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

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E.XHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE
AGENCY FUNDS

$

50,740.96 $

49,384.50

4.34

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

{Memorandum Onl:i'.l

JUNE 30, 2001

JUNE 30, 2000

$ 6,460,437 41 $ 5,230,030.TT

2,092,315 45

2,271,295.10

$

50,745.30

12,913.46 5,295.19
50,745.30

9,903.45 5,635.29
47,93028

2,899,254.70 302,110.92

2,899,254.70 302,110 92

4,252,069.72 321,663 78

$

50,74530 $

49,384 50 $ 312521110.92 $ 11 18231072.43 $ 1211381528.39

$

14,353.84 $

36,99643

363,164.36

394,791.66

1,205,347.80

1,174,869.TT

2,079.79

197,481.98

304,307.10

52,64016

$

49,384.50

49,384 50

84,030.32

$

302,110.92

302,110.92

321,663.78

2,950,000 00

2,950,000.00

4,300,000.00

$

49,384.50 $ 3,252,110.92 $ 5,083,923.19 $ 6,669~99.22

$

50,745.30

000

$

50,74530

$

106,491.00 $

114,329 00

50,745.30

47,930.28

12,913.46 5,295.19
1,465,941.94 21,900.00

9,90345 5,635.29 716,860.91 21,900.00

5,075,862.35

4,552,670.24

$ 6,739,149.24 $ 5,469,229 17

$

50.745.30 $

49,384.50 $ 312521110.92 $ 11,823,072.43 $ 12,138,528.39

.3.

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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Admm1stration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital OuUay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES IUSES)
Capital Leases Operabng Transfers In Operabng Transfers Out
Total Other Finanang Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commod1bes Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 6,394,536.45 $ 3,517.87
8,492,840.41 308,349.40
$ 15,199,244.13 $

284,122.00 994,190.70
376,325.67
1,654,638.37

$ 9,508,324.07 $
464,253.45 168,074.94 353,136.98 231,049.36 907,725.64 181,213.20 963,284.96 725,054.51
10,098.90 56,613.46
1,064.67 275,445.35
33,952.86 14,482.09
$ 13,893,774.44 $
$ 1,305,469.69 $

689,668.78 16,079.32 83,223.70 950.00 23,303.72
34,053.79 842,442.15
1,689,721.46 -35.083.09

$

14,400.00

$

-774.297.46

$ -759,897.46 $

4,864.97 4 864.97

$

545,572.23 $

4,278,279.22

-30,218.12 45,756.86

3,010.01 -340.10

FUND BALANCE JUNE 30

$ 4,823,851.45 $ ===1~85,2,:08~.6;;;;5;;,.

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

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 301 2001

JUNE 301 2000

$ 6,678,658.45 $ 5,792,897.56

997,708.57

1,000,349.83

$

941,934.23 $ 1,524,243.12

10,959,017.76

9,956,739.04

139,403.16

2,796.90

826,875.13

724,296.87

$ 1,081,337.39 $ 1,527,040.02 $ 19,462,259.91 $ 17,474,283.30

$ 10,197,992.85 $ 9,314,371.76

$ 1,101,688.85

480,332.77 251,298.64 354,086.98 254,353.08 907,725.64 181,213.20 963,284.96 725,054.51
44,152.69 56,613.46 843,506.82 1,377,134.20

586,560.98 208,367.58 337,537.60 239,433.94 804,812.16 152,185.25 872,738.04 634,747.21
30,585.60 52,135.13 825,022.16 6,428,090.05

$ 1,350,000.00 174,225.00

1,383,952.86 188,707.09

32,991.56 '191,530.84

$ 1.101,688.85 $ 1,524,225.00 $ 18,209,409.75 $ 20,711,109.86

$

-20,351.46 $

2,815.02 $ 1,252,850.16 $ -3,236,826.56

$

769,432.49

$

769,432.49

$

749,081.03 $

1,097,262.81

$

14,400.00

774,297.46 $ 2,845,687.50

-774,297.46

-2,845.687 .50

$

14400.00 $

0.00

2,815.02 $ 47,930.28

1,267,250.16 $ -3,236,826.56

5,469,229.17

8,709,905.76

3,010.01 -340.10

-4,836.98 986.95

$ 1,846,343.84 $

50,745.30 $ 6,739,149.24 $ 5,469,229.17

-5-

RABUN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL /NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2001

