab0n81 Laboratory (912) Program Studen.ts wtth Disabtlltlel
Category I Category II
eat.gory m
Category~ Category V Gifted Student Category VI Rmechal EducabOn Program Allematlve Educauoo Prog.Engtlsh Speakers of Otner Languages tESOL) 20 Days Addrtlonal lnatrucbof1 Media C.ni.r Program Slaff and Pro1asklnal Development lndlrad: Cost Catagoncal Grants Pupil Tranaporl!lbon Regular Bua Replacement Spa'"'1y Nul'Slng SeMces Prlnapal Supp\emOnl> VocabOnal Supervlson Educebon EqualtzatlOn Fl61ding Gl'llnt
FoodSeMces
VocabOna-1 EducatJon Oll\e< Slate Prov,ams
Environmental Science Program Health lnsunllnce Menklr Teachers Pay for Performance Proschool Hllnd- Program Lottery Programs Applood Tedlnoiogy Labs Computers In the Clauroom Excep\lonal Growt!\-Cap1tal Outlay
Geotgl8 Stam Flnanong end Investment Cormi1A10r1 RanTlbUl"Nlmenl for Construcbon Pt'0f8Ct9
Office of Treuury and Fiscal SMVICeS Pubhc Sdlool EmplOyeeS Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL
FUND

REVENUE
FUND

PROJECTS
FUND

TOTAL

s 771 000 00
279 989 00 1,e53 9!57 oo
740,713 00 901 424 00
483nsoo 1958137 00 151482700
460 0!53 00
80,596 00 297 997 00 101168800 179 974 00
42 731 00 517 591 00
44 lil'93 00 142 719 00
17 252 00 98,937 00 333 101 00 65 938 00 2 088 865 00

s n1 ooo oo
279 9Blil 00 1 e!5395700
740 713 00 901 424 00
4B3nsoo 1 958 137 00 1 514 827 00
460 0!53 00
60 596 00 297 997 00 1 01186600 179 974 00
42,731 00 517 !591 00
44 993 00 142 719 00
17 252 00 98 937 00 333 101 00 es 938 oo 20&88e500

569 049 00 15Q21100
35 889 00 s1 1se oo 18 730 00 19 767 00 245 851 00
s 98 824 00
56 702 84
7!50 00 31!5 633 70
12 393 00 72,000 00 55 225 00
8 143 00 93 !575 00
s 1742 196 70

589 049 00 15921100
35 889 00 91 150 00 18 73000 19 767 00 24!5 851 00 BB 824 00 58 702 84
7SO 00 37!5 633 70
12 393 00
n,ooo oo
55 225 00
8 143 00 lil3 575 00 17421943 70

1 214 30

1 214 30

53 naoo

!53 728 00

-33-

PK.KENS COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE YEAR ENPEP JUNE 30 2002

SCHEDULE"2"

AGENCY/FUNP1NG
CONTRACTS
Educa- Georgill Deporttnent al Geo!Vm'a Readong Challenge
Reachng F1rat Provram
Geoiil.a lnatitu1e al Technology
Student Information System

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENEFIAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

s

82 078 00

38,108 32

s 2897600

s

82 078 00

3e 1os 32

28 876 00

s s s 1515-481 5e 88 $ 230 1800

1743 1100

1715221285 86

See notes to tne generw-purpose trnanclal statements 34-

PICKENS COUNTY BOARD OF EDUCATION SCHEDULE OF APPRqyED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 3Q 2002

SCHEDULE"3"

PROJECT
To retire bonded lndebtedneu 1na.-red by the """8l1CO o1 S9,690 000 Plckm,1 Coonty SChool District General Obllgatlon
SChool Bonds Senea 1995 es IIIJ1honzed
by the vo1Br11 of Pickens County on September 19, 1995 from February 1, 1996 through August 1, 2002
To pay the cost of acqulnng, conotrudlon and equtppmg a MW' elementary for the
&ehool distnct and to pay lo< the cost of
acquiring real esta1e
To pay the cost of replacing window heabng and mr conditioning systems at Jasper
Pnmary SChool
To pay the cost of n,pladng the heabng and
e" conditioning ~ a1 Jasper Upper Elemen1ary SChool
The acqulslbon and lnslallatlon of technology end equipment a1 el eoocabon81 facillbes, the acqinltlon construdlon and
oqwpp1ng of one , _ school and the purd,ese al land to be used as a &l1e lo<
181d , _ &ehool, the acqulsl1lon comdrudlon, and equlppng of clre oom addlbOns
physlceleducabonellacllltleaand
renovebOns and rnodlfica1Jons 10 eXJSbng edUC8bollal faalltles aystem wide and e system wide bus garage, tha ecquisrtlon of , _ &ehool buses end transpor1ebOn equipment. a media center with classrooms et Jasper Primary SChool
The Paymen1 of pnndpal end ln1etasl on the SChool Dllllrlcfs Serlos 1995 Bonds matunng February 1, 2003, through end Including August 1 2007

