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 RABUN COUNTY BbARD OF EDUCATION -TABLE OF CONTENTS- 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITIJRES 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, EXPENDITIJRES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
4 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACI1JAL 
 
(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 
 
COMBINING STATEMENT OF REVENUES, EXPENDITTJRES 
 
AND CHANGES IN FUND BALANCES 
 
20 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
22 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITTJRES 
 
AND CHANGES IN FUND BALANCES 
 
24 
 
DEBT SERVICE FUND 
 
I 
 
COMBINING BALANCE SHEET 
 
26 
 
J 
 
COMBINING STATEMENT OF REVENUES, EXPENDITTJRES 
 
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 -TABLE OF CONTENTS- 
 
SECTION I 
 
FINANCIAL 
 
ADDmONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
1 SCHEDULE OF EXPENDTI1JRES OF FEDERAL AWARDS 
 
31 
 
2 SCHEDULEOFSTATEREVENUE 
 
33 
 
3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
35 
 
ALLOTMENTS AND EXPENDITURES 
 
GENERAL FUND - QUALTIY BASIC EDUCATION PROGRAMS (QBE) 
 
4 
 
BY PROGRAM 
 
36 
 
5 
 
BY SITE 
 
37 
 
SECTIONil 
COMPLIANCE AND INTERNAL CONTROL REPORTS 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN 
ACCORDANCE wrrn GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE wrrn REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE wrrn 
0MB CIRCULAR A-133 
 
SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 RussELL W. H1NmN 
STATE AUDITOR 
<04) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400 
February 12, 2003 
 
Honorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education 
and Superintendent and Members ofthe 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, 2002, 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 by 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: 
 
2002ARL-13 
 
 * The general-purpose financial statements of the Board of Education did not contain a 
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. 
* School activity accounts maintained at the individual schools are not included in the 
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. 
The 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 County Board ofEducation as of June 30, 2002, 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 February 12, 2003, 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. 
2002ARL-13 
 
 A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. 
 
RWH:gp 2002ARL-13 
 
State Auditor 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
 RABUN COUNTY BOARD OF EDUCATION 
COMBIN!;D BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2002 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
Amount Available in 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 
 
$ 5,158,341.77 $ 
 
67,92677 $ 7,929,373 41 
 
1,519,638.04 
 
132,981.20 
 
447,853.47 
 
11,996.91 5,479.12 
 
Total Assets 
 
$ 6,677,97981 $ 218,384 00 $ 8,377,226.88 
 
bl~lblIIES ~1:2 FUND EQUITY 
LIABILITIES: 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others capital Lease Agreements General Obl:gation Bonds Payable 
Total Uabilibes 
FUNDECVIJY 
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Proiects Unreserved Undesignated 
Total Fund Equ:ty 
 
$ 
 
395,286.64 $ 
 
1,248,900.17 
 
33,400.69 109,216 41 
227.59 $ 
 
129,881 86 16,621 92 
 
$ 1,644,186.81 $ 142,844 69 $ 
 
146,503 78 
 
$ 
 
167,430.00 
 
$ 
4,866,363.00 $ 5,033,793 00 $ 
 
11,996.91 5,479.12 
$ 
 
6,904,363 59 1,326,359.51 
 
58,063.28 75,539 31 $ 
 
0 00 8,230,723 10 
 
Total LlabihtJes and Fund Equ:ty 
 
$ 6,677,979.81 $ 218,384.00 $ 8,377,226 88 
 
The notes to the general-purpose financial statements are an :ntegral part of th:s statement. -2- 
 
 EXHIBIT"A" 
 
DEBT SERVICE 
FUND 
 
$ 
 
51,180.09 
 
FIDUCIARY FUND TYPE 
AGENCY FUNDS 
 
ACCOUNT GROUP 
GENERAL LONG-TERM 
DEBT 
 
TOTALS 
 
{Memorandum On!):} 
 
JUNE 301 2002 
 
JUNE 30, 2001 
 
$ 13,206,822.04 $ 6,460,437.41 
 
$ 
 
0.00 
 
2,100,472.71 
 
2,092,315.45 
 
$ 51,18009 
 
11,996.91 5,479.12 
51,180.09 
 
12,913.46 5,295.19 
50,745.30 
 
6,448,819.91 261.47444 
 
6,448,819.91 26147444 
 
2,899,254.70 302,110.92 
 
$ 
 
51,180.09 $ 
 
0.00 $ 6,761,474.44 $ 22,086,245.22 $ 111823,072 43 
 
$ 
 
6,302.85 
 
$ 
 
6,302.85 $ 
 
14,353.84 
 
428,687 33 
 
363,164.36 
 
1,358, 116.58 
 
1,205,347.80 
 
227.59 
 
2,079.79 
 
129,881.86 
 
197,481.98 
 
16,621.92 
 
-6,302.85 
 
-6,302.85 
 
49,384.50 
 
$ 261,474.44 
 
261,474.44 
 
302,110.92 
 
6,500,000 00 
 
6,500,000.00 
 
2,950,000 00 
 
$ 
 
000 $ 6,761,474 44 $ 8,695,009.72 $ 5,083,923 19 
 
$ 
 
51,180.09 
 
000 
 
$ 
 
51,180.09 
 
$ 
 
51180 09 $ 
 
$ 
 
167,430.00 $ 
 
106,491.00 
 
51,180.09 
 
50,745.30 
 
11,996 91 5,479.12 
6,904,363 59 1,326,359.51 
4,924,426.28 
$ 13,391,235 50 $ 
 
12,91346 5,295.19 
1,465,941.94 21,900 00 
5,075,862.35 
6,739,149 24 
 
0 00 $ 6,761,47444 $ 22,086,245.22 $ 11,8231072.43 
 
-3- 
 
 --------------------------------------- ----- 
RABUN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2002 
 
REVENUES 
State Funds Federal Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Othet Support Services Food Services Operation 
Capital Outlay Debt Service 
Principal Interest Paying Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USl;;S} 
Capital Leases Proceeds from General Obligation Bonds 
Par Value Operating Transfers In Operabng 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 Penod Donated Commod1bes Purchased Food 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
$ 6,734,403.85 $ 69,491.80 
8,707,552 99 247,691.71 
$ 15,759,140.35 $ 
 