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues

$ 6,038,951.29 $ 6,394,536.45

75,000.00

3,517.87

7,243,880.00

8,492,840.41

135,00000

308,349.40

$ 13,492,831.29 $ 15,199,244 13

EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General AdminIstrat1on School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Total Expenditures

$ 9,415, 137.00 $ 9,508,324.07

415,626.00 141,022.00 347,289.00 303,326.00 861,447.00 154,362.00 1,039,252.00 702,506.00
13,000.00 58,700.00
900.00 300,000.00
49,521.00

464,253.45 168,074.94 353,136.98 231,049.36 907,725.64 181,213.20 963,284.96 725,054.51
10,098.90 56,613.46
1,064.67 275,445.35
48434 95

$ 13,802,088 00 $ 13,893,TT4 44

Excess of Revenues over (under) Expenditures

$ -309,256.71 $ 1,305,469.69

OTHER FINANCING SOURCES /USES}

Other Sources Other Uses

$

5,000.00 $

14,400.00

-TT4129746

Total Other Finanang Sources (Uses)

$

5,000.00 $ -759,897.46

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

-304,256 71 $

545,572.23

FUND BALANCE JULY 1. 2000

3,998,386.76

4,278,279.22

Adjustments Food Inventory - Net Change in Penod
Donated Commod1t1es Purchased Food

FUND BALAN!:.1;;; ,!UNE aQ. 2001

$ 316941130 05 $ 418231851 45

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 257,982.00 $ 284,122.00

981,933 00

994,190.70

370,275.00

376,32567

$ 1,610,190 00 $ 1,654,638.37

$ 694,540.00 $ 689,668.78

12,000.00 TT,128.00
950.00 33,399.00

16,079.32 83,223 70
950.00 23,303.72

30,700.00 1,618.00
843,287.68

34,053.79 842,442.15

6,833.75

$ 1,700,456 43 $ 1,689,721.46

$ -90,266 43 $ -35,083.09

$

4,864.97

$

486497

$ -90,266.43 $ -30,218.12

56,487.65

45,756 86

2,745.86

3,010.01 -340.10

$ -311032 92 $

181208.65

The notes to the general-purpose financial statements are an integral part of this statement. -6-

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

.

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Rabun 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 1s 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 Gen~ral 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 allState, 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-

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: 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.

FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:

AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other

funds, governments, or individuals.



ACCOUNT GROUP

GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.

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.

Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.

Governmental funds are accounted for using the modified accrual basis of accounting under which:

-8-

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's
share of these contracts are disbursed to the School District in the same twelve month period. In
accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The Rabun County Board ofEducation'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 of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
-9-

RABUN COUNTY BOA.RD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 Rabun County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 3, 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 revenue in fiscal year 2001. The Rabun County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $5,981,812.67 and for school bonds amounted to $18.12.

The tax millage rate levied for the 2000 tax year (calendar year) for the Rabun County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

6.828 mills

SALES TAXES

Local Option Sales Tax revenue during the fiscal year amounted to $2,458,420.99 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation ofthe School District.

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $2,466,159.23 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $769,399.32 has been collected or on December 31, 2002 , whichever occurs first.

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 amo~ts 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. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The School District has the following types of interfund transactions:

Reimbursements ofexpenditures initially made from a fund that are properly applicable to another

fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the

fund that is reimbursed.



Operating transfers are recorded for all interfund transactions other than reimbursements.

MEMORANDUM ONLY -TOTAL COLUMNS

Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results 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. Certain reclassifications have been made to the comparative data to conform to the current year classifications.

- 11 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 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 S~ction 45:.s-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 ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS

.

At June 30, 2001, the bank balances were $4,727,943.82. The amounts ofthe total bank balances are

classified into three categories of credit risk:

- 12 -

RABUN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMB~G STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

27

K

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

28

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS

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 :" partment or agent but not in the School District's name.)

The School Distric; . . ~posits are classified by risk category at June 30, 2001, as follows:

Risk Category

Bank Balance

1

$ 445,959.62

2

4,281,984.20

3

0.00

Total

$4,727,943.82

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

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

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

- 13 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 4: RISK MANAGEMENT

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

The School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered

Amount

Superintendent All Employees

$ _100,000.00 $ 50,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Rabun County Board of Education has entered into various lease agreement~ as lessee for computer equipment, copiers and energy savings equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception.

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

Purpose

Interest Rates

Amount

General Government - Series 1998

4.00%-4.10% $ 2,950.000.00

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

- 14 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 200 I

Note 5: GENERAL LONG-TERM DEBT

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 2000 .

