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

RICHMOND 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

AND EXPENDABLE TRUST FUNDS

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

24

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

. AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

28

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

30

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

32

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

33

RICHMOND COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDIDONAL FINANCIAL INFORMATION

EXHIBITS

COMBINING STATEMENTS

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

34 .

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

36

M

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABil..mES

AGENCY FUNDS

38

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

39

2 SCHEDULE OF STATE REVENUE .

41

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS .

43

ALLOTMENTS AND EXPENDmJRES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

44

5

BY SITE

45

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 WITII GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITII REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITII 0MB CIRCULAR A-133

RICHMOND COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-
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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 14, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Richmond County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Richmond 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 Richmond County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
Except as discussed in the following paragraph, we cop.ducted our audit in accordance with auditing standards generally accepted in the United States of Ainerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking ofthe consumable supplies inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2001ARL-13

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:

* 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 ge~eral-purpose financial statements.

* The Board of Education did not recognize as expenditures, in the year ended

June 30, 2001, ~ portion of salaries and the corresponding employer's cost of related

benefits earned for contractual services completed prior to June 30, 2001. Also funds

received, subsequent to June 30, 2001, from the Georgia Department of Education for

the State's ~hare of these unrecorded salaries and related benefits were not recorded as

revenue in the year under review. Conversely, the similar expenditures and related

revenues for contractual services completed prior to June 30, 2000, were improperly

recorded in the year ended June 30, 2001. To conform to generally accepted accounting

principles, revenues should be recorded when available and measurable and

expenditures should be recorded when incurred, rather than when funds are received or

disbursed.



The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.

In our opinion, except for the effects ofsuch adjustments, ifany, on the General Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the consumable supplies inventory as discussed in the third paragraph, and 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 Richmond County Board ofEducation as ofJune 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 February 14, 2002, on our consideration of the Richmond County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part ofan audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

2001ARL-13

Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Richmond County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through M) 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 effect of adjustments, if any, on the General Fund, as might have been d_etermined to be necessary had we qeen able to satisfy ourselves as to the accuracy of the consumable supplies inventory as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made . available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
----- ~ - Respectfully submitted,
RWH:gp 2001ARL-13

RICHMONDCOUNTYBOARDOFEDUCATION

RIQHMOND QQUNTY BOARD OF EQUQ~T)ON CQMBINED BALANCE SHEET
ALL FUND TYPES ANQ ACCOUNT GROUP Jl,!NE 30. 2001

~
Cash and Cash Equivalents
Investments
Accounts Receivable
Due from Other Funds
Inventories Consumable Supplies 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 "Compensated Absences

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 9,969,072.78 $ 4,361,798.48

13,590,653.44

$ 43,881,920.68

2,062,238.22

4,265,412.35

6,658,748.11

260,092.90

3,249,268.83

51,111.53
135,351.52 138,233.93

Total Assets

$ 28,871,233.27 $ 8,951,907.81 $ 501800,761.69

blABILITIE~ ~NQ FUNR !;QUID'.
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Short-Tenn Debt Expired Grant Balances Payable Contracts Payable Retainages Payable Due to Other Funds Funds Held for Others Capital Lease Agreements Compensated Absences General Obligation Bonds Payable
Total Liabilities
FUND.EQUIIY
Fund Balances Reserved For Arbitrage Rebate Tax For Continuation of Federal Programs For Debt Service For Encumbrances For Inventories Consumable Supplies Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

24,182.21

$ 2,518,104.43 $

669,710.70

35,038.32

2,148,960.00

13,000,000.00

259,348.90

860.00

365,089.27

737,271.10

97,490.49

$ 2,874,943.82 $ 2,819,530.70 $ 14,161,560.90

$

920,175.00

$

148,579.23 $

97,971.69

3,249,268.83

51,111.53

135,351.52 138,233.93

1,257,282.71 34,322,211.00
139,532.08

22,598,441.39

5,709,708.44

0.00

$ 25,996,289.45 $ 6,13213TT.11 $ 36,639,200.79

Total Liabilities and Fund Equity

$ 28,8711233.27 $ 819511907.81 $ 501800,761.69

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

-2-

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

$ 4,205,871.82 $

111,728.80

2,613.98

162,318.59

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Onl~

JUNE 30, 2001

JUNE 30, 2000

$ 18,648,471.88 $ 15,262,143.68

57,475,188.10

58,908,072.50

13,148,717.27

12,608,524.06

260,092.90

$ 4,208,201.98

3,300,380.36
135,351.52 138,233.93
4,208,201.98

3,517,317.35
142,661.14 127,054.25
6,763,878.44

43,366,798.02 17,089,427.27
1.269,110.42

43,366,798.02 17,089,427.27 1,269.110.42

69,006, 121.56 17,471,348.79
1.006.836.56

$ 413701804.39 $

111-728.80 $ 6519331537.69 $ 15910391973.65 $ 18418131958.33

$

162,602.41

$

$

162,602.41 $

38,215.68 $

$
17,089,427.27 1,269,110.42
47.575.000.00

24,182.21 3,222,853.45 $ 2,148,960.00 13,000,000.00
260,208.90 365,069.27 737,271.10 260,092.90
38,215.68 17,089,427.27 1,269,110.42 47.575,000.00

4,782,120.73 2,259,970.51
109,156.61 3,226,378.47 1,864,318.79
34,534.43 17,471,348.79 1,006,836.56 75,no,ooo.oo

38,215.68 $ 65.933.537.69 $ 85,990,391.20 $ 106.524.664.89

$ 4,208,201.98

0.00 $ $ 4.208.201.98 $

73.513.12 73,513.12

$

920,175.00 $

920,175.00

149.24

4,208,201.98

6,763,878.44

248,550.92

543,015.59

3,300,380.36

3,517,317.35

135,351.52 138,233.93 1,257,282.71 34,322,211.00 139,532.08

142,681.14 127,054.25 10,561,573.52 27,388,291.64 5,679,511.40

28.381.682.95

22.645,685.87

$ 73.049.582.45 $ 78.289.293.44

$ 413701804.39 $

111-728.80 $ 6519331537.69 $ 15910391973.65 $ 18418131958.33

-3-

RiCHMOND COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS 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 Administration Business Administration Maintenance and Operation of Plant Stui:lent Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OT!:!ER FINANCING SOURC!;S (USES}
Capital Leases 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
.Consumable Supplies Inventory - Net Change in Period Food Inventory - Net Change in Period
Donated Commodities Purchased Food

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 137,023,016.29 $ 1,301,626.41
61,996,305.70 3,622,041.03

8,045,396.92 $ 24,492,381.33
3,310,352.57

5,201,297.51
9,408,022.96 2,727,130.46

$ 203,942,989.43 . $ 35,848,130.82 $ 17,336,450.93

$ 132,589,801.91 $ 15,179,216.33

4,120,090.14 4,419,182.91 5, 165,483.45 1,935,396.70 14,673,350.79 1,454,053.55 21,917,244.85 8,599,012.25 1,901,460.09
27,832.78 70,148.70 107,423.00 632,933.65

2,614,468.49 2,107,796.76
614,537.00 349,279.31 231,515.03
$ 705,964.26
79,927.60 170.47
43,968.51 13,024,041.10
315,962.12

