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

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' ;aurr~AN COUNTY BOARD OF EDUCATION

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GE- O' RGETO''W- N-.

GEORGIA
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'REPORT ON AUDIT- ,'

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9f THE FINA~_CIAL' STA)'EMENTS

' -

FOR ..

THE FISCAL,
, .,.

YE.AR

ENDE-D\

JU-NE

30, ' '

2002

,I

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w:, ' .
,,, Russell Hinton
'Stat~_'Audlt~r REC'El~-ED

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OCT ' ~

O 2

;2003-:-:'

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,_

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE AGENCY FUND

s

s 18211411

8,13498

163 631 68

33 278 74

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

{Memorandum ~ l

JUNE 30 2002

JUNE 30 2001

s

998 880 14 s

708 114 29

775 864 61

780 762 00

303 857 05

287 018 30

s

379,022 53

1 835 977 47

779 89 704 18 379 022 !53
1 835 977 ,47

741 96 532 07 279 799 12
1 985 200 88

s

379 022 53 S

813498 $ 2215,00000 S 4 2es oas e1 s 4 042 168 62

s

7 864 98

s

1,42 591 00 s

47 967 42

204 559 23

209 966 32

5 717 30

3 662 39

632 20

1204030

250 00
s

2 215 000 00

250 00 2 215 000 00

2 265 000 00

s

e 134 98 s 21215 000 00 s 2 568 749 73 s 2 538 636 43

s

379 022 53

0 00

$

379 022 53

$

62,502 35 $

36 TT4 35

379,022 53

279 799 12

19 370 70

77989 704 18 233 835 54

7-41 96 532 07 300 901 85

21 030 60 1 028 461 05

24 265 92 841 146 22

s 1 726 336 14 s 1 503 532 19

s

378 022 53 $

813498 $ 221500000 S 4 285 085 87 S ____04_2_1_6_8_6_2_

. 3-

QUITMAN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GO\/ERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2002

GENERAL FUND

SPECIAL REVENUE
FUND

REVENUES

Slate Funds Federal Funds Taxes Other Funds
TotalR........,..

$ 1,591,778 05 $
680,533 67 100,365 14
s 2 372676 86 s

170,650 25 440,845 30
13 942 08
625,437 63

EXPENDIJ\JRES

Current lnsb1Jcl1on Support SeMCeS Pupil Se1VlC8!1
Improvement of lnstrudional SeMces Educabonal Medoa 5ervK:es
Genel'l!II Adm1mstrabon Sdlool Adm!TllstraUOn Busmess Adm1mstrabon Maintenance and Opera\lOO of Plan1 S1udent Transportatmn Serv,ceg Central Support 5ervK:es Other Support Se,vu:es Food Servia,s Operation Caprtal Outlay Debt Service Pnnapal Interest Payn,g Agent F...

$ 1,363,347 40 $
48 34567 55,75813 53 678 07 233 198 75 101 808 89 4644044 137 421 66 121,867 50
1,194 37 14,300 00
78 82

338 759 50
30,874 91 80 336 68
1,376 88
15,58919 4,308 10 11,65368 167,339 04

Total Expenditures E>Ccess of Revenues over (under) Expenditures

$ 2 177 439 70 $

s

s 195 23716

630 237 98 -4 800 35

OTHER FINANCING SOURCES IUSESl

Operating Transfers In Operabng Transleni Out
Total Other FalSflcmg Sources (Uses)

$

$

-19,243 27

s

-19,243 27 $

19,243 27 19,243 27

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other FlnBncmg Uses

s

s 175 993 89

14 442 92

FUND BALANCE JULY 1

895,25046

26,959 70

Food Inventory - Net Change 1n Period Donated CommodltleS Purchased Food
FUND BALANCE JUNE 30

37 93

172 11

___ ...., __ _

$ 1 07124435 $

4161266

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

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30. 2001

s
$ _ _ _ _..,2,,,0.!...1

$

2 01 S

$
247 801 67 135 778 93
383,580 60 $

1,76242830 $ 440 845 30 928,335 34 250 088 16
3,381 697 10 $

1,947 31241 404 262 50 915 515 71 185 904 11
3 452 994 73

$

1,702,10690 $

1,800,620 10

s

67 068 32

79 220 58 11609481
53 678 07 234 575 63 101 808 89
46 440 44 153 010 85 126 175 60
1 194 37 25 953 68 167 417 86 67 068 32

67 39816 11,89911 63,535 72 170,570 56 110,85149 53,524 00 183,628 46 134,737 85
30000 21 771 52 174,934 57 29,543 98

$

50 000 00

232,925 00

1 432 19

50,000 00 232,925 00
1,43219

61,800 05 236,202 68
672 71

$

67 068 32 $

284 357 19 $

315910319 $ 3,121,990 96

$

-6706631 $

99,223 41 $

222,593 91 $

331 003 77

$

19,243 27 $

152,069 06

-19,243 27

-152 069 06

$

000 $

0 00

$

s -67 066 31

99,223 41 $

s 222,593 91

331 003 77

301,522 91

279,799 12

1,503 532 19

1 172,537 80

37 93 172 11

-26 11 16 73

$

234 456 60 $

379,022 53 $

1,126,336 14 $ 1,503.53219

-5 -

OUCTMAN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REIIENUES EXPENDITTJRES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL CNON-GAAP BASIS> GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT "C-

GENERAL FUND

BUDGET

ACTUAL

REIIENUES
SmmFuncls
Federal Foods
Taxes
Other Funds
Total Revenues

$ 1,514,259 00 $ 1,591,778 05

620,297 00 15 000 00

680,533 67 100,385 14

$ 2,149,556 00 $ 2,372,676 86

EXPENDITURES
Current Instruction
Support Serv,ces
Pupil Services Improvement of lnslructional Services Educabonal Media Sen,lces General Admifflstraoon School Administration Business Admsustnmon
Maontenanc:e and Operation of Plant
Student Transportation 5eMcel
Central Support Services
Fo0o1dhSerenSlulpcpeosrOt p-eration
Capital Outlay

$ 1,354 917 06 $ 1,363,347 40

29 045 89 56 917 00 65,527 87 153,322 55 109,887 71 48,508 77 123,310 60 151,67042
30000 13,584 00
155 00 32 386 57

48,345 67 65,75813 53,678 07 233,198 75 101,608 89 48,44044 137,421 68 121,867 50
1,194 37 14,300 00
76 62

Tolal Expencltures Excess of Reveooes over (under) Expenditures

$ 2,139,513 64 $ 2,177,439 70

s s 10,042 36

195J37 16

OTHER FINANCING SOURCES CUSESl

01her SoU'<:es 01her Uses
Tolal Other Financing Soorces (Uses)
Excess of Revenues and 01her Fnancmg Sources
over (under) ExpendltureS and 01her Fnanclng u.... s

s -19J43 27 s -19J43 27
10,042 36 $ 175,993 69

FUND BALANCE JULY 1 2001
Food I ~ . Net Change In Por1od
Done1l!d Commod111eo
Pun:hased Food

881,292 74

695 250 48

FUND BALANCE JUNE 30 2002

S 891 335 10 S 1,011 ,2 35

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 186,243 00 $ 170 650 25

34M19 00

440,845 30

18 513 18

13 942 08

$ 550 27518 $ 625 437 63

$ 333,165 37 $ 338,759 50

38 378 00 3,100 00

30 874 91 60 336 68

169 20

1,376 88

15,400 14 6,669 00
6 123 15 158,338 16

15 58919 4,308 10
11,653 86 167,339 04

$ 561,381 04 $ 630 237 96

s $ -11,06566

-<I 600 35

s 19 243 27

s 19 243 27

s s -11,065 66
33 443 31

14,442 92 26,959 70

37 93 172 11

S 2235745 $ 41 612 66

-monts The notes to the general-purpose finanaal

ans an Integral part of this statement

. 7.