123,807.01 1, 160,862.25 
353,606.45 
1,638,275.71 
 
$ 10,669,810.33 $ 
446,984.68 159,097.74 401,166.31 251,199.38 900,524.68 172,691.41 995,631.36 679,228.81 65,254.12 61,203.26 
5,023.54 273,802.98 
40,636.48 13,208.92 
 
640,925.16 58,280.54 32,728.25 7,660.97 
76.16 13,15501 851,004.43 
 
$ 15,135,464.00 $ 
 
$ 
 
623,676.35 $ 
 
1,603,830 52 3444519 
 
$ $ -413,734.80 
$ -413,734 80 $ 
 
$ 
 
209,941.55 $ 
 
4,823,851.45 
 
23,618.09 
23,618.09 
58,06328 18,208.65 
-916.55 183_93 
 
FUND BALANCE JUNE 30 
 
$ 5,033,793.00 $-===-75:,;i;,5~3;;;;,9.~31~ 
 
The notes to the general-purpose finanaal statements are an integral part of this statement. -4- 
 
 EXHIBIT"B" 
 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTALS (Memorandum Only) 
YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 
 
$ 
 
195,205.60 
 
$ 7,053,416.46 $ 6,678,658.45 
 
1,230,354.05 
 
997,708.57 
 
830,019.61 $ 1,626,285.79 
 
11,163,858.39 
 
10,959,017.76 
 
181,947.30 
 
407.89 
 
783,653.35 
 
826,875.13 
 
$ 1,207,172.51 $ 1,626,693.68 $ 20,231,282.25 $ 19,462,259.91 
 
$ 11,310,735.49 $ 10,197,992.85 
 
$ 
 
49,025.00 
 
163,884.96 
 
505,265.22 191,825.99 401,166.31 258,860.35 900,524.68 221,716.41 995,631.36 679,304.97 78,409.13 61,203.26 856,027.97 437,687.94 
 
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 
 
$ 1,450,000.00 175,463.89 795.00 
 
1,490,636.48 188,672.81 795.00 
 
1,383,952.86 188,707.09 
 
$ 
 
212,909 96 $ 1,626,258 89 $ 18,578,463.37 $ 18,209,409.75 
 
$ 
 
994,262.55 $ 
 
434 79 $ 1,652,818 88 $ 1,252,850 16 
 
$ 5,000,000 00 390,116.71 
$ 5,390,116 71 
$ 6,384,379.26 $ 1,846,343.84 
 
$ 
$ 5,000,000.00 413,734 BO -413,734.80 
$ 51000,000 oo $ 
 
14,400.00 
774,297.46 -774 297 46 
14,400.00 
 
434 79 $ 50,745.30 
 
6,652,818 BB $ 6,739,149.24 
 
1,267,25016 5,469,229.17 
 
-916 55 183 93 
 
3,010.01 -34010 
 
$ 8,230,723 10 $ 
 
51 180 09 $ 13,391.235.50 $ 6,739,149 24 
 
-5- 
 
 RABUN COUNJY BOARD OF EDUCATION COMBINED STATEMENT OF RE\/ENUES EXPENPITlJRES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL - <NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30 2002 
 
EXHIBIT"C" 
 
GENERAL FUND 
 
BUDGET 
 
ACTUAL 
 
REVENUES 
State Funds Federal Funds Taxes Other Funds 
 
$ 6,426,678.95 $ 6,734,403 85 
 
90,000.00 
 
69,491.80 
 
7,738,014 00 
 
8,707,552 99 
 
165,000 00 
 
247 691 71 
 
Total Revenues 
 
$ 14,419,692.95 $ 15,759.140 35 
 
EXPENDITURES 
 
Current Instruction Support 5el'VIC8S Pupil 5ervrces Improvement of Instructional Services Educational Media SeMces General Admlnlstrabon School Adm1111strabon Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support 5eMC8S Other Support 5el'VIC8s Food Services Operabon 
Caprtal Outlay DebtSel'VIOII 
 
$ 10,603,4TT.50 $ 10,669,610.33 
 
481,185 00 154,107.00 376,59400 255,586 00 894,431.00 181,863 00 1,083,841.00 697,13200 35,00000 59,000.00 
1,000 00 280,00000 
 
446,98468 159,097.74 401,166 31 251,199 38 900,52468 172,691 41 995,631 36 679,228 81 
65,25412 61,203.26 
5,023 54 273,802.98 
53 84540 
 
Total Expenditures 
 
$ 15.103.216 50 $ 15,135,464 00 
 
Excess of Revenues over (under) Expenditures 
 
$ -883.523.55 $ 623.676 35 
 
OTHER FJNANCJNG SOURCES (USES! 
Other Sources Other Uses 
 
$ -50,373 00 $ -413 734 80 
 
Total Other Financing Sources (Uses) 
 
$ -50,373.00 $ -413 734 80 
 
Excess of Revenues and Other F1nanang Sources over (under) Expendrtures end Other Financing Uses $ -733,896.55 $ 
 
209,941.55 
 
FUND BA~NCE JUl,Y l 200] 
 
4,769,972 13 
 
4,823,851 45 
 
AdJustments Food Inventory - Net Change m Penod 
Donated Commodllles Purchased Food 
 
-2,371 08 
 
FUND BALANCE JUNE 30 2002 
 
$ 41033.704 50 $ 5 033 793 00 
 
SPECIAL REVENUE FUND 
 
BUDGET 
 
ACTUAL 
 
$ 148,217.00 $ 123,807 01 1,074,741 00 1,160,862.25 
 
359.115 00 
 
353.60645 
 
$ 1,582,073 00 $ 1,638.275.71 
 
$ 657,215.00 $ 640,92516 
 
44,825 00 13,662.00 
 
58,280 54 32,728.25 
 
32,599 00 
 
7,660.97 
 
5,407 00 
 
7616 13,15501 
 
871,904 00 
 
851,004 43 
 
6.834 00 
 
$ 1,632,446 00 $ 1,603,830 52 
 
$ -50.373 00 $ 34 445 19 
 
$ 50,373 00 $ 23,618 09 
 
$ 50,373 00 $ 23 618 09 
 
$ 
 
000 $ 
 
20,294 82 
 
58,063.28 18,208 65 
 
-916 55 183 93 
$ 201294 82 s ___1,_5..,53_9_3_1_ 
 
The notes to the general-purpose financial statements are an integral part of this statement -6- 
 