100,000.00 25,174,093.98

1,447,167.42 1,222,425.38

14,068.40 1,986.75

$ 200,283,007.57 $ 35,282,902.13 $ 25,274,093.98

$ 3,659,981.86 $

565,228.69 $ -7,937,643.05

$ 1,079,314.31 55,610.12 $
-239,400.00

$

895,524.43 $

239,400.00 $
239,400.00 $

-55,610.12 -55,610.12

$ 4,555,506.29 $ 21,505,999.27 -65,216.11

804,628.69 $ -7,993,253.17

5,323,878.36

44,632,453.96

07,309.62 11,179.68

FUND BALANCE JUNE 30

$ 25,996,289.45 $ 6,132,377.11 $ 36,639,200.79

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

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

(Memorandum Onll:'.l YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 150,269,710.72

25,794,007.74

$ 28,455,305.81

99,859,634.47

407,710.99

10,067,235.05 $

$ 28,863,016.80 $ 285,990,587.98 $

$ 150,269,710.72 $ 140,566,279.88

25,794,007.74

23,764,408.59

99,859,634.47

97,215,587.36

10,804.71

10,078,039.76

10,109,932.64

10,804.71 $ 286,001,392.69 $ 271,656,208.47

$ 147,769,018.24

6,734,558.63 6,526,979.67 5,780,020.45 2,284,676.01 14,904,865.82 1,554,053.55 22,623,209.11 8,678,939.85 1,901,630.56 $
71,801.29 13,094,189.80
423,385.12 25,807,027.63

$ 28,195,000.00 3,214,680.00 9,013.26

29,656,235.82 4,439,092.13
9,013.26

$ 31,418,693.26 $ 292,258,696.94 $

$ -2,555,676.46 $ -6,268,108.96 $

$ 147,769,018.24 $ 133,668,311.29

375.00

6,734,558.63 6,526,979.67 5,780,020.45 2,284,676.01 14,904,865.82 1,554,053.55 22,623,209.11 8,678,939.85 1,902,005.56
71,801.29 13,094,189.80
423,385.12 25,807,027.63

10,600,842.61 6,367,218.28 6,022,386.97 2,360,612.17 13,995,455.68 1,270,083.75 21,306,947.36 7,615,167.27 2,263,834.93
453,065.28 13,045, 128.50
491,505.24 36,928,772.88

29,656,235.82 4,439,092.13
9,013.26

24,372,965.52 5,061,192.87 8,886.70

375.00 $ 292,259,071.94 $ 285,832,377.30

10,429.71 $ -6,257,679.25 $ -14,176,168.83

$ 1,079,314.31 295,010.12 -295,010.12
$ 1,079,314.31

$ -2,555,676.46 $ -5,188,794.65 $

6,763,878.44

78,226,210.03

-65,216.11

. -7,309.62 11,179.68

$ 1,079,314.31 $ 295,010.12 -295,010.12
$ 1,079,314.31 $

11,496.00 480,954.77 -480,954.77
11,496.00

10,429.71 $ -5,178,364.94 $ -14,164,672.83

63,083.41

78,289,293.44

92,110,611.82

-65,216.11

302,971.10

-7,309.62 11,179.68

31,075.98 9,307.37

$ 4,208,201.98 $ 72,976,069.33 $

73,513.12 $ 731049,582.45 $ 78,289,293.44

-5-

RICHMOND COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL INON-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

$ 133,632,423.50 $ 137,023,016.29

1,738,365.00

1,301,626.41

59,348,717.00

61,996,305.70

18,129,785.28

3,622,041.03.

Total Revenues

$ 212,849,290.78 $ 203,942,989.43

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 Other Support Services Food Services Operation Community Services Operations
Capital OuUay Debt Service

$ 129,757,743.28 $ 132,589,801.91

5,364,468.00 5,084,844.49 5,722,769.95 1,862,038.40 14,781,094.85 1,488,729.08 21,490,221.89 8,453,183.53 1,952,575.67
43,113.00 15,396.00 107,423.00 634,642.82 17,781,186.00

4,120,090.14 4,419,182.91 5,165,483.45 1,935,396.70 . 14,673,350.79 1,454,053.55 21,917,244.85 8,599,012.25 1,901,460.09
27,832.78 70,148.70 107,423.00 632,933.65 2,669,592.80

Total Expenditures

$ 214,539,429.96 $ 200,283,007.57

Excess of Revenues over (under) Expenditures

$ -1,690, 139.18 $ 3,659,981.86

OTHER FINANCl!'!!G SOURCES (USES}

Other Sources Other Uses

$ 1,969,539.18 $ -279,400.00

1, 134,924.43 -239,400.00

Total Other Financing Sources (Uses) $ 1,690,139.18 $ 895,524.43

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

FUND BALANCE JULY 1. 2000

o.oo $ 4,555,506.29

0.00

19,344,479.41

EU!'!IP BALA!'!!Cf; ,IU!'!lf; 30 2001

$

0.00 $ 2318991985.70

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 8,012,370.00 $ 8,045,396.92 24,648,546.00 24,492,381.33

3,049,965.00

3,310,352:57

$ 35,710,881.00 $ 35,848,130.82

$ 15,956,751.00 $ 15,179,216.33

2,904,432.87 2,302,953.00
614,537.00 367,113.00 234,924.00

2,614,468.49 2,107,796.76
614,537.00 349,279.31 231,515.03

689,352.00 127,435.00
1,500.00 48,149.00 14,013,522.99 593,126.00

705,964.26 79,927.60 170.47 43,968.51
13,024,041.10 315,962.12

16,055.15

$ 37,853,795.86 $ 35,282,902.13

$ -2, 142,914.86 $ 565,228.69

$ 2,160,411.86 $ -17,497.00
$ 2,142,914.86 $

239,400.00 239,400.00

$

0.00 $ 804,628.69

0.00

5,054,162.97

$

0.00 $ 5,858i791.66

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

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Richmond 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 of purchase. 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 reportingthe cost of assets acquired by governmental fund types.
Although "s.chool 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 sho.uld be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activtties. 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-

RICHMOND 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 tjie 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.
a FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in
trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
EXPENDABLE TRUST FUNDS Davidson Trust Fund - the fund used to account for the principal and earnings which may be expended to provide financial assistance to needy students ofDavidson Fine Arts Magnet School.
Gail Hendricks Scholarship Fund, Nora Coxwell Scholarship Fund and Robetta McKenzie Scholarship Fund. - the funds used to account for the principal. and earnings which may be expended to provide scholarships for selected students.
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, accrued compensated absences 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 and expendable trust 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 balan~e is considered a measure of available spendable resources.

- 8-

RICHMOND COUNTY BOARD.OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and. available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all ~ligibility requirements have been satisfied.
. Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from.the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2001, had not been
made. Payments for these two months were made and recorded as expenditures by the School
District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Genera}Jy accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

-9-

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets

and liabilities.



BUDGET

The Richmond County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding
sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The
budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the fund type level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

The Statement of Revenues, Expenditures and Ghanges in Fund Balances - Budget and Actual

presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate

.comparison with the budget, the following adjustments have been made to fund balance as reflected

on

Exhibit

11 ~

11

of this report:

General Fund.