QUITMAN COUN1Y BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Qunman County Board of Education (School Distnct) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Supermtendent appointed by the Board The School District 1s organ17.ed as a separate legal entity and has the power to levy taxes and issue bonds. Its budget 1s not subject to approval by any other entity Accordmgly, the School D1stnct 1s a pnmary government and consists of all the organizations that compose its legal enllty
FUND ACCOUNTING
The School Distnct uses funds and an account group to report on its financial posit10n and the results of Its operallons. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certam governmental funct10ns or act1v111es A fund 1s a separate accountmg entity with a self-balancing set of accounts An account group 1s a financial reporting device designed to provide accountability for certam assets and liab1lit1es that are not recorded m the funds because they do not directly atTect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase A General Fixed Assets Account Group is not presently maintained by the School D1stnct 1 o conform to generally accepted accounting pnnc1ples. a General Fixed Assets Account Group should be mamtamed for reportmg the cost of assets acquired by governmental fund types
Although "school aclivity accounts" are maintamed at the individual :,chools. neither the assets. liab1ht1es and fund eqmty, nor the revenues, expenditures and changes m fund balances of the~e accounts are reflected m these financial statement~ To conform to generally accepted accountmg principles, these accounts should be recorded in the general-purpose fmanc1al statements
The general-purpose financial statements account for all State. Federal, Taxes and Other funds under control of the School D1stnct. m compliance v.ith generally accepted accountmg pnnc1ple~ applicable to governmental units, unless otherwise disclosed in these notes Funds and the account group presented m this report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educat10nal activities. Governmental Fund Types mclude
GENERAL FUND - the fund used to account for all financial resources of the School District except those reqwred to be accounted for in another fund These transactions relate to resources ohtamed and used for services provided by a board of education

-8-

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTfNG 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 primanly 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 acqwsillon or construction of maJor capital fac1ht1es
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
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit m a trustee capacity or as an agent for ind1v1duals. pnvate organizations, other government umts and/or other funds. This fund mcludes:
AGENCY FUND - the fund used to account for assets held m a fiduciary capacity for other funds, governments, or mdiv1duals
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstandmg
BASIS OF ACCOUNTING
The accounting and financial reportmg treatment applied to a fund 1s determmed by its measurement focus All governmental funds are accounted for usmg a current financial resources measurement focus With this measurement focus. only current assets and current habihties generally are included on the balance sheet. Operatmg statements ofthese funds present mcreases (1.e., revenues and other financing sources) and decreases (i.e, expenditures and other fmancmg uses) m net current assets Their reported fund balance 1s considered a measure of available spendable resources
Liabilities which are expected to be financed from avrulable spendable resources are reported a~ hab1lities m the governmental funds. Other liab1hlles, wluch are not expected to be financed from available spendable resources, are reported m the General Long-Term Debt Account Group
Agency funds are purely custochal m nature and do not mvolve measurement ofresults ofoperations
Governmental funds are accounted for usmg the modified accrual basis of accountmg 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 "availabl<=" means collectible withm the current period or soon enough thereafter to be used to pay hab1h11es of
-9-

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
the current penod The School Distnct considers receivables collected withm sixty days after year-
end to be available Property taxes, sales taxes and mterest are considered to be susceptible to
accrual Nonexchange transactions. in which the School D1stnct gives (or receives) value without drrectly rece1vmg (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations Revenue for property taxes 1s recognized in the fiscal year for which the taxes are levied Revenue from sales taxe~ 1s recognized in the fiscal year the resources are received or susceptible to accrual Revenue from grants and donations is recogruzed in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred
A substantial number of personnel of the School District were employed for a one hundred and ninety day penod beginning in August 2001 and ending in early June 2002 Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002 State grants to fund the State's share of these contracts are disbursed to the School D1stnct in the same twelve month penod In accordance with generally accepted accounting pnnc1ples, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal penod covered by these financial statements.
Agency funds are accounted for using the modified accrual basis ofaccounting in recogn1zmg assets and liab1h11es.
BUDGET
The Quitman County Board of Educauon's budget 1s a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources There 1s no statutory prohibition regarding overexpenditure ofthe budget at any level The budget for all governmental funds 1s 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 D1stnct's adm1mstrat1on prepares a tentative budget for the Board's approval After approval ofth1s tentative budget by the Board. such budget 1s advertised at least once in a newspaper of general circulat10n in the locality At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget. makes rev1s10ns as necessary and adopts a final school budget This final budget 1s then submitted, in accordance with prov1s1ons of the Quahty Basic Education Act. OCGA Section 20-2-167(c), to the Georgia Department of Educallon. The Board may increase or decrease the budget at any time during the year All unexpended budget authonty lapses at fiscal year-end.

- IO -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposit~ and short-term investments with onginal maturities of three months or less from the date of acquisition in authonzed financial institutions Georgia Laws OCGA 45-8-14 authorize the School D1stnct to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School D1stnct in nonpart1c1pating interest-earning contracts (such as cenificates of deposit) and repurchase agreements are reponed at cost Participating interest-caming contracts and money market investments with a matunty at purchase ofone year or less are reported at amortized cost Both part1c1pating interest-eaming contracts and money marl.et investments with a matunty at purchase greater than one year are reported at fair value The Official Code of Georgia Annotated Section 36-83-4 authorizes the School D1stnct to invest Its funds and in selecting among opt10ns for investment or among inst1tutlonal bids for deposits, the highest rate ofretum shall be the obJectlve, given equivalent conditions of safety and liquidity Funds may be invested in the following
(I) Obhgations issued by the State of Georgia or by other states,
(2) Obhgat10ns issued by the Umted States government.
(3) Obligat10ns fully insured or guaranteed by the United States government or a Umted States government agency,
(4) Obligations of any corporation of the Umted States government,
(5) Pnme banker's acceptances.
(6) The Local Government Investment Pool adm1mstered by the State of Georgia.. Office of Treasury and Fiscal Services,
(7) Repurchase agreements. and
(8) Obhgallons of other polit1cal subd1v1sions of the State of Georgia

- 11 -

QUITMAN COUNTY BOARD OF EDUCATION

EXIIIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available Receivables are recorded when either the asset or revenue recogmuon cntena has been met Receivables recorded on the general-purpose financial statements do not include any amounts wluch would necessitate the need for an allowance for uncollectible receivables

PROPERTY TAXES

The Qmtman County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 9, 2001 (levy date) Taxes were due on December 31, 2001 (hen date). Taxes collected wtthin the current fiscal year or wtthin 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002 The Qwtman County Tax Commiss10ner bills and collects the property taxes for the School D1stnct, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District Property tax revenues dunng the fiscal year ended June 30, 2002 for maintenance and operations amounted to $663,780 40 and for school bonds amounted to $74,281 19.

Tai. millage rates levied for the 2001 tax year (calendar year) for the Qmtman County Board of Educatton were as follows (a mill equals $1 per thousand dollars of assessed value)

School Operal!ons School Bonds

13 140 mills I 465 mills
I4,605 mills

SALES TAXES

Special Purpose Local Optton Sales Tax revenue dunng the year amounted to $172,886 15 and 1s to be used for capital outlay for educat10nal purposes or debt service This sales tax was authorized by local referendum and the sales tax must be re-authonzed at least every five years.

INVENTORIES

FOOD INVENTORIES Inventones of donated food commod1t1es used in the preparat10n 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) The School D1stnct uses the purchases method to account for inventones ofpurchased foods whereby expenditures are recorded at the lime of purchase Both the donated food commodities inventory and the purchased foods inventory reported on the balance sheet are equally offset by reservat10ns of fund balance which indicates that

- 12 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THF GENERAL-PURPOSE FINANCIAL STATEMENTS

JUN!: 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
they do not constitute "available spendable resources" even though they are a component of net current assets The Federally assigned value of donated commodity Items received and consumed has not been reflected as revenues and expenditures in the general-purpose financial statements. To conform to generally accepted accountmg pnnc1ples, these amounts should be recorded m the general-purpose financial statements.
GENERAL OBLIGATION BONDS
The School D1stnct issues general obhgatlon bonds to provide funds for the acquisition and construction of maJor capital fac1ht1es Bond premmms and discounts. as well as issuance costs, arc recogmzed m the financial statements dunng the year bonds are issued In add1t10n. general obhgatlon bonds have been issued to refund existing general obhgation bonds General obhgat10n bonds are direct obhgations and pledge the full faith and credit ofthe government The outstanding amount of these bonds 1s recorded m the General Long-Term Debt Account Group
INTERFUND TRANSACTIONS
The School District has the followmg types of mterfund transactions
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures m the re1mbur.,mg fund and as reductions of expenditures m the fund that 1s reimbursed
Operating transfers are recorded for all mterfund transact10ns other than reimbursements
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to md1cate that they are presented only to fac1htate financial analysis Data m these columns do not present financial posit10n or results of operations m conform1t) with generally accepted accountmg pnnc1ples Neither are such data comparable to a consolidation lnterfund eltmmat1ons have not been made m the aggregat10n ofthis data
Note 2 DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provide~ that there shall not be on deposit at any time many depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance. or by collateral The aggregate of the face value of such surety bond and the market value of secunlles pledged shall be equal to not less than 110 percent of the pubhc funds bemg secured after the deduction ofthe amount ofdeposit insurance If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value of the

