'' ';, 1., .... - ..... ' .\ .. . '. ,, ., .,. . .. _ . ' .... ' .'' 'J , "\ ' ," , .... , . . 'I' ' \ .: .... ' :- _/::.:{:-: ~-:..-, ,, I ~ ........ -., .{ I,, .. ,.. .. .~ ',. -oEP-ArfrME-Nr-.df.;AU01.rs .-ANri Acc.o.uNTs).:.:< \ ' . ' -~'A,' - .' J, A:ioo:.- ., ..Rj':. ,,, ... -- - ,, ... ,,, 'I I ,. ',,. . ,. I ,1 ; ' ' l '' .... . \ ) .--~aUi, - .::- ,,' ,,. ',,..... .198 '.._:. ,~:, ..... , qooo- O I : ', I ( ' , ~col~~-.-.-~: --. r 1 \ t ,.' .,., ' ...- ,.., .,. r ',' ' .. I I', . ':.. . ,:.,,.. .-,; .. ' . ,,.. ::.: - .. : ',,--... , t..,.. , ' . ,, ... >' ' ' : ' I I 1, I~ I . , , . .. , ,, . ,, (, ' ' '",J... \ -1 .,, : ri . ,.~, .. ' ..... , . l~ J ! I . ' ,,, .. .'., ',,.. ."'' ' .,,, ,, ' .., . , ; '' - ',. ,, I - .: -: - ' ', REPORTON - , AU. D.iT.; : - ,:::_ . :'.OF THE.FINANCIAL-STATEMENTS ., ,, r .. )- FOR--.THE'FISCAL'YEA.,tENDEc;iiuN~'J_o: . 2001.~~: ... ',,. ,. '"'' .- ' ~, ,, ' I,"I , ' ' 1.: ".."' : l ','. ,., ': I ," .,_- ., .,. . ,,.. . : '', .... ., ,' I -. ' .... , ., . .. '' .-.,,,, l 'j',' I ,' t. . / , , , ,, ,.J, ; ,. J Rus~~-i, w. :Hin!t,~~ : - . ~state A:_.:.-c11tor . . ,, . ,, ' ... ';. ... L,._ _ _ _ ; _ _ ' _ l __ _ _ _ _ _ _ _ _ _ "'!"' _ _ _ _ _ _~----------~-------~-----------------...1,,.,iJ,., .' ' o', I ~~ ' 1, ,' \.' ,I 1; ,- ',1, ' 'i . ( .' I } .:. ,:,' ,'\ . , PUTNAM COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL-PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS ADDITTONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND I COMBINING BALANCE SHEET J COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS Page 2 4 6 7 18 20 22 23 24 25 26 28 31 PUTNAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL ADDIDONAL FINANCIAL INFORMATION SCHEDULES ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 32 5 BY SITE 33 SECTIONil COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION! FINANCIAL Russi,:u, W. H1NTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washmg1on Strcel, S W., Sui1c 214 A1lan1a, Georgia 30334-8400 May 6, 2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Putnam County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Ladies and Gentlemen: We have audited the accompanying general-purpose financial statements of the Putnam 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 of the Putnam County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 2001ARL-13 The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Putnam County Board of Education as ofJune 30, 2001, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated May 6, 2002, on our consideration ofthe Putnam 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. Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Putnam County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the 2001A.RL-13 general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. Respectfully submitted, RWH:as 2001ARL-13 PUTNAM COUNTY BOARD OF EDUCATION PUTNAM COUNTY BOARD Of EDUCATION COMBINED BALANCE SHEET ALL FUND D'.PES AND ACCOUNT GROUP JUNE 30. 2001 ASSETS Cash and Cash Equivalents Accounts Recervable lnventones Food Donated Commodlbes Purchased Food Amount Available m Debt Service Fund Amount to be Provided m Future Years For Payment of Bond Debt Total Assets GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 2,053,374.02 $ 391,359.02 $ 5,949,143 19 283,296.02 393,094 82 560,703.69 22,606.75 19,874.73 $ 2,336,670.04 $ 826,935 32 $ 6,509,846 88 LIABILmES AND FUND EQUITY LIABILITIES Accounts Payable Salanes Payable Expired Grant Balances Payable Retamages Payable General Obhgat,on Bonds Payable Total Lrabllllles FUND EQUITY Fund Balances Reserved For Cont1nuat1on of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For lnventones Food Donated Commochbes Purchased Food For Purpose of Bond Issue For SPLOST Pro.tects Unreserved Undesrgnated Total Fund Equity $ 154,725.33 $ 83,396.56 125,874 20 17,520.98 230,976 85 $ s 172,246.31 $ 440,247.61 $ 6,419.00 6 419.00 $ 100.00 19,925.17 $ 2,164,423.73 $ 2,164,423.73 $ 22,606.75 19,874 73 $ 324,181.06 386,687 71 $ 4,319,574 98 2,183,852.90 0.00 6,503,427 88 Total L1ab1hlies and Fund Equity The notes to the general-purpose financial statements are an integral part of this statement. -2- 6,509,846 88 EXHIBIT"A" DEBT SERVICE FUND ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only) JUNE 30, 2001 JUNE 30, 2000 $ 41,597 42 $ 8,435,473.65 $ 6,529,385.54 1,978.94 1,239,073.47 364,385.54 22,606.75 19,874.73 21,385.03 13,183.84 $ 43,576.36 43,576 36 47,702.23 13,691,423 64 13,691,423 64 14 1042 12 9 1 . n $ 43,576 36 $ 13,735,000.00 $ 23,452,028.60 $ 21,018,339 95 $ 238,121.89 $ 36,886.50 125,874.20 115,340.24 248,497.83 22,892 84 6,419.00 $ 13,735,000 00 13,735,000.00 14,090,000 00 $ 13,735,000.00 $ 14,353,912.92 $ 14,265,119 58 $ 43,576.36 000 $ 43,576.36 $ 100.00 43,576.36 $ 47,702.23 