GA;' ,=i ,, ' A~o ,'R i' l='AlD, f[,-3-', ;;2~I- ::I,;a ,. ', I '. '. , ' STATE OF G'EORGIA- oEPARTMEN-l OF.AU'c>ITS AND ACCOUNTS ., , -'r' , ...- .'r, ...-- _., :\ .-. . ,. : . _., _. . . .-,."<. " ' \ -. ,, ,, , " ' " ' ' - '. .. . '' ,'; - . " , ) ., ...., - .,- ' , . ::Pl_l~E ' ' c;q~NTYBQARD QF ' .' ' , EQ(!ATION-,:_, 1 . ZEBULON, GEORGIA , . , , _.,,. ., ,,. ': .. '' :... ' ' ' .- ,'. ' 'REPORT ON AUDIT: bF THE FINANCIAL STATEMENTS . ioR.THE'FISC.AL -YEAR ' ... .. . - EN. DED.J' UNE. 30:.2002 . '. -~ .. ,r. , . . , ' ' ," ; ' I ' :'., ' ., ..... . , ;" ' , I/ .-- ',.. .I ' ' ' L " '' ' Russell W. Hlr:iton" -( " ' . . , ,. ' ' , . .! ' -, < ; ,.,.. . ' T .. '~ . . , ,. ) '. .' ' .;, " - state Auditor ' ; . ,, ... '.~ ,, ' ., -. '. ... . . J " ' , ' ,. : ' , <. ' .' PIKE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDEN I AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMEN rARY INFORMATION SCHEDULE OF EXPENDITURES or rEDERAL AWARDS EXHIRITS GENERAL-PURPOSE FINANCIALS I Al EMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPFS AND ACCOUNT GROUPS 2 B COMBINED STATEMENT OF REVENUES, t..:XPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAi FUND TYPES 4 C COMBINED STAl EM ENT OF REVENUES, EXPLNDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAi (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUF FUNDS 6 D NOrLS TO THE GENERAL-PURPOSL FINANCIAL STATEMEN rs 7 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 20 r COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 22 CAPllAL PROJECTS FUND G COMBINING BALANCE SHFET H COMBINING Sl A rEMENT OF REVENUES, EXPENDITURFS AND CHANGES IN FUND BALANCES 26 SCHEDULES SCHEDULE OF EXPENDITURES or rEDERAL AWARDS 28 2 SCHEDUU OF STATE REVENUE 30 3 SCHEDULE or APPROVED LOCAL OPTION SALES r AX PROJFCTS JJ ALLOTMFNTS AND EXPENDITURES GENERAL FUND -QUALllY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 34 5 BY SITE 35 PIKE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION II COMPI IANCE AND INTERNAL CONTROL REPORTS REPOR I ON COMPLIANCF AND ON INTERNAL CONTROL OVER FINANCIAL REPOR I ING BASED ON AN AUDIT 01 FINANCIALS rATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING SrANDA RDS REPORT ON COMPLIANCE WITH RFQUIREMENTS APPLICABLE TO EACII MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 SECl ION Ill AUDITEE'S RESPONSE TO PRIOR YEAR flNDINGS AND QUES rIONED COSTS SUMMARY SCHEDULE 0~ PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECllON IV FINDINGS AND QUESTIONED COSTS ~CHEDULE 0~ ~ IN DINGS AND QUES I IONED COSTS SECTION I FINANCIAL '{IJSSI 11 \V, H111. IOI' '-, J,\TE AUIJI IOR (.,4\ 6Sfi ,' -:-.: DEPARTMENT OF AUDITS AND ACCOUNTS 254 \V..1,hmg1011 Slrcct !"'l \\' Suite 214 AtlJl\l..t (11..'tlf!!I.I 11)~ ~4-X--Ulll June 20, 2003 Honorable Sonny Perdue, Governor Member, of the General A,,embly Member, of the State Board of Education and Superint.:ndent and Members of the P1l,.e County Board of [ducat10n INDEPENOl:NT AUDITOR'S COM81N[D REPORT ON GENERAL-PURPOSI' FINANCIAL STATl:MENTS AND SUPPLEMENTARY INFORMATION - SCH[DULE OF EXPENDll URES or FEDERAL Aw ARDS Lad1e, and Gentlemen We have audited the accompanying general-purpose financial statement, of the P1l,.e County Board of Educat10n, as of and for the year ended June 30, 2002, as li,ted m the table of content, These general-purpose financial statements are the rcspons1b1hty of the Pike County Board of Education's mandgement Our re,pons1b1hty 1s to express an opinion on these general-purpose financial statements based on our audit Except a, discussed in the following paragraph, \\e conducted our audit m accordance ,,1th aud!lmg standard, generally accepted m the Umted States of America and the standards applicable to financial audits contained in Government Auditing Standards, lsSued by the Comptroller General of the Umted States fho,e standards require that we plan and perform the aud!I to obtain reasonable assurance about whether the financial statements arc free of material misstatement An audit include, examining, on a test ba.1,. e, 1dencc supporting the amount, and disclosures in the financial statement, An aud!I also includes assessing the accounting pnnc1ples used and s1gmficant estimate, made by management. a, well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable ba.1, for our opinmn We did not observe the tal,.ing of either the Federal donJtcd commod1t1es inventory or purchased lood, 1mentory at June 30, 2002, nor could we satisfy ourscl,es a, to the accuracy of the amount, ,tatcd as inventorics through alternative procedure, 2002ARL-13 As descnbcd in the notes to the general-purpose financial statements, the Board of Educatwn's financial statements have been prepared using a certain accounting practice and policy which. in our opinwn. vanes in ~ome respect~ from generally accepted accounting principles This vanance 1s described a, follows School acllv1ty accounts maintained at the ind1v1dual schools are not included in the general-purpose financial statements To conform to generally accepted accounting pnnc1ples. these accounts should be included in the general-purpose financial statement, The aggregate effect on the general-purpose financial statements of this om1sswn ha~ not been determined. but 1s believed to be material In our opinwn. except for the effect, of such adjustments. 1f any. on the Special Revenue Fund. as might have been determined to be necessary had we been able to sallsfy ourselves as to the accuracy ol the food service inventones as discussed in the third paragraph, and except for the eflects on the general-purpose financial statements of the matter, referred to in the preceding paragraph. the general-purpo~ financial statements referred to above present fairly. in all material respects. the financial po~11Jon of the Pike County Board ofEducatwn as of June 30. 2002. and the result, of1ts 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 June 20, 2003. on our cons1deratwn of the Pike County Board ofEducatwn's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations. contracts and grants That report 1s an integral part of an audit performed in accordance with Government Auditing Standards and ,hould be read in conjunction with this report in con,1dering the re~ult, of our audit Our audit wa~ performed for the purpose of forming an opinion on the general-purpose financial statements of the Pike County Board ofEducallon taken as a whole. rhe accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules I through 5). which includes the Schedule of Cxpcnd1tures of Federal Awards as required by U S Office of Management and Budget Circular A-133, Aud1t1 o/State1. Local Governments, and Non-Profit Orgam=atwns. are prc.cnted for purpose~ of additional analysis and are not a required part of the general-purpose financial statements Such informallon has been subjected to the auditing procedure, applied in the audit of the general-purpose financial statements and in our opinwn. except for the effect of ad1ustment,. 