- 13 -

QUITMAN 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 STATEM[NTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

25

DEBT SERVICE FUND

COMBINING BALANCE: SHEET

26

J

COMBINING STATEMENT OF REVENUES. EXPENDITURES

AND CHANGES IN FUND BALANCES

27

K

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

28

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2. DEPOSITS AND INVESTMENTS
securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance OCGA Sect10n 45-8-11 (b) proVJdes an officer holding pubhc funds may, in Ins discretion, waive the requirement for secunty in the case ofoperating funds placed in demand deposit checking accounts
Acceptable secunty for deposits consists of any one of or any combinat10n of the following
(I) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporahon,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligat10ns of the Umted States or of the State of Georgia,
(4) Bonds, b1lls, notes, certificates of indebtednes~ or other obhgat10ns of the counties or mun1e1palit1es of the State of Georgia,
(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, providing that the statute that created the authonty authonzed the use of the bonds for this purpose,
(6) lndustnal revenue bonds and bonds of development authontJes created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subs1d1ary corporat10n of the Umted States government, which are fully guaranteed by the Umted States government both as to pnncipal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermechate Credit Bank, the Central Bank for Cooperatives, the Farm Crecht Banks, the Federal Home Loan Mortgage Association, and the Federal Nat10nal Mortgage Association
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $1,948,142 07 The amounts ofthe total bank balances are classified into three categones of credit nsk.
Category 1 - Cash that 1s insured (cg., Federal depository insurance) or collaterahzed with secunt1es held by the School D1stnct or by the School D1stnct's agent in the School D1stnct's name.
Category 2 - Cash collateralized with secuntles held by the pledging financial institution's trust department or agent in the School D1stnct's name.
Category 3 - Uncollaterahzed deposits. (This includes any bank balance that is collateral1zed with securities held by the pledging financial institut10n, or by 1ts trust department or agent but not in the School D1stnct's name.)
- 14 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTME'.'ITS

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

Risk Category

Bank Balance

I

$ 200,000.00

2

1,580,540 77

3

I 67,601.30

Total

$ 1.948.)42.07

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the fair value of the School D1stnct's total investments was $56,553 45 and this enure amount consisted of U S Government Secunt1es which was msured or registered. or secunues held by the School District or the School D1stnct's agent m the School Distnct's name

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 See Note I - Inventories

Note 4. RISK MANAGEMENT

The School District is exposed to vanous nsks of loss related to torts, theft of, damage to. and destrucllon of assets. errors or 01mss1ons; Job related illness or mJuries to employees, acts of God and unemployment compensauon

The School D1stnct has obtamed commercial msurance for nsk ofloss associated With torts. assets. errors or om1ss10ns and Job related illness or mJunes to employees The School D1stnct has neither s1gmficantly reduced coverage for these nsks nor mcurred losses lscttlements) which exceeded the School District's msurance coverage many of the past three years

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

The School D1stnct is self-insured "-1th regard to unemployment compensauon claim, In connection with this program, a sclf-msurance reserve has been estab)i.hed WJtiun the Generd.l Fund by the School D1stnct The School District accounts for claims WJthm the General Fund with expenditure and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount of that loss can be reasonably estimated

- l5-

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUN[ 30, 2002

Note 4 RISK MANAGEMENT

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

2001 2002

Beginning of Year L1ab1hty

Claims and Changes m Estimates

Claims Paid

End ofYear L1ab1hty

$

0 00 $

000 $

0 00 $

0 00

$

0 00 $

3,235 32 $

0 00 $

3,235 32

The School D,stnct has purchased surety bonds to provide additmnal insurance coverage as follows

Position Covered

Amount

Supenntendent Pnnc1pal Bookkeeper

$ 25.000 00 $ 25.000 00 $ 25,000 00

Note 5 GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Senes 1994

6.00% - 6 900/o

General Government - Refundmg - Scnes 1998 4 05% - 4 875%

$ 110.00000 2.105,000 00

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

General Obhgat10n
Bonds

Balance July I, 200 I

$ 2,265,000 00

Deductions Debt Retired

50,000 00

Balance June 30, 2002

$ 2,2 Is,000,00

- I6 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 5 GENERAL LONG-TERM DEBT

At June 30, 2002, payments due by fiscal year which includes pnnc1pal and mterest for these ncrns are as follows

Fiscal Year Ended June 30

General Obhgat10n
Bonds

2003 2004 2005 2006 2007 2008 - 2012 2013-2017 2018-2019

$ 275.412 50 278,005.00 285.297 50 172,200 00 179,012.50 975,962 50
1,134,050 02 472,418 76

Total Pnnc1pal and Interest

$ 3,772,358.78

Note 6 PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1998. the School D1stnct defeased certam general obhgation bonds by placmg the proceeds of new bondsman mevocable trust to provide for all future debt service payments on the old bonds Accordmgly, the trust account assets and the hab1hty for the defeased bonds are not mcluded m the School Distnct's general-purpose financial statements. At June 30, 2002, $1,835,000.00 of bonds are outstanding and arc considered defeased

Note 7 ON-BEHALF PAYMENTS

The School Distnct has recognized revenues and expenditures m the amount of $37,769 40 for health msurance and retirement contnbut10ns pwd on the School Distnct's behalf by the followmg State Agencies.

Georgia Department of Education Pwd to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $33,855 40

Office of Treasury and Fiscal Services Paid to the Pubhc School Employees Retirement System For Pubhc School Employees Retirement (PSERS) Employer's Cost In the amount of$3,914 00

- I7 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 8 CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and rev1ev. by grantor agencies. Tius could result m requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms The School District believes that such d1sallowances. 1f any, will be immatenal to its overall financial pos1t1on
Note 9: SUBSEQUENT EVENTS
On August 20. 2002, the voters ofQmtman County voted in favor ofa Special Purpose Local Option Sales Tax referendum for educational purposes The 1mpos1tion ofthe tax approved by the voters, as stated m part on the Official Ballot of Quitman County, 1s as follows:
"Shall a special one percent sales and use tax be imposed m Qmtman County for a period not to exceed 20 calendar quarters and for the raismg of not more than $1.200,000 00 for the purposes of (1) payment of a portion of the principal and mterest on the Quitman County School D1stnct (Georgia) General Obhgat10n School Bonds, Series 1994 and Series 1998 from August I, 2003 through February I, 2008. and thereafter to the extent that funds are available, (i1) the acquisit10n, construction and equippmg of the elementary school and additions, renovations and improvements at existing schools and facilities, (iii) equipping, renovating and 1mprovmg the auditorium, (iv) purchasmg school buses, and (v) acquis1t10n of any necessary property therefore. both real and personal (the "Projects"), and for paymg costs mcident to accomphslung the foregomg?"
Note IO RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, adm1mstrat1ve and clencal personnel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS). which 1s a cost-shanng mult1ple employer defined benefit pension plan TRS provides service retirement, d1sabihty retirement and survivors benefits for its members m accordance with State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School Distnct who are covered by TRS are reqmred by State statute to contnbute 5% of their gross earnings to TRS. The School D1stnct makes monthly employer contnbuuons to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as advised by their mdependent actuary The required employer contribut10n rate 1s 9 24% and employer contnbut10ns for the current fiscal year and the precedmg two fiscal years are as follows

- 18 -

oun MAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I 0. RETIREMENT PLANS
Fiscal Year 2002 2001 2000

Percentage Contnbuted
100% 100% 100%

Reqmred Contribut10n
$ 131.487.85 $ 153,458 85 $ 136,939.22

- 19 -

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

ASSETS Cash and Cash Equivalents Accounts Recervable lnventones
Food Donated Commodrt1es Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

33,172 49 $

25,10411

12,982 77

1,231 83

779 89 70418

$

47,639 33 s _ _..2=6;;;,3.3.5;;...;..94;....

