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

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PIKE 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 GROUPS

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

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT 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

28

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

30

2 SCHEDULE OF STATE REVENUE

32

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALTIY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35

PIKE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITIIGOVERNMENTAUDITINGSTANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH O:MB CIRCULARA-133
SECTION ID 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

RussE1.1. W. HtNTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S W., Suite 214 Atlanta, Georgia 30334-8400
May 24, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Pike County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements ofthe Pike County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Pike County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standar9s require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm10n.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:

2001ARL-13

School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
The aggregate effects on the general-purpose financial statements of this omission has not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matter referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Pike County Board ofEducation as of June 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated May 24, 2002, on our consideration of the Pike County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
as Our audit was performed for the purpose of forming an opinion on the general-purpose financial
statements ofthe Pike County Board ofEducation taken a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules I through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the matter referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
~ ...QQ. ~.-d.l:is.. ~ e l l W. Hinton State Auditor
RWH:as 2001ARL-13

PIKE COUNIT BOARD OF EDUCATION

- - - - - - - - - - - - - - - - - - - - - - - - -- ---- - - - - - - --- - - - - -

ell!;E QQ!.!t:m'. aQaBD QE ED!.!Qe!IQ!!I
QQMal~ED a81.A!!IQE St:IE~ ~bb E!.!!!IQ n:eES Mt! ~QQQ!.!ril ~BQ!.!eS
J!.!!!IE 30. 200,

~
Cash and Gash Equivalents
Investments
Accounts Receivable
Lease Payment R8C8Mlble
Inventories Food Donated Commoctmes Purchased Food
General FIXed Assets
Land Buildings Improvements Other Than Buildings Equipment
Amount Available in Debt Service Fund
Amount to be Provided In Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTALFUNDTYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

773,770 67 $

300,924 62

650,796 09

i6o,n8 85 $ 2,785,746 71

1,438,042 96

70,666 6i

430,64, 16

76,600 00

i8.433 25 6,346 83

Total Assets

$ 2194,1209 72 $

5571172 36 $

3I2,sI387 87

btAB!blIIES ~!!ID E!J!!IQ EQ!.!IIY
blABlblIIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retalnages Payable Deferred Revenue General Obhgabon Bonds Payable
Total L1abllllles
EU!!IPEQ!JIIY
Investment in General Fixed Assets Fund Balances
Reserved For Bus Replacement Funds For Debt Service For lnventones
Food
Donated Commod1bes Purchased Food For SPLOST Pro.iects For State Capital OuUay Pro.iects Unreserved Undesignated
Total Fund Equity

$

,0,984 8i

$

621,016 47 $

40,153 37

939,491 02

83,246 58

3,140 10

,26,372 00

16,178 00

76,600 00

$ 1 639 ,07 49 $

126 540 05 $

162 534 81

$

72,417 68

$
i ,229,684 55 $ i ,302, ,02 23 $

18,433 25 6,346 63
$
405,852 23 430 632 3, $

2,023 59 9,703 73
3 042 125 74
3,053,853 06

Total llabllllles and Fund Equity

$ 219411209 72 $

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

-2-

557172 36 $

312, 6 1387 e1

EXHIBIT"A"

DEBT SERVICE
FUND

$

514,12615

22,62344

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS

(Memorandum OnM

JUNE 30, 2001

JUNE 30, 2000

$ 1,588,821 44 $ 1,590,871 20

3,597,321 65

4,373,409 40

1,961,996 37

1,723,420 65

78,600 00

85,200 00

$

404,646 06

19,950,600 68

656,64712

4,634,929 93

$

536,749 59

4,858,250 41

18,433 25 6,346 83
404,646 06 19,950,600 68
656,647 12 4,634,929 93
536,749 59
4,858,250 41

14,179 03 8,938 30
404,646.06 18,466,096 43
656,647 12 4.276,703 99
524,908 86
5,065,091 14