19,925.17 14,224.78 22,606.75 19,874.73 4,319,574 98 2,183,852.90 21,385.03 13,183.84 4,458,003.64 2,488,604 79 2,198,720.85 $ 9,098,115.68 $ 6,753,220 37 $ 43,576.36 $ 13,735,000 00 $ 23,452,028 60 $ 21.018,339.95 -3- PUTNAM COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND lYPES 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 Educallonal Media SeMces General Administration School Administration Business Adminis1rallon Maintenance and Operallon of Plant Student Transportation Services Other Support SeMces Food Services Operallon Capital Outlay Debt SeMce Pnnapal Interest Paying Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures Oit!ER FINANCING SOURCES (USE~l Acaued Interest on Bonds Sold Proceeds of General Obligation Bonds Par Value Discount on Bonds Sold Operating Transfers In Operating Transfers Out Total Other Fmanang Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Fmanang Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Penod Donated Commodities Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 9,009,843.73 $ 2,820.38 6,988,508 03 174 31715 $ 16,175,489 29 $ 186,666.28 2,489,529 82 270,176.64 2,946,372 74 $ 10,660,103.00 $ 362,879.34 112,11349 423,770 49 544,584.54 1,331,104.53 155,507.78 978,044.35 1,094,665.54 2,164.94 5,658 32 5,530 00 1,044,182.02 236,713.45 19,368 42 270,150 01 376.64 350.00 89,803.40 109,709 11 11,91099 1,167,487.34 $ 15,676,126 32 $ $ 499,362 97 $ 2,950,051.38 -3 678.64 $ $ -200,620 56 $ -200,620 56 $ 620.56 620.56 $ 298,742.41 $ 1,865,681.32 -3,058.08 381,833.18 1,221 72 6,690.89 FUND BALANCE JUNE 30 $ The notes to the general-purpose financial statements are an integral part of this statement -4 - 21164i42313 $ 386,687 71 EXHIBIT"B" CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30. 2001 JUNE 30. 2000 $ 2,158,540.60 $ 232.488.91 $ 794,850.58 463 778 31 9,196,51001 $ 2,492,350.20 9,941,89921 1.140.761 01 8,312,718 29 2,446,979.51 6,774,961.22 918.698.58 $ 2.391.029 51 $ 1.258,628 89 $ 22.771.52043 $ 18,453,357.60 $ 11,704,285.02 $ 10,726,813.32 $ 345,605.27 599,592 79 131,481.91 423,77049 814,734.55 1,331,481.17 155,857 78 1,067,847.75 1,204,374.65 14,075.93 1,173,145.66 351,135.27 641,682.77 161,788.68 362,224.89 589,156 16 1,168,503.37 206,672 85 987,874.29 1,126,936.11 19,773.93 994,525.60 170,102.01 $ 355,000.00 1,104,155.00 3.599.76 355,000 00 1,104,155.00 3,599.76 320,000.00 927,720.00 3,599.02 $ 345,605.27 $ 1,462,754 76 $ 20,434.537.73 $ 18,407,373 00 $ 2,045,424.24 $ -204,125 87 $ 2,336.982 70 $ 45,984.60 $ 15,450.00 $ 200,000.00 $ 200,620.56 -200.620 56 4,500,000.00 -45,000.00 $ 200,000.00 $ 0.00 $ 4,470,450.00 $ 2,045,424.24 $ 4,458,003 64 -4,125.87 $ 47,702.23 2,336,982.70 $ 6,753,220.37 4,516,434 60 2,233,190.10 1,221.72 6,690 89 1,812.59 1,783.08 $ 5 1503:42188 $ 43 576 36 $ 9:98,11568 $ 6:753,220 37 -5- - - - - - - - - - - - - - - - - - - - - - - - -- -- - PUTNAM COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CNON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS VEAR ENDED JUNE 30, 2001 EXHIBIT"C" GENERAL FUND ACTUAL (BUDGET BUDGET BASIS! REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues $ 8,369,934.00 $ 9,009,843.73 26,500.00 2,820.38 6,805,850 00 6,988,508.03 100,000.00 174 31715 s s 15,302~84 00 16,175,489.29 EXPENDITURES Current lnstruc:tlon Support SeMces Pupil Services Improvement of lnstrucbonal Services EducatJonal Media SeMces General Administration School Administration Business Adm1mstrat1on Maintenance and Operation of Plant Student Transportation SeMces Central Support Services Other Support SeMces Food SeMces Operation Capital Outlay Debt Service $ 10,642,922 96 $ 10,660,103.00 370,365.00 72,202.00 428,365.00 368,110.00 1,185,958.00 188,765.00 931,862.00 1,078,089.00 10,500.00 300,000.00 362,879.34 112,113 49 423,770.49 544,584.54 1,331,104.53 155,507.78 978,044.35 1,094,665 54 2,164 94 5,658.32 5,530.00 Total Expenditures $ 15,577,138.96 $ 15,676,126 32 Excess of Revenues over (under) Expenditures $ -274,854 96 $ 499,362.97 Oil:!ER FINANCING SQ!,!RCES (!,!SES) Other Sources Other Uses $ -200,620.56 Total Other Fmandng Sources (Uses) $ -200,620.56 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Flnanang Uses $ FUND BALANCE JULY 1, 2000 -274,854.96 $ 1,050,000.00 298,742.41 1,865,681.32 FUND BALANCE JUNE 30, 2001 $ 7751145 04 $ 211641423 73 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS! $ 105,125.00 $ 186,666.28 1,681,875 00 2,489,529.82 264,597.00 27017664 $ 2,051,597.00 $ 2,946,372 74 $ 1,418,298.87 $ 1,044,182.02 277,166.11 54,781 00 236,71345 19,368.42 293,113.00 400.00 80000 72,95400 101,514.00 270,150.01 376.64 35000 89,80340 109,709.11 14,878.00 1,053,386.00 11,910.99 1,167,487 34 $ 3,287,290 98 $ 2,950,051.38 $ -1,235,693 98 $ -3,678.64 $ 50,000.00 $ $ 50,000 00 $ 620.56 620_56 $ -1,185,693.98 $ 332,428 00 -3,058.08 