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR(3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

s s s 3423 225 00

3423,225 00

761,222 50 $ 2,423,818 00 Ongomg

8 000,000 00

7,710,944 83

6 204 028 22

604,917 02 Ongoing

60 000 00

Ongo,ng

50 000 00

Ongo,ng

15 730,373 75

15,730 373 75

765 309 38

4,229,628 25

4 229,628 25

Ongoing
Ongo,ng

s s s 29,493 225 00 $ 31,094,169 83

7,730 558 10

3 028,735 02

(1) The SChool Dlstncrs ongmal cost estimate as spedfled In the resolubon celing lo< the mposllion of the Local Option Sales Tex
(2) The School Olatrlct'a cul19frt estimate of total coat for the projects Includes au CDAt h'Dm pl'Of8CI nceptJon to complebon
(3) The V01er8 of Pickens Coonty epproll9d tho mposllion of a 1% sales tax to fund the ebovo prcjods Amoun1s oxponded lo< these projectB may mclude &alas t a x ~ . sta1e, local property
taxes end/or - funds OY9r the Ille of the prcjocts

Soo notes lo the general-purpose menclal statomonta

- 35 -

PICKENS COUNTY BOARD OF EDUCATION
GENERAL FUND OUAUTY BASIC EDUCATION PROGRAM IOBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM
YEAR ENDED JUNE 30 2002

SCHEDULE 4

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

EllGlBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Dared lnstructlonal Program5

Kindergarten Program

s

Kmdergarten Program-Ear1y lntervenUon Program

Primary Grades (1-3) Program

Pnmary Grades-Eariy Intervention (1-3) Program

Upper Elememary Grades (4-5) Program

Upper Elementary Grades-Earty Intervention (4-5)

Program

Middle School (6-8) Program

High Sdiool General Education (9-12) Program

Vocational laboratory (9-12) Program

Students with Drsablllbea

Category I

Catogo,y II

Category Ill

Category IV

Category V

Gifted Student Ca1egory VI

Remedial Educahoo Program

Attematrve Educa11on Program

Enghsh Speakers of Other Languages (ESOL)

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

s

s 931,457 00
338 259 00 1 998 171 00
894 867 00 1 089 024 00

s 999 699 16
230 843 72 2 298 335 59
919 075 21 1 050,659 54

s 34 710 20
9 342 26 139 668 74
18 863 83 75 266 35

1,034 409 36 239 985 98
2 436 022 33 937 939 04
112592769

584 396 00 2 365 656 00 1 830,066 00
555,797 00 1 948 653 00
625,308 00 54 357 00 172 421 00 20 842 00

366 445 12 2 352 25345 2 433,720 65
57569486
95 655 75 511 471 24 1 337 490 10 223 290 82
4137692 551 544 47
61 228 36 77 786 32 52 671 27

s s 13 409,294 00 14,179 042 55

24n 11 122.493 28 142 839 22
46 762 05

368 922 29 2 474 746 73 2 578,559 87
622 458 91

5,505 56 5,777 28 18 304 84 4 468 24
860 94 11,029 69
2 475 37 196 797 18
575 82

101 161 31 517 248 52 1 355 794 74 227 759 06
42 237 86
562 574 16 63 703 73
274 583 50 53 247 09

s 838 237 82

15 017 280 37

Mecha Center Program Staff and Profess10r1al Development

402 424 00 79 660 00

381 009 58
15 177 95

96 922 54 77 812 48

477 932 12 92 990 43

TOTAL QBE FORMULA FUNDS

s

13 891.378 00 S 14,575 230 08 S 1 012 972 84 S 15 588 202 92

(1) Compnsed of State FundS plus Local Five Mill Share

See notes to the general-purpose finane&al statements

38.

PICKENS COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM fQBE}
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30 2002

SCHEDULE 5

SITE Pickens County Middle School Pickens County High School Jasper Pnmary School Tate Pnmary School Pickens Elementary School Mountambrook Psychoeducabonal Program Central Office (Allemat,ve Education Program)
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

3,189,891 00 $

3,215,874 94

3,267,851 00

4,024,394 74

3,033,495 00

3,499,206 23

1,625,355 00

1,846,19515

2,120,281 00

2,223,516 24

11,295 89

17242100

196,797 18

$

13,4091294 00 $ 15 017,280 37

See notes to the general-purpose financial statements - 37 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

Ku-..,H I W. H1r-.1111-,
STATF Al.JOITOR
\4041 6!ifi ~174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshrngton Street.~ W Sunc 214 AtlJnla, Georgia 10134-8400
July 3. 2003