1f any, on the Special Revenue fund. as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventones a~ d1scu,scd in the third paragraph. and except for the effects of the matter referred to in the fourth paragraph. such information I\ fairly ~lated, in all material re,pects, in relatwn to the general-purpose financial statements taken as a whole 20021\RL-13 A copy ofth1s report has been filed as a permanent record m the otlice of the State Auditor and made available to the press of the State. as provided for by Otlicial Code ofGeorgia Annotated Section 506-24 Respectfully submitted. If Ca 00 ~,O"dmn!s Excess of Revenues over (under) Expenditures QTHER FIN~CING SQ!JRC~~ J.ll.S.ES.1 Lease Pnnopal Payments Other Source!i Other Uses Total Other Flllanong Sources (Uses) s 9 400 947 70 s 9 959 259 31 291 213 73 372 516 36 382 167 86 298 262 77 925 618 60 138 454 30 987 253 89 750,346 85 21 808 00 199 666 90 309 546 80 365 657 16 361 207 44 367 548 55 1 081 558 66 139 316 94 927 404 95 755 615 81 21 490 00 80 502 92 3 165 39 50 090 00 s s 13 798 346 96 14 372 273 93 s -257 942 96 s -27 368 95 s 7 200 00 243 225 93 -a 668 52 s 241 757 -41 Excess of Revenues and Other Finanong Sources s s over (under) Expendrtures and Other Fmancmg Uses -257 942 96 214 388 46 EUND BALANCE J!.R,Y 1 2001 108109896 1 302 102 23 AdJustments Food Inventory Net Change Ill Penod Donated Commodrues Purchased Food 11 57 ~ z F!,,!ND BAJ.A~~!; JUN[; ~Q s 823 167 57 $ 1 516 490 69 SPEClAL.. REVENUE FUND BUDGET ACTUAL s 131 720 00 s 286,953 40 391 000 00 117943507 288 500 00 313 790 43 s s 81122000 1 780 178 90 s 562 548 44 s 743,334 93 68 340 00 4-4 -499 00 10614000 2 162 00 75 695 14 44 159 02 1 424 99 70,646 23 935 00 2 050 00 43,380 00 9 4-49 00 5,260 00 692 891 BO 1 487 00 212 80 50 370 65 10,660 00 301 82 750 320 66 2 653 49 s 1,5381207 24 s 1 750 714 73 s -726 987 24 s 29 464 17 $ 8 -442 59 s 8 442 59 s -726 987 24 $ 37 906 76 432 941 05 430 632 31 -97 37 2,851 04 4 005 12 s -294 143 56 s 475 455 23 The notes to the general-purpose linanoal slatemenll are an integral pert of this statement . 6- PIKE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSF FINANCIAL STATEMFNTS JUNE 30, 2002 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY Inc Pike County Board of Education (School D1stnct) 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 D1stnct 1s organized as a separate legal entity and has the power to levy taxes and issue bond~ Its budget 1~ not sub_1ect to approval by any other entity Accordingly, the School District ~ a pnmary government and consists of all the organ1zat10ns that compose its legal entity FUND ACCOUNTING lne School D1stnct uses funds and account groups to report on its financial position and the results of Its operations Fund accounting 1s designed to demonstrate legal compliance and to aid financial management by segregating tran=t1ons related to certain governmental function~ or actlvltles A fund 1s a separate accounting entuy with a self-balancing ~et of accounts An account group 1s a financial reporting device designed to provide accountability for certain assets and liab1ht1es that are not recorded in the funds beca= they do not d1rectly affect expendable available financial resources. Although "~chool act1v1ty accounts" are maintained at the individual schools, neither the assets, hab1ht1es and fund eqmty, nor the revenues, expenditures and changes in fund balances of these accounts arc reflected in these financial statements To conform to generally accepted accounting pnnc1ple~. the~c accounts should be recorded in the general-purpose financial statements The general-purpose financial statements account for all State, Federal. Taxes and Other funds under control of the School D1stnct, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes Funds and the account groups presented in this report are as follows GOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educational activities. Governmental Fund Types include GENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those requ1rcd to be accounted for in another fund These tninsactlons 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 rcstncted to expenditures for specified purposes These fund~ are received pnmanly from the Georgia Department of Educatmn and from the Federal government to accomph~h ~pec1fic educat10nal objectives CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqms1t1on or construction of major capital fac1ht1es -7 - PIKE COUNTY BOARD OF EDUCATION LXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DEBT SERVICE FUND- the fund used to account for the accumulation ofresources for, and the payment of, general long-term pnnc1pal, mterest and paying agent fees. ACCOUNT GROUPS GENERAL FIXED ASSETS ACCOUNT GROUP-A financial reportmg device used to account for all general fixed assets acqmred or constructed for use by the School District GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reportmg device used to account for general obligation debt outstandmg BASIS OF ACCOUNTING The accountmg and financial reporting treatment apphed to a fund is determmed by its measurement focus. All governmental funds arc accounted for usmg a current financial resources measurement focus With this measurement focus, only current assets and current hab1ht1es generally are mcluded on the balance sheet Opcratmg statement~ of these funds present mcreases (i c., revenues and other financmg sources) and decreases (1.e., expenditures and other financmg uses) m net current assets Their reported fund balance 1s considered a measure of avrulable spendable resources L1ab1ht1es which are expected to be financed from available spendable resources arc reported as hab1ht1es m the governmental funds Other liab1ht1es, which are not expected to be financed from avrulablc spendable resources, are reported m the General Long-Term Debt Account Group Governmental funds are accounted for using the modified accrual basis of accountmg under which Revenues are recognized when susceptible to accrual (1.e., when they become both measurable and available) "Measurable" means the amount of the transaction can be determmed and "available" means collectible w1thm the current penod or soon enough thereafter to be used to pay hab1hties of the current penod The School D1stnct considers receivables collected w1thm sixty days after yearend to be available. Property taxes, sales taxes and mterest are considered to be suscepl!ble to accrual l\onexchange transacl!ons, m which the School D1stnct gives (or receives) value without directly rece1vmg (or giving) equal value m exchange, mclude property taxes, local opt10n sale~ taxes. mtergovemmental grants and donat10ns. Revenue for property taxes 1s recognized m the fiscal year for which the taxes are levied. Revenue from sales taxes 1s recognized m the fiscal year the resources are received or susceptible to accrual Revenue from grants and donations 1s recognized in the fiscal year m which all chg1b1hty requirements have been satisfied Expenditures arc generally recogn1ZCd when the related fund hab1hty 1s mcurred A substantial number of personnel of the School D1str1ct were employed for a one hundred and ninety day period beginnmg in August 2001 and endmg m early June 2002 Employment contracts for these employment periods typically ~pec1fy that compensation be prud in twelve equal monthly -8- PIKE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES IO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES payments begmmng m September 200 I and endmg m August 2002 State grants to fund the State's share of these contracts arc disbursed to the School D1stnct m the same twelve month pcnod. In accordance with generally accepted accountmg pnnc1plcs. salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded m the fiscal penod covered by the~ financial statements BUDGET The Pike County Board of Education's budget 1s a complete financial plan for the School D1stnct's fi~cal year and 1s based upon esumates of expenditures together wtth probable fundmg sources There 1s no statutory proh1bltlon regardmg overexpend1ture of the budget at any level The budget for all governmental funds 1s prepared by