~AA,;o.'o-":'

'RI
E ;?L,.
84
::!001-.la,

,Ir '

,

' .

,;

, r'

\..

'~ '

~ '

:~

~::_'stA1.1(0F-GEORG1A

, .'.

. '

' '.

r

'' .

;

DEPARTMENT i .. '

Of'.AUDiTS:AND rl

I

. . '
' , ,;,- ~

,
", - I

'

ACCO.UN. ..T- .S-'



'

"

I;

. '

J

.- .

.u
'
' '
'. '
,,
' .

. '
"
, ..

' '
:-. ,
' .'
,.
),,

n
,,

,.,

.,

J. ,

,

..

,

'

.SCREVEN'COUNTY: BOA'RD OF EDUCATION

, ... I

'

-,



-

'

'

~ I

' SYLVANIA; GEORGIA

'

'.

. .

RErORT ON ~Uf)IT. _ . -

. '

,: ~OF THE FINANCIAi,; STATEMENTS

'FOR THE FISCAL YEAR.- 'END' ED 'JU.NE- 30; 2002

. I ' '

'

t'

, "

,

. ,
,,
,,'
'

. . .. ,.
. , ,, t.-'

' ',

l

'.

Russell'W. Hinton

)

'

'1 '



State Auditor

.
',

SCREVEN COUNIT BOARD OF EDUCATION - TABLE OF CONfENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACllJAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDITTONAL FINANCIAL INFORMATION

COMBINING STATEMEJ\.'TS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

22

2 SCHEDULE OF STATE REVENUE

24

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

25

ALLOTMENTS AND FXPENDITURES

GENERAL FUND-QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

26

5

BY SITE

27

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

lu'i.~tl I W. HINTO~
STATE AUCMTOR {404) 6%-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washmglon S1rcc1. SW ~u,1c 214 Allanla. Georgia 30334-H4(Kl
Apnl 30, 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the Screven 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 Screven County Board of Educat10n. as of and for the year ended June 30, 2002, as hsted in the table of contents These general-purpose financial statements arc the respons1b1hty of the Screven County Board of Educahon's management. Our respons1b1hty 1s to express an opin10n on these general-purpose financial statements based on our audit
We conducted our audit in accordance with auditing standards generally accepted m the Umted States of Amenca and the standards apphcable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Umted States Those standards reqmre that we plan and perform the audit to obtain reasonable assurance about whether the financial statements arc free ofmatenal rmsstatcment 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 pnnc1ples used and s1gmficant esl!mates made by management, as well as evaluating the overall financial statement presentat10n We beheve that our audit provides a reasonable basis for our op1mon
As descnbed in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting pracl!ces and pohc1es which. in our opinion, vary in some respects from generally accepted accounting pnnc1ples These vananccs are dcscnbcd as follows

2002ARL-13

* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education wluch should be mcluded to conform to generally accepted accounting pnnc1ples
School activity accounts mamtained at the ind1v1dual schools are not mcludcd m the general-purpose financial statements To conform to generally accepted accounting pnnc1ples, these accounts should be included in the general-purpose financial statements
* For fiscal year 2002, the School D1stnct changed its method of accounting for the final
two payments on one hundred and ninety day employment contracts and the related revenue due from the State to fund these contracts Adjustments have been made m the fiscal year 2002 financial statements to record expenditures for salanes and fnnge benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts No adjustment was made for the s1m1lar salanes and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this information was not readily available The net effect of the above accounting treatment resulted m the accompanying financial statements reflecting fourteen months of expenditures for a majonty of General Fund salanes and fnnge benefits and fourteen months of revenue from the State to fund these contracts Generally accepted accountmg pnnc1ples require that expenditures be recorded when mcurred, rather than when funds are received or disbursed
The aggregate effects on the general-purpose financial statements of these vanances or om1ss10ns have not been determined, but arc behevcd to be matenal
In our op1mon, except for the effects on the general-purpose financial statements of the matters referred to m the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all matenal respects, the financial pos1t10n of the Screven County Board of Educat10n as of June 30, 2002, and the results of its operations for the year then ended, in conformity with accounting pnnc1ples generally accepted in the Umted States of Amenca
In accordance with Government Auditing Standards, we have also ISsued our report dated Apnl 30, 2003, on our consideration of the Screven County Board of Education's internal control over financial reporting and our tests of its comphance with certam prov1s1ons of laws, regulahons, contracts and grants That report 1s an integral part of an audit performed m accordance with Government Auditing Standards and should be read in conjuncl!on with tlus report m cons1denng the results of our audit
Our audit was performed for the purpose of forming an op1mon on the general-purpose financial statements of the Screven County Board of Education taken as a whole The accompanymg combinmg statements (Exh1b1ts E and F) and the financial schedules (Schedules 1through 5), which mcludes the Schedule ofExpenditures ofFederal Awards as reqmred by U. S Office ofManagement and Budget Circular A-133, Audlls ofStates, local Governments, and Non-Profit Orgamzatwns, are presented for purposes of add1t10nal analysis and are not a required part of the general-purpose
2002ARL-13