$

536 749 59 $ 2516461823 79 $ 5 395 000 00 $ 3812931343 33 $ 3711901112 18

$

19,984 81

681,169 84 $

482,521 04

1,022,737 60

1,020,320 18

3,140 10

5,434 48

126,372 00

481,100 15

16,178 00

221,840 22

78,600 00

85,200 00

$ 5,395,000 00

5,395,000 00

5,590,000 00

$ 5,395,000 00 $ 7,323,182 35 $ 7,886,416 07

$ 25,646,823 79

$

536,749 59

000

000

$

536 749.59 $ 25,646,823 79

$ 25,646,823 79 $ 23,804,093 60

72,417 68 536,749 59

108,530 00 524,908 86

18,433 25 6,346 83 2,023 59 9,703 73

14,179 03 8,938 30 941,996 80 79,815 34

4,6TT,662 52

3,821,234 18

$ 30,970,180 98 $ 29,303,696 11

$

536 749 59 $ 2516461823 79 $ 513951000 00 $ 3812931343 33 $ 371190111218

.3.

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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Adm1nistrat1on Maintenance and Operation of Plant Student Transportat10n Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service
Pnnclpal Interest Paymg Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Lease Pnncipal Payments Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Fmancmg Uses
FUND BALANCE JULY 1
Food Inventory - Net Change m Penod Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 10,333,599 29 $ 1,999 48
2,705,232 78 106,765 73
$ 13,147,597.28 $

273,756 58 1,002,499 66
299?38 59
1,575,994.83

$ 8,861,598 04 $
323,932 08 350,158 91 355,889 74 342,883.10 870,721.20 141,625.60 865,585.92 725,611.98 25,890.00 75,640 68
2,765.93

601,443 18
55,020 28 24,774.72
7,550 BB 87,801.31
2,370 84
25.00 35,034 61
8,807.00 507 18
653,776.53 3,691 72

$ 12,942,303.18 $

$

205,29410 $

1i480,ao3 25 95 191 58

$

6,600.00

$

-129392

$

5,306.08 $

1,293.92 1,293.92

$

210,600.18 $

1,091,502.05

96,485.50 332,484.06

4,254.22 -2 591.47

FUND BALANCE JUNE 30

$

The notes to the general-purpose financial statements are an integral part of this statement -4-

1,302,102 23 $==4;,;3;;,;0;i:,6=3;;,2~3.,,,1

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30 1 2000

$

307,492.20

697,887.51 $ 149,233.61

$ 1,154,613.32 $

$
480,115 28 17,521 60

10,914,848 07 $ 1,004,499 14 3,883,235.57
573,259 53

12,566,348 95 980,977.80
3,588,456.80 604,979 29

497,636 88 $ 16,375,842.31 $ 17,740,762 84

$ 1,651,467.80 $

$ 1,651,467.80 $

$

-496,854 48 $

$ 9,463,041.22 $ 8,210,836.75

378,952.36 374,933 63 363,440.62 430,684 41 873,092 04 141,625 60 865,610.92 760,646.59
34,697.00 76,147.86 656,542 46
3,691 72 1,651,467.80

515,237 38 304,312.57 347,109.32 408,475 01 666,185 86 133,690 69 671,988 35 507.~20.60
34,697 00 78,900.17 665,845.21
1,403 59 4,101,707.07

195,000.00 286,698.75
4 097.40

195,000 00 286,698.75
4 097 40

190,000.00 294,785 00
103575

485 796.15 $ 16,560,370.38 $ 17,134,030 32

1184073 $ -184,528 07 $

606,732.52

$

6,60000 $

7,20000

1,293.92

770,817.68

-1,293.92

-770,817 68

$

6,600 00 $

7 200 00

$

-496,854 48 $

3,550,707.54

11,840.73 $ 524,908.86

-177,928.07 $ 5,499,602.51

613,932.52 4,878,740.69

4,254.22 -2 591.47

3,367.32 3 561.98

$ 3,053,853.06 $

536,749 59 $ 5,323,337 19 $ 5,499,602.51

-5-

PIKE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - INON-GAAP BASISJ GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2001

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS!