347,264 31 $ -8531265.98 $ 344,206 23 The notes to the general-purpose finanaal statements are an integral part of ttus statement. -6- PUTNAM COUN1Y 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 Putnam 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. General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of 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. -7- PUTNAM COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. Governmental funds are accounted for using the modified accrual basis ofaccounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available 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. - 8- PlITNAM COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. BUDGET The Putnam County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 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: -9- PU1NAM COUNfY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Special Revenue Fund FUND BALANCE JULY 1, 2000 $ 381,833.18 Adjustments Inventories - July 1, 2000 Food Donated Commodities Purchased Foods -21,385.03 -13,183.84 Fund Balance July 1, 2000 (Budget Basis) $ 347,264.31 Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses .. FUND BALANCE JUNE 30, 2001 (Budget Basis) -3,058.08 $ 344,206.23 CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. RECEIVABLES Receivables consist ofgrant 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. PROPERTY TAXES The Putnam County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 20, 2000 (levy date). Taxes were due on December 20, 2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as -10- PU1NAM COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES revenue in fiscal year 2001. The Putnam County Tax Commissioner bills and collects the property taxes for the School District and remits the taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $6,754,499.06 and for school bonds amounted to $33,641.13. The tax millage rate levied for the 2000 tax year (calendar year) for the Putnam County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 10.325 mills SALES TAXES Special Purpose Local Option Sales Tax is to be used for capital outlay for educational pwposes and debt service. Special Purpose Local Option Sales Tax. revenue during the fiscal year amounted to $2,915,965.60 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $9,583,765.33 has been collected or on June 30, 2005, 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 OBLIGATION BONDS The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor 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-Tenn Debt Account Group. INTERFUND TRANSACTIONS The School District has the following types of interfund transactions: - 11 - - PU1NAM COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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-pwpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, orby collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this pwpose, - 12 - ,, \ PUTNAM COUNfY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 2: DEPOSITS (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 Fann 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 $8,728,565.22. 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. 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 $ 338,536.94 2 8,390,028.28 3 0.00 Total $ 8,728,565.22 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 - 13 - PUTNAM COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 4: RISK MANAGEMENT The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions, job related illness or injuries to employees and natural disaster. 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 is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. The School District has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Amount Superintendent All Other Employees $ 10,000.00 $ 100,000.00 Note 5: OPERATING LEASES Putnam County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2001, amounted to $65,783.00. Future minimum lease payments for these leases are as follows: Year Ending Amount 2002 2003 2004 2005 2006 Total $ 66,792.00 66,792.00 66,792.00 66,792.00 5,566.00 $ 212i:Z:H.QQ - 14 - / PU1NAM COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 200 I EXHIBIT "D" Note 6: GENERAL LONG-TERM DEBT GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates Amount General Government - Series 1994 General Government - Refunding - Series 1998 General Government - Series 2000 4.90% - 6.90% 3.70%-4.50% 5.15% $ 1,450,000.00 7,785,000.00 4,500,000.00 $13.735.000,00 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 $14,090,000.00 Deductions Debt Retired 355,000.00 Balance June 30, 2001 $13.735.000,00 At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: Fiscal Year Ended June 30 General Obligation Bonds 2002 2003 2004 2005 2006 