Special Revenue
Fund

FUND BALANCE JULY 1;2000

$21,505,999.27 $ 5,323,878.36

Adjustments Inventories.;. July 1, 2000 Food Donated Commodities Purchased Foods Supplies
Fund Balance July 1, 2000 (Budget Basis).

-2,161,519.86 $19,344,479.41

-142,66i.14 -:127,054.25
$ 5,054,162.97

Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

4,555,506.29

FUND BALANCE JUNE 30, 2001 (Budget Basis) $23,899.985,70

804.628.69
$ 5,858,791.66

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE 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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in. nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional. bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation_ofthe United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants f.or expenditures made but not reimbursed and other receivables disclosed from information available. Receivables
- 11 -

RICHMOND COUNfY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 Augusta - Richmond County Board ofCommission Council fixed the property tax levy for the 2000 tax year (calendar year) on September 19, 2000 (levy date). Taxes were due on December 27, 2000 (lien date). Taxes collected within the current fiscal year or within 60 days after y~ar-end are reported as revenue in fiscal year 2001. The Augusta - Richmond 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 oftaxes collected to the School District. In addition, the Clerk of the Superior Court of Richmond County collects recording taxes for the Board of Education, withholds 6% of taxes collected as a fee for tax. collection and remits the balance to the School District Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $61,742,221.06 and for school bonds amounted to $5,981,796.69.

Tax millage rates levieC, for the 2000 tax year (calendar year) for the Richmond County Board of . Education were as follows (a mill equals $1 per thousand dollars of assessed value~:

School Operations School Bonds

18.688 mills 1.860 mills

20.548 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capitaloutlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $31,856,250.46 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $30,673,131.23 has been collected or on June 30, 2002, whichever occurs first.

INVENTORIES

CONSUMABLE SUPPLIES Inventories of athletic, custodial and instructional supplies are recorded as e~penditures under the consumption method and are valued at cost (weighted ayerage). These inventories are recorded as assets at the time ofpurchase. Inventories ofmaintenance and transportation supplies are recorded as expenditures at the time of purchase and are valued on the Combined Balance Sheet at cost (weighted average). Inventories of textbooks are recorded as expenditures at the time ofpurchase and are valued on the Combined Balance Sheet at cost (first-in, first-out). Inventories reported on

- 12 - .

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
the balance sheet are equally offset by a reservation of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component ofnet current assets.
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations ofthe School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to th~ general-purpose financial statements.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued "to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
RESERVED FUND BALANCES
For Encumbrances - This reserve constitutes the unperformed portion ofpurchase orders, contracts and other commitments for goods and services at year end. Encumbrances outstanding are reported as a reservation of fund balance and do not constitute expenditures or liabilities in the current year because the commitments will be honored during the subsequent year.
: j INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:

- 13 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements ofexpenditures initially made from a fund that are properly appli~able 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
Totalcolumns 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.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of G~orgia 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 aftel'. the deduction ofthe amount ofdeposit insurance. If a 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 an~ 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 ofthe bonds for this purpose,
- 14 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS AND INVESTMENTS

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, ap.d

(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 $27,673,025.34; The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not i11 the School District's name.)

The School District's deposits are classified by risk category at June 30, 2001, as follows:

Risk Category

Bank Balance

1

$ 100,222.25

2

27,572,803.09

3

0.00

Total

$27.673.025.34

CATEGORIZATION OF INVESTMENTS
as Investments are classified to risk by the three categories described below:

Category 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name.
Category 2- Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name.

- 15 -

RICHMOND COUNTY BOA.RD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

At June 30, 2001, the carrying value ofthe School District's total investments w~ $57,475,188.10 which is materially the same as fair value. The investments are classified as to risk categories as follows:

TYQe of Investment
U. S. Government Comn:ion Stock
Total
Local Goveminent Investment Pools
Total Investments

Risk Categories 2
$14,548,644.33 $ $ 453,491.44
$ 453 421 44 $14 548 644,33 $

Carrying

Fair

3

Amount

Value

0.00 $14,548,644.33 $14,548,644.33 453,491.44 453,491.44

QQQ $15,002,135.77 $15,002,135.77

42,473,052.33 42,473,052.33 $5H'.25 188 IQ $5H'.25 188, IQ

The carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

.The Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAArn. rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated-weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. . Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S.

Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S.

Government or any of its agencies or instruinentalities, banker's acceptances and repurchase

agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The

weighted average maturity for Georgia Fund 1 _on June 30, 2001, was 39 days. The average

investment duration for Fund 6 on June 30, 2001, was 6 months.



- 16 - .

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 I

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: INTERFUND ASSETS AND LIABILITIES

Due to and due from other funds are recorded for interfund receivables and payables which arise

from interfund transactions. The following analysis summarizes the status of all _interfund

transactions of the School District at June 30, 2001:



Due From Other Funds

Due To Other Funds

General Fund Capital Projects Fund
Special Purpose Local Option Sales Tax Debt Service Fund
Property Taxes for Bond Debt

$ 97,490.49 $ 260,092.90
162,602.41

$ 260,092.90 $ 260,092.90

Note 5: 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, errors or omissions, job related illness or injuries to employees and natural disaster. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

The School District has established a limited risk management program for workers' compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $225,000.00 loss per occurrence, up to the statutory limit.

- 17 -

RICHMOND COUNfY BOARD OF EDUCATION

EXHIBIT "D" .

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: RISK MANAGEMENT

Changes in the workers' compensation claims liability during the last two fiscal years are as follows:

Beginning of Year Liability

Claims and Changes in Estimates.

Claims Paid

End of Year Liability

2000

$

0.00 $ 322,385.23 $ 322,385.23 $

.0.00

2001

$

0.00 $ 137,494.44 $ 137,494.44 $

0.00

.

.

.The School District is self-insured with regard to unemployment compensation claims. The School

District accounts for claims within the General Fund with expenditure and liability being reported

when it is probable that a loss has occurr~d. and the amount ofthat loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

2000 2001

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

$ 18,950.00 $

$

8,049.00 $

24,742.77 $ 5,677.00 $

35,643.77 $ 12,186.00 $

8,049.00 1,540.00

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

Position Covered

Amount

Superintendent

President

.Vice-President .

Comptroller

Assistant Superintendent

Associate Superintendent

Supervisors

Administrative Assistant

Each Central Office Bookkeeper

Each Principal

..

.Each School Bookkeeper

Each School Business Manager

Athletic Business Manager

Each Lunchroom Manager

$ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00 $ . 50,000.00 $ 50,000.00 $ 20,000.00 $ 10,000.00 $ 10,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 3,000.00

- 18 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 6: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Richmond County Board of Education has entered into various lease agreements as lessee for school buses,. operating vehicles, office equipment, computer equipment, equipment upgrades at various schools, lighting systems, a career exploration lab and the acquisition and construction of school facilities. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the 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 - Refunding - Series 1998 General Government - Refunding - Series 1993 General Government - Refunding - Series 1991

3.80% - 4.25% 2.50% - 4.70% 4.50% - 6.30%

$32,685,000.00 10,900,000.00 3,990,000.00

$47.575.000.00

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

Balance July 1, 2000
Additions Capital Leases Annual Leave Earned and Utilized (Net)
Deductions Debt Retired
Balance June 30, 2001

Capital Leases

Compensated Absences

General Obligation
Bonds

Total

$17,471,348.79 $ 1,006,836.56 $75,770,000.00 $94,248,185.35

1,079,314.31

262,273.86

1,079,314.31 262,273.86

1,461,235.83.