 RABUN COUNfY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
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 is a primary government and consists of all the organizations that compose its legal entity. 
FUND ACCOUNTING 
The School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. 
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. 
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most of the 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 COUNfY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
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. 
ACCOU}Vf 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 ofaccounting under which: 
 
-8- 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO 1HE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
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. Property truces, sales truces and interest are considered to be 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 truces, local option sales truces, intergovernmental grants and donations. Revenue for property truces is recognized in the fiscal year for which the truces are levied. Revenue from sales truces 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 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 t)iese 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 ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
-9- 
 
 ------------------------------------------ 
 
RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
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 of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
 
PROPERTY TAXES 
 
The Rabun County Board ofCommissioners fixed the property tax levy for the 2001 tax digest year (calendaryear) on September 20, 2001 (levy date). Taxes were due on January 11, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Rabun County Tax Commissioner bills and collects the property truces for the School District and remits truces collected to the School District. Property true revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $6,133,171.64 and for school bonds amounted to $26.90. 
 
The tax millage rate levied for the 2001 true 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 
 
~mills 
 
SALES TAXES 
 
Local Option Sales True revenue during the fiscal year amounted to $2,516,227.75 and was recorded in the General Fund. Local Option Sales True is to be used for the maintenance and operation ofthe School District. 
 
Special Purpose Local Option Sales True revenue during the year amounted to $2,456,278.50 and is to be used for capital outlay for educational purposes or debt service. This sales true was authorized by local referendum and the sales tax must be re-authorized at least every five years. 
 
- 10 - 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2002 
 
Note 1: Sll.1MARY 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 amounts do not constitute "available spendable resources" even though th_ey 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 b~nds 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. lnterfund eliminations have not been made in the aggregation of this data. 
Note 2: DEPOSITS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not 
- 11 - 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2002 
 
Note 2: DEPOSITS 
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 Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of any one of or any combination of the following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, 
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the 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, 2002, the bank balances were $14,034,101.90. The amounts of the total bank balances are classified into three categories of credit risk: 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. 
 
- 12 - 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 2: DEPOSITS 
 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) 
 
The School District's deposits are classified by risk category at June 30, 2002, as follows: 
 
Risk Category 
 
Bank Balance 
 
1 
 
$ 1,359,201.31 
 
2 
 
9,612,937.74 
 
3 
 
3,061,962.85 
 
Total 
 
$14.034.101.90 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The Scho_ol 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 of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. 
 
The School District has obtained commercial insurance for risk of loss 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 acts of God. The School District has not experienced any losses related to this risk in the past three years. 
 
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 of that loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. 
 
- 13 - 
 
 RABUN COUNfY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO TIIB GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 4: RISK MANAGEMENT 
 
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 $350,000.00 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 Rabn County Board of Education has entered into various lease agreements 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: 
 
Pmpose 
 
Interest Rates 
 
Amount 
 
General Government - Series 1998 General Government - Series 2001 
 
4.00% - 4.10% 3.26% 
 
$ 1,500,000.00 5,000,000.00 
 
$ 6,500,000.00 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows: 
 
- 14 - 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT 11D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 5: GENERAL LONG-TERM DEBT 
 
Capital Leases 
 
General Obligation 
Bonds 
 
Total 
 
Balance July 1, 2001 
 
$ 302,110.92 $ 2,950,000.00 $ 3,252,110.92 
 
Additions G.O.Bonds 
 
5,000,000.00 5,000,000.00 
 
Deductions Debt Retired 
 
40,636.48 1.450,000.00 1.490.636.48 
 
Balance June 30, 2002 
 
$ 261,474.44 $ 6.500.000,00 $ 6,761,474.44 
 
At June 30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
Fis~al Year Ended June 30 
 
Capital Leases 
 
General Obligation 
Bonds 
 
Total Debt 
 
2003 2004 2005 2006 2007 2008 - 2012 
 
$ 54,845.40 $ 1,724,500.00 $1,779,345.40 
 
49,793.40 
 
163,000.00 
 
212,793.40 
 
48,403.40 1,741,838.50 1,790,241.90 
 
47,885.40 1,748,537.50 1,796,422.90 
 
45,245.40 1,758,199.00 1,803,444.40 
 
59.427.20 
 
59,427.20 
 
Total Principal and Interest $ 305,600.20 $ 7.136.075.00 $ 7,441,675.20 
 
Deduct: Imputed Interest 
 
44,125.76 
 
Net Present Value of Future 
Minimum Lease Payments $ 261,474.44 
 
Note6: ON-BEHALFPAYMENTS 
 
The School District has recognized revenues and expenditures in the amount of $214,052.77 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. 
 
- 15 - 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2002 
 
Note 6: ON-BEHALF PAYMENTS 
 
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $187,010.77 
 
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$27,042.00 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2002, together with funding available: 
 
Project 
. 
Middle School/High School Renovations 
SA0IS-719-144 
 
Unearned Executed Contracts 
 
Funding Available From State 
 
$ 191,525.24 325.000.00 $ 1.370.628.00 
 
$ 516,525.24 $ 1,370,628.00 
 
The amounts described in this note are not reflected in the general-purpose financial statements. 
 