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total l.Jab1lrtJes
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated CommodrtJes Purchased Food Unreserved Undes1gnated
Total Fund Equity
Total l.Jabll1t1es and Fund Equrty
See notes to the genera~purpose financial statements - 20 -

$

1,010 75 $

5,783 53

5,015 92

19,473 16

1,079 25

$

6,026 67 $

26,335 94

$

77989

704 18

40 128 59 $

000

s

41,61266 $

000

$

47.639 33 s ~ _.2..s.'=.3=35=94~

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

47,362 32 $

105,638 92 $

86,088 43

28,778 17

42,992 77

13,592 18

77989 70418

741 96 532 07

$

7614049 $

150, 115 76 $ -~1_00...._.9_54_64..._

$

54,84943 $

61,643 71 $

11,64337

20,658 86

45,147 94

49,75948

1,079 25

551 79

632 20

63220

12 040 30

$

76,140 49 $

108,503 10 $

73,994 94

$

$ _ _ _ _0~00~

$

000 $

779 89 $ 70418

741 96 532 07

40 128 59

25 685 67

41,612 66 $ _ _ _2_6~95_9_7~0_

$

76140 49 $

150, 115 76 $ =~.;;100=,9;;,;54;.;.,;;64;.;..

- 21 -

QUITMAN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2002

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current lnstruc!Jon Support Services Pupil Services lmprovemen1 of Instructional Serv,ces General Administration Maintenance and Operabon of Plant Student Transportation Services Other Support Services Food Serv,ces Operabon
Total Expendrtures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expendrtures
FUND BALANCE JULY 1
Food Inventory - Net Change 1n Penod Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

10,12400 $

160,526 25

156,414 07

13 942 08

$

180 480 15 $

160,52625

$

132,127 67

30,874 91

6.793 16 414 84

$

166,037 23

1,230 28

$

166,037 23 $

171,440 86

$

14,442 92 $

-10,914 61

10,914 61

$

14,442 92 $

000

26,959 70

000

37 93 172 11

$

41 612 66 $~=~....;o...o_o_

See notes to the general-purpose financial statements . 22.

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 301 2002

JUNE 30, 2001

$

$

284,431 23

$

284 431 23 $

170,650 25 $ 440,845 30
13,942 08

199,967 08 404,262 50
14 292 57

625,437 63 $ _ ___:6:..:1.,:c8,.::,5.:,:22e....:.:15,.._

$

206,631 83 $

60,336 68 1,376 88 8,796 03 3,893 26
11,65368 71 53

$

292,759 89 $

$

-8,328 66 $

338,759 50 $
30,874 91 60,336 68
1,376 88 15,589 19 4,30810 11,65368 167,339 04
630 237 98 $
-4,800 35 $

370,874 93
38,896 51 2,347 50 356 03
49,917 40 4,160 01 9,515 02
174,634 54
650 701 94
-32, 179 79

8,328 66

19,243 27

15,090 02

$

000 $

14,442 92 $

n -17,089

000

26,959 70

44,058 85

3793 172 11

-26 11 16 73

$

000 $

41,612 66 $ _ _.;:2;;;;6.:;9,;;59~70;;,.

- 23 -

QUITMAN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

29

2 SCHEDULEOFSTATEREVENUE

31

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC !:DUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35

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

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

SECTION IV
FINDINGS AND QUESTIONED cos rs
SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Cash and Gash Equrvalen1s lnves1ments
Total Assets
FUND EQUITY
Fund Balances
Reserved Fa, Purpose of Bond Issue
Unreserved Undesrgne1ed
Total Fund Eqwy

QUITMAN COUNTY BOARD PE EDUCATION
COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 3Q 2002

EXHIBIT "G"

REGULAR

BOND PROCEEDS

TOTALS JUNE 30, 2002 JUNE 30, 2001

$

621 06 $ 233,727 88 $ 234,348 94 $ 301,417 91

10766

107 66

105 00

$

621 06 $ 233,835 54 $ 234,45660 $ 301,522 91

$ 233,835 54 $ 233,835 54 $ 300,901 85

$

62106

000

621 06

621 06

$

621 06 $ 233,835 54 $ 234,45660 $ 301,522 91

See notes to the general-purpose financial statements

- 24 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT i-r

COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

YEAR ENDED JUNE 30 2002

REVENUES Other Funds
EXPENDITURES Capdal Outlay Bu11dmg and Bu1tdmg Improvements Equipment Total Expenddures
Excess of Revenues over (under) Expenditures
OTHER FINANCING USES Operating Transfers Out
Excess of Revenues over (under) Expenditures and Other Fmancmg Uses
FUND BALAt:lC!; JULY 1

REGULAR

BOND PROCEEDS

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$

000 $

2 01 $

2 01 $

6 10

$ 60,598 11 s

60,598 11 s

24 691 58

s

0 00

6 470 21

6 470 21

4 852 40

$

000 s 67 068 32 s

67 068 32 $

29 543 98

$

000 $ -67 066 31 s

-67 066 31 $

-29,537 88

-136 979 04

s

000 s -67,066 31 s -67,066 31 $ -166 516 92

621 06

300 901 85

301,522 91

468 039 83

FUND BALANCE JUNE 30

$

621 06 $ 233,835 54 $ 234 456 60 s____30_1...5.2._2_9_1_

See notes to the general-purpose financial statements

- 25-

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

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS
JUNE 30, 2002 JUNE 30, 2001

$ 49,037 70 $

133,076 41 $ 182,11411 $ 121,12767

56,445 79

107,185 89

163,631 68

130,657 00

3 278 54

29,998 20

33,276 74

28 014 45

Total Assets

$ 108,762 03 $

270,260 50 $ 379,022 53 $ 279,79912

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ 108,762 03 $ 000

270,260 50 $ 000

379,022 53 $ 0 00

279,79912 000

Total Fund Equrty $ 108,762 03 $

270,260 50 $

379,022 53 $==2_1_0_.1_99_1_2_

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

QUITMAN COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERY!CE FUND
YEAR ENDED JUNE 30. 2002

EXHIBIT r

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

REVENUES
Taxes Other Funds
Total Revenues

$

74 915 52 $

68 144 88

$ 143 06040 $

172,88615 $ 67634 05
240,52020 $

247,801 67 $ 135,778 93
s 383 580 60

247 647 98 132 389 27
380 037 25

EXPENDITURES

Debt Serv,ce

Pnnc,pal

$

Interest

Paying Agent Fees

Total Expend rtures

s

s Excess of Revenues over (under) Expendrtures

OTHER F!NANC!NG SOURCES

Operating Transler,i In

25,00000 $ 72,159 27
1 432 19
98 591 46 $
s 44,468 94

25 000 00 $ 160,765 73

50,000 00 $ 232,925 00
1 432 19

35 000 00 234 635 00
672 71

185 765 73 $ 284 357 19 $ 270 307 71

54 754 47 $

99,223 41 $ 109,729 54

136 979 04

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

FUND BALANCE JULY 1

44,46894 $ 64 293 09

54,754 47 $

99,22341 $ 246,708 58

215,506 03

279 79912

33 090 54

FUND BALANCE JUNE 30

$ 108,762 03 $

270 260 50 $ 379,022 53 $ 279 799 12

See notes to the general-purpose financial statements

- 27 -

QUITMAN COUNTY BOARD Of EDUCATION
STATEMENT Of CHANGES IN ASSETS AND UABIUTIES FIDUCIARY FUND TYPE - AGENCY fUNp
YEAR ENDED JUNE 30 2002

EXHIBIT "K"'

FAMILY CONNECTION ASSETS
Caah and Caah EquNalents
LIABILITIES
Accounts Payable Funds Held for Othen,
Total UabiBbes

BALANCE JULY 1, 2001

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2002

$

000 $

25 300 00 $

1716502 , _ _...:;8.,;1,::;3"4;;,98;;:..

s

000 S

7,884 98

s

7 884 98

0 00

1141502 s___1~1~1~a~s~02~

25000

s

000 S

25 300 00 S

111sso2 s_ _...:;8.:1.::;3"4;;.,::;98;;..