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues

s 9,911,627 11 $ 10,333,599 29

1,99948

2,625,113 00

2,705,232 78

110 000 00

106 765 73

s $ 12,646,74011

13,147,597 28

EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of lnstruct10nal Services Educational Media Services General Adm1mstrat1on School Admin1strat1on Business Administration Maintenance and Operallon of Plant Student Transportat10n Services Central Support Services Other Support Services Food Services Operallon Community Services Operations

$ 8,326,147 75 $ 8,861,598 04

5n,020 11 227,532 39 348,490 68 300,269 61 871,705 40 139,620 55 916,835 50 681,175 34
25,890 00 179,400 35

323,932 08 350,158 91 355,889 74 342,883 10 870,721 20 141,62560 865,585 92 725,611 98
25,890 00 75,640 68
2,765 93

Total Expenditures

$ 12,594,087 68 $ 12,942,303 18

Excess of Revenues over (under) Expenditures

$

52,652 43 $

205,294 10

OTl::IER FINANCl!::jG SOURCES /USES}
Lease Pnncipal Payments Other Sources Other Uses

s

6,60000

-1 293 92

Total Other Financing Sources (Uses)

$

5 306 08

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $
~ooo FUND BALANCE JUbY 1,

52,652 43 $

210,600 18

894,582 98

1,091 502 05

AdJustments

26692

FUND MLA!::lCE JU!::lE 30 2001

$

9471502 33 $ 113021102 23

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS!

$ 269,137 00 $ 993,714 30

273,756 58 1,002,499 66

295,200 00

299,738 59

$ 1,558,051 30 $ 1,575,994 83

$ 449,966 19 $

601,443 18

53,686 36 21,279 00
97,522 49

55,020 28 24.n412
7,550 88 87,801 31
2,370 84

2,050 00 24,377 00
8,807 00 3,260 00 668,691 17 1 500 00

25 00 35,034 61
8,807 00 507 18
653,776 53 3 691 72

$ 1,331,139 21 $ 1,480,803 25

$ 226,912 09 $

95 191 58

$

1,293 92

$

1,293 92

$ 226,912 09 $ 341,725 90 -1 408 24

96,485 50 309,366 73

$ 5671229 75 s

4051852 23

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

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Pike County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its :financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statemt:nts account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for :financial resources to be used for the acquisition or construction of major capital facilities.
- 8-

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
DEBT SERVICE FUND-the fund used to account for the accumulationofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUPS
GENERAL FIXED ASSETS ACCOUNT GROUP - A financial reporting device used to account for all general fixed assets acquired or constructed for use by the School District.
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determin~d and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly
-9-

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
BUDGET
The Pike County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper 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 time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" ofthis report:

- 10 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SillvfMARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1, 2000

$ 332,484.06

Adjustments Inventories - July 1, 2000 Food Donated Commodities Purchased Foods

-14,179.03 -8,938.30

Fund Balance July 1, 2000 (Budget Basis)

$ 309,366.73

Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

96,485.50

FUND BALANCE JUNE 30, 2001 (Budget Basis)

$ 405,852.23

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdemand deposits. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.

INVESTMENTS

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

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

(2) Obligations issued by the United States government,

- 11 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
LEASE PAYMENT RECEIVABLE
The Pike County Board of Education has entered into a direct financing lease (as lessor) with the City of Zebulon (lessee) to lease land and facilities owned by the School District. The Lease Payment Receivable recorded on the Combined Balance Sheet consists of the balance of the lease payments due to the School District as of June 30, 2001.
PROPERTY TAXES
The Pike County Board ofCommissioners fixed the property tax levy for the 2000 tax year (calendar year) on November 19, 2000 (levy date). Taxes were due on January 19, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Pike County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $2,586,292.77 and for school bonds amounted to $458,837.60.

- 12 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

School Operations School Bonds

10.64 mills 1.82 mills

12.46 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $697,887.51 and was recorded in the Capital Projects Fund. The State will tenninate collection ofthis tax once an additional $891,067.76 has been collected or on June 30, 2002, whichever occurs first.

INVENTORIES

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

GENERAL FIXED ASSETS

General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of nonnal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized.

COMPENSATED ABSENCES

Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation

- 13 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
relates only to vesting accumulating l~ave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than
- 14 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS
110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(I) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $3,848,522.91. The amounts ofthe total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.