fund. funct10n and ob3ect The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds Wlli> prepared on a basis other than generally accepted accountmg prmc1ples. The budget process begms when the School D1stnct's admm1strat1on prepares a tentative budget for the Board's approval After approval ofth1s tentative budget by the Board. such budget 1s advertised at least once ma newspaper of general e1rculat10n m the locality At the next regular meetmg of the Board atier advert1~ment, the Board receives comments on the tentative budget, makes rev1s10ns as nece,,af) and adopts a final school budget lbis final budget 1s then submitted. m accordance v.1th pruv1,1ons of the Quality Basic Educat10n Act, OCGA Sect10n 20-2-167(c), to the Georgia Department of Education The Board may mcrease or decrease the budget at any time during the year All unexpended budget authority lap,e, at fiscal year-end CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand depos1L~ and short-term investments wtth origmal matuntles of three months or less from the date of acqms111on m authorized financial m,ututlons Georgia Laws OCGA 45-8-14 authon7e the School D1stnct to deposit 11> funds m one or more solvent banks or msured Federal savmgs and loan associations INVESTMENTS COMPOSITION OF INVI:.STMEN rs Investments made by the School D1stnct m nonpart1cipatmg interest-eammg contracts (such as certificates of deposit) and repurchase agreements are reported at cost Part1c1patmg mterest-eammg contracts and money market mvestments with a maturity at purchase ofone year or less are reported at amortized cost Both part1c1patmg mterest-eammg contracts and money market investments wtth 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 D1stnct to mvest Its funds and m selectmg among -9- PIKE COUN fY BOARD OF EDUCATION fXI IIBIT "D" NOTES TO THE GENLRAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES options for investment or among insututlonal bids for deposits, the highest rate ofretum shall be the obJectlve, given equivalent condit10ns of safety and hquid1ty Funds may be invested in the following ( 1) Obhgat1ons 1s~ued by the State of Georgia or by other states, (2) Obligations issued by the Umted States government, (3) Obligations fully insured or guaranteed by the Umted States government or a Umted States government agency, (4) Obligations of any corporation of the Umtcd States government. (5) Pnmc banker's acceptances, (6) The Local Government Investment Pool admmistered by the State of Georgia, Office of Treasury and Fiscal Services. (7) Repurchase agreements, and (8) Obhgat10ns of other pohucal subd1V1s1ons of the State of Georgia RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not re1mburo;ed and other receivables disclosed from mformat10n available. Receivables are recorded when either the asset or revenue recogmt10n criteria has been met Receivables n.-corded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectJblc receivables. LEASE PAYMENT RECEIVABLE Ille Pike County Board of Education has entered mto a direct financmg lease (as lessor) with the C1ty of Zebulon (lessee) to lease land and faciht1cs owned by the School D1stnct The Lease Payment Receivable recorded on the Combmed Balance Sheet consist of the balance of the lease payments due to the School D1stnct as of June 30, 2002 PROPERTY TAXES The Pike County Board ofComm1ss10ners fixed the property tax levy for the 2001 tax digest year (calendar year) on December 22, 2001 (levy date) Taxes were due on February 22, 2002 (lien date) Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Pike County Tax Comm1ss1oner bills and collects - 10 - PIKE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTl:oS TO THE GENERAL-PURPOS[ rrNANCIAL STATEMENTS JUNE 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES the property taxes for the School D1stncl withholds 2 5% of (aJ{es collected as a fee for tax collection and remits the balance of taxes collected to the School District Property (aJ{ revenue, during the fiscal year ended June 30, 2002 for maintenance and operat10ns amounted to $2.904.230 80 and for school bonds amounted to $458,030 53 Tax millage rates levied for the 2001 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 9 26 mills 1 42 mills ~ mills SALES TAXES Special Purpose Local Option Sales 1 ax revenue dunng the year amounted to $777,462 05 and 1s to be used for capital outlay for educational purposes or debt service This sales ta, was authorized by local referendum and the sales (aJ{ must be re-authonzed at least every five years INVENTORIES FOOD INVENTORIES lnventones of donated food commod1ue, u,ed in the preparation of meals arc reported on the Comb med Balance Sheet at thetr Federally assigned value. Purchased foods inventones are reported on the Combined Balance Sheet at cost (first-in. first-out) Donated food commodmes are recorded as revenues and expenditure, at the time commodity items are received Purchased foods inventones are recorded as expenditures at the time of purchase The inventones reported on the balance sheet for donated food commodities and for purchased foods are equally offset by rcservat10ns 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 fund~ at the time of purchase All purchased general fixed assets are valued at cost where h1stoncal records are available and at e,ttmated historical cost where no h1stoncal records exist Donated general fixed a~sets are recorded at fatr market value on the date donated. Disposals are deleted at recorded cost No dcprec1at10n has been provided on General F1,ed Assets The cost of nonnal maintenance and repairs that do not add to the value ofa~sets or materially extend the useful hves of the assets 1s not capitalized - I1- PIKE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES COMPENSATED ABSENCES Compensated absences represent obligallons of the School Distnct relating to employees' nghts to receive compensallon for future absences based upon service already rendered ThIS obhgat10n relates only to vesting accumulating leave in which payment ,~ probable and can be reasonably estimated No hab1lity has been recorded in the individual funds for the current portion of this obligation a~ this amount 1s deemed 1mmatenal to the general-purpo~e financial statements Add1t10nally, 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 hab1hty 1s also deemed to be 1mmatenal to the fair presentat10n of these financial statement, GENERAL OBLIGATION BONDS The School D1stnct issues general obhgal!on bonds to provide funds for the acqws1tion and construct10n of maJor capital fac1ht1es Bond premmms and discounts. as well as ISsuance costs. are recognized in the financial statements dunng the year bonds are issued. In addI110n, general obhgat10n bonds have been issued to refund ex1stmg general obhgat1on bonds. General obhgauon bonds are direct obhgat10ns and pledge the full faith and crcdll of the government. The outstanding amount of these bonds 1, recorded in the General Long-Term Debt Account Group INTERFUND TRANSACTIONS The School D1stnct has the following types of interfund transactions. Reimbursements of expenditures in11Ially made from a fund that are properly applicable to another fund arc recorded as expenditures in the reimbursing fund and as reduct10ns of expenditures in the fund that 1s reimbursed Operating transfers are recorded for all interfund transacl!ons other than reimbursements MEMORANDUM ONLY -TOTAL COLUMNS 1 otal columns on the general-purpose financial statements are capt10ned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis Data in these columns do not