see notes to the general-purpose financial statements

- 28 -

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENPEP JUNE 30 2002

SCHEDULE 1

FUNDING AGENCY
PROGRAM/GRANT
Agna.<ture U S Department of Chdd Nutntton Cluster Pass-Through From GeoqJ,a Department of Educa1K>n Food and NutntlOl'l Program FoodSennces School Breakfast Program Nauonal School Lunch Program Pass-Through From Office of School Reachness Food and Nutntlon Program Food 5er'Vlces Summer Food SeMCO Program for Children
Total Child NutntJon Cluster
Dtt,o, Programs Peas-Through From Georgl!II Depertment of Educabon Food and Nutrruon Program Food D,stnbubon Program Fresh Produce Program
Total U S Department of Agriculture
EducatJon U S Department of Special EdLCabon Cluster
Pass-Tlvough From Geo<Jlla Department of Educa1K>n
lndMduala wrth DrsebLlrbes EducatJon Act Part B - Spoaal Educabon Flow TIYough Preschool
Total Sped.al Educabon Cluster
Other Programs Pass-Through From Georgia Department of EducatlOll Elementary and Secondiny Educatron Act Trtlel Grant& to Locel Educabonal Agenoes Trtle II Eisenhower ProfesslONII O.,,.elopment Trtle VI Claa.s Sae Reducbon Innovative Education Program Strategies Goals 2000 State and Local Educabol'l Systemic Improvement Grants Pass-Through From Randotph County Board of Education Elementary and Secondary Educa!Jon Act Title Ill Technology Lneracy Chdenge Fund Grants
Total U S Department of Educabon
Labor u s Departmont of
Pass-Through From Columbus Georgie Consoltdated Government Workforce lnveatment Act Contract #00-29

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE
IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555

NIA

s 49 370 05

NIA

88 321 88 s

(2) 155 967 35 (3)

10 559

NIA

18 722. 16

s 156 414 07 s

10 069 68 (3) 166 037 23

10 550 10 550

NIA

(1)

NIA

s 15841407 s

(1) 166 037 23

84 027 84 173

NIA s 32 339 10 s

NIA

1 174 88

s 33 513 98 s

32 349 68 (3) 1 174 38
33 S24 56

84 010 64 261 84 340 84 298
84 276

NIA

176 133 00

NIA

116 50

NIA

24 062 00

NIA

2 871 42

NIA

12 494 50

178 530 59 (3) 116 SO
25,340 08 (3) 2 871 42 12,549 32 (3)

84 318

NIA

33 645 83

s 282,857 23 s

33 799 88 (3) 286 732 35

17 259

NIA s 1 574 00 S

6 027 54 (3)

Total Federal Fmanoal Aulstance NIA II Not Avadable

29-

s 4401845 30 s

458 797 12

-----------------------------------------
QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002
Nofa to Ibo Schedule of Exnoocfu'es of ftde@I Awards
(1) The amoun1 lorlho Food D l - ($3 805 16) and Frosh Produce ($1 22B 82) Programs,_, tho Federally US1gned value of nonmonetary assastance tor donated C011 110d1be:i received and/or consumed by the system dunng the cunt1nt ftscal year Conmodlbes recetved dunng the OJrrent flscal year were not recorded 1n the School OrstnetI finanaal etatement5
(2) Expendrtures for the School Breakfast Program were not ma1nta1ned separatety and ere included in the 2002 Nabon&I School Lunch Program
(3) Experdtures for thus program Include Stats and/or Other Funds Expenditures are not maintained by fund sourt:e
The Me,or Program 1s 1den1.Jftecl by an astensk () rn front of the CFOA number
The School 0.olnd did not pro,,.de Federal Ass,stance to any Subrec,poent
The accompenyw,g echedule of ex.pendrtures of Federal awards rndudea the Federal ""9nt actMty of the Quitman County Board of Education and is presented on the rnodff'lecl accn.Jlill ba81& of accountmg which Is the basi:s of accounting uaed in the preaentatlon of the general-purpose finanaal statements

SCHEDULE "1"

See notn to the general-purpose financial statements

30-

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCY/FUND1NG
GRANTS
Educat>on, Georg,a Department of
Ouelrty BaslC Education
Direct lnstrud10nal Cost Kmorganen Program
Kindergarten Progrem - Earfy tntervenbon Program Pnmary G,_. (1-3) Program Pnrnary Grades- Earty lntervent10n (1-3) Progmm Upper Elementary Grades (4-5) Program Upper Elemen1ary G,_. - Early lnteMlnbon (4-5) Program Mddlo G.-S (6-8) Program
Students - DIS8bwbes
Category II Calegory Ill Category IV Alternal.Jve Education Program Meda Center Program
Staff and ProfeSSIOf'\81 Development lndarect Cost Twen1y Days Ad<ibonal lnstruct>on
s-Categoncel Grants Pupil Trensportabon Regular BusReplacemen1
NUl"Slng Sel'VIC8S Pnnopal Supplements Deferred Summer Salanes (Poor Year) Deferred Summer Selanes (Current Year) Education Equallzalion Funding Grant FoodSeMces Ott-.er S1ate Programs 4-8 Sl818W!de After 5chool Program Health lnsuranc:e K-3 Sl818W!de Read"1g Program Preochoo<I-Program Student Ach18V81118nt Lottery Programs AsSIStlve Technology Computers m the Claa,room
Office of School Readiness Pre-Klndergartftn Program
Office of Treasury and FISCIII SeMces Publte School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

21 621 00

88 264 00

10811000

190 088 00

36,92B 00

161 071 00

122 444 00

27,025 00 79 273 00 14 728 00
3 380 00 24 917 00
4 971 00 31149200
6 787 00

$ 21 621 00 BB 264 00 10811000 190 088 00 36 928 00 181 071 00 122 444 00
27 025 00 79 273 00 14,728 00
3 380 00 24,917 00
4 971 00 31149200
6 787 00

98 477 00 25 728 00 121 481 00 24 3715 00
1 192 00 -202 076 00 148 637 00
88 234 00 $

10 124 00

4 964 64 33 855 40
7 242 46 7 164 00 27,487 S5

2 179 85 5 376 56

98 477 00 25 728 00 121 481 00 24,378 00
1 192 00 -202 076 00 148 637 00
68 2~ 00 10 124 00
4 064 64 33,855 40
7 242 46 7 164 00 27 487 55
2 179 85 5 376 56

152 969 82

152,969 82

3 914 00

3 914 00

$ 1 591 778 05 $ 170 650 25 S 1 782 428 30

See notes to the generat--purpose ftnanael statements.

- 31 -

QUITMAN COUNlY BOARD OF EDUCATION SCHEDULE OF APPRO\/ED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2002

SCHEDULE "3"

PROJECT
Repayment of pnnopal and interelt on School D161rid's Senes 1994 bonds ma11n1ng Februafy 1 2004 and thereafter

ORIGINAL ESTIMATED
COST Pl

CURRENT ESTIMATED COSTS !2}

AMOUNT EXPENDED IN CURRENT
YEAR !3l !l

AMOUNT EXPENDED
IN PRIOR
YEARS !3! !l

PROJECT STATUS

s 1,eso ooo oo s 116501000 00 s 18H6573 s 549.213 89 Ongoing

(1) The School Dlslrld's onglnal cosl estimate as speclfiod r, the resohlbon calling for the lmposlbon of the Local Option SalesTax
(2) The School Dt81nd'a amm1 osbmate of lotal cost for the proj8d Includes all cost from Proteci Inception to completlon
(3) The votera of Quitman County approved the ,mpo&rtlon of a 1% sales tax to fund the atx,,,,e project and reti"' 86SOClaled debt Amounts expended for this pn)f8d may 11-.:lude aalos tax proceeds Slate local property taxes end/of other funds Oef the Ille of the project
(4) A pomon of the Series 1994 Bonds were retired through the aale of Series 1998 ReluldJng Bond IIISU8 The School Dtstnct will utilize the SPLOST proceeds budgeted for lhs pro,ect, plus any excess SPLOST proceeds to ret,"' the Ser1ea 1998 Refunding Bond laaua