- 15 -

------------------ -- ----

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

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

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

Risk Category

Bank Balance

1

$ 302,407.06

2

0.00

3

3,546,115.85

Total

$ 3,848,522.91

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $1,310,339.91 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is 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.

- 16 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200i

Note 2: DEPOSITS AND INVESTMENTS

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund I on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: GENERAL FIXED ASSETS

The following is a summary ofchanges in the General Fixed Assets Account Group during the fiscal year:

Balance July l, 2000 Additions Deletions Balance June 30, 2001

Land

Buildings

Improvements Other Than Buildings

Equipment

Total

s $ 404,646.06 $18,466,097.03

656,647.12 $ 4,276,703.99 $23,804,094.20

1,484,503.65

410,358.30 1,894,861.95

-52.132.36

-52.132.36

$ 404 646 06 S!9 950 600 68 $ 656,647.12 $ 4.634,929,93 S25 646,823.79

Note 5: RISK MANAGEMENT

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

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

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

- 17 -

----------------------

PIKE COUNIT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 5: RISK MANAGEMENT

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not experienced any losses related to this risk in the past two years.

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

Position Covered

Amount

Superintendent Finance Director Principals

$ $
$ 1,250.00 - $

50,000.00 50,000.00 10,000.00

Note 6: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Refunding - Series 1996 3.75% - 5.70% $ 5,395,000.00

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

General -Obligation
Bonds

Balance July 1, 2000

$ 5,590,000.00

Deductions Debt Retired
Balance June 30, 2001

195,000.00
$ 5,395,000.00

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

- 18 -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT D 11 11

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 6: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

General Obligation
Bonds

2002 2003 2004 2005 2006 2007 - 2011 2012 - 2016

$ 502,661.25 502,538.75 501,736.25 505,117.50 502,660.00
2,522,518.75 3,032,025.00

Total Principal and Interest

$ 8,069,257.50

Note 7: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1996, the School District defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School District's general-purpose financial statements. At June 30, 2001, $4,860,000.00 of bonds are outstanding and are considered defeased.

Note 8: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $190,564.34 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $146,236.81

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $1,962.53

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 $42,365.00

- 19 -

-- ----------- - - - - - - - - - - - - - - - - -

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 9: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2001:

Project

Unearned Executed Contracts

Pike County Middle School Renovations

$ 167,286.00

The amount described in this note is not reflected in the general-purpose financial statements.

Note 10: CONTINGENT LIABILITIES

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

Note 11: SUBSEQUENT EVENTS

On September 18, 2001, the voters of Pike County passed a referendum approving a special one percent sales and use tax for educational purposes to be levied, imposed and collected on all sales and uses in Pike County for a period of time not to exceed 20 calendar quarters (five years) beginning upon the exhaustion ofthe existing sales and use tax, for the purpose ofraising not more than $4,500,000 ofnet proceeds by said tax, to be used for paying all or a portion ofdebt service on the outstanding Series 1996 Refunding General Obligation Bonds previously issued by the Pike County School District. The maximum amount ofthe debt service to be paid with sales and use tax proceeds will be $400,000; acquiring, constructing, equipping and furnishing a new middle school; adding to, renovating, repairing, improving, equipping and furnishing existing school buildings or other buildings or facilities useful or desirable in connection therewith, at a maximum cost to be funded from sales and use tax proceeds of $4,100,000.

Note 12: ACCUMULATED EMPLOYEES' LEAVE

The School District's administrative staff and certain other full-time employees earn .833 days per month of annual leave. Annual leave may be accumulated to a maximum of ten days, and upon retirement or termination of employment employees are paid at the current rate of pay for unused leave up to the maximum accumulation. See Note 1 - Compensated Absences

- 20-

PIKE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 13: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

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

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 921,873.81 $ 834,986.46 $ 831,016.75

- 21 -

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

279,693.09 $

18,419.56

160,778.85

18,433.25 6.346.83

Total Assets

$

465.252.02 $===1=8:!:::,4=1=9=56_

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general-purpose financial statements.
- 22 -

$

3,378.15 $

4,846.62

31,241.56

13,572.94

$

34.619.71 $

18,419.56

$

18,433.25

6,346.83

405.852.23 $

0.00

$

430.632.31 $

0.00

$

465.252.02 $ ===1~8,i.,;.4_,19;;;,;;;;,;5.6...