Note 8: 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 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 of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement 
 
- 16 - 
 
 RABUN COUNfY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL.PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 9: RETIREMENT PLANS 
 
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 ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2002 2001 2000 
 
100% 100% 100% 
 
$ 941,682.94 $ 946,909.29 $ 873,818.05 
 
- 17 - 
 
 RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
Total Assets 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable 
Total Liabilities 
FUND EQUITY Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity 
Total Liabilities and Fund Equity 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
120,851.52 $ 
 
0.00 
 
11,996.91 51479.12 
 
$ 
 
138.327.55 $--=-===-==0=00= 
 
$ 
 
15,235.84 
 
47,552.40 
 
$ 
 
62}88.24 
 
$ 
 
11,996.91 
 
5,479.12 
 
581063.28 $ 
 
0.00 
 
$ 
 
75.539.31 $ 
 
0.00 
 
$ 1381327.55 s==-==o=.o=o= 
 
See notes to the general-purpose financial statements. -18- 
 
 EXHIBIT"E" 
 
FEDERAL PROGRAMS 
 
OTHER PROGRAMS 
 
TOTALS 
 
JUNE 301 2002 
 
JUNE 30, 2001 
 
$ 
 
0.00 $ 
 
120,851.52 $ 
 
61,973.41 
 
$ 
 
132,981.20 
 
132,981.20 
 
135,349.31 
 
11,996.91 5,479.12 
 
12,913.46 5,295.19 
 
$ 
 
132,981.20 $ 
 
0.00 $ 
 
271,308.75 $-==2_1=5=.5=3-1.=37= 
 
$ 
 
52,924.75 
 
18,164.85 
 
61,664.01 
 
227.59 
 
$ 
 
132,981.20 
 
$ 
 
52,924.75 $ 
 
33,400.69 
 
109,216.41 
 
227.59 
 
76,327.25 28,059.20 91,893.75 
1,042.52 
 
$ 
 
195,769.44 $ 
 
197,322.72 
 
$ 
 
11,996.91 $ 
 
12,913.46 
 
5,479.12 
 
5,295.19 
 
$ 
 
o.oo s____o_._oo_ 
 
58,063.28 
 
0.00 
 
$ 
 
000 $ 
 
0.00 $ 
 
75,539.31 $ ___1_8,._,2_08_._6_5_ 
 
$ 
 
132,981.20 $ 
 
0.00 $ 
 
s 211,3oa.1s =-===2...1..s.=.,s=31_.3=7= 
 
-19- 
 
 RABUN COUNlY 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 lnstrudion Support Services Pupil Services Improvement of lnstrudional Services Educational Media Services General Administration Student Transportation Central Support Services Food Services Operation 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
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 
 
$ 
 
63,138.00 $ 
 
470,423.26 
 
353,606.45 
 
$ 
 
887,167.71 $ 
 
60,669.01 60,669.01 
 
$ 
 
60,669.01 
 
$ 
 
851,004.43 
 
$ 
 
851,004.43 $ 
 
$ 
 
36,163.28 $ 
 
60,669.01 0.00 
 
$ 
 
21,900.00 
 
$ 
 
21,900.00 
 
$ 
 
58,063.28 $ 
 
0.00 
 
18,208.65 
 
0.00 
 
-916.55 183.93 
 
$ 
 
75,539.31 s==-==-==o~-~oo= 
 
 EXHIBIT"F" 
 
FEDERAL 
PROGRAMS 
 
OTHER PROGRAMS 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 301 2002 
 
JUNE 301 2001 
 
$ 
 
690,438.99 
 
$ 
 
$ 
 
690.438.99 $ 
 
$ 0.00 0.00 $ 
 
123,807.01 $ 1,160,862.25 
353,606.45 
1.638.275.71 $ 
 
284,122.00 994,190.70 376,325.67 
1.654.638.37 
 
$ 
 
578,538.06 $ 
 
58,280.54 32,728.25 
 
7,660.97 76.16 
13,155.01 
 
$ 
 
690,438.99 $ 
 
$ 
 
0.00 $ 
 
1,718.09 $ 
1,718.09 $ -1 718.09 $ 
 
640,925.16 $ 
58,280.54 32,728.25 
7,660.97 76.16 
13,155.01 851.004.43 
1,603,830.52 $ 
34,445.19 $ 
 
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 
 
$ 
 
1,718.09 $ 
 
23,618.09 $ 
 
6,706.56 
 
-1 841.59 
 
$ 
 
1 718.09 $ 
 
23,618.09 $ 
 
4 864.97 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
58,063.28 $ 
 
-30,218.12 
 
0.00 
 
0.00 
 
18,208.65 
 
45,756.86 
 
-916.55 183.93 
 
3,010.01 -340.10 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
75,539.31 $ =-===18=,2=0=8=65= 
 
- 21 - 
 
 RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002 
 
ASSETS Cash and Cash Equivalents Accounts Receivable 
Total Assets 
LIABILITIES AND FUND EQUITY LIABILITIES 
Contrads Payable Retainages Payable 
Total Liabilities 
: 
FUND EQUITY Fund Balances Reserved For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity 
Total Liabilities and Fund Equity 
 
REGULAR 
 
BOND PROCEEDS 
 
$ 
 
0.00 $ 7,050,867.37 
 
$ 
 
0.00 $ 7,050,867.37 
 
$ 
 
129,881.86 
 
16,621.92 
 
$ 
 
146,503.78 
 
$ 6,904,363.59 
 
$ 
 
0.00 
 
0.00 
 
$ 
 
0.00 $ 6,904,363.59 
 
$ 
 
0.00 $ 7,050,867.37 
 
See notes to the general-purpose financial statements. 
-22- 
 
 EXHIBIT"G" 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS 
 
JUNE 30, 2002 
 
JUNE 301 2001 
 
$ 
 
0.00 $ 
 
878,506.04 $ 7,929,373.41 $ 1,615,170.49 
 
447,853.47 
 
447.853.47 
 
428,655.33 
 
$ 
 
0.00 $ 1,326,359.51 $ 8,377,226.88 $ 2,043,825.82 
 
$ 
 
129,881.86 $ 
 
197,481.98 
 
16,621.92 
 
$ 
 
146,503.78 $ _ _1.;.;9;.;.7.,.,4.;;.81.;.;.9.;a.;8a.. 
 