See notes to tho general-purpose finanaal statemonta

- 33 -

aurrMAN COUNTY BOARD Of EDUCATION
GENERAL FUND - OUALID'. BASIC EDUCATION PROGRAM (OBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION
Direct lnstrudlonal Programs Kindergarten Program
Kindergarten Program-Ear1y lnterventJon Program Pnmary Grades (1-3) Program
Pnmary Grades-Eorty Intervention (1-3) Program Upper Elemerrtary Grades (4-5) Program Upper Elemerrtary Grados-Earty lnlerventJon (4-5)
Program Middle GredeS (6-8) Program Studenls wlt/1 Disabllrbes
Calogory Ill Attemabve Education Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and ProfeS&lonal Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

25 363 00 $ 42 524 38 $

1 561 67 $

44,086 05

103,538 00

126 375 07

68 67

126,443 74

126 619 00

157 562 44

5,671 14

163,233 58

222 984 00

265,634 37

34 26

265 668 63

43 316 00

263,263 34

2 946 95

266 210 29

212 406 00 143,634 00 141,971 00
3 965 00

26,789 05 167,360 71
16559017 1246578

12 90 1,898 84
1 686 33

26 801 95 169,259 35
167 276 50 12 465 76

s

1 023,998 00 $ 1,227 S65 31 $

1388056 $ 1 241 445 87

29,22900 5,631 00

57 173 24 43060

4 461 33 2 377 68

61,634 57 2 606 26

TOTAL QBE FORMULA FUNDS

$

105905800 S 126516915 $

20 719 55 $ 1 305 868 70

(1) Comprised of Slate Funds pkJS Locel Five MIi Shem

See notes to the general-purpose finanaal statements

- 34 -

SECTION I FINANCIAL

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

SCHEDULE "5"

SITE New Qurtman County Elementary School Central Office (Altematrve Educanon Program)
TOTAL
(1) Compnsed of State Funds plus Local Five M,11 Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,020,03300 $

1,241,445 87

3,965 00

$

1,023,998 00 $==1"'-,2_4_1_44--=5=8='7

See notes to the genera~purpose financ,al statements . 35.

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

0 11<;.~FI L W. ll1N10N
STATE AUDITOR !40Ai fiSU 211

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshington Street, SW Suite 214 Atlanta. Georg1J 30134-84tKl
May 12. 2003

Honorable Sonny Perdue, Governor Members of the General Assembly McmbeN of the State Board ofEducatwn
and Supenntcndent and Member., of the Quitman County Board ofEducatwn
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT or FINANCIAL STATEM!c,NTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen
We have audited the financtal statements of Quitman County Board ofEducatwn a~ of and for the year ended June 30. 2002. and have issued our report thereon dated May 12. 2003 This report was qualified for vanous departures from generally accepted accounting pnnc1ples, as identified in the auditor's report on the general-purpose financial statements We conducted our audit m accordance with auditing standards generally accepted in the Umted States of Amenca and the standards applicable to financial audits contained in Government Auditing Standards. issued by the Comptroller General of the Umted States.
Compliance
As part of obtaining reasonable assurance about whether Quitman County Board of Educat10n's financial statements arc free of matenal m1~statement. we performed tests of its compliance with certain prov1s1ons oflaw~. regulatwns. contracts and gr'dllts. noncompliance with which could have a direct and material effect on the determination of financial statement amounts Jlowever, providing an opinion on compliance with those prov1s10ns was not an obJect1ve of our audit, and accordingly. we do not express such an op1mon The results of our tests d1~loscd no instances of noncompliance that are required to be reported under Government Auditing Standards
Internal Control Over Financial Reporting
In planning and performing our audit. we considered Quitman County Board of Educat10n's intcmal control over financial reporting in order to determine our auditing procedures for the purpo,e of expressing our opinion on the financial statements and not to provide a~surance on the internal
2002YB-40

control over financial reporting. However. we noted certain matters mvolvmg the mtemal control over financial reporting and its operation that we consider to be reportable conditions Reportable cond1t1ons involve matters commg to our attenllon relating to s1gruficant deficiencies m the design or operation of the mtemal control over financial reporting that, in ourjudgment, could adversely affect Qmtman County Board of Education's ability to record, process. summarize and report financial data consistent with assertions of management m the financial statements. Reportable conditions are descnbed in the accompanying Schedule of Finding~ and Questioned Costs as Items FS-7181-02-01 and FS-7181-02-02
A matenal weakness 1s a condition m wluch 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 misstatements m amounts that would be matenal in relation to the financial statements being audited may occur and not be detected within a llmely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not ncccssanly disclose all matters in the internal control that might be reportable conditions and, accordingly. would not necessanly disclose all reportable conditions that are also considered to be matcnal weaknesses However, all ofthe reportable conditions descnbed above are considered to be matenal weaknesses.
This report is intended solely for the information and use of the management. members of the Quitman County Board ofEducation. Federal awarding agencies and pass-through enUtles and is not mtended to be and should not be used by anyone other than these specified parties.
Re~pectfully submitted.

RWHas 2002YB-40

Hinton State Auditor

lA~H,I \V, ffl", l ON
STATF AlJDlTOR '.:04, 656-2 i'-1

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa.shmgton Street, S W Suuc 2 I4 At\JntJ, Gc-orgtJ 30114-84(Kl
May 12. 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board ofEducat10n
and Supenntendent and Members of the Quitman County Board ofEducat10n
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE ro EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen
Compliance
We have audited the compltance of Quitman County Board of Education with the type~ of compliance reqmrement~ descnbed m the US Office ofManagement and Budget (0MB) Circular A-I33 Comphance Supplement that are applicable to its maJor Federal program for the year ended June 30. 2002 Quitman County Board of Educat10n's maJor Federal program 1s identified m the Summary of Auditor's Results Section of the accompanymg Schedule ofFmdmgs and Questioned Costs Compliance with the requirements of laws. regulation~. contrac~ and grants applicable to its maJor Federal program is the respons1b1lny of Quitman County Board of Education's management Our re~pons1b1lity 1s to express an op1mon on Quitman County Board of Educat10n's compltanee b~ed on our audit
We conducted our audit of compliance m accordance with aud1tmg standards generally accepted m the Umted State~ of Amcnca. the standards appltcablc to financial audit~ contained in Government Audltmg Standards. issued by the Comptroller General of the Umted States. and 0MB Circular Al 33, Audas o,f States, Local Government\, and Non-Profit Orgam=atwns 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 matenal effect on a maJor lederal program occurred An audit includes exarnining. on a test bas1~. e, 1dcnce about the Quitman County Board of Educatwn's compliance with those req u1rements and performing such other procedures~ we considered necessary in the circumstances We believe that our audit provides a reasonable basis for our opm10n Our audit does not provide a legal determmat1on on Quitman County Board of Education's compliance with those requirements
2002SA-30

In our op1mon, the Qmtrnan County Board ofEducauon complied, in all matenal respects, with the requirements referred to above that are applicable to its maJor Federal program for the year ended June 30, 2002
Internal Control Over Compliance
The management of Qmtrnan County Board of Educat10n 1s responsible for establishing and maintairung effective internal control over compliancc with requirements of laws. regulations, contracts and grants applicable to Federal programs In planning and perfornung our audit. we considered Qmtman County Board of Educallon's internal control over compliance with requirements that could have a direct and matcnal effect on a maJor Federal program m order to determine our auditing procedures for the purpose of expressing our opin10n on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133
We noted a certain matter involving the internal control over compliance and Its operation that we consider to be a reportable cond111on Reportable cond1Uons involve matters coming to our attenlion relating to significant deficiencies in the design or operauon ofthe internal control over compliance that, in our Judgment. couJd adversely affect the Qmtrnan County Board of Education's ab1hty to administer a major Federal program in accordance with applicable reqmrements oflaws, regulauons. contracts and grants The reportable cond1t10n 1s described in the accompanying Schedule of Findings and Questioned Costs as item FA-7181-02-01.
A matenal weakness 1s a condition in which the design or operat10n of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, regulauons. contract~ and grants that would be matenal in relauon to a maJor Federal program bemg audited may occur and not be detected within a timely penod by employees in the normal course of performing their assigned funct10ns Our considerallon of the internal control over compliance would not necessanly disclose all matters in the internal control that might be reportable cond11tons and, accordingly, would not necessanly disclose all reportable cond1Uons that are also considered to be matcnal weaknesses However, we believe the reportable cond1t10n described above 1s not a matenal weakness
This report ts intended solely for the informatton and use of the management, members of the Quitman County Board ofEducalion, Federal awarding agencies and pass-through entitles and 1s not intended to be and should not be used by anyone other than these specified parties
Respectfully submitted.
w~~