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 301 2001

JUNE 301 2000

$

2,811.97 $

300,924.62 $

207,472.19

160,778.85

150,000.00

70,688.81

70,688.81

94,951.34

18,433.25 6,346.83

14,179.03 8,938.30

$

73,500.78 $

557,172.36 $ ==4.,.7_,5=,54=0==86=

$

11,385.60

$

31,928.60 $

40,153.37

38,193.50

38,432.08

83,246.58

88,043.22

3140.10

3,140.10

5,434.48

$

73,500.78 $

126,540.05 $

143,056.80

$

$ _ _ _ _o'"'"._o_o__

$

0.00 $

18,433.25 $ 6,346.83

14,179.03 8,938.30

405,852.23

309,366.73

430,632.31 $ _ _3__3__2~.4.8...4. _._0__6__

$

73,500.78 $

557.172.36 $ ===-4=7=5:!:z,54=::0=.=86=

- 23-

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media SeMces General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over {under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements.
-24-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

63,642.00 $

210,114.58

386,881.44

299,738.59

$

750,262.03 $

210,114.58

$

182,660.70

19,602.17

$

653,776.53

25.00 8,033.47
390.33

$

653,776.53 $

210,711.67

$

96,485.50 $

-597.09

$

96,485.50 $

332,484.06

4,254.22 -2 591.47

597.09
0.00 0.00

$ 430,632.31 $ <=====--=-o-.o=o==

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 301 2001

JUNE 301 2000

$

273,756.58 $

279,430.34

$

615,618.22

1,002,499.66

980,977.80

299,738.59

287,233.09

$

615,618.22 $ 1,575,994.83 $ 1,547,641.23

$

418,782.48 $

601,443.18 $

590,703.61

35,418.11 24,774.72
7,550.88 87,801.31
2,370.84
27,001.14 8,807.00 116.85
3,691.72

55,020.28 24,774.72
7,550.88 87,801.31
2,370.84 25.00
35,034.61 8,807.00 507.18
653,776.53 3,691.72

60,027.58 44,725.31 12,766.68 82,893.38
4,896.89 25,728.25
8,807.00 768.64
665,228.90 1,403.59