financial statements. Such mformatlon has been subJected to the aud1tmg procedures applied m the audit of the general-purpose financial statements and m our opm1on, except for the effects of the matters referred tom the third paragraph, such mformat10n is fairly stated, m aJl matenal respects, m relation to the general-purpose financial statements taken as a whole
A copy of this report has been filed as a permanent record m the office of the State Auditor and made available to the press ofthe State, as proVIded for by Official Code ofGeorgia Annotated Sect10n 506-24
Respectfully submitted,
w.4:J~

RWHgp 2002ARL-13

State Auditor

SCREVEN COUNlY BOARD OF EDUCATION

SCREVEN COUNTY BOARD OF EDUCATION
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30 2002

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
lnventones Food Donated Commodrtles Purchased Food
Amount Available in Debt SeMce Fund
Amount to be ProVlded In Future Years For Payment of Bond Debt Capital Leese Agreements

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

102,185 65 $

292,922 32

3,017,521 97

1,997,941 57

316,815 83

24,639 24 11,054 67

Total Assets

$ 5 117 649 19 $ --64=5-.,4~3a:,,2.:,:06::,

LIAB!L!T!ES AND FUND EQUITY
LIAB)LIT!ES
Cash Oventran Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue Capital Lease Agreemenb General Obhgabon Bonds Payable
Total L1ab1llbes
FUND EQU!TY
Fund Batances Reserved For Debt Service For Expired Grant Balances/Quesboned Costs For lnventones Food Donated Commochtres Purchased Food Unreserved Undeslgnated
Total Fund Equity

$

371,872 13 $

1,614,259 83

46,680 81 210,509 86

$

1,986, 131 96 $ --'2"'5""7""1""9"'0-"6'-7

$

24,639 24

1105467

$ 3 13151723

352,547 48

$ 313151723 $ _ __,38=8~2~4~1~39~

Total L1ab1lrb&s and Fund Equity

$ 511154919 s_....:64=5.;:4;,:32:,.::06::,

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

EXHIBIT"A"

TYPES DEBT
SERVICE FUND

$

9,880 24

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Onl):)

JUNE 30, 2002

JUNE 30, 2001

s

404,988 21 $

192,634 16

25815045

3,275,672 42

3,350,161 02

183,809 80

2,498,567 20

769,889 80

$

451,840 49

24,639 24 11,054 67
451,840 49

18,393 47 8,81910
464,704 50

s

451 840 49 $

258,15951

258,15951

1,610,295 50 3 623 74

71000000 $

6 924 921 74 $

6,418,521 29

s

207,971 23

s

418,552 94

41,966 38

1,824 769 69

191,217 15

210 15

3,728 41

3,623 74

$

710 000 00

710 000 00

2 075 000 00

s

s 710 000 00

s 2,953,322 63

2,523,717 06

$

451,840 49

0 00

s

451 840 49

s

451 840 49 $

s

451 840 49 S

464,704 50

7,559 14

24,639 24 1105467

18,393 47 8,819 10

3 484 064 71

3,395,328 02

s

s 3 971 599 11

3,894,804 23

71000000 S 6 924 921 74 S 614181521 29

- 3-

SCREVEN COUNTI BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GQYERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2002

REVENUES
State Funds Federal Funds
Taxes
Other Funds
Total Revenues
EXPENDITURES
Current Instruction
Support SOMC8B
Pupil SeMces Improvement of lnstrucbonal SeMces Educational Media Services General Admm1stratlon
School Administration
Business Adm1ntstrabon Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support SeMces Food Services Operation Enterpnse Operat10ns Communcty Services Operabons
Capital Oullay
Debt Service Pnncipal Interest
Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenclrtures
QTJ:IER FINANCING SOURCES IUSESl
Operating Transfers In
Operabng Transfers Ou\
Total Other Fmancmg Sources (Uses)
Excess of Revenues end Other Fmancmg Sources over (under) Expendrtures and Other Financing Uses
FUND BALANCE JULY l
Food Inventory - Net Change m Penod Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

s 16,872,612 22 $
5.000 00
3,431,318 n
447 626 98
s s 20,756,557 97

666,626 43 2,888.547 75
247 169 91
3,802,344 09

$ 13,697,670 68 $
650,383 74 296,975 86 413,15714 402,490 30 1,398,653 23 174,231 45 1,887,431 81 1,305,185 59
1,008 00 42,558 45 16,793 72 44,944 47
1,729 97