2007 - 2011 2012 - 2014 $ 2,538,735.00 2,509,512.50 2,622,300.00 2,734,545.00 913,950.00 4,960,120.00 3,287,425.00 Total Principal and Interest $19.566.587,50 - 15 - PUTNAM COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 7: PRIOR YEAR DEFEASEMENT OF DEBT In fiscal year 1998, 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, $6,800,000.00 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 $305,563.13 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $243,728.02 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $14,644.11 Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $47,191.00 Note 9: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001: Project Unearned Executed Contracts Putnam County Middle and High School $ 4,311,558.00 The amount described in this note is not reflected in the general-purpose financial statements. - 16 - PUTNAM COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 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. The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements. Note 11: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-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% oftheir 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% $ 1,235,714.85 $ 1,159,175.37 $ 1,151,151.31 - 17 - PUTNAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For lnventones Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 345,622.14 $ 4,263.80 6,509.26 22,606.75 19 874.73 $ 394,612.88 $--====4:!,ii,2_,63==80= $ 18,510.67 $ 9,439.67 $ 27,950.34 $ 505.81 1,692.09 2,065.90 4,263.80 $ 22,606.75 19,874.73 324,181.06 $ 000 $ 366,662.54 $ 0.00 $ 394,612.88 $====4=,2=63==80= See notes to the general-purpose financial statements. - 18 - FEDERAL PROGRAMS TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 41,473.08 $ 391,359.02 $ 358,737.35 386,585.56 393,094.82 153,921.52 22,606.75 19,874.73 21,385.03 13.183.84 $ 428,058.64 $ 826,935.32 $ =-==zi54====7=,2=27=.7=4= $ 64,380.08 $ 83,396.56 $ 27,517.59 114,742.44 125,874.20 115,340.24 228,910.95 230,976.85 22,536.73 $ 408,033.47 $ 440.247.61 $ 165,394.56 $ 100.00 $ 100.00 19,925.17 19,925.17 $ 135.90 22,606.75 19,874.73 21,385.03 13,183.84 0.00 324,181.06 347,128.41 $ 20,025.17 $ 386,687.71 $ 381,833.18 $ 428,058.64 $ 826,935.32 $ -===m:z54~7=,2==27=.7=4= 19 PUTNAM 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 General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Capital Outlay 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 m Penod Donated Commodities Purchased Food FUND BALANCE JUNE 30 See notes to the general-purpose financial statements. - 20- SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 78,386.00 $ 771,640.43 269,049.94 $ 1.119,076.37 $ 108,280.28 108,280.28 $ 83,612.47 24,803.71 $ 1,142,023.72 $ 1.142,023.72 $ $ -22,947.35 $ 108,416.18 -135.90 $ -22,947.35 $ 381,697.28 1,221.72 6,690.89 -135.90 135.90 $ 366,662.54 $ =-====0==00= I 'I ' \ EXHIBIT"F" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2001 JUNE 301 2000 $ 186,666.28 $ 198,501.76 $ 1,717,889.39 2,489,529.82 2,420,423.93 1,126.70 270,176.64 254,188.38 $ 1,719,016.09 $ 2,946,372.74 $ 2,873,114.07 $ 960,569.55 $ 1,044,182.02 $ 1,118,061.44, 211,909.74 19,368.42 270,150.01 376.64 350.00 89,803.40 109,709.11 11,910.99 25,463.62 236,713.45 19,368.42 270,150.01 376.64 350.00 89,803.40 109,709.11 11,910.99 1,167,487.34 158,465.19 24,517.23 279,591.40 550.00 62,360.24 100,536.69 11,874.36 988,704.18 53,599.59 $ 1,699,611.48 $ 2,950,051.38 $ 2,798,260.32 $ 19,404.61 $ -3,678.64 $ 74,853.75 620.56 620.56 $ 20,025.17 $ -3,058.08 $ 74,853.75 381,833.18 303,383.76 1,221.72 6,690.89 1,812.59 1,783.08 $ 20,025.17 $ 386,687.71 $ -===3=8==1=,8==33====18= - 21 - PUTNAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 EXHIBIT G 11 11 ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets BOND PROCEEDS SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30. 2001 JUNE 30, 2000 $ 4,325,993.98 $ 1,623,149 21 $ 5,949,143 19 $ 4,458,003.64 560,703.69 560,703.69 $ 4,325,993.98 $ 2,183,852.90 $ 6,509,846.88 $ 4.458.003.64 LIABILITIES AND FUND EQUITY LIABILITIES Reta:nages Payable FUND EQUITY Fund Balances Reserved For Purposes of Bond Issue For SPLOST ProJects Unreserved Undes:gnated Total Fund Equ:ty s ----=6""'.4:..:.19=-=-.:.:oo'- $ _ _.:;6.1.:4..:.:19=-0::.:0a.. $ 4,319,574.98 $ 4,319,574.98 $ 4,458,003.64 $ 2,183,852 90 2,183,852.90 000 0.00 0.00 0.00 $ 4,319,574.98 $ 2,183,852.90 $ 6.503.427.88 $ 4.458.003.64 Total L:ab:l:bes and Fund Equity $ 4.325.993.98 $ 2.183.852.90 $ 6,509.846 88 $ 4.458.003 64 See notes to the general-purpose financial statements. -22 - .,,.,,,.,...,,, \ PUTNAM COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF RE\IENUES. EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2001 EXHIBIT "H" REVENUES Taxes Other Funds Total Revenues EXPENDITURES