present financial posI110n or results of operat10ns in conformity with generally accepted accountmg pnnc1ples Nenher are ~uch data comparable to a consohdauon Interfund eliminations have not been made m the aggregation of this data - 12 - PIKE COUNTY ROARD OF EDUCA flON EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 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 um.: in any depository for a time longer than ten days a sum of money wluch has not been secured by surety bond, by guarantee ofmsurance, or by collateral The aggregate of the face value of such surety bond and the market value ofsecur1t1es pledged shall be equal to not less than 110 percent of the pubhc funds bcmg secured after the deduction ofthe amount ofdeposll insurance If a depository elects the pooled method (OCGA 45-8-13 I ) the aggregate of the market value ofthe secunt1es pledged to secure a pool of public fund~ shall be not les~ than 110 percent ofthe da!ly pool balance OCGA Sect10n 45-8-1 I(b) provides an officer holdmg public funds may, m his discretion. waive the reqwrement for security m the case ofoperatmg funds placed in demand deposit check.mg accounts Acceptable security for depo~1ts consists of any one of or any combmation of the following ( 1) Surety bond signed by a surety company duly quahfied and authorized to transact business within the State of G<..'Org1a. (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation. (3) Bonds, bills, notes, certificates of mdebtedness or other direct obligat10ns of the Umtcd States or of the State of Georgia, (4) Bonds. bills. notes. certificates of mdebtedness or other obhgallons of the counues or municipalities of the State of Georgia. (5) Bonds of any pubhc authority created by the laws of the State of Georgia, prov1dmg that the statute that created the authority authorized the use of the bonds for thi~ purpose. (6) Industrial revenue bonds and bond~ of development authorities created by the laws of the State of Georgia, and (7) Bonds. bills, notes, certificates of mdebtedncss, or other obhgallons of a sub~id1ary corporation of the Umted States government, which are fully guaranteed by the United States government both as to prmc1pal and mterest 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 !-arm Credit Bank>. the Federal Home Loan Mortgage A~sociatlon, and the Federal National Mortgage Association CATEGORIZATION OF DEPOSITS At June 30, 2002. the bank balances were $6,448,363 61 The amounts ofthe total bank balances are classified mto three categories of credit nsk - 13 - PIKE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2 DEPOSITS AND INVESTMENTS Category I - Cash that is insured (e.g, Federal depository insurance) or collateralized with secunt1es held by the School D1stnct or by the School District's agent in the School D1stnct's name Category 2 - Cash collateralu:ed with securities held by the pledging financial institut10n's trust department or agent in the School District's name Category 3 - Uncollateralized deposits (This includes any bank balance that 1s collaterahzed with secunties held by the pledging financial mst1tut10n, or by it~ trust department or agent but not in the School D1stnct's name ) The School D1stnct's deposit~ arc classified by nsk category at June 30, 2002. as follows R1;l.. Category Bank Balance 1 $ 588,274 62 2 0 00 3 5,860.088 99 Total $ 6,448,363.6 I CATEGORIZATJON OF INVESTMENTS At June 30. 2002. the carrying value of the School D1stnct's total investments was $730.577 91 which 1s matenally the same as fau value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia Office ofTreasury and Fiscal Services which are not reqmred to be catcgonzed since the School District did not own any specific identifiable secuntles in the pool The investment pohcy ofthe State ofGeorgia Office of Treasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1quid1ty Portfolio) does not provide for investment in derivatives or sumlar investments A descnptlon ofthe Pnmary L1qmd1ty Portfolio 1s as follows The Primary L1qu1d1ty Portfolio consists of Georgia Fund I, which 1s a combination local and state government investment pool, and fund 6. Georgia Fund I 1s a stable net asset value mvestment pool which follows Standard and Poor's cntena for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund I in a manner con~1stcnt with Ruic 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 hl..e pool The pool's pnmary obJectlves are safety of capital. investment income. liqu1d1ty and d1vers11ication while mamtainmg pnnc1pal ($ 1.00 per share value). Net asset value 1s caJculated weekly to ensure stab1hty The pool distributes earmngs (net of management fees) on a monthly basis and values part1c1pant'~ shares ~Id 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 1~sue any legally bindmg guarantees to support the value of the shares Part1c1pat1on in the pool 1s voluntary and deposits consist of funds from local governments, operatmg and trust funds of Georgia's state agencies, colleges and umvers1t1es, and cwrent operatmg funds of the State of Georgia's General r und - 14 - PIKE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENLRAL-PURPOSE ~INANCIAL STATEMENTS JUNE 30, 2002 Note 2 DEPOSITS AND INVESTMENTS Investments m Georgia Fund 1and Fund 6 are directed toward short-term instruments such as U S Trea~ury obhgauons. secunt1es is~ued or guaranteed as to prmc1pal and interest by the lJ S Government or any of its agencies or instrurnentahlles. banker's acceptances and repurchase agreements The weighted average maturity of Georgia Fund I may not exceed 60 days The weighted average maturity for Georgia Fund I on June 30. 2002. wru, 0 12 years The average investment durauon for Fund 6 on June 30. 2002. was 0 75 years Note 3 NO!'-1-MONCTARY TRANSACTIONS The School D1stnct receives food commod1t1es from the United States Department of Agnculture (USDA) for school breakfast and lunch programs These cornmod1t1es arc recorded at their federally assigned value See Note I - Inventories Note 4 GENERAL FIXED ASSETS The following 1s a ,urnmary of changes in the General Fixed Assets Account Group dunng the fiscal year 8Jldllce Jul) I, 2001 Additions Baldm..c June 30. 2002 Improvements Other Than I dlld Bmldmgs Bu1ldmgs l-guipment Iota! S 40464606 Sl9,950,6lXl6R $ 65664712 $ 4634,92993 $25.64682379 566 645 68 27,12467 )S\727 98 949,498 33 S 49:J ~Qf> $20 SIJ 246_36 S 631:Zl 79 S..J.2',lQgzm S 2 y , ~ Note 5 RISK MANAGEMENT The School D1stnct 1s exposed to various nsks of loss related to torts. theft of. damage to. and destruct10n of a~~t~: errors or omissions. job related 1llnes, or inJunc, to employees: acts of God and unemployment compensation The School D1stnct has obtained commercial insurance for nsk ofloss associated with torts, a,sets. errors or om11ons and Job related illness or mJuries to employees The School Distnct has neither significantly reduced coverage for these n~ks nor incurred losses (settlements) which exceeded the School D1stnct's insurance coverage in any of the past three years The School D1stnct has elected to self-insure for all losses related to acb of God The School D1stnct has not expcncnced any losses related to this nsk in the last three year; 1 he School D1stnct 1s self-insured 'wlth regard to unemployment compensat10n chums The School D1stnct accounts for claims within the same fund that the employee's salary and benefits were paid Claims arc accounted for with expenditure and hab1hty being reported when 1t 1s probable that a loss - 15 - PIKE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATFMENTS JUNE 30. 