28,195,000.00 29,656,235.83

$12 082 ~22 22 $ 1,26211M2 ~1515 00000 $65 233 532 62

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows:

- 19 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT ;'D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 6: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital . Leases

General Obligation
Bonds

Total Debt

2002 2003 2004 2005 2006 2007 - 2011 2012 - 2016 2017-.2021 2022 - 2025

$ 2,530,278.95 $31,420,397.50

2,047,806.54 . 8,571,217.50

1,904,456.85 2,998,460.00

1,907,449.35 3,015,256.25

1,904,599.57 3,026,972.50

5,648,625.82 2,128,880.00

. 4,040,033.75

.

4,040,175.00

3,233;050.00

$33,950,676.45 10,619,024.04 4,902,916.85 4,922,705.60 4,931,572.07 .7,777,505.82 4,040,033.75 4,040,175.00 3~233,050.00

Total Principal and Interest $27,256,475.83 $51.161.183.75 $78.417.659.58

Deduct: Imputed Interest

10,167,048.56

Net Present Value of Future Minimum Lease Payments $17.089.427.27

Note 7: SHORT-TERM DEBT ;

The School District issues tax anticipation notes in advance ofproperty tax collections~ depositing the proceeds in its General Fund and Capital Projects Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-term debt to 75 percent ofthe tptal gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 ofthe calendar year in which the debt was incurred.

Beginning Balance

Additions

Payments

Ending Balance

Tax Anticipation Notes $.==~o~.o~o $28,ooo,ooo,oo $15,000,000.00 $13,000,000.00

Note 8: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of$3,125,607.38 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies.

-20-

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 8: ON-BEHALF PAYMENTS

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $2,401,533.40

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $211,405.98

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 $512,668.00

Note 9: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001:

Project

Unearned Executed Contracts

CP-2011 99-721-088 00/99S-721-106 B-98033-409 B-97-013-426 B-97-017-424 B-98-035-411 B-98-029-418 B-99-041-420 B-97-012-415 B-99-036-417

$ 1,403.09 30,787.20 84,781.63 11,608.12 84,095.10 11,778.54
322,824.85 350.59
98,914.00 7,702.00
48,840.18

$ 2Q31Q85.30

The amounts described in this note are not reflected in the general-purpose financial statements.

- 21 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 I

Note 10: CONTINGENT LIABILITIES

.ARBITRAGE REBATE TAX The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt to make payments to the United States Treasury of Investment Income received at yields that exceed the issuer's tax-exempt borrowing rates. The U. S. Treasury requires payment every five years. The estimated contingent liability of$920, 175.00 at June 30, 2001, is based on tax exempt debt subject to the Tax Reform Act. This amount will be updated annually for any tax-exempt issuances or changes in yields through September 1, 2003, at which time payment ofthe final calculated liability for the five-year period is required to be remitted.

Amounts received or receivable principally from the Federal government are subject to audit and reviewby 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 11: SUBSEQUENT EVENTS

In the subsequent fiscal year, voters authorized the School District to issue general obligation bonds in the amount of$115,000,000.00. The proceeds from these bonds will be used for the purpose of acquiring, constructing and equipping capital outlay projects for educational purposes in Richmond County and paying certain costs and expenses relating to the issuance of the bonds.

Note 12: ACCUMULATED EMPLOYEES' LEAVE

Administrative and other clerical personnel earn two days ofvacation each month with a maximum accumulation of twenty-four days less required vacation days to be taken during the year. Maintenance and other twelve-month employees earn vacation leave ranging from ten days to twenty-four days per year depending upon the employee's length of service with a maximum accumulation of22 days. Vacation leave vests with the employee and unused accumulated vacation leave up to the maximum accumulation is paid at the current rate of pay, to employees upon retirement or termination of employment. See Note 1 - Compensated Absences

Note 13: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION

Substantially all teachers, administrative and clerical personnel employed by local school districts

are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple

employer defined benefit pension plan. TRS provides service retirement, disability retirement and

survivors benefits for its members in accordance with State statute. The Teachers Retirement

System of Georgia issues a separate stand alone financial audit report and a copy can be obtained

from the Georgia Department of Audits and Accounts.



- 22 -

RICHMOND COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 13: RETIREMENT PLANS

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 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%

$14,559,150.00 $14,016,137.79 $14,315,192.29

- 23 -

RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Consumable SuJ:!plies Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY
PROGRAMS

FEDERAL
PROGRAMS

$ 6,268,607.56 $

347,853.05

248,109.70

242,460.25 $ 3,774,842.40

135,351.52 138,233.93

Total Assets

$ 6,790,302.71 $

590,313.30 $ 3,774,842.40

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Encumbrances For Inventories Consumable Supplies Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

256,115.13 $

. 742,254.0f

$

998,369.14 $

$

135,351.52 .

138,233.93

5,518,348.12 $

$ 5,791,933.57 $

$ 130,986.90 459,326.40
590,313.30 $

2,543,994.14 282,608.67
947,379.59 860.00
3,774,842.40

0.00 $

0.00

0.00 $

0.00

Total Liabilities and Fund Equity

$ . 6,790,302.71 $

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

590,313.30 $ 3,774,842.40

EXHIBIT"E"

OTHER PROGRAMS

$

1,319.89 $

ATHLETIC FUND

TOTALS

JUNE 30, 2001

JUNE 30, 2000

288,012.12 $ 6,905,792.62 $ 6,093,349.53

4,265,412.35

4,125,608.87

51,111.53

51,111.53
135,351.52 138,233.93

39,071.37
142,661.14 1271054.25

$

1,319.89 $

339,123.65 $ 11,495,901.95 $ 10,527,745.16

$ 2,543,994.14 $ 2,292,276.97

669,710.70

613,568.93

2,148,960.00

2,259,970.51

860.00

381050.39

$ 5,3631524.84 $ 512031866.80

$

149.24

$

97,971.69 $

97,971.69

119,059.87

51,111.53

51,111.53

39,071.37

135,351.52 138,233.93

142,661.14 127,054.25

$

11319.89

190,040.43

5,7091708.44

4,8951882.49

$

11319.89 $

3391123.65 $ 6,132,377.11 $ 513231878.36

$

11319.89 $

3391123.65 $ 11,4951901.95 $ 10,527,745.16

-25-

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDEfML PROGRAMS

REVENUES

State Funds Federal Funds Other Funds

$ 1,010,054.00 $ . 10,353,378.01 2,878,843.07

4,551,157.23 $ 2,484,185.69 14,139,003.32

Total Revenues EXPENDITURES

. $ . 14,242,275.08 $ 4,551,157.23 $ 16,623,189.01

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Debt Service Principal Interest
Total Expenditures

$

$

6,973.99

71,046.00

13,022,408.81 315,962.12

$ 13,416,390.92 $

3,253,485.91 $ 11,848,245.14

497,664.02 18,196.62
614,537.00
139,734.25 27,539.43

1,759,637.99 2,089,600.14
342,305.32 231,515.03 237,820.04.
52,388.17 170.47
43,968.51 1,632.29

14,068.40 1,986.75
4,551,157.23 $ 16,623,338.25

Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES <USES}

$

825,884.16 $

0.00 $

-149.24

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

$

825,884.16 $

4,962,179.35

-7,309.62 11,179.68

0.00 $ 0.00

-149.24
149.24

FUND BALANCE JUNE 30 See notes to the general-purpose financial statements.