$ 314,713.78 $4,300,000.00 $4,614,713.78

Retroactive Restatement of Prior Year Balances

6,950.00

0.00

6,950.00

Balance July 1, 2000 Restated

$ 321,663.78 $4,300,000.00 $ 4,621,663.78

Additions Capital Leases

14,400.00

14,400.00

Deductions Debt Retired

. 33,952.86 1,350,000.00 1,383,952.86

Balance June 30, 2001

$ 302,110.92 $2,950,000.00 $ 3.252.110.92

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

Capital Leases

General Obligation
Bonds

Total Debt

2002 2003 2004 2005 2006 2007 -2011

$ 54,845.40 $ 1,570,225.00 $ 1,625,070.40

54,845.40 1,561,500.00 1,616,345.40

49,793.40

49,793.40

48,403.40

48,403.40

46,985.40

46,985.40

105,572.60

105,572.60

Total Principal and Interest $ 360,445.60 $ 3.131.725.00 $3,492,170.60

Deduct: Imputed Interest

58,334.68

Net Present Value ofFuture Minimum Lease Payments $ 302.llQ.92

- 15 -

RABUN COUNfY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 6: ON-BEHALF PAYMENTS
The School District has recognized revenues and expenditures in the amount of $245,737.60 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies.
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $188,483.00
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $21,324.60
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$35,930.00
Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 8: SUBSEQUENT EVENTS
On September 18, 2001, the voters of Rabun County voted in favor of a Special Purpose Local Option Sales Tax Referendum for educational purposes. The imposition ofthe tax approved by the voters, as stated on the Official Ballot of Rabun County, is as follows:
"Shall a one percent sales and use tax be imposed in Rabun County for a period oftime not to exceed 20 calendar quarters, commencing upon the expiration ofthe special one percent sales and use tax currently being levied in Rabun County, and for the raising of not more than $12,000,000.00 for the purpose ofproviding funds to pay or to be applied toward the cost of the acquisition, construction and equipping of a new elementary school, including necessary furnishings and equipment; the acquisition, construction and equipping of additional instructional, support and physical education facilities at the existing schools; renovations and improvements at existing schools, including the acquisition of necessary furnishings and equipment; and system-wide technology improvements, the maximum cost of such projects not to exceed $12,000,000.00.

- 16 -

RABUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 8: SUBSEQUENT EVENTS

If imposition ofthe tax is approved by the voters, such vote shall also constitute approval of

the issuance of general obligation debt of the }--.abun County School District in the principal

amount of$5,000,000.00 for the above purposes."



Note 9: 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 ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

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

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 946,909.29 $ 873,818.05 $ 854,137.78

- 17 -

' RABUN COUNTYBOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL ~EVENOE FUND JUNE 30, 2001

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

61,973.41 $

0.00

12,913.46 51295.19

$

801182.06 $====0==00=

LIABILITIES AND FUND EQUITY
LIABIL,.ITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and,Fund Equity

$

14,078.73

47,894.68

$

61.973.41

$

12,913.46

5,295.19

0.00 $

0.00

$

181208.65 $

0.00

$

801182.06 $=====0=00=

See notes to the general-purpose financial statements. - 18 -

EXHIBIT"E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

61,973.41 $

91,375.53

$

134,264.20 $

1,085.11

135,349.31

175,351.79

12,913.46 5,295.19

9,903.45 5,635.29

$

134,264.20 $

1 085.11 $

215,531.37 $ ==2=8=2=,2=66.,,..=06=

$

75,242.14 $

13,980.47

43,999.07

1,042.52

$

134,264.20 $

1,085.11 $ 1 085.11 $

76,327.25 $ 28,059.20 91,893.75
1,042.52
197,322.72 $

128,371.96 26,735.08 81,402.16
236,509.20

$

12,913.46 $

5,295.19

9,903.45 5,635.29

$

0.00 $ _ _ _ _o___._o_o__

0.00

30,218.12

$

0.00 $

0.00 $

18,208.65 $ ____4_5__""7"'--5_6_.8....6.__

$

134,264.20 $

1 085.11 $

215,531.37 $=====2=8=2=,2=66==06=

- 19 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Central Support Services Other Support Services Food Services Operation
To~I Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements.
-20-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