RWHas 2002SA-30

State Auditor

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

QUITMAN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7181-99-01 FS-718 I-00-02 FS-7181-01-01 FS-7181-01-02 FS-7181-01-03

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

CORRECTIVE ACTION/RESPONSES

CASH AND CASH EQUIVALENTS EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION Inadequate Separation of Duties Fmdmg Control Number FS-7181-01-01

The hmng ofadditional profess10nal staff has been presented to the School D1stnct. Bank reconc1hat10ns are signed by Financial Consultant, Bookkeeper and Supermtendent The Supenntendent reviews all expenditures before they are given to the Bookkeeper

GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group Findmg Control Number FS-7181-01-03

Quitman County Board of Education Y.11l implement GASB 34 July I, 2003

SECTION IV FINDINGS AND QUES f!ONED COSTS

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002

SUMMARY OF AUDITOR'S RESULTS

I. Type of Report Issued on the Financial Statements The auditor's op!Dlon on the Qwtman County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles

2 Reportable Cond1t10ns m Internal Control Disclosed by the Audit of the F1nanc1al Statements The audit report for the Quitman County Board of Education disclosed financial statement reportable conditions related to the followmg control categones

Cash and Cash Eqmvalents Inventones General Ledger

Expend1tures/Liabil1ties/D1sbursements Employee Compensat10n General Fixed Assets

All of the reportable conditions descnbed above are considered to be matenal weaknesses.

3 Noncompliance Matenal to the Financial Statements The audit of the Qwtman County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.

4 Reportable Cond1t10ns in Internal Control Over Ma)Or Programs The audit report for the Qwtman County Board ofEducation disclosed a reportable condition in internal control over the major program for the following compliance reqwrements

Act1v1t1es Allowed or Unallowed Eligibility Matchmg, Level of Effort and
Eannarking

Reporting Special Tests and Provisions

The reportable cond1t10n described above is not considered to be a matenal weakness.

5 Type of Report Issued on Comphance for Mamr Programs The audllor's opinion on the Qmtman County Board of Education's report on compliance with reqwrements applicable to its major program was unqualified.

6 Audit Fmdmgs Reguued to be Reported by Section .51 0(a) of 0MB Circular A-133 The Quitman County Board of Educat10n's audit disclosed an audit finding required to be reported by section 51 0(a) ofOMB Circular A-133 This audit finding 1s included in sect10n IV of this report

7 Ma)Or Programs Federal award audited as a major program is as follows 84 010 Elementary and Secondary Educat10n Act - TIile I - Grants to Local Educational Agencies

-I-

'{L,SFI I W. HINTON
STATE .a.uo1ron
f4C41656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshmglOn S1rce1, SW Sune 214 AIIJnla, Gcorg1J 10314-8400
May 12, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendcnt and Members of the Quitman 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 Quitman County Board of Education. as of and for the year ended June 30, 2002, as hsted in the table of content, These general-purpose financial statements are the responsib1hty of the Qmtman County Board of Education's management Our respons1b1hty 1~ to expre\, an op1mon on these general-purpose financial statements based on our audit
We conducted our audit in accordance with auditing standards generally accepted in the llmted State, of Amenca and the standards applicable to financial audits contained in Government Auditing Standards. issued by the Comptroller General of the Umted States Those standards reqmre that we plan and perfonn the audit to obtain reasonable a~surance about whether the financial statements are free ofmatenal misstatement An aud11 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements An audit abo includes assessing the accounting pnnc1ples u,ed and s1gmficant 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
A, descnbed in the note, to the general-purpo~ financial statements, the Board of Education's financial ~tatements have been prepared using certain accounting practices and pohc1e~ which. in our opinion, vary in some respects from generally accepted accounting pnnc1ples. These variances are de<;enbcd as follows

2002ARL-13

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
SUMMARY OF AUDITOR'S RESULTS
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000 00.
9 Low Risk Aud1tee The Quitman County Board of Education qualified as a low risk auditee as defined by Section 530 ofOMB Circular A-133
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS INVENTORIES EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION GENERAL LEDGER Inadequate Accounting Procedures Reportable Cond111on - Matenal Weakness Finding Control Number: FS-7181-02-01
Accounting procedures and controls ofthe Qmtrnan County Board of Education were IIlSUfticient to provide adequate internal controls Deficiencies are 1denufied by control category and affected funds as follows
Cash and Cash Equivalents - All Funds
A review of selected bank reconc1hations was performed, including procedures to account for all checks dated in June 2002 and for all checks within the June 2002 sequence of check numbers Two hundred sixty-four checks were tested within this sequence Tests of the bank reconc1liallons and checks revealed the following deficiencies
(I) There was no adrn1mstrat:Jve review to determine that bank reconciliations were correct and that all required adJustments had been made
(2) Pre-pnnted check numbers on the face oftwenty-one ofthe checks did not agree with check numbers recorded on the general ledger.
(3) Ninety-four of the checks were dated during the months of July 2002 through December 2002
(4) Thirty-three of the checks had not been issued or v01ded as of the date of fieldwork
-2-

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED TIJNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS INVENTORIES EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION GENERAL LEDGER Inadequate Accountmg Procedures Reponable Cond1t10n - Material Weakness Findmg Control Number: FS-7181-02-01
(5) Numerous v01dcd checks were not properly defaced
These defic1enc1es occurred because of management's decision to hmlt the number of administrative staff made responsible for accountmg functions and failure to ensure that checks are issued in sequential order, check numbers are properly recorded on the general ledger and v01d checks are properly defaced
Inventones - School Food Services Fund
Amounts recorded on the general ledger for donated commod1t1es and purchased food mventones did not agree with mventory listing~ Dus deficiency occurred because of management's failure to ensure that required adjustments, mcluding those necessary to correct the balances after the year-end physical inventory, are recorded on the general ledger Adjustments were made to the financial statements to correct the inventory balance at June 30, 2002
Expend1tures/L1ab1hties!D1sbursements - All Funds
An examination of internal control procedures and rcVJew of seventy-six expenditure vouchers revealed that the School D1stnct faded to maintain adequate separation of duties and adequate documentation of voucher packages The following discrepancies were noted
(I) The duty of approving vouchers for payment was not adequately separated from the
duty of wnting checks. In add111on, there was no independent review to deterrnme
that expenditures were appropriate, accurate and properly documented pnor to payment
(2) Eight vouchers were prud from a copy or fax copy rather than the onginal mvmce.
(3) Sii. vouchers were paid without any evidence of receipt of items.
-3 -

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS INVENTORIES EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION GENERAL LEDGER Inadequate Accounting Procedures Reportable Cond1llon - Matenal Weakness Finding Control Nwnber FS-7181-02-01
(4) Twelve vouchers failed to include reference information to proVIde for a proper audit trail
These deficiencies occurred because of management's decis10n to hm1t the nwnber of admin1stralive staffmade responsible for accounting functions and failure to ensure that check vouchers are maintained and include adequate docwnentat10n such as onginal invmces, rece1vmg reports and reference information.
Employee Compensation - General and Special Revenue Funds
A sample of ten employees was selected for the purpose of testing the accuracy of employee compensat10n paid and internal controls over the employee compensalion funcllon The following deficiencies were noted:
(I) The duty of approving payroll disbursements for the General and Special Revenue Funds was not adequately separated from the duty of writing checks In addnion, there was no independent review ofthe payroll registers to determme that the payroll disbursements were authorized, properly docwnented and in accordance with approved contracts and salanes
(2) Two employees were paid an amount for which supporting documentation and approval could not be proVIded
These deficiencies occurred because of management's decision to hm1t the number of adm1mstralive staff made responsible for accounting funcl!ons and failure to ensure that all payroll disbursements are properly docwnented and approved
-4-