$ 6,904,363.59 
 
$ 1,326,359.51 
 
1,326,359.51 $ 1,465,941.94 
 
21,900.00 
 
$ 
 
0.00 
 
0.00 
 
0.00 
 
358,501.90 
 
$ 
 
0.00 $ 1,326.359.51 $ 8,230,723.10 $ 1,846,343.84 
 
$ 
 
0.00 $ 1,326,359.51 $ 8,377,226.88 $ 2,043,825.82 
 
- 23 - 
 
 RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002 
 
REVENUES 
State Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
Current Support Services Business Administration 
Capital Outlay Building and Building Improvements 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Proceeds from General Obligation Bonds Par Value 
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 $ 
 
81,130.93 
 
$ 
 
0.00 $ 
 
81,130.93 
 
$ 
 
49,025.00 
 
$ 
 
0.00 
 
169,868.92 
 
$ 
 
0.00 $ 
 
218,893.92 
 
$ 
 
0.00 $ 
 
-137,762.99 
 
$ 5,000,000.00 
 
2,042,126.58 
 
$ 
 
-358,501.90 
 
$ 
 
-358,501.90 $ 7,042,126.58 
 
$ 
 
-358,501.90 $ 6,904,363.59 
 
358,501.90 
 
0.00 
 
$ 
 
0.00 $ 6,9041363.59 
 
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, 2002 
 
JUNE 30, 2001 
 
$ 
 
195,205.60 
 
$ 
 
$---=195-,2-05.60 $ 
 
$ 830,019.61 100,816.37 
930,835.98 $ 
 
195,205.60 830,019.61 $ 181,947.30 
1,207,172.51 $ 
 
941,934.23 139A03.16 
1,081,337.39 
 
$ _ _ _-..5....,..9a..8...3.96 $ $ _ _ _-_ 5,9_83.96 $ $ _ _ _20_ U8_9.56 $ 
 
$ 0.00 0.00 $ 930,835.98 $ 
 
49,025.00 163,884.96 $ 212,909.96 $ 994,262.55 $ 
 
1,101,688.85 1,101,688.85 
-20,351.46 
 
$ 5,000,000.00 
 
2,042,126.58 $ 
 
962,285.69 
 
$ 
 
-223,089.56 $ -1,01oi418.41 
 
-1,652,009.87 
 
-192,853.20 
 
$ 
 
-223,089.56 $ -1,01oi418.41 $ 5,390,116.71 $ 
 
769,432.49 
 
$ 
 
-21,900.00 $ -139,582.43 $ 6,384,379.26 $ 
 
749,081.03 
 
21,900.00 
 
1,465,941.94 
 
1,846,343.84 
 
1,097,262.81 
 
$ 
 
0.00 $ 1,326,359.51 $ 8,230,723.10 $ 
 
- 25 - 
 
 RABUN COUNlY BOARD OF EDUCATION COMBINING BALANCE SHEET 
DEBT SERVICE FUND 
JUNE 30, 2002 
 
EXHIBIT"!" 
 
ASSETS Cash and Cash Equivalents Accounts Receivable 
Total Assets 
FUND EQUITY Fund Balances 
Reserved For Debt SeMce 
Unreserved Undesignated 
Total Fund Equrty 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS 
 
JUNE 30, 2002 
 
JUNE 301 2001 
 
$ 51,180.09 $ 
 
0.00 $ 
 
51,180.09 $ 
 
50,740.96 
 
4.34 
 
$ 51,180.09 $ 
 
0.00 $ 
 
s___ 51 1ao.09 
 
5_01_45_._3o_ 
 
1 
 
1 1111111 
 
$ 51,180.09 
 
$ 
 
0.00 $ _ _ _ _0_._00_ 
 
51,180.09 $ 000 
 
50,745.30 0.00 
 
$ 51,180.09 $ 
 
000 $ 
 
s___ 51 1ao 09 
 
50.,1_4_5_.3_o 
 
1 
 
1 
 
See notes to the general-purpose financial statements 
 
- 26- 
 
 RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUE~. EXPENDITURES AND CHANGES IN FUND BALANCES 
DEBT SERVICE FUND 
YEAR ENDED JUNE 30, 2002 
 
EXHIBIT "J" 
 
REVENUES 
Taxes Other Funds 
Total Revenues 
EXPENDITURES 
DebtSeMce Pnncipal Interest Paying Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
FUND BALANCE JUbY 1 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 
 
$ 
 
26.90 $ 1,626,258.89 $ 1,626,285.79 $ 1,524,243.12 
 
407.89 
 
407.89 
 
2,796.90 
 
$ 
 
434.79 $ 1,626,258.89 $ 1,626,693.68 $ 1,527,040.02 
 
$ 1,450,000.00 $ 1,450,000.00 $ 1,350,000.00 
 
175,463.89 
 
175,463.89 
 
174,225.00 
 
$ 
 
0.00 
 
795.00 
 
79500 
 
$ 
 
0.00 $ 1,626,258.89 $ 1,626,258 89 $ 1,524,225.00 
 
$ 
 
434.79 $ 
 
0.00 $ 
 
434.79 $ 
 
2,815.02 
 
50,745 30 
 
0.00 
 
50,745 30 
 
47,930.28 
 
FUND BALA'NCE JUNE 30 
 
$ 51,180.09 $ 
 
0.00 $ 
 
51,180.09 $=,,,,,,;;50===,7=45=3=0= 
 
See notes to the general-purpose financial statements 
 
- 27 - 
 
 RABUN COUNTY BOARD OF EDUCATION 
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
EIQUCIARY FUND TYPE - AGENCY FUNDS 
YEAR ENDED JUNE 30, 2002 
 
EXHIBIT"K" 
 
BREWER SCHOLARSHIP 
ASSETS Cash and Cash Equrvalents 
 
BALANCE 
 
BALANCE 
 
JULY 1, 2001 ADDITIONS DEDUCTIONS JUNE 30, 2002 
 
$ 
 
-291.25 $ 11162.15 $ 
 
800.00 $ 
 
70.90 
 
LIABILITIES Funds Held for Others 
 
$ 
 
-291.25 s U62 15 s 
 
800.00 s____10,_..,9o..,. 
 
CARY SUTTLE SCHOLARSHIP 
ASSETS Cash and Cash Equivalents 
 
31000.00 $ _ _ _ _o._oo... 
 