60,550.00 $

178,686.00

416,634.43

335,039.60

$

812,224.03 $

178,686.00

$

178,686.00

$

842,442.15

$

842,442.15 $

178,686.00

$

-30,218.12 $

0.00

$

-30,218.12 $

0.00

45,756.86

0.00

3,010.01 -340.10

$

18,208.65 $====0==00=

EXHIBIT"F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 301 2001

JUNE 30, 2000

$

$

577,556.27

$

577,556.27 $

44,886.00 $ 41,286.07 861172.07 $

284,122.00 $ 994,190.70 376,325.67
1,6541638.37 $

166,565.88 988,430.78 341,654.88
1,4961651.54

$

426,554.80 $

16,079.32 74,773.05
950.00 23,303.72

34,053.79

$

575,714.68 $

$

1 841.59 $

84,427.98 $ 8,450.65
92,878.63 $ -6,706.56 $

689,668.78 $
16,079.32 83,223.70
950.00 23,303.72
34,053.79
842,442.15
1,689,721.46 $
-35,083.09 $

573,559.42
7,758.06 76,853.35 2,500.00 35,272.87
550.00 20,832.00
957.13 824,122.16
1,542,404.99
-45,753.45

$

$

-1,841.59

$0

-1,841.59 $

$

0.00 $

0.00

6,706.56 $ 6,706.56 $

6,706.56 $ -1 841.59
4,864.97 $

1,841.59 1,841.59

0.00 $ 0.00

-30,218.12 $ 45,756.86

-43,911.86 93,518.75

3,010.01 -340.10

-4,836.98 986.95

$

0.00 $

0.00 $

181208.65 $ ===4=5=17=56=.=86=

- 21 -

RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

BOND PROCEEDS

$

358,501.90 $

0.00

$

358,501.90 $ =======0-=00=

$

358,501.90 $ _ _ _ _:::,:0.::.;00=-.

$

358,501.90 $ _ _ _ _0:::,:.::.;00=-.

$

358,501.90 $=====0=00==

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

RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDIDONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

5

BY SITE

Page
31 33 35 36 37

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

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

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

EXHIBIT"G"

GEORGIA STATE FINANCING AND
INVESTMENT
COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 301 2001

JUNE 30, 2000

$

219,381.98 $ 1,037,286.61 $ 1,615,170.49 $ 1,028,957.69

428,655.33

428,655.33

425,252.38

$

219,381.98 $ 1,465,941.94 $ 2,043,825.82 $ 1,454,210.07

$

197,481.98

$ _ _1~9...;..7i..;.,4..;;..81.;.;..9;;..;;8'--

$

197,481.98 $

304,307.10

52,640.16

$

197,481.98 $ _ _3_5_6_,94_7_.2_6_

$ 1,465,941.94 $ 1,465,941.94 $

716,860.91

$

21,900.00

21,900.00

21,900.00

0.00

0.00

358,501.90

358,501.90

$

21,900.00 $ 1,465,941.94 $ 1,846,343.84 $ 1,097,262.81

$

219,381.98 $ 1,465,941.94 $ 2,043,825.82 $ 1,454,210.07

- 23-

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

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

REGULAR

BOND PROCEEDS

$

0.00 $

0.00

$

0.00 $

0.00

$

0.00 $

0.00

$

0.00 $

0.00

$

0.00 $

0.00

358.501.90

0.00

$

358.501.90 $ ====0==00=

See notes to the general-purpose financial statements. - 24-

EXHIBIT "H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30 1 2001

JUNE 30, 2000

$ _ _1.;.;;3;.,;;;9.L,;,4=0=3.'-'--16~ $ _ _1.;.;3.;;.9i..;.,4.;.;03;.;.1.;.;;..

941,934.23 $ 941,934.23 $

941,934.23 $ 139,403.16
1,081,337.39 $

2,190,374.05 102,309.17
2,292,683.22

$ 1,101,688.85 $ _ _ _ _0==00~ $ 1,101,688.85 $ 6,349,260.17

$

-962,285.69 $

941,934.23 $

-20,351.46 $ -4,056,576.95

$

962,285.69

$

962,285.69 $ 8,615,498.12

$

-192,853.20

-192,853.20

-5,771,652.21

$

962,285.69 $

-192,853.20 $

769,432.49 $ 2,843,845.91

$

0.00 $

749,081.03 $

749,081.03 $ -1,212,731.04

21,900.00

716,860.91

1,097,262.81

2,309,993.85

$

21,900.00 $ 1,465,941.94 $ 1,846,343.84 $ 1,097,262.81

- 25-

RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$ 50,740.96 $

0.00 $

50,740.96 $

47,925.59

4.34

4.34

4.69

Total Assets

$ 50,745.30 $

0.00 $

50,745.30 $ ===4==7'=93=0=.2=8=

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ 50,745.30

$

0.00 $ ______0._0_0_

50,745.30 $ 0.00

47,930.28 0.00

Total Fund Equity $ 50,745.30 $

0.00 $

50,745.30 $ ===4=7'=93..,0....2...8.=

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

RABUN 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
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING USES
Operating Transfers Out
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$