Current Support Services Business Admmrstratton Capital Outlay Building and Building Improvements Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES Proceeds from General Obligation Bonds Par Value Discount on Bonds Sold Total Other Financing Sources Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1 BOND PROCEEDS SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 2.158,540.60 $ 2,158,540.60 $ $ 207,17661 25,312.30 232,488.91 $ 207,176.61 $ 2,183,852.90 $ 2,391,029 51 $ 40,776 74 40 776 74 $ $ 345,605.27 $ 000 $ 345,605 27 $ 345,605.27 $ 000 $ 345,605.27 $ $ -138,428.66 $ 2,183,852 90 $ 2,045,424.24 $ 37,773 10 37 773.10 3,003 64 $ 4,500,000.00 -45,000 00 $ 4,455,000.00 $ -138,428.66 $ 2,183,852.90 $ 2,045,424 24 $ 4,458,003.64 4,458,003.64 000 4,458,003.64 0 00 FUND BALANCE JUNE 30 $ 4,319,574 98 $ 2,183,852.90 $ 6,503,427.88 $ 4,458,003 64 See notes to the general-purpose finanaal statements - 23- PUTNAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001 EXHIBIT"!" ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets FUND EQUITY Fund Balances Reserved For Debt Service Unreserved Undesignated Total Fund Equity PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 25,878.35 $ 15,719 07 $ 41,597 42 $ 34,29079 1 978.94 1 978.94 1341144 $ 15 719 07 $ 431576 36 $ ....__4..,1,_1.,.02_.2_3_ $ 27,857.29 $ 0.00 15,719.07 $ 0.00 43,576.36 $ 000 47,702.23 0.00 $ 15 719.07 $ See notes to the general-purpose financial statements. -24- PUTNAM COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND YEAR ENDED JUNE 30. 2001 EXHIBIT "J" REVENUES Taxes Other Funds Total Revenues EXPENDITURES DebtSeMce Pnncipal Interest Paying Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures OTHER EINANCING SOURCES Accrued Interest on Bonds Sold Operating Transfers In Total Other Fmanang Sources Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1 PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 37,425.58 $ 2,248 31 757,425 00 $ 461,530.00 794,850.58 $ 463,778.31 $ 39,673.89 $ 1,218,955.00 $ 1,258,628 89 $ 487,485 92 468,480.56 955,966 48 $ $ 240,200.00 3,599 76 355,000.00 $ 863,955.00 355,000.00 $ 1,104,155.00 3,599.76 320,000.00 927,720.00 3,599.02 $ 243,799 76 $ 1,218,955.00 $ 1,462,754.76 $ 1,251,319.02 $ -204, 125.87 $ 0 00 $ -204,125 87 $ -295,352 54 $ 200,000 00 $ 200,000 00 $ -4,125.87 $ 31,983 16 $ $ 200,000.00 $ 200,000.00 $ 15,450.00 15,450.00 0.00 $ 15,719.07 -4,125.87 $ 47,702.23 -279,902.54 327,604.77 FUND BALANCE JUNE 30 $ 27,857 .29 $ 1571907 $ 43p6.36 $ ==4=7==,7==02=.2.,.3= See notes to the general-purpose financial statements. -25- - - - - - - - - - - - - ---- ---- PUTNAM COUNTY BOARD Of EDUCATION SCHEDULE Of EXPENDIJURES Of FEDERAL AWARDS YEAR ENDER JUNE 30 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER Agnculture, U. S. Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutnt1on Program Food Services School Breakfast Program National School Lunch Program .. 10 553 10.555 Total Child Nutrition Cluster Other Programs Pass-Through From Georgia Department of Education Food and Nutnllon Program Food D1stnbut1on Program (1) Pass-Through From Office of Treasury and Fiscal Services Nabonal Forest Reserve Funds 10.550 10.665 Total U.S. Department of Agnculture Educallon, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education lnd1v1duals wrth Dlsab1llt1es Education Act Part B Special Educabon Capacity Building Improvement Flow Through Preschool 84.027 84027 84173 Total Special Education Cluster Other Programs Pass-Through From Georgia Department of Educabon Elementary and Secondary Education Act T1llel Grants to Local Educabonal Agencies Title II Eisenhower Professional Development TrtleVI Innovative Education Program Strategies Goals 2000 State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools and Commumbes Vocational Education - BaStc Grants to States High School Program Basic Grant Pass-Through From Hall County Board of Educabon d/bla Piedmont Migrant Education Agency Elementary and Secondary Educabon Act Title I Migrant Education 84.010 84.281 84.298 84.276 84.186 84048 84.011 Total U. S Department of Education PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD NIA $ 183,671.70 (2) NIA 543,416 75 $ 1,097,471.74 (3) $ 727,088 45 $ 1,097,471.74 NIA 44,551.98 44,551 98 NIA 2,820 38 !4! $ 774,460.81 $ 1,142,023.72 NIA $ 796 23 s NIA 260,898.11 NIA 9,515.31 $ 271,209 65 $ 796 23 260,976 27 (3) 9,515 31 271,287.81 NIA 425,538 03 425,538 03 NIA 8,236.88 8,236.88 NIA 17,905.55 17,905 55 NIA 29,383.21 NIA 9,842.61 29,383.21 9,842.61 NIA 34,550.62 34,850.61 (3) NIA 12,249 71 $ 808,916 26 $ 12,492 12 (3) 809,536 82 ., -26- PUTNAM 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 Health and Human SeMces, U. S Department of Direct Head Start Program Pass-Through From Georgia Department of Human Resources Child Care and