2002 Note 5 RISK MANAGEMENT has occurred. and the amount ot that loss can be reasonably estimated The School D1stnct has not expencnced any losses related to this nsk in the past two years The School D1stnct has purchased surety bonds to provide additional insurance coverage as follows Position Covered Amount Supenntcndcnt Finance Director Principals $ 50,000 00 $ 50.000 00 $ 1,250.00 - $ 10,000.00 Note 6 GENERAL LONG-1 ERM DEBT GENERAL OBLIGATION DEBT OUTSTANDING General Obhgation Bonds currently outstanding are ru, follows Purpo-re Interest Rates Amount General Government - Refunding - Scnes 1996 3 75% - 5 70% $ 5. I70,000.00 The changes in General Lonp-Term Debt dunng the fiscal year ended June 30, 2002. were as follows General Obhgauon Bonds Balance July I. 2001 $ 5,395,000 00 Dcduct10ns Debt Retired 225.000 00 Balance June 30. 2002 $ 5,170,000.00 At June 30, 2002, payments due by fiscal year which includes pnnc1pal and interest for these Item~ are as follows - 16 - PIKF COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE Gl:NERAl -PURPOSE FINANCIAL STATEMEN IS JUNE 30, 2002 Note 6 GENERAL LONG-TERM DEBT hscal Year Ended June 30 General Obhgauon Bonds 2003 2004 2005 2006 2007 2008 - 2012 2013 -2016 $ 502.538 75 501,736 25 505,117 50 502.660 00 504,336 25 2.524.142.50 2,526,065.00 Total Pnnc1pal and Interest Note 7 PRIOR YEAR DEFEASEMENT OF DEBT $ 7.566.5,.26.25 In fiscal year 1996, the School D1stnct defeased certain general obhgat10n bonds by placing the proceeds of new bonds in an mevocable trust to provide for all future debt service payments on the old bonds Accordingly. the trust account assets and the hab1hty for the defeased bonds are not included in the School D1stnct's general-purpose financial ~tatement;. At June 30, 2002, $4.665.000 00 of bonds are outstanding and are considered defeased Note 8 ON-BEHALF PAYMENTS fhc School D1stnct has rccogmzed revenue; and expenditures in the amount of $178.562.89 for health insurance and retirement contnbut10ns paid on the School District's behalf by the follomng State Agencies Georgia Department of Educauon Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $148,318 89 Office of Treasury and Fiscal Service; Paid to the Pubhc School Employees Retirement System For Public School Employees Retirement (PSERS) Employer~ Cost In the amount of$30,244 00 Note 9 SIGNIFICANT COMMITMENTS I he following 1; an analys1; ofsigmlicant ouL,tanding construction or renovation contracts executed by the School D1"1nct a, of June 30. 2002. together with funding available - 17 - PIKE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 9. SIGNIFICANT COMMITMENTS Pro1ect Unearned Executed Contract~ Funding Available From State 03G/02S-714-038 03G/02S-714-037 03G/02S-7l4-036/SA 0IS-714-016 $ l01.915 18 292,385 09 548,798 75 $ 41.566.55 47.095 62 259,601 33 $ 2~J.Q22,0l $ Jia.~~J.~Q The amounts descnbed m this note are not reflected m the general-purpose financial statements Note IO CONTINGENT LIABILIHES Amounts received or receivable pnnc1pally 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 expendnures wluch are disallowed under grant terms. The School District believes that such d1sallowances, 1f any, will be 1mmatenal tons overall financial position Note 11. ACC!-1MULATED EMPLOYEES' LEAVE The School District'; admm1strat1ve staff and certam other full-lime employees earn 833 days per month of annual leave Annual leave may be accumulated to a maximum of ten days and upon retirement or termmallon of employment employees are paid at the current rate of pay for unused leave up to the maximum accumulation. See Note 1 - Compensated Absences Note 12 RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, admimstrallve and clencal personnel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS). which 1s a cost-shanng multiple employer defined benefit pension plan TRS provides service retirement, disability retuement and survivors benefits for its members m accordance with State statute The Teachers Retuemcnt System of Georgia issues a M!parate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts I RS CONTRIBUTIONS REQUIRED AND MADE Employees of the School D1stnct who arc covered by 1 RS are requued by State statute to contnbute 5% ofthe1r gros~ earnings to TRS Ibe School Dtstnct makes monthly employer contributions to TRS at rates adopted by the 1 RS Board of Trustees rn accordance with State statute and as advised - 18 - PIKE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 Note 12 RETIREMENT PLANS by their independent actuary The reqmred employer contnbutlon rate 1s 9.24% and employer contnbutlons for the current fiscal year and the preceding two fiscal years are as follows Fiscal Year Percentage Contnbuted Reqmred Contnbutlon 2002 100% $ 834,135 69 2001 100% $ 921,873 81 :woo 100% $ 834,986 46 - 19 - PIKE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 2002 ASSETS Cash and Cash Equivalents Investments Accounts Recetvable Inventories Food Donated Commod1t1es Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 314,682 76 168,246 04 $ 33,570 80 21,284 29 10411 95 Total Assets $ LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total LJab1ht1es FUND EQUITY Fund Balances Reserved For lnventones Food Donated Commod1t1es Purchased Food Unreserved Undes,gnated Total Fund Equrty Total L1ab1ht1es and Fund Equrty See notes to the general-purpose financial statements - 20 - $ 10,778 10 $ 4,246 16 5,255 18 34,923 65 17,537 52 $ 39 169 81 $ 33 570 80 $ 21,284 29 10,411 95 443 758 99 $ $ 475,455 23 $ 000 000 $ 514,625 04 $ _ _ _3_3_5_70_,,80...., EXHIBIT "E" FEDERAL PROGRAMS TOTALS JUNE 30, 2002 JUNE 30, 2001 $ 314,682 76 $ 300,924 62 168,246 04 160,778 85 $ 226,670 59 260 241 39 70 688 81 21,284 29 10411 95 18,433 25 6 346 83 $ 226,670 59 $ 774 866 43 $ ~-=5=5=7=1=72"'=36=- $ 143,873 38 $ 154,651 48 20,310 69 29,812 03 $ 62,439 08 114,900 25 4744 47 44 40,153 37 83 246 58 3 140 10 $ 226,670 59 $ 29941120 $ 126 540 05 $ $ _ _ _ _-=o_,oc:o_ $ 000 $ 21,284 29 $ 10,411 95 18,433 25 6,346 83 443 758 99 405,852 23 475 455 23 $ _ _4.,_,30=,6""32:.,e,31,__ $ 226,670 59 $ 774 866 43 s _~s=s=1=1_12_...36._ - 21 - PIKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENOED JUNE 30 2002 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educat10nal Media SeMces General Adm1rnstrat1on School Adm1rnstrat1on Maintenance and Operation of Plant Student Transportation Services Central Support SeMces Other Support Services Food SeMces Operation Community Serv,ces Operations Total Expendrtures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES IUSESl Operabng Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory - Net Change ,n Penod Oonated Commodrties Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 66,270 00 $ 220,683 40 408,166 99 313 790 43 $ 788,227 42 $ 220,68340 $ 197,46615 20,846 03 33415 212 80 10,290 25 $ 750,320 66 $ 750,320 66 $ 229 149 38 $ 37 906 76 $ -8 465 98 $ s $ 37,906 76 $ 430,632 31 2,851 04 4 065 12 8,465 98 8 465 98 000 000 FUND BALANCE JUNE 30 See notes to the general-purpose financ,al statements - 22 - $ 475 455 23 $~~~~0=00""'= EXHIBIT "F" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 286,953 40 $ 273,756 58 $ 771,268 08 1, 179,435 07 1,002,499 66 313 790 43 299 738 59 $ 77126808 $ 1780178 90 $ 1,575,994 83 $ 545,868 78 $ 743,334 93 $ 601,443 18 54,849 11 43,824 87 1,424 99 70,646 23 93500 40,08040 10,660 00 301 82 2 653 49 75,695 14 44,159 02 1,424 99 70,646 23 93500 212 80 50,370 65 10,660 00 30182 750,320 66 2 653 49 55,020 28 24,774 72 7,550 88 87,801 31 2,370 84 2500 35,034 61 8,807 00 507 18 653,776 