$ 5,791,933.57 $ -26-

o.oo $-==....,.--0....o..o. i=

EXHIBIT"F"

OTHER PROGRAMS

ATHLETIC FUND

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 8,045,396.92 $ 9,158,548.29

24,492,381.33

22,731,774.33

$

77,095.28 $

354.414.22

3,310,352.57

3.433, 178.66

$

77,095.28 $

354,414.22 $ 35,848,130.82 $ 35,323,501.28

$

77,485.28

$ 15,179,216.33 $ 14,458,253.80

$

357,166.48

2,614,468.49

3,485,973.33

2,107,796.76

1,441,259.29

614,537.00

809,473.54

349,279.31

329,097.96

231,515.03

60,787.65

257,363.97

705,964.26

542,177.96

79,927.60

22,730.03

170.47

43,968.51.

318,314.00

13,024,041.10

13,036,644.58

315,962.12

264,619.33

14,068.40 1,986.75

13,462.37 2,592.78

$

77.485.28 $

614,530.45 $ 35,282,902.13 $ 34,785,386.62

$

-390.00 $ -260, 116.23 $

565,228.69 $

538,114.66

$

239,400.00 $

239,400.00 $

267,600.00

-146,413.24

$

239.400.00 $

239.400.00 $

121,186.76

$

-390.00 $

-20,716.23 $

804,628.69 $

659,301.42

1,709.89

359,839.88

5,323,878.36

4,624,193.59

-7,309.62 11,179.68

31,075.98 . 9,307.37

$

1,319.89 $

339,123.65 $ 6,132,377.11 $ 5,323,878.36

-27-

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Due from Other Funds
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable .Short-Term Debt Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Arbitrage Rebate Tax For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general-purpose financial statements.

REGULAR

. BOND PROCEEDS

$

0.00 $ 1,349,736.12

1,601,040.45

,

$

0.00 $ 2,950,776.57

$

20,423.10

354;868.50 398,027.26

$

773,318.86

$

920,175.00

1,257,282.71

$

0.00

0.00

$

0.00 $ 2,177,457.71

$

0.00 $ 2,950,776.57

EXHIBIT"G"

GEORGIA STATE FINANCING AND
INVESTMENT
COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 301 2001

JUNE 30, 2000

$ 1,349,736.12 $ 1,565,115.05

$ 42,280,880.23

43,881,920.68

42,297;217 .07

$

931,467.60

5,727,280.51

6,658,748.11

5,864,002.62

260,092.90

260.092.90

$

931,467.60 $ 48,268,253.64 $ 52.150,497.81 $ 49,726,334.74

$

427,875.69 $

946,042.64 $ 1,373,918.33

14,615.22

35,038.32 $

3,183.52

13,000,000.00

13,000,000.00

10,200.77

365,069:21

3,226,378.47

339,243.84

737.271.10

118 6 4 1318.79

$

791.935.52 $ 13,946.042.64 $ 15.511.297.02 $ 5.093.880.78

$

920,175.00 $

920,175.00

1,257,282.71

10,561,573.52

$ 34,322,211.00

34,322,211.00

27,388,291.64

$

139,532.08

139,532.08

5,679,511.40

0.00

0.00

0.00

82.902.40

$

139,532.08 $ 34,322,211.00 $ 36,639,200.79 $ 44,632.453.96

$

931,467.60 $ 48.268,253.64 $ 52,150,497.81 $ 49,726.334.74

- 29 -

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

REVENUES
State Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
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
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

0.00

$

906,345.78

$

0.00 $

906,345.78

$

158,231.38

9,996,213.51

$

29,897.00

861,218.99

$

29,897.00 $ 11,015,663.88

$

-29,897.00 $ -10,109,318.10

$

705.,027.29

$

-53,005.40

$

-53,005.40 $

705,027.29

$

-82,902.40 $ -9,404,290.81

82,902.40

11,581,748.52

0.60 $ 2,177,457.71

See notes to the general-purpose financial statements. - 30-

EXHIBIT"H"

GEORGIA STATE FINANCING AND
INVESTMENT . COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 301 2000

$ 5,201,297.51

$ 5,201,297.51 $ 4,113,378.49

$ 9,408,022.96

9,408,022.96

27,066,461.23

1,820,784.68

2,727,130.46

2,617,298.56

$ 5,2011297.51 $ 11,228,807.64 $ 17,336,450.93 $ 33,797,138.28

$

100,000.00 $

100,000.00

$ 13,501,111.99 6,839.56

237,589.50 298,705.05
84,287.00

395,820.88 $ 23,796,030.55
982,242.55

803,644.85 33,485,908.77
213461016.03

$ 13,507,951.55 $

7201581.55 $ 25,274,093.98 $ 36,635,569.65

$ -8,3061654.04 $ 1015081226.09 $ -7,937,643.05 $ -2,8381431.37

$ 2,766,674.72

$ 3,471,702.01 $ . 414,419.86

$ -3,474,306.73

-3,527.312.13

-201,065.09

$ 2,766,674.72 $ -3,474,306.73 $

-55,610.12 $

213,354.77

$ -5,539,979.32 $ 7,033,919.36 $ -7,993,253.17 $ -2,625,076.60

5,679,511.40

271288.291.64

44,632,453.96

47,2571530.56

$

1391532.08 $ . 34,3221211.00 $ 36,639,200.79 $ 44,632,453.96

- 31 -

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

EXHIBIT "I"

Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$ 4,205,871.82 $

0.00 $ 4,205,871.82 $ 6,584,098.02

2,613.98

2,613.98

2,836.61

. 162,318.59

162,318.59

176,943.81

Total Assets

$ 4,370,804.39 $====o=.o=o= $ 4,370,804.39 $ 6,763,878.44

LIABILITIES AND FUND EQ!,!ITY
LIABILITIES
Due to Other Funds
FUND EQUITY
F.und Balances Reserved For Debt Service Unreserved Undesignated
Total Fund Equity

$ 162,602.41
$ 4,208,201.98 0.00 $
$ 4,208,201.98 $

$

162,602.41

$ 4,208,201.98 $ 6,763,878.44

0.00

0.00

0.00

0.00 $ 4,208,201.98 $ 6,763,878.44

Total Liabilities and Fund Equity

$ 4,370,804.39 $=====0.=00=== $ 4,370,804.39 $ 6,763,878.44

See notes to the general-purpose financial statements.