Ilonorable Sonny Perdue. Governor Member, of the General Assembly Members of tht: State Board of Educatwn
and Superintendent and Members of the Picken, County Board of Education
REPOR I ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPOR I ING BASED ON AN AUDIT OF FINANCIAL STAT[MENTS PER~ORMED IN ACCORDANCE WITH GOVERNMENT AUDITING Sl ANDARDS
Lad1e, and Gentlemen
We have audited the financial statements of Pickens County Board of Education as of and for the year ended June 30. 2002. and have issued our report thereon dated July 3. 2003 This report was qualified for various departures from generally accepted accounting principle,. as identified m the auditor's report on the general-purpose financial statements We conducted our audit in accordance with aud1tmg ,tandards generally accepted in the Umted States of Amcnca and the standard, applicable to financial audit, contained in Government Auditing Standards. issued by the Comptroller General of the United State,
Compliance
A, part of obtaining reasonable assurance about whether Pickens County Board of Cducat1on's financial statements arc free of material m1sstatemenl, we performed tests of 1ts compliance with certain prov1s1ons oflaws, regulation,. contracts amt grants, noncomphance with v,,h1ch could have a direct and matcnal effect on the determination of financial statement amounts However. providing an opinion on compliance with those prov1,1on, was not an obJecuve of our audit. and accordingly. we do not express such an opinion The result, ofour tests disclosed no in,tanccs of noncompliance that are required to be reportt:d undt:r Government Auditing Standard,
lnt.:rnal Control Ovt:r rinancial Reporting
In planning and performing our audit. we considered Pickens County Board of Education's internal ccntrol over financial reporting in order to determine our auditing procedure\ for the purpose of expressing our opinion on the financial statement, and not to provide as,urance on the internal
:!002YR-4I

control over financial reponing. However, we noted a cenain matter involving the internal control owr financial reponing and its operation that we consider to be a reportable condtlton Reportable condtttons involve matters coming to our attentton relating to s1gmficant deficiencies in the design or operatton of the internal control over financial reponing that, in ourJudgment, could adversely affect Pickens County Board ofEducatton~ ability to record, process. summarize and repon financial data consistent with assertions of management in the financial statements The reportable cond1t10n 1s described in the accompanying Schedule of Findings and Questtoned Costs as item FS-7121-02-01
A material weakness 1s a cond11ton in which the design or opcratton of one or more of the internal control components does not reduce to a relattvely low level the risk that misstatements in amounts that would be materiaJ in relatton to the financial statements being audned may occur and not be detected within a ttmely period by employees in the normaJ course of performing their assigned functions Our cons1dera11on of the internal control over financial reponing would not necessarily disclose aJl matter., m the internal control that might be reponable conditions and. accordingly, would not necessarily disclose aJl reportable conditions that are aJso considered to be material weaknes~cs However, we consider item FS-7121-02-01 to be a material weakness
This rcpon 1s intended solely for the information and use of the management, members of the Pickens County Board ofEducatton. Federal awarding agencies and pass-through enttties and 1s not intended to be and should not be used by anyone other than these specified panics
----Respectfully submitted,
~.4:\.,:-k

RWHas 200:?.YB-41

State Auditor

Ru,Mu W. lllNro,
STAii:.. AUDITOR (434) 65G-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, SW Su1lc 214 AIIJnlJ, Gcorg1J 3033-1-84110
July 3. 2003

Jlonorahlc Sonny Perdue. Governor Member. of the General As~embly Member, of the State BoarJ of Education
and Superintendent and Members of the P1cl,,ens County Board of Educat10n
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO 1:-ACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCI- WITH 0MB CIRCULAR A-133
Ladies and Gentlemen
Compliance
We have audited the compliance of P1cl,,ens County Board ofEducauon with the types ofcompliance reqmremcnts descnhcd m the US ()jfice of Management and Budget (0MB) Orwlar A-133 Complwnw Supplement that are applicable to eaLh of its ma1or Federal programs for the year ended June 30. 2002 P1cl,,ens County Board of Educauon's ma1or Federal programs are 1dcnt1fied m the Summa!") of Auditor's Results Section of the accompanying Schedule ofFmdmgs and Questioned Co,ts Compliance with the reqmrements of law,. regulations. contracts and grants applicable to each of It~ ma1or Federal programs 1s the respons1b1lity of P1cl,,en, County Board of EJucat1on\ management Our rcspons1b1lity 1~ to e:-.pres~ an opm10n on P1cl,,en~ County Board of Educa11on's compliance based on our audit
We conducted our audit of compliance m accordance with aud1tmg standards generally accepted m the United States of America. the standards applicable to financial audits contained m Government Auditing Standard~. 1~~ued by the Comptroller General of the United State,. and 0MB Circular A133. A11d11, o(State1. Local Government,. uni/ Von-Profit Orgam=atwns Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain rca~onablc a~surance ahout whether noncompliance with the type, of compliance requirement~ referred to above that could have a direct and material effect on a maJor Federal program occurrL-d An audit includes examining. on a te,t ba,1s. evidence about the P1d.en, County Board of Education', compliance with those requirements and perform mg such other procedures as we considered necessary m the c1rcum,tances We believe that our audit provide~ a reasonable has1s for our opm1on Our audit does not provide a legal determmauon on P1d..ens County Board of Education's compliance wllh those requirements
2002SA-10