53 3 691 72 $ 77124469 $ 1 750,714 73 $ 1,480,803 25 $ 23 39 $ 2946417 $ 95 191 58 $ 202 54 $ 8,668 52 $ 1,293 92 -225 93 -225 93 $ -23 39 $ 8 442 59 $ 1 293 92 $ 000 $ 37,906 76 $ 96,485 50 000 430,632 31 332,484 06 2,851 04 4 065 12 4,254 22 -2 591 47 $ 0 00 $ 475 455 23 $ ~=4=3=0"6=32;;.3;;;,1;.. - 23 - PIKE COUNTY BQt,RD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2002 ASSETS Cash and Cash Equrvalents Investments Accounts Recervable Total Assets REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 863,819 85 1,968,462 33 - - - - - - $ _ _..,2,.c7,..,7c,a22,a:3:c.50=.. $ 2,832,282 18 $ _ _=2'=7='7_22_3_50_,, LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Contracts Payable Reta:nages Payable Total L:ab:l:t:es FUND EQUITY Fund Balances Reserved For SPLOST ProJects For State Caprtal Outlay Proiects Unreserved Undes:gnated Total Fund Equ:ty $ 70,85612 132,598 00 25 149 00 $ 228,60312 $ $ 2,832,282 18 $ 2,832,282 18 $ 48,620 38 000 48 620 38 Total L:abll:t:es and Fund Equ:ty $ 2,832,282 18 $~--=2.:..77=22~3~5~0;;... See notes to the general-purpose financial statements - 24 - EXHIBIT"G" SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2002 JUNE 30, 2001 $ 863,819 85 $ 911,073 49 $ 567,590 89 2 536,053 22 2,785,746 71 148 285 66 425 50916 430 641 16 $ 715 876 55 $ 4 127 461 36 $ 301,479 43 $ 372,335 55 $ 931,058 30 132,598 00 126 372 00 25 149 00 1617800 $ 301 47943 $ 530,082 55 $ 1,073,608 30 $ 414,397 12 $ 414,397 12 $ 48,620 38 2,023 59 9 703 73 000 2,832,282 18 3,042,125 74 $ 41439712 $ 3,295,299 68 $ 3,053,853 06 $ 715 876 55 $ 3,825,382 23 $ 4 127 461 36 - 25 - PIKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2002 REVENUES State Funds Taxes Other Funds Total Revenues EXPENDITURES Capital Outlay Professional and Technical Services Supplies Land and Land Improvements Building and Bu1ldlng Improvements Equipment Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES /USES\ Operating Transfers In Operating Transfers Out Total Other F1nanc1ng Sources (Uses) Excess of Revenues and Other F1nancmg Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ $ 11092851 $ 11092851 $ 277,223 50 277 223 50 $ 69,012 12 $ 74 97 4,706 23 12,376 36 65 320 74 255,734 50 $ 77 772 07 $ 329 452 85 $ 33156 44 $ -52,229 35 $ $ -243 000 00 $ -243 000 00 $ $ -209,843 56 $ 3 042125 74 91,902 00 -756 00 91 146 00 38,916 65 9 703 73 FUND BALANCE JUNE 30 $ 21032 120210 s-~-40...6..2_0__38_ See notes to the general-purpose financial statements - 26 - EXHIBIT "H" SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 277,223 50 $ 307,492 20 $ 777,462 05 777,462 05 697,887 51 1106951 121,998 02 149 233 61 $ 788 531 56 $ 1 176 683 57 $ 1154 613 32 $ 3,250 00 $ 72,262 12 4,781 20 27,12467 27,12467 253,077 36 521,188 22 $ 1,301,765 78 156000 66,880 74 349,702 02 $ 285,012 03 $ 692 236 95 $ 1 651 467 80 $ 503 519 53 $ 484 446 62 $ -496 854 48 $ 756 00 $ 92,658 00 S 1,874,153 26 -91 902 00 -335 658 00 -187415326 $ -91 146 00 $ -243 000 00 S O00 $ 412,37353 $ 241,446 62 $ -496,854 48 2 023 59 3,053,853 06 3 550 707 54 $ 41439712 $ 3,295,299 68 $ 3,053,853 06 - 27 - PIKE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 SCHEDULE "1" FUNDlNG AGENCY PROGRAM/GRANT AgnQJlture U S Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutnhon Program Food SeMces School Breakfast Program NatK>nal Sdiool Lunch Program Total Child Nutnhon Cluster Other Programs. Pass-Through From Georgia Department of Educahon Food and Nutrition Program Food Services Food DLSlnbubon Program (1) Pass-Through From Office of School A:ead1ness Food and Nutrttlon Program Child llncl Adult Care Food Program Total U S Department of Agriculture EducatMln U S Departmerrt of Special Educahon Cluster Pass-Through From C--eorg\a Department of Educat,,on lndlVlduals with D.!:tnblllhes Educal.Jon Act Part B - Speaal Education Flow Through Preschool Capacdy BUJk:hng Improvement Total Special Educahon Cluster Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Educabon Ad TIUel Grants\.-. Lrcal Educabonat Agenoeg Trtle II Eisenhower ProfesSIOOBI Development Trtla VI lnnovat1Ve Education Program Strategies aass Size Reduction Safe and Drug-Free Schools and Communities Vocabonal Educauon - Baslc Grants to States Htgh SChool Program Sas,cGrant Total U S Department of Education CFDA NUMBER PASSTHROUGH ENTITY 1D NUMBER FEDERAL REVENUE IN PERIOD EXPENDlTURES IN PERIOD 10 553 10 555 NIA s 75 144 70 NIA 28-4 293 95 $ s s 359,438 65 (2) 702 512 61 (3) 702 512 61 10 550 10 558 NIA 47 806 05 47 808 05 NIA 920 29 s s 408 166 99 (2) 750 320 66 8-4 027 8-4 173 8-4 027 NIA 5 238 578 93 s NIA 10 660 00 NIA 62 8-4611 s s 312 083 04 238 351 00 10 660 00 63 048 65 (3) 312 059 85 84 010 8-4 281 8-4 298 8-4 340 8-4 186 84048 NIA 336 219 08 336 219 06 NIA 17,500 00 17,500 00 NIA 13 997 00 13 997 00 NIA 55 953 00 55 953 00 NIA 10 774 98 10 n,c 96 NIA 24 741 00 s 771 268 06 s 24 741 00 771,244 69 Total Federal Fmanaal Asslstance NIA II Nol Available s 1 179,435 01 s ___1_s_2,.1,"55"'535- - 28- PIKE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 SCHEDULE "1" Notes to the Schedule of Exoenchtures of Fegerat Awards (1) The amounts shown tor the Food Olstnbubon Program represents the Federally assigned value of nonmonetary ass,stance for donated commod1t1es received and/or consumed by the system during the wrrent fiscal year (2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included m the 2002 Nahorlal School Lunch Program (3) Expenchtures for this program mdude State and/or Other Funds Expend11ures are not ma10ta1ned by fund source MaJor Programs are 1dentrfied by an aster1sk (") In front of the CFDA number The Sdlool Otstnd did not provide Federal Assistance to any Subreopient The accompanymg schedule of expenditures of Federal awards indudes the Federal grant actlV1ty of the Pike County Board of Educat10r1 and rs presented on the modified accrual basis of accounting wtuch Is the basis ot accounting u!.ed m the presentation of the oeneral-purpose f\na,ooa,\ stateme~ See notes to the general-purpose financial statements 29 - PIKE COUNTY BOARD OF EPVCATION SCHEPUI E OF STATE REVENUE YEAR ENPEP JUNE 30 2002 SCHEDULE "2" AGENCYlfUNDING GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL GRANTS EducabOn Georg.a Department of Quality Basic Educabon Direct lnstrucllonal Cost Kindergarten Program $ 512,058 00 Kindergarten Program - Earty lnterventJon Program 180 386 00 Pnmary Grades (1-3) Program 1 427,500 00 Pnmary Grades - Early lntervenbon ( 1 3) Program 343 354 00 Upper Elementary Grades (4-5) Program 607 448 00 Upper Elementary Grades (4-5) Early Intervention Program 213,020 00 M1ck:lle School (6-8) Program 1 458,368 00 High Sdlool General Education (9-12) Program 1,14312500 VocaoonaJ Laboratory (S-12) Program 288 768 00 Students with D1s;:;,t libes Category I 38,12500 CateoorY II 77 328 00 category Ill 581 081 00 Category IV 138,580 00 Category V 371 970 00 Gifted Student - Category V1 151 698 00 Remechal Educabon Program 23 247 00 /liJtemabve Education Program 107732 00 Media Center Program 236 754 00 Staff and ProfesSIOOal Development 47,369 00 20 Days .Add1b0nal lnstructton 71,013 00 lnchrect Cost 1 575 145 00 CategoncalGrarrts Pupil TransportabOn Regular 360 885 00 Bus Rsplaeement 117 817 00 Sparsity 35 889 00 Deferred Summer Salaoes (Pnor Year) -1,245 588 00 Deferred Summer Sa\arres (Current Year) 1364629 00 Nursmg SeMces 69 432 00 Pnnopal Supplements 11 357 00 Vocabon91 Superv,sors 12 691 00 Education Equahzation Funding Grant Food SeMces 609 929 00 s 66 270 00 Other State Programs Health ln5l.1'81'lCe 148 318 89 Menlor Teachers 2 14'2 00 