18.12 $ 1,524,225.00 $ 1,524,243.12 $

2,796.90

2,796.90

$ 2,815.02 $ 1,524,225.00 $ 1,527,040.02 $

45.57 2 77047
2,816.04

$ 1,350,000.00 $ 1,350,000.00

$

0.00

174,225.00

174,225.00 $ 174,225 00

$

0.00 $ 1,524,225.00 $ 1,524,225 00 $ 174,225.00

$ 2,815.02 $

0.00 $

2,815.02 $ -171,408.96

$ 2,815.02 $ 47,930.28

-2,266,237.95

0.00 $ 0.00

2,815.02 $ -2,437,646.91

47,930.28

2,485,577.19

FUND BALANCE JUNE 30

$ 50,745.30 $

0.00 $

50,745.30 $===a4=7=,9=30=2=8=

See notes to the general-purpose financial statements.

-27-

RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2001

EXHIBIT "K"

BREWER SCHOLARSHIP
ASSETS Cash and Cash Equivalents

BALANCE JULY 11 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2001

$ 29,059.89 $ 1,548.86 $

30,900.00 $ =======-2..,9..,1.=25.,,,

LIABILITIES Funds Held for Others

$ 29,059.89 $ 1,548.86 $

30,900.00 $===-2=9=1=.25==

CARY SUTTLE SCHOLARSHIP
ASSETS Cash and Cash Equivalents

$

0.00 $ 3,000.00 $

31000.00 $====o=.o=o=

LIABILITIES Funds Held for Others
HARRIS SCHOLARSHIP ASSETS
Cash and Cash Equivalents

$

0.00 $ 3,000.00 $

31000.00 $====0=.0..0...

$

0.00 $

157.51 $

250 00 $===-=92=.4=9=

LIABILITIES Funds Held for Others

$

0.00 $

157.51 $

250.00 $======-9=2-=49==

J. 0. KING SCHOLARSHIP
ASSETS Cash and Cash Equivalents

$

77.74 $

0.00 $

0.00 $====7,..7..,74=

LIABILITIES Funds Held for Others

$

77.74 $

0.00 $

0.00 $ ====7=7=-.7=4

LAKE RABUN ASSOCIATION/CLAYTON TRIBUNE SCHOLARSHIP FOUNDATION FUND
ASSETS Cash and Cash Equivalents

$ -1,125.66 $ 54,000.00 $

43,000.00 $===9=8=7=4.=34=

LIABILITIES Funds Held for Others

$ -1,125.66 $ 54,000.00 $

43,000.00 $ ===9=,8=7=4..,34=

-28-

RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2001

EXHIBIT"K"

MUSIC/ART SCHOLARSHIP FOUNDATION FUND
ASSETS Cash and Cash Equivalents

BALANCE JULY 11 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2001

$

3,349.90 $ 2,000.00 $

4,500.00 $ =====84=9=.9=0=

LIABILITIES Funds Held for Others

$

3,349.90 $ 2,000.00 $

4,500.00 $ =====84=9~.9=0=

PANELL SCHOLARSHIP
ASSETS Cash and Cash Equivalents

$ 24,035.13 $

000 $

3,535.00 $=====2=0=,5=00===13==

LIABILITIES Funds Held for Others

$ 24,035.13 $

000 $

3,535.00 $ =====2=0=,5,..00;.;1..3=

PARKIN/KRIVSKY SCHOLARSHIP
ASSETS Cash and Cash Equivalents

$

2,000.00 $ 1,000.00 $

2,000.00 $===1=,0=00...0..0....

LIABILITIES Funds Held for Others

$

2,000.00 $

1,000 00 $

2,000.00 $ ===1=,0=0~0-=00==

RABUN COUNTY SCHOLARSHIP FOUNDATION
ASSETS Cash and Cash Equivalents

$ 23,666.09 $ 22,247.51 $

30,750.00 $ ===1=5=1,=63~.6=0=

LIABILITIES Funds Held for Others

$ 23,666 09 $ 22,247.51 $

30,750.00 $==1=5=,1=63;;..6=0==

WILDER SCHOLARSHIP FOUNDATION
ASSETS Cash and Cash Equivalents

$

1,300 00 $ 1,300 00 $

1,500.00 $===1=,1=00===00...