LIABILITIES Funds Held for Others 
HARRIS SCHOLARSHIP ASSETS 
Cash and Cash Equivalents 
 
s_____o._oo... s 31000.00 $ 
 
$ 
 
-92.49 $ 118 18 $ 
 
250 oo s___-_2_24,_..,31= 
 
LIABILITIES Funds Held for Others 
 
$ 
 
-92 49 $ 118.18 $ 
 
250.00 s___-_2_24_._31_ 
 
J O KING SCHOLARSHIP 
ASSETS Cash and Cash Equivalents 
 
$ 
 
7774 $ 
 
0.00 $ 
 
0 00 s____77.....,74.., 
 
LIABILITIES Funds Held for Others 
 
$ 
 
7774 $ 
 
000 $ 
 
0.00 $ _ _ __,77;,,,,;,,74.., 
 
LAKE RABUN ASSOCIATION/CLAYTON TRIBUNE SCHOLARSHIP FOUNDATION FUND 
ASSETS Cash and Cash Equivalents 
 
$ 9 874 34 $ 
 
0 00 $ 
 
-321125 66 
 
LIABILITIES Funds Held for Others 
 
$ 
 
9 874 34 $ 
 
000 $ 
 
- 28- 
 
 RABUN COUNTY BOARD Of EDUCATION 
COMBINING STATEMENT Of CHANGES IN ASSETS AND LIABIUTIES FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2002 
 
EXHIBIT "K" 
 
MUSIC/ART SCHOLARSHIP FOUNDATION FUND ASSETS 
Cash and Cash Equivalents 
LIABILITIES Funds Held for Others 
PANELL SCHOLARSHIP ASSETS 
Cash and Cash Equrvalents 
LIABILITIES Funds Held for Others 
PARKIN/KRIVSKY SCHOLARSHIP ASSETS 
Cash and Cash Equ:valents 
LIABILITIES Funds Held for Others 
RABUN COUNTY SCHOLARSHIP FOUNDATION ASSETS 
Cash and Cash Equivalents 
LIABILITIES Funds Held for Others 
WILDER SCHOLARSHIP FOUNDATION ASSETS 
Cash and Cash Equ:valents 
LIABILITIES Funds Held for Others 
 
BALANCE JULY 11 2001 
 
ADDITIONS 
 
DEDUCTIONS 
 
BALANCE JUNE 30, 2002 
 
$ 
 
849.90 $ 
 
0.00 $ 
 
0 00 $ 
 
849.90 
 
$ 
 
849.90 $ 
 
0.00 $ 
 
o.oo s ____84_9_.9_o~ 
 
$ 20,500.13 $ 
 
000 $ 20,soo 13 s _ _ _ _o._oo_ 
 
$ 20,500.13 $ 
 
0.00 $ 20,soo.13 s _ _ _ _o-oo_ 
 
$ 
 
1,000 00 $ 1,000.00 $ 
 
o.oo s _ _ _2.,_0_0.,o_oo..,, 
1 
 
$ 
 
1,000.00 $ 1,000.00 $ 
 
o oo s_-.:2-,0-:0.0._oo::.. 
 
$ 15,163.60 $ 27,770.00 $ 20.soo oo s ___22_,4_3_3_.6o_ $ 15.163.60 $ 27.770.00 $ 20,soo oo s_-==2.2..4_3..,3.6..=0 
 
$ 
 
1,100.00 $ 1,000 00 $ 
 
2 soo oo s _ _ _-4..,;,;;,o_o _oo... 
1 
 
$ 
 
1,100.00 $ 1,000 00 $ 
 
2 soo oo s____-4~o~o~oo_, 1 
 
-29- 
 
 RABUN COUNTY BOARD OF EDUCATION 
COMBINING STATEMENT orr CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE -AGENCY FUNDS 
YEAR ENDED JUNE 30, 2002 
 
EXHIBIT "K" 
 
W!LblAM L BBOOKSHIBE SCHOLARS!::!IP ASSETS 
cash and cash Equivalents 
LIABILITIES Funds Held for Others 
TOTAl,5 - AGENCY FUNDS 
ASSETS Cesh and cash Equivalents 
LIABILITIES Funds Held for Others 
 
BALANCE 
 
BALANCE 
 
JULY 1, 2001 ADDITIONS DEDUCTIONS JUNE 30, 2002 
 
$ 11202.53 $ 312 45 $ 
 
500.00 $ 
 
101498 
 
$ t20253 $ 312 45 $ 
 
500.00 $ _ _1_0_1_4_98_ 
 
$ 491384.50 $ 341362.78 $ 901050.13 s_ _-6_13_0_2_s5.., 
$ 491384.50 $ 341362.78 $ 901050.13 $ _ _-6_13_0_2_s5_ 
 
See notes to the general-purpose financial statements 
 
- 30- 
 
 RABUN COUNTY BOARD OF EDUCATION 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2002 
 
SCHEDULE 1 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Agriculture, U. S Department of Child Nutribon Cluster Pass-Through From Georgia Department of Education Food and Nutrttlon Program Food Services School Breakfast Program National School Lunch Program 
 
10.553 10.555 
 
NIA $ 94,706.52 
 
NIA 
 
325,847.98 $ 
 
(2) 801,135.67 (3) 
 
Total Child Nutnllon Cluster 
 
$ 420,554.50 $ 
 
801,135.67 
 
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food D1strlbution Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds 
Total U S. Department of Agriculture 
 
10.550 10.665 
 
NIA 
 
49,868.76 
 
NIA 
 
69,491.80 
 
s $ 539,915 06 
 
49,868.76 (4) 851,004.43 
 
Education, U. S. Department of Speaal Education Cluster Pass-Through From Georgia Department of Education lndrviduals with Olsabilrties Education Ad Part B - Speaal Education Flow Through Preschool 
 
84.027 84173 
 
NIA 
 
s $ 233,353 23 
 
NIA 
 
23,313.02 
 
233,353.23 23,313.02 
 
Total Speaal Education Cluster 
 
$ 256,666.25 $ 
 
256,666.25 
 
Other Programs 
 
Pass-Through From Georgia Department of Education 
 
Elementary and Secondary Education Ad Title I Grants to Local Educational Agencies 
 