In our opinion, the Pickens County Board ofEducation complied, in all matenal respects, with the requirement, 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 Pickens County Board of Educat10n 1s responsible for establishmg and mamtaming effective internal control over compliance wnh requirements of laws, regulations. contracts and grants applicable to Federal programs In planning and perforrmng our audit, we considered Pickens County Board of Education's internal control over compliance wuh requirements that could have a direct and matenal effect on a maJor Federal program in order to determine our aud1tmg procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance m accordance with 0MB Circular A-133
Our cons1derat1on of the internal control over compliance would not necessanly disclose all matters in the internal control that might be material weaknesses A matenal weakness 1s a cond1tion in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of nsk that noncompliance with applicable requirements of laws. regulauons, contracts and grants that would be matenal m relat10n to a maJor Federal program being audited may occur and not be detected w1thm a timely period by employees in the normal course of performing their assigned functions We noted no matters mvolvmg the mternal control over compliance and its operauon that we consider to be material weaknes~s
This report 1s intended solely for the information and use of the management, members of the P1cl,,ens County Board ofEducation, Federal awarding agencies and pass-through ent111es and 1, not intended to be and should not be u~cd by anyone other than these specified parties
Respectfully submitted.
- w~.:k
Hinton State Auditor
RWH as 2002SA-10

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

PICKENS 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-7121-00-01 FS-7121-01-01 FS-7121-01-02

Further Acuon Not Warranted Prev10usly Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Fwlure to Mwntain General Fixed Assets Account Group Fmdmg Control Number. FS-7121-01-02

School District management plans to implement a General Fixed Assets Account Group withm its formal accounting records for fiscal year 2003.

SECTION IV FINDINGS AND QUESTIONED COSTS

PICKENS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
SUMMARY OF AUDITOR'S RESULTS
Type of Report Issued on the Financial Statements The auditor's opinmn on the Pickens County Board of Education's financial statements wa~ qualified for vanous departures from generally accepted accounting pnne1ples.
2 Reportable Cond1tmns in Internal Control Disclosed bv the Audit of the Financial Statements The audit report for the Pickens County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable cond1t1on descnbed above 1s considered to be a material weakness
3 Noncompliance Matenal to the Financial Statements rhe audit of the Pickens County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial ~tatements
4 Reportable Cond11Ions in Internal Control Over Major Programs The audit report for the Pickens County Board of Educallon did not disclose any reportable cond1t1ons in internal control over maJor programs
5 Type of Report Issued on Compliance for Ma1or Programs The auditor's opinion on the Pickens County Board ofEducatmn's report on comphance with reqmrements applicable to maJor programs was unqualified
6 Audit fmdmgs Regmred to be Reported by Section .5 I0(a) ofOMB Circular A-133 The Pickens County Board ofEducallon's audit did not d1~close audit findings required to be reported by sectmn 510(a) ofOMB Circular A-133
7 Ma1or Program~ Federal awards audited as maJor programs are as follows 84 027 lnd1v1duals with D1sab1llt1es Educatmn Act - Part B - Special Educatmn Flow Through 84 173 Ind1v1duals with D1sab1hue~ Educallon Act - Part B - Special Educallon Capacity Bu1ldmg 84 173 lnd1v1dual~ with D1sab1lit1es loducallon Act - Part B - Special Educallon Pre~hool 93 600 Head Start Program
8 I ypc "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00
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PICKENS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS 9 Low Risk Aud1tee
The Pickens County Board ofEducation qualified as a low risk aud1tee as defined by Section 530 of 0MB Circular A-133. II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Pnor Year Finding Control Number: FS-7121-02-01 The Pickens County Board of Education failed to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as reqmred by generally accepted accountmg pnnc1ples This condition results in the general-purpnse financial ,tatements of the School D1stnct bemg mcomplete and not m accordance with general!}' 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 mclude an inventory of land, buildings and eqmpment owned by the School District and should include, but may not be hmited 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 Management's Response: School system management implemented a General Fixed Assets Account Group withm its formal accounting records for fiscal year 2003. lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported
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