$

616,315.05 $ 1,480,803.25 $ 1,497,949.83

$

-696.83 $

95,191.58 $

49,691.40

696.83

1,293.92

817.68

$

0.00 $

96,485.50 $

50,509.08

0.00

332,484.06

275,045.68

4,254.22 -2,591.47

3,367.32 3,561.98

$

0.00 $

430,632.31 $ ==--==3=3=2==,4=84-.06==

-25-

PIKE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

911,073.49

2,131,052.25

- - - - - - $ _ __:3,:.07:..a,..:.49::,:2::.:;.2:,:0~

Total Assets

$ 3,042,125.74 $-==3=0=7,i,,;,4~9=2.=20_

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

297,788 47

$

297,788.47

$ $ 3,042,125.74 $ 3,042,125.74 $

9,703.73 0.00
9 703.73

Total Liabilities and Fund Equity

$ 3,042,125.74 $ =-3=0=7=,4=9=2.=20=

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

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

911,073.49 $ 1,035,753.96

$

654,694.46

2,785,746.71

3,338,857.01

123.148.96

430.641.16

210.329.18

$

s n71843.42 $ 4,127,461.36

4,584,940.15

$

633,269.83 $

931,058.30 $

331,292.24

126,372.00

126,372.00

481,100.15

16.178.00

16.178.00

221.840.22

$

775,819.83 $ 1,073,608.30 $ 1.034.232.61

$

2,023.59 $

2,023.59 $

941,996.80

9,703.73

79,815.34

0.00

3.042.125. 7 4

$

2.023.59 $ 3.053.853.06 $ 3.550,707.54

$

7n,843.42 $ 4,127,461.36 $ 4,584,940.15

- 27-

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

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

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

307,492.20

$

116,052.25

$

116,052.25 $

307,492.20

$

24,083.66 $ 1,058,792.75

738.80

348,963.22

$

24,822.46 $ 1,407,755.97

$

91,229.79 $ -1, 100,263.77

$

422,000.55 $ 1,452,152.71

-422,000.55

$

422,000.55 $ 1,030,152 16

$

513,230.34 $

2,528,895.40

-70,111.61 79,815 34

$ 3,042,125 74 $===9=,7-03=.7=3=

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

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

307,492.20 $ 2,733,749.80

$

697,887.51

697,887.51

715,275.59

33,181.36

149,233.61

185,902.59

$

731,068.87 $ 1,154,613.32 $ 3,634,927.98

$

218,889.37 $ 1,301,765.78 $ 4,082,905.42

349,702.02

18,801.65

$

218,889.37 $_---'-"1--,6--5--1".-4- 67.80 $ 4,101,707.07

$

512,179.50 $ _____-_4_9_6_,854.48 $

-466, 779.09

$ 1,874,153.26 $ 2,086,050.27

$ -1,452, 152.71

-1,874, 153.26

-1,316,050.27

$ -1.452,152.71 $

0.00 $

770,000.00

$

-939,973.21 $

-496,854.48 $

303,220.91

941,996.80

3,550,707.54

3,247,486.63

$

2,023.59 $ 3p53,853.06 $ 3,550,707.54

- 29-

PIKE COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001

SCHEDULE "1

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agnculture, U. S Department of

Child Nutrfbon Cluster

Pass-Through From Georgia Department of Education

Food and Nutnt1on Program

Food Services School Breakfast Program National School Luncti Program

. 10 553
. 10.555

NIA

$

69,345.00

NIA

2651571 06 $

(2) 603,203.51 (3)

Total Child Nutrition Cluster

$ 334,916.06 $

603,203 51

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutntlon Program

Food D1strlbut1on Program (1)

10.550

NIA

Pass-Through From Office of School Readiness

Food and Nutnt1on Program

Child and Adult Care Food Program

10.558

NIA

50,573.02 1,392 36

50,573 02 (2l

Total U. S Department of Agnculture

$ 386,881 44 $

653,776.53

Education, U S. Department of Speaal Education Cluster Pass-Through From Georgia Department of Education Individuals with Olsab1ht1es Education Act Part B - Special Education Flow Through Preschool

84.027 84173

NIA $ 224,06215 $

NIA

8,807.00

224,288.08 (3) 8,807 00

Total Special Education Cluster

$ 232,869.15 $

233,095.08

Other Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

TIiie I

Grants to Local Educational Agencies

84.010

NIA

Tille ii

Eisenhower Professional Development

84.281

NIA

TIiie VI

Innovative Education Program Strategies

84.298

NIA

Class Size Reduction

84 340

NIA

Safe and Drug-Free Schools and Communities

84.186

NIA

Vocational Education - Basic Grants to States

High School Program

Basic Grant Tech-Prep Education

84.048

NIA

84.243

NIA

271,763.18
15,579.20
13,881 92 44,647 80 10,331.00
18,510.69 1,999 48

271,76318
15,579.20
13,881 92 44,647.80 10,331 00
18,981 59 (3) 199948

Total U. S. Department of Educalton

$ 609,582 42 $

610,279 25

Labor, U. S. Department of Pass Through from Georgia Department of Labor Job Training Partnership Act

17.250

NIA

$

8,035 28 $

8,035.28

Total Federal Fmanaal Assistance NIA= Not Available

- 30-

$ 1,004,499.14 $ 1,272,091.06

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

SCHEDULE "1

Notes to the Schedule of Expendl)ures of Federal Awards
(1) The amounts shown for the Food Distnbut,on Program represents the Federally assigned value of nonmonetary assistance for donated commodmes received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are lnduded In the 2001 National School Lunch Program.
(3) Expenditures for this program lndude State, and/or Other Funds Expendrtures are not ma1nta1ned by fund source
Major Programs are Identified by an astensk (*) in front of the CFDA number.
The School D1strld did not provide Federal Assistance to any Subredpient.
The accompanying schedule of expenditures of Federal awards rndudes the Federal grant adlvlty of the Pike County Board of Education and Is presented on the modified accrual basis of accounting which Is the basis of accounting used In the presentation of the general purpose financaal statements.