. 84.010 
 
NIA 
 
Title II 
 
Eisenhower Professional Development 
 
84.281 
 
NIA 
 
Title VI Innovative Education Program Strategies Class Size Reduction 
 
. 84.298 84.340 
 
NIA NIA 
 
Vocational Education - Basic Grants to States 
 
High School Program 
 
Basic Grant 
 
84.048 
 
NIA 
 
326,846 74 17,500.00 11,892.00 52,373.00 
25,161.00 
 
326,846.74 17,500.00 11,892.00 52,373 00 
25,161.00 
 
Total U S. Department of Education 
 
$ 690,438 99 $ 
 
690,438.99 
 
Total Federal Financial Assistance 
NIA = Not Available 
 
$ 1,230,354 05 $ 1,541,443 42 
 
 31  
 
 RABUN COUNTY BOARD,OF.. EDUCAJ10N 
SCHEDULE OFEXPEN0)jruRES,0F~F.EDERAL AWARDS 
.. - YEARENIDED Jl!INE~30,:2002 
 
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 ass1Stance for donated commodities recerved and/or consumed by the system dunng the current fiscal year. 
(2) Expenditures for the School Breakfast Program were not maintained separately and are Included In the 2002 National School Lunch Program. 
(3) Expenditures for this program Include State, and/or Other Funds. Expenditures are not maintained by fund source. 
(4) Funds earned on this program do not require reporting of expenditures. 
Major Programs are Identified by an asterisk (*) In front of the CFDA number. 
The School [llstrld dl~not provide Federal Assistance to any Subreciplent. 
The accompanying schedule of ~ndrtures of Federal awards Includes the Federal grant activity of the Rabun County Board of Education and Is presented on the modified acaual baSIS of accounting which Is the basis of accounting used In the presentation of the general-purpose financial statements 
 
See notes to the general-purpose financial statements 
 
- 32- 
 
 RABUN COUNTY BOARD OF EDUCATION 
SCHEDULE OF STATE REVENUE 
YEAR ENDED JUNE 30, 2002 
 
SCHEDULE "2" 
 
AGENCY/FUNDING 
GRANTS EducatJon, Georgia Department of Quality Basic Educallon Direct Instructional Cost Kmdergarten Program Kindergarten Program - Earty 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 Otsabllitles Category I Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Twenty Days Addlbonal Instruction Indirect Cost Categorical Grants Pupil Transportation ~egular Bus Replacement Sparsity Nurslng Services Principal Supplements Vocabonal Supervisors Deferred SUmmer Salaries (Pnor Year) Deferred Summer Salaries (Current Year) Food SeMces Vocational Education Other State Programs Apprenticeship Program Health Insurance Mentor Teachers Nabonal Teacher Cerbficatlon Post Secondary Opbons Preschool Handicapped Program Speaal Educabon Low lnadence Grant Statewide 4-8 After School Statewide Reading Program K-3 Lottery Programs Assistlve Technology Computers In the Classroom 
Georgia State Financing and Investment Commission Reimbursement on Construction PrOjeCls 
Office of Treasury and Fiscal Services Pubhc School Employees Retirement 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 375,465.00 84,623.00 985,156.00 109,449.00 473,282.00 23,644.00 765,399.00 681,752.00 257,074.00 
693,567.00 51,24300 18,741.00 61,896.00 54,858.00 
143,841.00 24,959.00 44,899.00 985,247.00 
 
379,247.00 111,873.00 
20,000.00 59,819.00 9,018.00 14.263.00 -857,237 .83 801,965.00 
$ 14,790.96 
 
63,138.00 
 
2,000.00 181,010.n 
4,131 00 4,903.00 
49500 23,550.00 38,836.00 31,817.00 25,987.95 
 
7,019 01 53,650.00 
 
$ 375,465.00 84,623.00 985,156.00 109,449.00 
473,282.00 23,644.00 765,399.00 
681,752.00 257,074.00 
693,567.00 51,243.00 18,741.00 61,896.00 54,858.00 
143,841.00 24,959.00 44,699.00 
985,247.00 
379,247.00 111,873.00 
20,000.00 59,819.00 
9,016.00 14,263.00 -857,237.83 801,965.00 63,138.00 14,790.96 
2,000.00 1s1,010.n 
4,131.00 4,903.00 
495.00 23,55000 38,836.00 31,817.00 25,987.95 
7,019.01 53,65000 
 
27,042 00 
 
$ 195,205.60 
 
195,205.60 27,042.00 
 
See notes to the general-purpose financial statements 
 
$ 6.734.403.85 $ 123.807 01 $ 195,205 60 S 7,053,416 46 - 33- 
 
 RABUN COUNTY BOARD OF EDUCATION 
SCHEDULE OF APPRoVEP LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30 2002 
 
SCHEDULE 3 
 
PROJECT 
Acquisition, construction and equIppIng of a new 
elementary school, Including necessary fum1shrngs and equipment, the acquIsrbon, construction and equipping of addrbOnal 1nstructronal, support or physical education facilrbes at eXtStrng schools, Including the acqulSrtlon of necessary fumrshmgs and equipment and system-wide technology improvements 
Acqursrtlon, construction and equipping addltional classrooms, 1nstruct1onal and support space at the mlddlelh1gh school, renovating, equipping and modifying ex1strng classrooms, rnstructronal and support space at said school, provtdrng for payment or reimbursement of the costs of rerouting and storm drainage Improvements at said school, functronal addrbonal caprtal Pl'Of8cls rndudmg acquisition, constructron and equipping additional classrooms, lnstructronal and support space and remodeling and renovating eXtStlng classroom, mstructronal and support space at existing school, faclhtres and paying expenses Incident thereto 
 
ORIGINAL ESTIMATED 
COST(1l 
 
CURRENT ESTIMATED COSTS(2l 
 
AMOUNT EXPENDED IN CURRENT YEAR (3) 
 