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
JI FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS INVENTORIES EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION GENERAL LEDGER Inadequate Accounting Procedures Reportable Condition - Matenal Weakness Fmding Control Number. FS-7181-02-01
General Ledger - All Funds
(I) Reports subnutted to the Georgia Department of Education. includmg the Financial
Statements and Quality Basic Education Report, did not agree to the general ledger
Testing revealed that the reports were submitted pnor to posting all transact10ns and closing the general ledger for the fiscal year This deficiency occurred because of
management's frulure to ensure that financial data used for reporting 1s accurate and
complete.
(2) An exammation of mternal accounting control procedures and a test offifteen Journal entnes revealed that thirteen journal entnes had no evidence of mdependent admin1strat1ve review and three Journal entries did not mclude adequate supporting documentation. This deficiency occurred because of management's failure to ensure that adjustments posted to the general ledger are supported with evidence of independent adnunistratJve reVJew and adequate documentat10n
(3) One mvestment account with a balance of$8,27 I 95, consisting of tax receipts from February 2002, was not recorded on the general ledger. An audit adjustment was made to the financial statements to record the investment and revenue This deficiency occurred because of management's failure to ensure that all financial activity is recorded on the general ledger
(4) USDA commod1t1es received were not recorded on the general ledger, nor could
documentat10n of the commodities received be provided. This deficiency occurred
because of management's failure to ensure that non-monetary transactions are recorded on the general ledger and documentation 1s mruntamed
Separation ofduties mvolvmg key aceounting functtons 1s the basis for acluevmg an adequate system of mtemal control Inadequate separation of duties creates an environment that does not provide reasonable assurance that accounting data and financial statements are accurate and complete Management should periodically review the decision to hm1t the number of admimstrat1ve staff
-5-

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS INVENTORIES EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION GENERAL LEDGER Inadequate Accounting Procedures Reportable Condition - Material Weakness Fmding Control Number: FS-7181-02-01
made responsible for accountmg functions to determine if employee duties can be reassigned to achieve a higher degree of mtemal control with the ex1stmg staff The School D1stnct should also establish procedures to ensure that all transactions are supported with adequate documentation. the general ledger is complete and accurate with transactions posted in a timely manner, and reports issued to the Georgia Department of Educallon are based on complete and accurate financial data The Georgia Department of Educallon should detemune if a reclaim of QBE funds 1s appropnate
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number. FS-7181-02-02
The Quitman County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as reqwred by generally accepted accounting pnnc1ples This condition results in the general-purpose financial statements of the School D1stnct bemg mcomplete and not m accordance with generally accepted accountmg pnnc1ples Appropnate acllon should be taken by the School D1stnct to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an mventory of land, buildings and eqwpment owned by the School D1stnct and should mclude, but may not be hm1ted to, date acquired, acqwsillon cost. estimated replacement cost, locat10n and descnpt10n Detailed records should be mamtained ofall additions and deletions to the General Fixed Assets Account Group.
-6-

QlTTTMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
ACTIVmES ALLOWED OR UNALLOWED ELIGIBILITY MATCHING, LEVEL OF EFFORT AND/OR EARMARKING REPORTING SPECIAL TESTS AND PROVISIONS Failure to Maintain Documentation Reportable Condition U S. Department of Education Through Georgia Department of Education Finding Control Number. FA-7181-02-01
The 2002 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies (CFDA 84 010) Program grant apphcatlon and 34 CFR 76 730 require the School D1stnct to assure the Georgia Department of Educat10n that records will be ma.mtained and provided for audit purposes. Tests performed revealed that the School District could not provide supporting documentation as follows:
Activities Allowed or Unallowed Ehg1bihty Matching, Level of Effort and/or Earmarking
Sections I through IV of the approved Title I, !ASA Apphcation Form DE 0370W,
which pertain to the source of budgeted funds by fiscal year, maintenance of fiscal
effort from nonfederal funds, determination of amounts for allocation, and determmat10n of eligible and part1cipatmg attendance areas and school allocations,
Reporting
FTE and OSIRIS reports supporting the State Per Pupil Expenditure Data submitted to Georgia Department of Education,
Special Tests and ProV1s10ns
Schoolwide Program Plan as required by Part 4 of the Compliance Supplement (4 84.01 O)lll N.
These condiuons were the result of the School D1stnct's failure to ensure that supporting documentation used to adm1mster the program was maintained for audit purposes The School D1stnct should establish procedures to ensure that apphcauons are complete and proper supporting documentation used to admuuster the program 1s maintained m compliance \\1th the requirements of the grant application and 34 CFR 76.730 Also, the Georgia Department of Education should review this matter to determine 1f a reclaim of funds is appropnate
- 7-

The general-purpose financial statements of the Board of Education did not contam a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be mcluded to conform to generally accepted accountmg pnnc1ples.
School activity accounts maintained at the individual schools are not mcluded in the general-purpose financial statements. To conform to generally accepted accountmg pnnciples, these accounts should be mcluded m the general-purpose financial statements.
The aggregate effects on the general-purpose financial statements of these variances or om1ss1ons have not been-determmed, but are believed to be matenal
In our opm10n. except for the effects on the general-purpose financial statements of the matters referred to m the precedmg paragraph, the general-purpose financial statements referred to above present fairly, in all matenal respects. the financial posit10n of the Quitman County Board of Education as ofJune 30, 2002, and the results of its operations for the year then ended. in conformity with accountmg principles generally accepted m the Umted States of Amenca.
In accordance with Government Aud1tmg Standard~, we have also issued our report dated May 12, 2003, on our consideration of the Quitman County Board of Education's internal control over financial reportmg and our tests of its compliance with certain prov1S1ons of laws. regulations. contracts and grants That report 1s an mtegral part of an audit performed m accordance with Government Auditmg Standards and should be read in conJunctJon with this report in cons1denng the results of our audit
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Quitman County Board of Education taken as a whole The accompanymg combmmg and md1v1dual fund statements (Exh1b1ts E through K) and the financial schedules (Schedules I through 5), which mcludes the Schedule ofExpenditures of Federal Awards as required by U S Office of Management and Budget Circular A-133. Audits o/States. Local Governmentl, and Non-Profit Orgamzatwns. are presented for purposes of adcht10nal analysis and are not a required part ofthe general-purpose financial statements Such mformatlon has been subJected to the aud1tmg procedures applied m the audit of the general-purpose financial statements and in our op1mon, except for the effects of the matters referred to m the third paragraph, such mformatlon 1s fairly stated, m all matenal respects. m relat10n to the general-purpose financial statements taken as a whole
2002ARL-13

A copy ofth1s report has been filed as a permanent record m the office of the State Auditor and made available to the press ofthe State, as provided for by Oflic1al Code ofGeorgia Annotated Section 506-24
Respectfully submitted,

RWHas 2002ARL-13

Hmton State Auditor

QUITMAN COUNTY BOARD OF EDUCATION

QUITMAN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES ANP ACCOUNT GROUP JUNE 30 2002

~ Cash and Caah Equ1valenb
Investment, Accounts R8C81Vable
lnventones
Food Donated C o Purchased Food
Amount Available., Debt Ser'i1C8 Fund Amount to be PrtMded in FutLn Years
For Payment of Bond Debt
TotalAueb

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

s

468,643 19 S

10563892 S

234,348 9"4

612 125 27

107 68

227,587 54

42 992 77

779 89 704 18

s 130835600 $

150 115 76 S ___2__3_4_4_56__60_

LIABILITIES AND FUND EOU\IY
LIABILITIES
Accoun1a Payable Salanes Payable Exp,red Grant Balances Payable Deferred Revenue Funds Held tor Others General Ob11gat1011 Bonds Payable
Total Liabilities
FUNPEQUITY
Fund Balances
Reserved
For Bus Replacement Fl.nds ForDetJISeMce
For Expired Grant Balancet/Quesboned Costs For lnventones
Food
Donated Commodrtles Purchased Food For Purpose of Bood Issue Unreaerwd Oes,gnated for Self-Insurance Undealgn81ed
TOUII Fund Equity
Total L1abllrhes and Fund Ecpty

s

73 062 31 s

61 643 71

15941129

45 147 94

4,638 05

1 079 25

632 20

s

237111 65 s

106.503 10

s

62 502 35

s
21 030 60 9B7 71140
s 1 071 244 35 s

779 89 704 18
s
40 128 59
41 s12 ea s

233 835 54
621 06 234 456 60

s 1 308 356 00 s

15011576 s

234 456 60

The noln lo the ~-t)UfpOle flnanaa\ statementti an, an 11'\tegral pan of th\!. statement
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