See notes to the general-purpose financial statements.

- 31 -

.-------------------------------- - --~-
PIKE COUNTY BOARD OF EDUCATION SCHEDULE Of STATE REVENUE YEAR ENDED JUNE 30 2001

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Education, Georgia Department of Quality Basic Educa!Jon General and Career Education Programs $ Special Education Programs Remedial Educa!Jon Program Media Center Programs Staff Development Programs lnd1rec1 Cost Pupil Transportallon Regular Bus Replacement Deferred Summer Salanes (Pnor Year) Deferred Summer Salanes (Current Year) Educational Equalization Funding Grant Food Services Other State Programs Altemat1ve Program Health Insurance Mentor Teacher Program Nursing Services Preschool Handicapped Program Pnncipal Supplements Remedial Summer School Program Teachers' Retirement Vocational Supervisors Lottery Program Computers in the Classroom

5,618,496 00 1,189,710 00
150,399 00 223,312 00
64,806 00 1,486,581 00
348,177 00 112,456 00 -1,205,264 00 1,245,588 00 573,360 00
$
98,752 00 146,236 81
3,389 92 68,445 00 28,090 00 11,024 00
6,711 45 1,962 53 10,704 00

63,642 00 54,185 00

$ 5,618,496 00 1,189,710 00 150,399 00 223,312 00 64,806 00 1,486,581 00
348,177 00 112,456 00 -1,205,264 00 1,245,588 00 573,360 00 63,642 00
98,752 00 146,236 81
3,389 92 68,445 00 28,090 00 11,024 00
6,711 45 1,962 53 10,704 00
54,185 00

Georgia State Financing and Investment Comm1ss1on Reimbursement on Construc!Jon ProJects

$

307,492 20

307,492 20

Office of School Readiness Pre-Kindergarten Program

155,929 58

155,929 58

Office of Treasury and Fiscal Services Pubhc School Employees Retirement

42,365 00

42,365 00

CONTRACTS Educallon, Georgia Department of Reading Challenge Program Reading First Program

27,969 00 29,906 00

27,969 00 29,906 00

Human Resources, Georgia Department of Mental Health, Mental Retardation and Substance Abuse Regional Board Teen Center Through Pike County Department of Family and Children's Services Tee Plus Program

16,866 61 33,555 97

16,866 61 33 555 97

$ 10,333,599 29 $

273?56 58 $

307,492 20 $ 101914,848 07

See notes to the general-purpose financial statements

- 32-

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

SCHEDULE "3"

PROJECT
Pl"OVldrng funds to pay the cost of acqurnng, constructing and equIpprng one new elementary school, adding to, renovating, reparnng, improving and equIpprng 8Xlstlng school buildings and faahties useful or desirable rn connectJon therewrth and acquInng any necessary property, therefor, both real and personal, all at a mBXJmum cost of $3,500,000 00

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED IN PRIOR YEARS (3)

PROJECT STATUS

Ongoing

(1) The Schoof D1stnct's ong1nal cost estimate as spec1fied in the resolution calling for the Imposruon of the Local Option Sales Tax.
(2) The School D1str1Ct's current estimate of total cost for the Pl'Olect Includes all cost from project inception to completlon
(3) The voters of Pike County approved the ImposJ!Jon of a 1% sales tax to fund the above project Amounts expended for the proJect may include sales tax proceeds, stats, local property taxes and/or other funds over the hfe of the pro,ect

See notes to the general-purpose fina11CJBI statements

-33-

PIKE COUNTY BOARD OF EDUCATION
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM {OBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM
YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Klndergarten Program Kindergarten Program-Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with D1sablllbes Category I Category II Category 111 category IV category V Gifted Student - Category VI Remedial Education Program Allemabve Education Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES OPERATIONS