- 32-

RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2001

EXHIBIT "J"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED
JUNE 30, 2001 JUNE 30, 2000

REVENUES
Taxes Other Funds

$ 6,007,078.31 $ 22,448,227.50 $ 28,455,305.81 $ 9,931,412.75

407,710.99

407,710.99

337,917.09

Total Revenues . EXPENDITURES

$ 6,414,789.30 $ 22,448,227.50 $ 28,863,016.80 $ 10,269,329.84

Debt Service Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

$ 5,746,772.50 $ 22,448,227.50 $ 28,195,000.00 $ 22:210,000.00

3,214,680.00

3,214,680.00

4,323,938.75

9,013.26

9,013.26

8,886.70

$ 8,970,465.76 $ 22,448,227.50 $ 31,418,693.26 $ 26,602,825.45

$ -2,555,676.46 $

0.00 $ -2,555,676.46 $ -16,333,495.61

6,763,878.44

0.00

6,763,878.44 23,097,374.05

FUND BALANCE JUNE 30

$ 4,2oa,201.9a $====o=.o=o= $ 4,2oa,201.9a $ 6,763,878.44

See notes to the general-purpose financial statements.

- 33-

RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2001

ASSETS Cash and Cash Equivalents

DAVIDSON TRUST FUND

EXPENDABLE TRUST FUNDS

GAIL

NORA

HENDRICKS

COXWELL

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

$

37,037.99 $

7 397.47 $

28,200.41

LIABILITIES AND FUND EQUITY LIABILITIES
Funds Held for Others FUND EQUITY
Fund Balances Unreserved Undesignated
Total Liabilities and Fund Equity

$

37,037.99 $

7 397.47 $ _ __,2:::8;&:,,2::,0=.:0..:..41~

$

37,037.99 $

7 397.47 $ =====2=8=,2=00==41==

See notes to the general-purpose financial statements. -34-

EXHIBIT"K"

ROSETTA MCKENZIE SCHOLARSHIP
FUND

AGENCY FUNDS

TOTALS JUNE 30, 2001 JUNE 30, 2000

$

877.25 $

38,215.68 $ 111,728.80 $==97===,6=1=7.=84=

$

38,215.68 $

38,215.68 $

34,534.43

$ _ ___,;8'"'"7.;..;7=25"-

0.00

$

877.25 $

38,215.68 $ 111,728.80 $ =====97=,6=1=7=84=

- 35-

RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 2001

REVENUES
Other Funds EXPENDITURES
Current Support Services Central Support
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

DAVIDSON TRUST FUND

GAIL HENDRICKS SCHOLARSHIP
FUND

$

1,858.56 $

7 297.47

$

375.00 $

$

1,483.56 $

35.554.43

0.00 7,297.47
100.00

FUND BALANCE JUNE 30

$

37,037.99 $===7=3=97====47=

See notes to the general-purpose financial statements.
- 36-

EXHIBIT"L"

'I

NORA COXWELL SCHOLARSHIP
FUND

ROSETTA MCKENZIE SCHOLARSHIP
FUND

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

1,598.95 $

49.73 $

10,804.71 $ ______3.._4_17_._51_

$

0.00 $

$

1,598.95 $

26,601.46

$

28,200.41 $

0.00 $ 49.73 $ 827.52

375.oo $ _ _ _ _o=._o_o__

10,429.71 $

3,417.51

63,083.41

59,665.90

877.25 $

73,513.12 $ ===6=3:!:::,0==83==41==

- 37-

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

EXHIBIT "M"

COHEN, COLONEL CLARENCE H.1 R.O.T.C. AWARD FUND
ASSETS Cash and Cash Equivalents

BALANCE JULY 11 2000

ADDITIONS. DEDUCTIONS

BALANCE JUNE 301 2001

$

796.54 $

46.29 $

0.00 $

842.83

LIABILITIES Funds Held for Others
PERFORMANCE BONDS ASSETS
Cash and Cash Equivalents

$

796.54 $

46.29 $

0.00 $ ======84=2::;:.8=3=

$

33,737.89 $ 20,914.21 $

17,279.25 $ ====3=7=,3=72=.8=5=

LIABILITIES Funds Held for Others

$

33,737.89 $ 20,914.21 $

17,279.25 $ ===3;,;,,7,!,;;;3=72=.8=5=

TOTALS - AGENCY FUNDS
ASSETS Cash and Cash Equivalents

$

34,534.43 $ 20,960.50 $

17,279.25 $===3=8,~2=15=.6=8=

LIABILITIES Funds Held for Others

$

34,534.43 $ 20,960.50 $

17,279.25 $ ===3=8=,2=15=.6=8==

See notes to the general-purpose financial statements.

RICHMOND COUNTY BOARD OF EDUCATION

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

YEAR ENDED JUNE 30, 2001

1

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 Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program Pass-Through From Office of School Readiness Summer Food Service Program for Children

. 10.553 . 10.555
. 10.559

NIA $ 1,920,670.48

(2)

NIA

7,339,794.70 $ 12,3TT,201.03 (3)

NIA

340,610.76

340,610.76

Total Child Nutrition Cluster

$ 9,601,075.94 $ 12,717,811.79

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program

10.550

NIA

10.558

NIA

698,579.13 53,722.94

698,579.13 (2)

Total U.S. Department of Agriculture

$ 10,353,378.01 $ 13,416,390.92

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 Grant Flow Through Georgia Leaming Resources System Preschool Severely Emotionally Disturbed

84.173 84.027 84.027 84.173 84.027

NIA NIA NIA.
NIA
NIA

$

92,075.00 $

2,298,632.59

149,984.62

138,782.45

193,734.82 .

92,075.00 2,298,632.59
149,984.62 138,782.45 193,734.82

Total Special Education Cluster

$ 2,873,209.48 $ 2,873,209.48

Other Programs Direct Impact Aid Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project Elementary and Secondary Education Act Title I Accountability Grants Grants to Local Educational Agencies Trtlell Eisenhower Professional Development Title Ill Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Safe and Drug-Free Schools and Communities Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth Vocational Education - Basic Grants to States High School Program Basic Grant
Total U.S. Department of Education

84.041 84.332
84.348 84.010 84.281 84.318 84.298 84.340 84.186 84.196
84.048

756,917.77

(5)

NIA

68,250.00

68,399.24

NIA

342,989.00

342,989.00

NIA

8,463,427.77

8,463,427.77

NIA

255,859.17

255,859.17

NIA

141,230.49

141,230.49

NIA

270,322.61

270,322.61

NIA

1,010,919.93

1,010,919.93

NIA

137,893.44

137,893.44

NIA

12,235.06

12,235.06

NIA

433,644.17

433,644.17

$ 14,766,898.89 $ 14,01 o,130.36

-39-

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services, U. S. Department of Pass-Through Georgia Department of Human Resources Block Grants for Prevention and Treatment of Substance Abuse Grant-in-Aid
Justice, U. S. Department of Pass-Through From Richmond County Board of Commissioners Juvenile Delinquency Prevention and Intervention
Labor, U.S. Department of Pass-Through From Richmond/Burke Job Training Authority Job Training Partnership Act 08-00-20-11-245
OTHER FEDERAL ASSISTANCE
Defense, U.S. Department of Direct Defense Activity for Non-Traditional Support Troops to Teachers Department of the Air Force R.O.T.C. Program Department of the Army R.O.T.C. Program Department of the Marines R.O.T.C. Program Department of the Navy R.0.T.C. Program
Total U. s. Department of Defense

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

93.959

N/A $ _.....,:7..:9C!.:,9:.:5:2:,:57.:...