LIABILITIES Funds Held for Others

$

1,300.00 $ 1,300.00 $

s 1,500.00 ===1=1,=00=.o=o=

- 29-

RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 2001

EXHIBIT"K"

WILLIAM L. BROOKSHIRE SCHOLARSHIP ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
TOTALS -AGENCY FUNDS ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JULY 11 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2001

$

1,667.23 $

535.30 $

1,000.00 $ ===1=2=02.,,5=3=

$

1,667.23 $

535.30 $

1,000.00 $===1=",2=02=.5=3=

$ 84,030.32 $ 85,789.18 $ 120,435.00 $=====49..,,3=84==50= $ 84,030.32 $ 85,789.18 $ 120,435.00 $==49.,.,3..,84==50=

See notes to the general-purpose financial statements.

- 30-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agnculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program

. 10.553 . 10.555

NIA $ 80,226.27

NIA

288,021.62 $

(2) 794,055.61 (3)

Total Child Nutrition Cluster

$ 368,247.89 $

794,055 61

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Services

Food Distnbution Program (1)

10.550

NIA

Pass-Through From Office ofTreasury and Fiscal Services

National Forest Reserve Funds

10.665

NIA

48,386 54 3,517.87

48,386.54 (4)

Total U. S. Department of Agriculture

$ 420,152.30 $

842,442.15

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Flow Through Preschool

84.173 84.027 84.173

NIA

$

7,258.54 $

NIA

167,690.52

NIA

22,607.33

7,258.54 166,735.23 22,607.33

Total Special Education Cluster

$ 197,556.39 $

196,601.10

Other Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I

Grants to Local Educational Agenaes

84.010

NIA

Title II

Eisenhower Professional Development

84.281

NIA

Title VI

Innovative Education Program Strategies

84.298

NIA

Class Size Reducllon

84.340

NIA

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84.048

NIA

288,734.88 16,000.00 11,872.00 41,797.00
21,596.00

287,848.58 16,000.00 11,872.00 41,797 00
21,596.00

Total U. S. Department of Education

$ 5TT,556.27 $

575,714.68

Total Federal Financial Assistance
NIA = Not Available

$ 997,708.57 $ 1,418,156.83

- 31 -

RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXF?ENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program W!ilre not maintained separately and are Included rn the 2001 Nallonal 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 reporting of expenditures.
Major Programs are Identified by an asterisk (*) In front of the CFDA number.
The School District did not provide Federal Assistance to any Subreclpient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Rabun County Board of Education and 1s presented on the modified accrual basis of accounting which is the basis of accounting used in the presentallon of the general-purpose financial statements.

See notes to the general-purpose financial statements

- 32-

SECTION I FINANCIAL

RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) 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 CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Innovative Programs Mentoring Program Mentor Teachers PayforPerlorrnance Preschool Handicapped Program Remedial Summer School Special Education Low Incidence Grant Teachers' Retirement Lottery Programs Computers in the Classroom vocational Technology
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

349,485.00

77,407.00

1,008,746.00

93,846.00

511,454.00

243,569.00

487,495.00

711,536.00

221,746.00

4,499.00 201,607.00 371,415.00
31,637.00 9,710.00
46,081.00 31,605.00 62,403.00 68,710.00 144,557.00 36,785.00 999,935.00

$ 349,485.00
77,407.00 1,008,746.00
93,846.00 511,454.00 243,569.00 487,495.00 711,536.00 221,746.00
4,499.00 201,607.00 371,415.00
31,637.00 9,710.00
46,081.00 31,605.00 62,403.00 68,710.00 144,557.00 36,785.00 999,935.00

362,894.00 104,798.00
59,711.00 8,901.00 11,453.00
-1,083,033.00 857,237.83
$
16,993.73

60,550.00

1,925.47 188,483.00
5,000.00 6,500.00 2,934.00 4,985.00 31,466.00 2,427.82 14,819.00 21,324.60

43,686.00 135,000.00

362,894.00 104,798.00
59,711.00 8,901.00 11,453.00
-1,083,033.00 857,237.83 60,550.00 16,993.73
1,925.47 188,483.00
5,000.00 6,500.00 2,934.00 4,985.00 31,466.00 2,427.82 14,819.00 21,324.60
43,686.00 135,000.00

35,930.00

35,930.00

- 33-

RABUN COUNTY,BOARD-OF EDUCATION SCHEDUt,E,OF STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE "2"

AGENCY/FUNDING
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

25,558.00

$

25,558.00

$ _ _44~1_sa_s_.o_o_

44,886.00

$ 6,394,536.45 $ 284,122.00 $ 6,678,658.45

See notes to the general-purpose financial statements.