TOTAL

$

324,083.00 $ 397,222.02 $

7,156.82 $ 404,378 84

231,421.00

216,830 69

3,875.64

220,706.33

1,421,690.00 1,417,165.63

37,383.59

1,454,549.22

464,587.00

467,732.43

7,491.95

475,224.38

837,544 00

933,507.32

18,374.61

951,881 93

1,572,296 00 1,597,944 21

42,072 00

1,640,016.21

1,255,343.00 1,498,655.69

64,992 90

1,563,648 59

288,672.00

240,389 29

117,214.73

357,604.02

1,202,822.00

22,090.63

4,223.98

26,314.61

132,630 32

3,724 85

136,355 17

562,450 55

10,724 86

573,175 41

82,667.27

1,882 70

84,549.97

266,659.58

23,541.99

290,201.57

151,446.00

61,051.09

4,768.58

65,819.67

171,202.00

117,297.46

2,248.05

119,545 51

112,411.00

96,849.13

19,490.00

116,33913

$

8,033,517.00 $ 8,111,143.31 $ 369,167.25 $ 8,480,310.56

254,199.00 73 771.00

287,027.25 33,939.91

58,131.12 40,81565

345,158.37 74,755.56

TOTAL QBE FORMULA FUNDS

$

8,361,487.00 $ 8,432,110 47 $ 468. 114.02 $ 8,900,224 49

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

See notes to the general-purpose financial statements

- 34-

PIKE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM {QBE}
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2001

SCHEDULE "5"

SITE Pike County Primary School Pike County High School Pike County Middle School Pike County Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,597,101.00 $

2,950,677.58

2,131,269.00

2,399,099.04

1,907,526.00

1,882,075.25

1,285,210.00

1,248,458.69

112,411.00

$

8,033,517.00 $ ==8.,.,4==80=,3=1=0=:ii.5-=6

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

SECTION II COMPLIANCE AND INTERNAL CONrROL REPORTS

w. RUSSELL

HINTON

STATE AUDITOR

(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Sune 214 Atlanta, Georgia 30334-8400
May 24, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Pike County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofPike County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated May 24, 2002. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
-
As part ofobtaining reasonable assurance about whether Pike County Board ofEducation's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Pike County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provjde assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting
2001YB-10

would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofthe management, members ofthe Pike County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~koo. ~-~ ~sell W. Hinton State Auditor
RWH:as 2001YB-10

Russ1,.1.1. W. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S W., Suite 214 Atlanta, Georgia 30334-8400
May 24, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Pike County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Pike County Board of Education with the types of compliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Pike County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Pike County Board of Education's management. Our responsibility is to express an opinion on Pike County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular Al 33, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Pike County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Pike County Board of Education's compliance with those requirements.
2001SA-10

In our opinion, the Pike County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management ofPike County Board ofEducation is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Pike County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofthe management, members ofthe Pike County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:as 2001SA-10

State Auditor

SECTIONID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

PIKE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED ruNE 30. 2001
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported.

SECTION IV FlNDINGS AND QUESTIONED COSTS

PIKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Re.port Issued on the Financial Statements The auditor's opinion on the Pike County Board of Education's financial statements was qualified for a departure from generally accepted accounting principles.
2. Re.portable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Pike County Board of Education did not disclose any reportable conditions related to the financial statements.
3. Noncompliance Material to the Financial Statements The audit of the Pike County Board ofEducation disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Re.portable Conditions in Internal Control Over Major Programs The audit report for the Pike County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Re.port Issued on Compliance for Major Programs The auditor's opinion on the Pike County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Re.ported by Section .510(a) ofOMB Circular A-133 The Pike County Board of Education's audit did not disclose audit findings required to be reported by section .SlO(a) of 0MB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program I 0.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Pike County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
No matters were reported.
- 1-

PIKE COUNTY BOARD OF EDUCATION

SCHEDULE.OF FINDIN.GS,AND .QUESTIONED COSTS

--

YEARENDEDtJUNE 30. 2001

ID FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.

-2 -