Post Sea>ndary Opt,ons 10 592 00 Preschool Handicapped Program 21 490 OD Statewide After School Program 4-8 29 466 11 Statew,de Readmg Program K-3 23 550 00 Vocational Extended Year 200000 Lottery Programs Ass1sbve Technology Computers in the Classroom 5,600 BO 65 450 00 $ 512 058 00 180,386 00 1,427 500 00 343 354 00 607,448 00 213 020 00 1 458,368 00 1 143 125 00 288 768 00 38 125 00 77 328 00 581 081 00 138 560 00 371 970 00 151 698 00 23 247 00 107 732 00 236 754 00 47,369 00 71,013 00 1,575,14500 360,885 00 11781700 35,889 00 -1 245 588 00 1364629 00 69 432 DO 11 357 00 12 691 00 609 929 00 66 270 00 148 318 89 2, 14i u:: 10,59'' GIJ 2149000 29 466 11 23 550 00 2 000 00 5,600 BO 65 450 00 Georgia Stele F1nancmg and Investment Comm1ss10n Reimbursement on Constructmn Pl1'.lf8ds $ 277,223 50 277 223 50 Office ot SCllool Readiness Pre-K1ndergarten Program 149 632 60 149 632 60 Office of Treasury and Fiscal Services Public School Empk>yees Retirement 30 244 00 30,244 00 30- PIKE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENPEP JUNE 30 2002 SCHEDULE "2" AGENCY/FUNDING CONTRACTS Human Resources Georgia Department of Children's Trust Fund Comm1ss1on Second Step Program Through Pike County Department of Fanllly and Children's Services After School Program GOVERNMENTAL FUND TYPES SPEClAL CAPITAL GENERAL REVENUE PROJEC1S FUND FUND FUND TOTAL $ 7 204 00 35 392 60 $ 7 204 00 35 392 60 $ 11 241 489 60 $ 286 953 40 $ 277 223 50 $ 11 805 666 50 See notes to the general-purpose financial statements - 31 - PIKE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30 2002 SCHEDULE "3" PROJECT ProV1d1ng funds to pay the cost of acqumng, constructing and equipping one new elementary school, adding to renovating repamng, 1mprovmg and equipping eX1st1ng school buildings and fac1hhes useful or desirable m conneebon therewrth and acqu1nng any necessary property, therefore both real and personal all at a max1mum 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 STATIJS s 3,500,000 00 $ 751396977 $ 614,464 88 S 598016648 Ongoing (1) The School D1slnct's ongmal cost estimate as specified m the resoluhan calhng for the 1mposlllon of the Local Opt.Jon Sales Tax (2) The School OIStnct's current estimate of total cost for the proJ8d Includes all cost from proJect mcept10n to complellon (3) The voters of Pike County approved the 1mposlllon of a 1% sales tax to fund the above pro,tect Amounts expended for this protect may 1ndude sales tax proceeds, state, local property taxes and/or other funds over the Ide of the proiect See notes to the general-purpose financial statements - 33 - PIKE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM raBEl ALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30 2002 SCHEDULE DESCRIPTION Direct lnstrudlonal Programs Kindergarten Program Kmdergarten Program-Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades-Earty lntervenoon (1-3) Program Upper Elemenla,y Grades !5) Program Upper Elementary Grades-Earty Intervention (4-5) Program Moddle School (6-8) Program High School General Education (9-12) Program Vocational Laootatory (9-12) Program Students with Dlsabllrlles Gategory I Category II Category Ill Gategory IV Category V Grfted Student - Category VI Remedlal Education Program Altemauve Education Program TOTAL DIRECT INSTRUCTIONAL PROGRAMS Mecha Center Program Staff and Professional Development ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS SALARIES OPERATIONS TOTAL $ s 581 680 00 ,oo 859 15 s s 9 008 53 09 867 68 204,912 00 2,9 961 28 582 59 250 543 87 1 621,590 00 1 552 280 69 55 525 15 1 607 805 84 390 039 00 95,39' 65 5,059 34 500 53 99 690 040 00 996 300 88 28 29 22 1 024 730 10 2,1,983 00 1 656,656 00 1 298 550 00 328030 00 1,371 183 00 172 325 00 26 os oo 122,380 00 .. 717 93 1 657,342 97 1,641 198 58 266,052 35 18 296 3 100 947 47 702,77616 106,903 15 23,325 64 98,127<46 60 78 02 108 020 1 2 477 92 73 796 27 107 818 12 40 169 78 18"5 2,038 91 12 811 38 2,664 34 22 585 03 4,538 79 734 70 2 121 68 1195 85 1,731,1392 1 79 016 70 306 22211 20 140 88 102 988 38 715,587 54 109,567 9 265,910 87 102,666 25 61,482 72 11014200 s s s s 8 705 776 00 8 743 252 95 372,206 36 9,115459 3\ 288,944 00 53 811 00 303,650 90 34 62 02 52 236 47 20 655 25 355,887 37 55 279 27 TOTAL QBE FORMULA FUNDS $ 9.028 531 00 S 9 081 527 87 $ . .5 098 08 $ 9 526 625 95 (1) Composed of State Funds plus Local Five M1U Share See notes to the general-purpose finane&al stc1tements . 34. PIKE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2002 SCHEDULE "5" SITE Pike County Primary School Pike County High School Pike County Middle School Pike County Elementary School Central Office (Alternabve Education Program) TOTAL (1) Comprised of State Funds plus Local Five Mill Share ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS $ 2,205,828 00 $ 2,674,075 73 2,276,994 00 2,643,753 88 2,087,282 00 1,968,771 30 2,013,292 00 1,828,858 40 122,380 00 $ 8,705,776 00 $ ~....9._1_1_5.,;.4,;,59"=""31;, See notes to the general-purpose financial statements - 35 - Sl:CTION II COMPLIANCE AND INTERNAL CONTROL REPORTS {lJSSI I I \\'. H1,lo, s ,Al [ AUnlT:m ,10,; r,s 1:~ DEPARTMENT OF AUDITS AND ACCOUNTS 214 \V.1shmg1on Strccl S \V ~uHc 214 AtlJnt.1 (,cl,rg:1.1 10114-X-1.00 June 20. 2003 Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of Education and Supenntendent and Member; of the Pike County Board of Educat10n REPORT ON COMPLIANCI: AND ON INTERNAL CONTROL OVER FINANCIAL RFPORTING BASED ON AN AUDIT OF FINANCIAL STATEMEN IS PERFORMED IN ACCORDANCE WITH GOVER.1'/MENT AUDI I ING STANDARDS Ladies and Gentlemen We have audited the financial ,tatement, of Pike County Board of Educauon as of and for the year ended June 30. 2002. and have issued our report thereon datt:d June 20. 2003 Thi, report wa, qualified for a scope hmitatton and for a departure from generally accepted accounting pnnc1plcs. as identified in the auditor's report on the general-purpo,e financial ,tatements l:,cept as d1~usscd in the lollowing paragraph. we conducted our audit in accordance with auditing standards generally accepted in the Umted States of Amen ca and the standards applicable to financial audit, contained in Government Aud1tmg Standards, 1s,ued hy the Comptroller General of the Umted States We did not observe the talang of e1thcr the Federal donated eommod1ues inventory or the purchased foods inventory at June 30. 2002. nor could we sat1,fy ourselves as to the accuracy of the amount, stated as inventone, through alternative procedures Compliance A, part ol obtaining reasonable a,surance about whether Pike County Board ofEducatton', financial ,tatcmcnt, are free of material misstatement. we perfonned tc,ts of its compliance with certain pro\ 1s1ons oflaw,. regula!Ion,. contracts and grant,. noncompliance with which could have a direct and matenal efTect on the detcnninat10n of financial ,tatement amounts Howe,cr, providing an opm1on on compliance 'kith those prov1s1ons wa, not an obJect1ve of our audit, and accordingly. we do not express such an opinion Ille re,ult, of our tests d1sclo,ed no instances ofnoncomphanLe that arc rcqutred to be reported under Government Auditing Standard, 2002YB-I0 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 purpme of expre,sing our opin10n on the financial statements and not to provide assurance on the internal control over financial reporting Our consideration of the internal control over financial reporting would not necessanly disclose all matters in the internal control over financial reporting that might be material weaknesses A matenal weakness 1s a cond1t1on in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the n,k that m1s~tatements in amounts that would be matenal in relation to the financial statements being audited may occur and not be detected within a timely period by employee, in the normal cour~c of performing their assigned funct10ns We noted no matters involving the internal control over financial reporting and its operallon that we con,idcr to be matenal weal,.nesses 1 his report 1s intended solely for the informallon and use of the management, members of the Pike County Board of Education, Federal awarding agencies and pa,\-through ent1tlcs and 1s not intended to be and should not be used by anyone other than these specified parties Respectfully submitted, RWII gp 2002YB-I0 State Auditor <.'1- ( . ~ ' ,,,, ~ -- ' ' 111111, {u,,~,1 1 W. H11, 1o:-i S JAi 1: AUDI TOH (\l- l r,~r, ;_ , 1 DEPARTMENT OF AUDITS AND ACCOUNTS 2'4 W..1~hmg:1on ~tr~ct, \ W ~u1h.' ::!.I.