(4)

16.548

NIA

$

17,126.93 $ -----'-17'-',.;.;:12=-=6..:.:.9;.;:;..3

17.250

N/A $ 111,895.27 $ _ _..:,1.:,.11:.,;,8~9:::,5,:.:;;27.:..

$ 36,713.62

(4)

49,332.50

(4)

180,508.20

(4)

38,097.98

(4)

160,103.77

(4)

$_...;.;::4..6.;4.r.,;7. 56.07

Total Federal Financial Assistance

$ 25,794,007.74 $ 27,555,543.48

NIA = Not Available

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. Commodities from U. S. Department of Defense for fresh produce valued in the amount of $140,000.00 were received during the current fiscal year and were not recorded in the School District's financial statements.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) 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 Subrecipient.

.The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Richmond County Board of Education and Is presented on the modified accrual 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.

~40-

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Community Affairs, Georgia Department of Governor's Emergency Funds (1) local Assistance Grants_

$

2,479.00

126,340.19

$

2,479.00

126,340.19

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 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 Mid-tenn Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Georgia Leaming Resources System Health Insurance Innovative Programs Mentoring Program Mentor Teachers Pay for Perfonnance Preschool Handicapped Program Remedial Summer School Severely Emotionally Disturbed Statewide Local Education Improvement Teachers' Retirement Lottery Programs Computers in the Classroom

6,262,607.00 1,800,050.00 18,566,565.00 4,594,319.00 10,303,272.00 1,250,060.00 17,241,417.00 16,819,593.00 3,330,209.00
525,190.00 2,944,256.00 5,200,026.00
623,909.00 358,763.00 1,581,352.00 1,407,713.00 164,763.00 3,061,819.00 821,374.00 19,049,370.00

2,623,752.00 587,117.00 665,974.00 141,311.00 135,726.00
1,468,846.00 9,975,758.00
240,421.17

$ 1,010,054.00

65,000.00 75,303.32
2,250.00
2,401,533.40 5,000.00 6,790.28
25,917.00 224,088.46 565,453.00
53,378.69
8,379.00 , 211,405.98

103,368.00 2,380,817.69

744,537.00

6,262,607.00 1,800,050.00 18,566,565.00 4,594,319.00 10,303,272.00 1,250,060.00 17,241,417.00 16,619,593.00 3,330,209.00
525,190.00 2,944,256.00 5,200,026.00
623,909.00 358,763.00 1,581,352.00 1,407,713.00 164,763.00 3,061,819.00 821,374.00 19,049,370.00
2,623,752.00 587,117.00 665,974.00 141,311.00 135,726.00
1,468,846.00 9,975,758.00 1,010,054.00
240,421.17
65,000.00 75,303.32
2,250.00 103,368.00 2,401,533.40
5,000.00 6,790.28 25,917.00 224,088.46 565,453.00 53,378.69 2,380,817.69 8,379.00 211,405.98
744,537.00

Georgia Public Safety Training Center Law Enforcement Training Center

237,559.72

237,559.72

-41 -

RICHMOND COUNTY.BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public _School Employees Retirement
CONTRACTS Education, Georgia Department of Foreign Language Program Georgia's Reading Challenge Reading First Program
Office of Planning and Budget Georgia Council for the Arts Georgia Challenge Program
OTHER Education, Georgia Department of Reimbursement for Teacher Substitute Special Education Administrator's Conference

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 5,201,297.51 $ 5,201,297.51

$ 3,806,620.23

3,806,620.23

$

512,668.00

512,668.00

26,651.00 234,452.78 659,061.22

26,651.00 234,452.78 659,061.22

32,834.23

32,834.23

518.85 420.00

518.85 420.00

$ 137,023,016.29 $ 8,045,396.92 $ 5,201,297.51 $ 150,269,710.72

(1) The purpose of the funds are to provide funds for the purchase of a bronze plaque to honor the retiring principal of John S. Davidson Fine Arts Magnet School.

See notes to the general-purpose financial statements.

-42-

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

SCHEDULE "3"

PROJECT
The general obligation debt of the district will be retired from the proceeds of the special use tax. This will include a large portion of the bond issue of $115,000,000.00 entitled "Richmond County General Obligation School Bond Series 1996" and certain other previously outstanding general obligation bonds at an estimated cost of $124,750,000.00. The principal and interest on these bonds come due on May 1st and November 1st of each year. May 1, 1998, will be the first time the principal will come due to be retired, in part, by the sales tax.
The school board will construct, as provided in the election, a middle school and/or an elementary school, which expenditures shall include acquiring, constructing and equipping these school buildings. In addition, to the construction of the middle and/or elementary school, the special sales tax shall be utilized to renovate, repair, improve and equip existing school buildings and other buildings and facilities.

ORIGINAL ESTIMATED
COST {1!

CURRENT ESTIMATED COSTS{2)

AMOUNT EXPENDED IN CURRENT YEAR{3)

AMOUNT EXPENDED
IN PRIOR YEARS{3)

PROJECT STATUS

$ 124,755,000.00 $ 124,755,000.00 $ 22,448,227.50 $ 61,184,266.78 Ongoing

25,245,000.00

25,245,000.00 15,784,419.00

509,481.14 Ongoing

$ 1501000,000.00 $ 15010001000.00 $ 3812321646.50 $ 611693?47.92

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion.
(3) The voters of Richmond County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

See notes to the general-purpose financial statements.

.43.

RICHMOND COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (QBE}
ALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30. 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Ear1y Intervention Program

Primary Grades (1-3) Program

Primary Grades-Ear1y 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

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other Languages (ESOL)

7,176,419.00 $ 7,268,520.61 $

2,062,706.00

2,230,704.26

21,275,719.00 ' 19,982,970.80

5,264,701.00

5,631,218.03

11,806,681.00

11,572,450.90

1,432,464.00

1,901,398.93

19,757,212.00

20,343,282.00

19,044,653.00

24,555,806.20

3,816,138.00

4,097,654.59

10,649,431.00

1,277,920.49

3,695,772.94

5,929,998.09

880,126.47

411,111.00

543,098.91

1,812,098.00

3,305,229.26

1,613,121.00

1,839,029.21

. 188,804.00

364,726.14

206,975.64 $ 18,271.64
582,032.90 51,253.30
372,507.20 54,802.68
644,276.90 850,125.20 652,915.35

7,475,496.25 2,248,975.90. 20,565,003.70 5,682,471.33 11,944,958.10 1,956,201.61 20,987,558.90 25,405,931.40 4,750,569.94

22,401.00 3,377.69 3,189.40 3,077.97 11,748.11 12,198.65
.19,719.52 456.60

1,300,321.49 3,699, 150.63 5,933,187.49
883,204.44 554,847.02 3,317,427.91 1,858,748.73 365,182.74

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$ 106,311,258.00 $ 115,419,907.83 $ 3,509,329.75 $ 118,929,237.58

Media Center Program Staff and Professional Development

3,508,585.00 941,223.00

4,309,108.05 583,536.15

759,904.66 388,199.27

5,069,012.71 971,735.42

TOTAL QBE FORMULA FUNDS

$ 110,761.066.00 $ 120,312,552.03 $ 4,657,433.68 $ 124.969,985.71

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

See notes to the general-purpose financial statements.