-34-

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

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED IN PRIOR YEARS (3)

Acquis1bon, construcbon and equipping add1bonal

classrooms, instrucbonal and support space at the

mIddle/h1gh school, renovabng, equIppIng and

modifying exIsbng classrooms, instrucbonal and

support space at said school, providing for paymen

or reimbursement of the costs of reroubng and

storm drainage improvements at said school,

funcbonal add1bonal capital pro1ects including

acquIsIbon, construcbon and equipping addIbonal

classrooms, instrucbonal and support space and

remodeling and renovating existing classroom,

instrucbonal and support space at ex1sbng school,

facihbes and paying expenses incident thereto

$ aI000I000 oo $ 1316001000 00 $

1,2751913 85 $ 111909,533 77

PROJECT STATUS
Ongoing

(1) The School o,stncrs onginal cost esbmate as specified in the resolubon calling for the ,mposrtJon of the Local Opbon Sales Tax
(2) The School Distncrs current esbmate of total cost for the project Includes all cost from project incepbon to complebon
(3) The voters of Rabun County approved the Imposition of a 1% sales tax to fund the above pro1ect and rebre associated debt Amounts expended for the proJect may include sales tax proceeds, state, local property taxes and/or other funds over the life of the proiect.

See notes to the general-purpose finanaal statements

35.

RABUN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM CQBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2001

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) 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 CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program Enghsh 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

$

564,901.00 $ 554,610.01 $ 12,539.91 $ 567,149.92

125,119.00

126,952.12

1,709.98

128,662.10

1,630,521.00 1,751,899.28

117,735.54

1,869,634.82

151,691.00

163,980.52

2,274.11

166,254.63

826,706.00

906,426.n

45,115.55

951,542.32

393,701.00

411,464.33

16,183.28

427,647.61

787,979.00

957,331.22

114,052.11

1,071,383.33

1,150,116.00 1,495,131.41

161,392.84

1,656,524.25

358,427.00

476,480.87

91,539.26

568,020.13

1,000,326.00

37,414.90

37,414.90

168,700.58

4,044.28

172,744 86

741,099 11

48,299.65

789,398.76

82,091.07

3,263.37

85,354.44

27,914.61

170.60

28,085.21

74,485.00

112,210.03

6,194.28

118,404.31

51,086.00

51,504.48

1,073.00

52,577.48

100,867.00

131,577.10

2,803.36

134,380.46

111,061 00

110,080.26

2,539.47

112,619.73

$

7,326,986.00 $ 8,306,868.67 $ 630,930.59 $ 8,937,799.26

233,659.00 59457 00

304,616.93 36,427.44

41,345.67 29,685.64

345,962.60 66,113.08

TOTAL QBE FORMULA FUNDS

$

7,620,102.00 $ 8,647,913.04 $ 701,961 90 $ 9,349,874.94

(1) Compnsed of State Funds plus Local Five Mill Share.

See notes to the general-purpose financial statements.

- 36-

RABUN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE . YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

SITE Rabun County Middle School Rabun County High School Clayton Elementary School Rabun Gap Community School South Rabun Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,017,861.00 $

1,332,142.37

1,851,268.00

.2, 722,652.55

1,610,674.00

1,772,138.78

1,126,932.00

1,295 ,441.58

1,619,384.00

1,680,635.36

100,867.00

134,788.62

$

7,326,986.00 $ ====8,=9=37=,7=9=9.=2=6

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

RussELL W. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S W., Suite 2 I4 Atlanta, Georgia 30334-8400
May 17, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Rabun County Board of Education
REPORT :;N COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTii'::: BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORD:<'.::lCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofRabun County Board ofEducation as ofand for the year ended June 30, 2001, and have issued our report thereon dated May 17, 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 Rabun 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 of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that" are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Rabun 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 operatiqn 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 Rabun County Board of Education'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-7191-01-01.
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-7191-01-01 to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe Rabun 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,
--:::>,, .,.,00 ~-~
~~ell W. Hinton State Auditor
RWH:as 2001YB-41