\ ALIJlllJ (,L'org1J ~()114-X401J June 20. 2003 Honorable Sonny Perdue, Governor Members of the General Assembly \1embers of the State Board off,ducauon and Supenntcndent and Members of the P1J..e County BoJrd of Education REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERN Al CONTROL OVER COMPLIANCE lN ACCORDANCE WITH 0MB CIRCULAR A-133 Ladies and Gentlemen Comphanu: We have audned the compliance of Pike County Board ot Education wnh the type, of compliance requirements descnbcd m the US Office of Management and Budget (0MB) Circular A-133 C'omp/ianc e Supplement that are applicable to each of ns ma1or Federal programs for the year ended June 30, 2002 Pike County Board of Education's maJor Federal programs are 1dent1ficd m the Summary of ,\udnor', Results Sect10n of the accompanymg Schedule ofFmding, and Questioned Costs Compliance wnh the requirements of law,. regulauon,, contracts and grants applicable to each of its ma1or rcderal programs 1~ the re,pons1b1hty of P1J..e County Board of Educa!lon's management Our respons1b1lity 1s to expre,s an opinion on P1J..c County Board of Education's compliance based on our audit We conducted our audit of compliance in accordance with auditing ,tandards generally accepted m the Unned States of Amenca, the standards applicable to financial audits contained m Government Audnmg Standard,. issued by the Comptroller General of the United States, and 0MB Circular Al33, Aud//~ of States local Governmenlf, and Non-Prr1/it Orgam=atwm rhose standards and O\1B Circular A-133 require that we plan and perform the audn to obtam reasonable assurance about whether noncompliance with the type, ofcompliance rcqmremcnts referred to above that could have a direct and matenal effect on a ma1or Federal program occurred An audll includes examming, on a te,t bas1,, evidence about the P1J..e County Board of Educat10n's compliance with those requ1rcmenh and performmg such other procedure, as we considered nece,sary in the circumstances We believe that our audit pro11des a reasonable basis for our opm1on Our audit docs not provide a legal determmat10n on Pike County Board of Lducallon's compliance with those requirements 2002SA-30 In our opinion, the Pike County Board of Education complied, in all material respects, with the requirements referred to above that are applicable lo each of Its maJor Federal programs for the year ended Junc 30, 2002 Internal Control Over Comphance The management of Pike County Board of r.ducat1on 1s responsible for estabh~hing and maintaining cffecllvc internal control over compliance with requirements of laws, regulallons. contracts and grants applicable to Federal prognuns In planning and performing our audit. we considered Pike County Board of Educallon's internal control over compliance with requirements that could have a direct and material eITcct on a maJor rederal program in order to determine our auditing procedure\ for the purpose of expressing our opin10n on compliance and to test and report on internal control over comphance in accordance with 0MB Circular A-133 We noted a certain matter involving the internal control over compliance and lls operallon that we con~1der to be a reportable cond1t10n Reportable cond111ons involve matters coming to our at1en11on relating to s1gmficant defic1enc1es in the design or opera11on ofthe internal control over compliance that. in our Judgment. could adversely affect the Pike County Board of Educauon's ability to administer a maJor Federal program in accordance with applicable requirements ofla"'-'S, regulations. contract~ and gnmts The reportable cond1t10n 1s described in the accompanying Schedule of Findings and Questioned Costs as item FA-714I-02-0l A material weakness 1s a cond1t10n in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of risl,. that noncompliance with the applicable requirements oflaws, regulations, contract~ and grants that would be matenal in relation to a major Federal program being audited may occur and not be detected wllhin a llmely penod by employees m the normal course of performing their assigned funct10ns Our consideration of the internal control over compliance would not nece=ly d1~lose all matters in the internal control that might be reportable cond111ons and, accordingly. would not neces~anly disclose all reportable cond1t1on~ that are also considered to be matenal wca"-nesses However, we do not believe the reportable cond1t1on described above 1s a material weakness This report 1s intended wlely for the information and use of the management, members of the P1l,.e County Board of Education. Federal awarding agencies and pass-through en11t1cs and 1s not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted. RWHgp 2002SA-30 Hinton State Auditor SECTION Ill AUDITEE'S RESPONSE 10 PRIOR YEAR FINDINGS AND QUESTIONED COSTS PIKE COUN"I Y BOARD OF EDUCATION AUDITEE'S RESPONSE SUMMARY SCHEDULE 01' PRIOR YEAR FINDINGS AND QUES flONED COSTS YEAR ENDED JUNE 30. 2002 PRJOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported SECTION IV FINDINGS AND QUESTIONED COSl S PIKE COUNTY BOARD or EDUCA flON SCHEDULE OF FINDINGS AND QUESTIONED cos rs YEAR ENDED JUNE 30, 2002 SUMMARY OF AUDITOR'S RESULTS Type of Report b,ued on the Financial Statements The auditor's opinion on the Pike County Board of Educallon's financial ~tatcment~ wa~ qualified for a scope limitauon and for a departure from generally accepted accounllng pnnc1ples 2 Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Pike County Board of Educatwn did not disclose any reportable cond11Ions related to the financial statements 3 Noncompliance Matenal to the Financial Statements The audit of the Pike County Board of Education disclosed no instances ofnoncomphance that were deemed to be material to the financial statements 4 Reportable Cond1t10ns in Internal Control Over Ma1or Programs The audit report for the Pike County Board of Education disclosed a reportable condiuon in internal control over maJor programs for the following compliance requirement Ca,h Management The reportable cond1t10n descnbed above 1s not considered to be a matenal weakness 5 fype of Report bsucd on Compliance for Maior Programs The auditor', op1mon on the Pike County Board of Educatwn's report on compliance with requirements applicable to maJor programs was unqualified 6 Audit findings Required to be Reported bv Sectwn SI0(a) ofOMB Circular A-133 The Pike County Board of Educallon's audit disclosed an audit finding required to be reported by secllon 51 0(a) ofOMB Circular A-133 Ibis audit finding 1s included in section IV ofth1s report 7 Ma1or Programs lcederal awards audited a~ ma3or programs are as fo\lo\\