-44-

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

SCHEDULE 5

SITE
Cross Creek High School Craig-Houghton Elementary School Meadowbrook Elementary School Morgan Road Middle School Jamestown Elementary School Collins Elementary School Goshen Elementary School Glenn Hills Middle School Foreman Elementary School Tobacco Road Elementary School McBean Elementary School Lake Forest Hills Elementary School Spirit Creek Middle School Butler High School Garrett Elementary School Hephzibah Elementary School Langford Middle School National Hills Elementary School Rollins Elementary School Walker Traditional Elementary School Windsor Spring Road Elementary School Hephzibah Middle School Barton Chapel Elementary School Copeland Elementary School Glenn Hills Elementary School Hephzibah High School Merry Elementary School Warren Road Elementary School Craig Elementary School Hornsby Elementary School East Augusta Middle School Westside High School Bayvale Elementary School Glenn Hills High School Houghton Elementary School Milledge Elementary School Reynolds Elementary School Sego Middle School Jenkins Elementary School Johnson Magnet Josey High School Blythe Elementary School Gracewood Elementary School Lamar Elementary School Monte Sario Elementary School Academy of Richmond County High School Southside Elementary School Wheeless Road Elementary School Davidson Magnet School Terrace Manor Elementary School Bungalow Road Elementary School Hains Elementary School Murphey Middle School Tubman Middle School Wilkinson Gardens Elementary School Tutt Middle School Laney High School Sand Hills Psychoeducational Program Richmond County Alternative.School Central Office (Alternative Education Program)

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1l

ELIGIBLE QBE PROGRAM COSTS

$

3,305,005.00 $ 3,927,045.74

1,601.66

2,328,914.00

2,241,801.84

2,438,774.00

2,722,175.56

2,565,298.00

2,512,864.82

1,662,002.00

1,781,838.47

1,961,217.00

1,988,030.32

3,001,751.00

3,529,400.29

2,298,738.00

2,280,834.21

2,111,011.00

2,217,105.55

1,486,312.00

1,638,362.13

1,822,908.00

2,213,955.00

2,466,816.00

2,677,870.31

3,465,851.00

4,127,496.62

1,033,969.00

1,163,775.44

1,369,861.00

1,405,560.18

1,790,397.00

2,271,112.99

648,532.00

794,872.19

1,562,108.00

1,606,593.10

2,028,411.00

2,188,948.97

2,310,683.00

2,400,125.65

2,654,412.00

2,794,291.17

1,900,635.00

1,852,412.58

1,424,422.00

1,528,295.12

1,706,066.00

1,771,415.15

3,311,519.00

4,079,284.21

1,477,168.00

.1,660,574. 78

1,546,964.00

1,617,807.20

1, 143,865.00

1,353,502.23

1,123,120.00

1,078,641.61

1,550,044.00

1,870,556.01

2,344,691.00

3,136,990.47

1,465,615.00

1,511,188.24

3,405,604.00

4,041,951.97

937,042.00

844,967.56

1, 145,408.00

1,119,971.15

1,244, 182.00

1,315,713.42

2,639,825.00

2,906,066.98

356,409.00

407,411.31

1,234,824.00

1,742,784.45

3,338,012.00

4,214,188.78

1,318,223.00

1,427,477.73

1,399,249.00

1,431,681.20

1,358,516.00

1,355,070.74

1,261,395.00

1,312,785.20

3, 118,070.00

3,964,256.11

1,385,986.00

1,431,424.63

1,771,091.00

1,865,014.84

1,992,764.00

2,589,962.66

1,765,237.00

1,707,994.27

1,327,108.00

1,308,782.22

1,147,091.00

1,034,407.01

2,032,497.00

2,270,707.78

1,884,232.00

2,271,732.14

1,450,282.00

1,386, 129.89

1,773, 134.00

2,075,609.08

2,104,877.00

2,792,106.42

4,108.99

1,126,388.14

1.613.121.00

1.034.213.10

TOTAL (1) Comprised of State Funds plus Local Five Mill Share. See notes to the general-purpose financial statements.

.45.

$ 10613111258.00 $ 11819291237.58

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

.RUSSELi. \\'. HINTON
1 STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS .
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 .
February 14, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Richmond 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 ofRichmond County Board ofEducation as ofand for the year ended June 30, 2091, and have issued our report thereon dated February 14, 2002. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. Except as discussed in the following paragraph, 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 of the United States.
We did not observe the taking ofthe consumable supplies inventory atJune 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether Richmond County Board of Education's financial statements are free of material misstatement; we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with.those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
2001YB-41

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Richmond 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 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 Richmond County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7211-01- 01.
A material weakness is a condition in which the design or operation of one or more ofthe 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-7211-01-01 to be a material weakness.
This report is intended solely for the information and use of the management, members of the Richmond County Board ofEducation, Federal awarding agencies arid pass-through entities and is not intended to be and should not be used by anyone other than these specified parties..
ectfully submitted,

~.
RWH:gp 2001YB-41

W. RussELL

H1NTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 14, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Richmond County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Richmond County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Richmond County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofRichmond_County Board of Education's management. Our responsibility is to express an opinion on Richmond County Board of . Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred: An audit includes examining, on a test basis, evidence about the Richmond County Board ofEducation'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 Richmond County Board ofEducation's compliance with those requirements.
2001SA-10

In our opinion, the Richmond County Board ofEducation 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 Richmond 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 Richmond County Board of Educ~tion's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming th_eir assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the Richmond 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 2001SA-10

State Auditor

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIO~D COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7211-99-02 FS-7211-00-01

No Further Action Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7211-00-01

The Richmond County Board ofEducation does not maintain a system-wide General Fixed Assets Account Group. The School District does maintain a fixed asset property listing for all State and Federal Programs, a property inventory ofall the schools' equipment as well as a schedule of all buildings required for insurance purposes.

We have budgeted funds in the Fiscal Year 2002 budget to hire an outside firm to come in and take an inventory ofour general fixed assets. We plan to present a schedule ofgeneral fixed assets in Fiscal Year 2002.

SECTIONN FINDINGS AND QUESTIONED COSTS

RICHMOND 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 Richmond County Board of Education's financial statements was qualified for a scope limitation and 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 Richmond County Board of Education disclosed a financial statement reportable condition related to the following control category.

General Fixed Assets

TJ;ie reportabie condition described above is considered to be-a material weakness.

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

4. Reportable Conditions in Internal Control Over Major Programs

;

The audit report for the Richmond 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 Richmond 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) of 0MB Circular A-133 The Richmond 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 Feder.al 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 10.559 Summer Food Service Program for Children

8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $828,225.30.

9. Low Risk Auditee

.

The.Richmond County Board ofEducation qualified as a low risk auditee based on a waiver

granted by the U.S. Department of Education.

- 1-

RICHMOND COUNTY BOARD 10F. EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDEJ? 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-7211-01-01 The Richmond 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 incompl~te 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 the maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired; acquisition cost, 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: The Richmond County Board of Education has hired an outside firm to take an inventory of o.ur general fixed assets. We will include general fi~ed assets within our formal accounting records beginning with fiscal year 2002. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-