RussELL W. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa!.hington Street. S W., Suite 214 Atlanta, Georgia 30334-8400
May 17, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Rabun County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH
o:r,..m CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofRabun 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. Rabun County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its maj'or Federal programs is the responsibility of Rabun County Board of Education's management. Our responsibility is to express an opinion on Rabun 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 o:r,..m Circular A-
133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and
o:r,..m 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 Rabun 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 Rabun County Board of Education's compliance with those requirements.
2001SA-10

In our opinion, the Rabun County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Rabun 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 Rabun 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 of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofthe management, members ofthe Rabun 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,
~lD~
Russell W. Hinton State Auditor
RWH:as 2001SA-10

RussE1.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 17, 2002

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Rabun 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 ofthe Rabun County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Rabun County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those 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 ~y management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm1on.
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

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

RABUN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001

PRIOR YEAR FINANCIAL STATEl\fENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7191-99-01 FS-7191-00-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS

Failure to Maintain General Fixed Assets Account Group

Finding Control Number: FS-7191-00-01



We are aware ofthis situation and are working towards meeting this requirement by fiscal year 2003.

SECTION IV FINDINGS AND QUESTIONED COSTS

RABUN 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 Rabun County Board of Education'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 au~t report for the Rabun County Board of Education 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 ofthe Rabun County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Rabun County Board of Education 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 Rabun 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 Rabun County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 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 Rabun County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.
- 1-

RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7191-01-01
The Rabun 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 ofa 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, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group.
Management's Response:
We are aware ofthis situation and are working towards meeting this requirement by fiscal year 2003.
BUDGET PREPARATION/EXECUTION Failure to Adopt a Balanced Budget Nonmaterial Noncompliance Finding Control Number: FS-7191-01-02
An examination of the School District's budget revealed that the School District failed to adopt a balanced budget for the Special Revenue Fund. Chapter 32 of the Financial Management for Georgia Local Units ofAdministration (FMGLUA) issued by the Georgia Department ofEducation states in part:
"The budget must be balanced for all budgeted funds. Total anticipated revenues should equal total estimated expenditures. In the event anticipated revenues are insufficient to fund anticipated expenditures, a portion of the unreserved fund balance from the previous years must be used to fund the shortfall. In the event there is insufficient unreserved fund balance from previous years to fund anticipated expenditures, then such expenditures must be reduced to equal anticipated revenues plus available fund balance."
This condition occurred because management neglected the specific limitations imposed upon the School District by the Georgia Department of Education. Appropriate procedures should be implemented by the School District to ensure that the adopted budget is balances as required.
-2-

RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001 Il FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS BUDGET PREPARATION/EXECUTION Failure to Adopt a Balanced Budget Nonmaterial Noncompliance Finding Control Number: FS-7191-01-02 Management's Response: Steps have been taken to correct this problem due to our low fund balance in School Food Service. The general fund will be offsetting some of those expenditures. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-3-

* 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 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 ofthe Rabun CountyBoard ofEducation as of June 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated May 17, 2002, on our consideration ofthe Rabun County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, 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 Rabun County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through K) 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 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.
2001ARL-13

A copy ofthis report has been filed as a per available to the press ofthe State, as provi . 6-24.

::t record in the office ofthe State Auditor and made _. by Official Code ofGeorgia Annotated Section 50-
Respectfully submitted,
~W-~~

RWH:as 2001ARL-13

State Auditor

RABUN COUNTY BOARD OF EDUCATION

RABUN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2001

ASSETS
Cash arid Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available m Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 4,745,141.46

$ 1,615,170 49

1,528,306.47 $ 135,349.31

428,65533

12,913.46 5,295.19

Total Assets

$ 6.273A47.93 $ 153,557.96 $ 2,043,825.82

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Reta1nages Payable Funds Held for Others Capital Lease Agreements General Obligabon Bonds Payable
Total Liabilibes
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Inventories Food Donated Commodibes Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

$

335,105.16

1, 113,454.05

1,037.27

14,353.84 28,059.20 91,893.75
1,042.52 $

197,481.98

$ 1.449.596.48 $ 135.349 31 $

197.481.9~

$

106,491.00

$
4.717.360.45 $ 4.823.851 45 $

12,913 46 5,295.19 $
0.00
18,208.65 $

1,465,941.94 21,900.00
358.501.90
1.846.343 84

Total L1abilibes and Fund Equity

$ 612731447.93 $ 1531557.96 $ 2:0431825.82

The notes to the general-purpose financial statements are an integral part of this statement. 2-