AMOUNT EXPENDED 
IN PRIOR YEARS(3l 
 
$ 12,000,000 00 $ 12,000,000 00 $ 339,404 85 
 
8,000,000 00 13,600,000 00 
 
120,225 00 s 13,065,166 55 
 
PROJECT STATUS Ongoing 
Ongoing 
 
$ 2010001000 00 $ 2516001000 00 s 4591629.85 s 1310651166 55 
 
(1) The School D1stnct's ongrnal cost estimate as specified rn the resolution calling for the Imposition of the Local Optron Sales Tax 
(2) The School D1stnc1's current estimate of total cost for the proJects Includes an cost from Pl'Of8CI Inception to completion 
(3) The voters of Rabun County approved the lmposrbo11 of a 1% sales tax to fund the above projects and retire associated debl Amounts expended for these proJects may rnclude sales tax proceeds, state, local property taxes and/or other funds over the hfe of the proJects 
 
See notes to the general-purpose financial statements 
 
 35- 
 
 RABUN COUNTY BOARD OF EDUCATION GENERAL FUND - CUALITYBASIC EDUCATION PROGRAM COBEI 
ALLOTMENTS'ANID.EXPEN01TURES - BY PROGRAM 
YEAR ENDED JUNE 30, 2002 
 
SCHEDULE 4 
 
DESCRIPTION 
Direct lnstructJonal Programs 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 Upper Bementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Mlddle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Dlsabllltles Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedlal Education Program Alternative EducatJon Program Engllsh Speakers of Other Languages (ESOL) 
TOTAL DIRECT INSTRUCTIONAL PROGRAMS 
Media Center Program Staff and Professlonal Development 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
$ 
 
639,015.00 $ 624,381.65 $ 
 
25,001.99 $ 
 
649,383 64 
 
144,022.00 
 
142,394.50 
 
1,6n.40 
 
144,071.90 
 
1,676,664.00 1,845,450.20 
 
170,178.88 
 
2,015,629.08 
 
186,274.00 
 
197,590.70 
 
2,798.39 
 
200,389.09 
 
804,476.00 
 
878,672.44 
 
107,466.03 
 
986,138.47 
 
41,256.00 441,765.00 860,887.00 1,160,293.00 437,521.00 1,180,400.00 
87,210.00 31,896.00 105,342.00 93,362.00 
 
81,442.43. 497,019.29 1,020,843.91 1,582,464.69 533,051.16 
27,809.30 352,631.n 786,565.09 
13,442.18 33,839.84 130,227.96 30,943.20 115,801.52 122,008.04 
 
2,272.61 23,324.68 85,809 85 216,891.83 58,648.04 
110.69 5,123.28 40,672.11 2,838.10 
799.30 6,661.15 1,043.00 7,283 16 1,825.00 
 
83,715.04 520,343.97 1,106,653.76 1,799,356.52 591,699.20 
27,919.99 357,755.05 827,237.20 
16,280.28 34,639.14 136,889.11 31,986 20 123,084 68 123,833.04 
 
$ 
 
s 7,890,383.00 9,016,579.87 $ 760,425.49 $ 9,777,005 36 
 
244,806.00 42,4TT.OO 
 
345,674.37 20,023.45 
 
40,438.53 40,542.26 
 
3_86,112.90 60,565 71 
 
TOTAL QBE FORMULA FUNDS 
 
$ 
 
8,177,666.00 S 9,382,27769 $ 841,406.28 $ 10,223,683.97 
 
(1) Comprised of State Funds plus Local FIV8 MIii 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, 2002 
 
SCHEDULE "5" 
 
Rabun County Middle School Rabun County High School . Clayton Elementary School Rabun Gap Community School South Rabun Elementary School Central Office (Altemative Education Program) 
TOTAL 
(1) Comprised of State Funds plus Local Five Mill Share. 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
$ 
 
1,153,258.00 $ 
 
1,280,500.32 
 
2,062,963.00 
 
3,048,526.03 
 
1,631,569.00 
 
1,935,104.72 
 
1,136,709.00 
 
1,313,234.15 
 
1,800,542.00 
 
1,971,533.72 
 
1051342.00 
 
2281106.42 
 
$ 
 
7,8901383.oo $ ==9==?.n.,.,o=o=5=.36= 
 
See notes to the general-purpose financial statements. - 37 - 
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 w. RUSSEi.i. 
 
H1r-.TON 
 
STATE AUDITOR 
 
(404) 6562174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street. S.W. Suite 214 Atlanta, Georgia 30334-8400 
February 12, 2003 
 
Honorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education 
and Superintendent and Members of the Rabun County Board of Education 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the financial statements ofRabun County Board ofEducation as ofand for the year ended June 30, 2002, and have issued our report thereon dated February 12, 2003. 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 offinancial 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 
2002YB-41 
 
 control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect 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-7191-02-01. 
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 ofthe 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-7191-02-01 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. 
 
RWH:gp 2002YB-41 
 
Rus 11 W. Hinton State Auditor 
 
 Russi,:1.1. \V. Hrr..ToN 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Wa!>hmgton Street. S. W.. Sune 214 Atlanta, Georgia 30334-8400 
February 12, 2003 
 
Honorable Sonny Perdue, 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 0MB CIRCULARA-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, 2002. 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 major 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 of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the 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. 
2002SA-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, 2002. 
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 expressin_g our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. 
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. 
This report is intended solely for the information and use ofthe management, members ofthe 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, 
~~-~.:.:k. 
RWH:gp 2002SA-10 
 
 SECTION ID 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, 2002 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-7191-00-01 FS-7191-01-01 FS-7191-01-02 
 
Further Action Not Warranted Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented 
 
CORRECTIVE ACTION/RESPONSES 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7191-01-01 
 
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the School District has decided not to pursue the recording ofgeneral fixed assets on the financial statements. We are working towards meeting this requirement by fiscal year 2003. 
 
 SECTIONN FINDINGS AND QUESTIONED COSTS 
 
 RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30. 2002 
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 audit 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 'f?e 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: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.340 Elementary and Secondary Education Act - Title VI - Class Size Reduction 
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 ofEducation qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. 
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 RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30. 2002 
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-7191-02-01 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. Manag~ent's Response: We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the School District has decided not to pursue the recording of general fixed assets on the financial statements. We are working towards meeting this requirement by fiscal year 2003. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. 
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