Development Block Grant 93600 93 575 $ 839,261 25 $ NIA 69 711 88 820,362 78 (3) 69 711 88 Total U S Department of Health and Human Services $ 908,973 13 $ 890 074 66 Total Federal Financial Assistance $ 2,492,350 20 $ _,...2;..;;,84.,..1,_,6_3iaii5..2._0 NIA = Not Available Notes to the Schedule of Expendrtures of Federal Awards (1) The amounts shown for the Food D1stnbut1on Program represents the Federally assigned value of nonmonetary assistance for donated commochtJes received and/or consumed by the system dunng the current fiscal year (2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program (3) Expenditures for this program include State, and/or Other Funds Expenditures are not maintained by fund source (4) Funds earned on this program do not require reportJng of expenditures Ma1or Programs are 1dentJfied by an astensk r) in front of the CFDA number The School D1stnct did not provide Federal Assistance to any Subrecip1ent The accompanying schedule of expenditures of Federal awards includes the Federal grant act1V1ty of the Putnam County Board of EducatJon and 1s presented on the modified accrual basis of accounting wt11ch 1s the basis of accounting used in the presentatJon of the general-purpose financial statements See notes to the general-purpose financial ata1ements - 27 - PUTNAM COUNTY BOARD OF EDUCATION SCHEDULE Of STATE REVENUE YEAR ENDED JUNE 30, 2001 SCHEDULE "2" AGENCY/FUNDING GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL GRANTS Education, Georgia Department of Quality Basic Education Direct lnstrud1onal Cost Kindergarten Program $ Kindergarten Program - Early Intervention Program Pnmary Grades (1-3) Program Primary 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 wrth D1sabilitles Category I Category II Category Ill Category IV CategoryV Special Education Supplemental Speech Gifted Student - Category VI Remedial Education Program Altematrve Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Indirect Cost Categoncal Grants Pupil Transportation Regular Bus Replacement Nursing Services Pnncipal Supplements Vocational Supervisors Migrant Education Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Preschool Handicapped Program Statewide Local Education Improvement Teachers' Retirement Lottery Programs AssIstive Technology Computers in the Classroom 414,919.00 83,274.00 1,064,776.00 422,439 00 652,500 00 1,209,622.00 793,206 00 361,414 00 130,761.00 254,725.00 761,522.00 113,436 00 4,910.00 7,505.00 60,605.00 87,491.00 84,63500 36,936.00 196,262.00 54,997.00 1,217,343.00 355,132 00 91,045.00 66,761.00 11,042 00 17,447.00 2,051.00 $ 58,187.93 3,404.58 243,728.02 40,63000 25,000 00 14,644.11 $ 414,919.00 83,274.00 1,064,776.00 422,439.00 652,500.00 1,209,622.00 793,206 00 361,414.00 130,761.00 254,725.00 761,522 00 113,436.00 4,910.00 7,505.00 60,605.00 87,491.00 84,635 00 36,936.00 196,262.00 54,997.00 1,217,343.00 78,386.00 7,049.43 51,265.60 355,132.00 91,045.00 66,761.00 11,042.00 17,447.00 2,051.00 78,386.00 58,187.93 3,404.58 243,728 02 40,630.00 25,00000 14,644.11 7,04943 51,265 60 Office of School Readiness Pre-Kindergarten Program 49,965.25 49,965.25 Office of Treasury and Fiscal Services Pubhc School Employees Retirement 47,191.00 47,191.00 -28- ,, I , / \ - PUTNAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001 SCHEDULE 211 11 AGENCY/FUNDING CONTRACT Education, Georgia Department of Georgia's Reading Challenge GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ ___2_0_...a,3..0.._2_._0_9_ $_.......;2;;.:;0.,;;,3...;;.0;;;;..2. ;;. 09;;._ See notes to the general-purpose finanaal statements -29- PUJNM1 COUNTY BOARD OF EDUCATION SCHEDULE OF APPRO\IED LOCAL OPJ(ON SALES TAX PROJECTS YEAR ENDED JUNE 30 2001 SCHEDULE "3" PROJECT ORIGINAL ESTIMATED COST(1l CURRENT ESTIMATED COSTS (2) Adding to, renovabng, repamng, Improving, and equipping existing school bu1ld1ngs and other buildings and facalltles useful or desirable In connection therewith. and acquinng any necessary property therefore, both real and personal s s 6,250,000 00 6,250,000 00 AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS (3) PROJECT STATUS Ongoing Retiring a porbon of the School DIstrtcrs General Obllgabon Bonds, senes 1994, and General Obhgabon Refunding Bonds, Series 1998, by paying or making provIs10n for the payment of the pnncipal and interest on such bonds coming due on February 1, 2001 through February 1,2008 e,2501000 oo oo e , 2 5 0 1000 $ 757,425 00 $ 0 00 Ongoing $ 121500 1000 00 $ 1215001000 00 $ 7571425 00 $ 0 00 (1) The School D1stnct's onginal cost esllmate as specified In the resolullon calling for the 1mposmon of the Local Opllon sales Tax (2) The School D1stnct's current estimate of total cost tor the proJects Includes all cost from pro)8ct incepbon to complebon. (3) The voters of Putnam County approved the Imposibon of a 1% sales tax to fund the above projects and retire associated debt Amounts expended for these pro)8cts may include sales tax proceeds, state, local property taxes and/or other funds over the life of the pro,rects See notes to the general-purpose financial statements 31 - PUTNAM COUNTlf BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATIQN:-PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001 SCHEDULE 4 DESCRIPTION Direct Instructional Programs Kindergarten Program Kindergarten Program-Early lnteNenllon Program Primary Grades (1-3) Program Pnmary Grades-Early lnteNenllon (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 Disabilities Category I Category II Category Ill Category IV Category V Gifted Student - Category VI Remedial Education Program Altemat1ve Education Program English Speakers of Other Languages (ESOL) TOTAL DIRECT INSTRUCTIONAL PROGRAMS Media Center Program Staff and Professional Development ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS SALARIES OPERATIONS TOTAL $ 560,8TT.OO $ 524,785.01 $ 15,868.78 $ 540,653.79 112,568.00 100,391.96 650.18 101,042 14 1,439,338.00 1,387,171.03 46,111 61 1,433,282.64 571,043.00 144,143.37 45804 144,601.41 882,034.00 955,628.10 25,546 26 981,174 36 1,635,137.00 1,733,544.07 59,055.37 1,792,599 44 1,072,236.00 1,328,038.63 114,363 59 1,442,402 22 488,550.00 442,020.44 96,092.13 538,112.57 1,720,622.00 132,461 49 6,137.81 138,599.30 345,786.27 5,329 32 351,115 59 960,531.87 48,099 92 1,008,631 79 101,516.80 3,658 28 105,175.08 423.99 423.99 81,924.00 121,532 61 1,093.16 122,625.77 118,268.00 95,982.73 95,982 73 114,408.00 125,426.25 617 25 126,043.50 49,929 00 67,634.98 69 24 67 704.22 $ 8,846,934.00 $ 8,566,595 61 $ 423,574.93 $ 8,990,170 54 265,303.00 74 345.00 308,813.47 41 59 58,847.85 75,626.94 367,661.32 75,668.53 TOTAL QBE FORMULA FUNDS $ 9,186,582.00 $ 8,875,450.67 $ 558,049 72 $ 9,433,500.39 (1) Comprised of State Funds plus Local Five Mill Share. See notes to the general-purpose financial statements. - 32- PUTNAM COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE} ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 SCHEDULE "5" SITE Putnam County Middle School Putnam County Elementary School Putnam County High School Oconee Area Psychoeducational Program Putnam County Alternative Success 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 $ 2,331,709.00 $ 2,404,385.60 4,459,367.00 4,134,667.09 1,941,450.00 2,304,342.02 11,222.17 135,553.66 114,408.00 $ 8,846,934.00 $ ==8=,9=90.....,c:17=0=.54= See notes to the general-purpose financial statements. - 33- SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS W. JSSELL HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S W., Suite 214 Atlanta, Georgia 30334-8400 May 6, 2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members ofthe Putnam County Board of Education REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 Ladies and Gentlemen: Compliance We have audited the compliance ofPutnam County Board ofEducation with the types ofcompliance 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. Putnam County Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule ofFindings 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 Putnam County Board of Education's management. Our responsibility is to express an opinion on Putnam 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 A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Putnam 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 Putnam County Board ofEducation's compliance with those requirements. 2001SA-10 \. In our opinion, the Putnam County Board of Education complied, in all material respects, with_the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2001. Internal Control Over Compliance The management of Putnam County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Putnam 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 of the management, members of the Putnam 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-IO 01>-1,J~LO~ ~sell W. Hinton State Auditor tussu.L W. H1NTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 May 6, 2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Putnam 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 of Putnam County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated May 6, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing 'standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Putnam County Board of Education'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 offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not e,spress 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 Putnam County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 2001YB-41 control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Putnam County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7171-01-02. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7171-01-02 to be a material weakness. This report is intended solely for the information and use of the management, members of the Putnam 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. ----~ w d . k Respectfully submitted, RWH:as 2001YB-41 SECTIONID . AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS PUTNAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-7171-98-01 FS-7171-99-01 FS-7171-99-02 FS-7171-00-01 FS-7171-00-02 FS-7171-00-03 FS-71 71-00-04 Previously Reported Corrective Action Implemented Further Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses CORRECTIVE ACTION/RESPONSES GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7171-00-04 The School District has decided not to pursue the recording of general fixed assets on the financial statements because the School District cannot determine the cost ofthe old fixed assets and infrastructure already in place. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FA-7171-00-01 FA-7171-00-02 Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented SECTIONIV FINDINGS AND QUESTIONED COSTS PUTNAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 I SUMMARY OF AUDITOR'S RESULTS 1. Type of Report Issued on the Financial Statements The auditor's opinion on the Putnam County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. 2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Putnam County Board ofEducation disclosed a financial statement reportable condition related to the following control category. General Fixed Assets The reportable condition described above is considered to be a material weakness. 3. Noncompliance Material to the Financial Statements The audit of the Putnam County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. 4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Putnam County Board ofEducation did not disclose any reportable conditions in internal control over major programs. 5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Putnam County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. 6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Putnam County Board of Education's audit disclosed an audit finding required to be reported by section .510(a) of0MB Circular A-133. This audit finding is included in section N of this report. 7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program-Food Services-National School Lunch Program 8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 9. Low Risk Auditee The Putnam County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education. \ - 1- -------------------~------------------ ---- PUTNAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Utilize Funds for Intended Purposes Nonrnaterial Noncompliance Amount: $4,942.59 Finding Control Number: FS-7171-01-01 The School District received Assistive Technology Lottery Funds to be used for the purchase of computers for classrooms as required by Guidelines issued by the Georgia Department of Education. However, it was noted that three computers were used in the School District's central office and that one computer and a printer could not be located. This condition occurred because management failed to comply with guidelines issued by the Georgia Department ofEducation. Inventory procedures should be established to identify equipment according to source of funding, so that equipment purchased with lottery funds is utilized in classrooms as required. The Georgia Department ofEducation should review this matter to determine if a refund is appropriate. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-7171-01-02 The Putnam County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District, and should include, but may not be limited to, date acquired, acquisition cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. -2- PUTNAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS PROGRAM INCOME REPORTING Failure to Refund Unexpended Grant Balance Nonmaterial Noncompliance U.S. Department of Health and Human Resources Amount: $19,925.17 Finding Control Number: FA-7171-01-01 Accounting records applicable to the Head Start Program (CFDA 93.600) do not support amounts reported on the program's completion report resulting in an unexpended grant balance of$19,925. l 7 at June 30, 2001. This expired grant balance was the result of the School District's failure to expend funds on the fiscal year 2000 project which ended on May 31, 2001. This condition occurred because the School District failed to monitor the expenditures to ensure that funds were expended within the grant period. The School District should file a revised completion report that reconciles to the accounting records, and return the unearned grant balance to the U. S. Department of Health and Human Services. -3- \