1,644,603 75
213,352 00 82,951 64
189,273 48 4,13547
27,TTO 76 32,794 21
73,834 16 1,471,826 63

3,623 74 344 26

s s 20,333,214 41

s

423 343 56 $

3 744 510 10 57 833 99

s

-400,000 00

s

-400 000 00

s

23,343 56 s

3,108,17367

57,833 99 321,926 06
6,245 n
2 235 57

FUND BALANCE JUNE 30

s 3131 s1123 s-_.;:;388=2;;:4~1,,:39~

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

EXHIBIT "B"

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30 2001

$ 17,539,238 65 $ 15,803 495 52

2,893,547 75

2,313,583 53

$

1,025,911 33

4,457,230 10

4,480,532 29

6 247 16

701 044 05

667 779 06

$

1,032,158 49 $ 25,591,060 55 $ 23,265.390 40

$ 15,342,274 43 $ 12,788,483 49

863,735 74 379,927 50 413,157 14 591,763 78 1,402,788 70 174,231 45 1,915,202 57 1,337,979 80
1,008 00 116,392 61 1,488,620 35
44,944 47 1,729 97

781,903 65 378,254 24 373,750 63 501,614 49 1,277,139 74 181,458 50 1,682,833 60 1,180,596 45
71,953 24 1,398,645 31
46,168 21 160010
250,850 35

$

1,365,000 00

79 587 50

43500

1,368,623 74 79,931 76 43500

1,287,17636 137,863 64 445 00

$

s 1,445,022 50 $ 25.522?47 01

22,340,737 00

$

-412 864 01 $

6831354 $

924 653 40

s

400,000 00 $

400,000 00 $

416,433 10

-400000 00

-416 433 10

s

400 000 00 $

0 00 s

000

s

-12,864 01 $

s 68,313 54

924,653 40

464,704 50

3,894,804 23

2,975,496 73

6,245 77 2 235 57

-5,288 82 -57 08

$

451 840 49 $

397159911 $

3 894 804 23

-5-

SCREVEN COUNTY BOARD OF EQUCAJION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET ANO ACTUAL - /NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues

s s 14,824,075 60 16,872,612 22

26,250 00

5,000 00

2,801 206 00

3,431,318 77

129,000 00

447626 98

s $ 17,780,531 60 20,756,557 97

EXPENPIJURES

Current lnsb'ud.Jon Support SeMces Pupil SeMces Improvement of lnstructtonal SeMQ!!IS Educahonel Media ServlCeS General Adm1mstrabon
School Aclm1mstrabon Busmess Admlmstrabon Marntenance and Ope:rebon of Plant Student Trensportabon Services Central Support Services Other Support Serv,a,s Food Services Operabon
Enterpnse Operabons Community SeMces Operabons Debt Service

$ 12,228,105 60 $ 13,697,670 68

701,215 00 297,16200 380,252 00 388,480 00 1,389 715 00 183,320 00 1,671,579 00 1 275,396 00
10,100 00 47,00000
42,000 00 2 000 00

650 383 74 296,975 86 413,15714 402,490 30 1,398,653 23 174,231 45 1,887,431 81 1,305,185 59
1,008 00 42,55845 16,793 72 44,94447
1 729 97

Total Expendrtures

$ 18,616,324 60 $ 20,333,214 41

Excess of Revenues over (under) Expenditures $ -835,793 00 $ 423,343 56

OTHER FINANCING USES

Other Uses

-300,000 00

-400 000 00

Excess of Revenues over (under) Expenditures and Other F1nancmg Uses

s -113579300 $

23,343 56

FUND BALANCE JULY 1. 2001
Food Inventory - Net Change In Penod Donated Commodities Purchased Food

3,131,522 78

3 108,173 67

FUND BALANCE JUNE 30 2002

$ 1,995,729 78 $ 313151723

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 622 050 00 $ 666 626 43 2,592,942 00 2,888,547 75

280,100 00

247,169 91

$ 3,495,092 00 $ 3,802,344 09

$ 1,345,480 00 $ 1,644,603 75

224,231 00 107,201 00

213,352 00 82,951 64

193,157 00 4,093 00

189,273 48 4,135 47

13,150 00 28,529 00

27,770 76 32,794 21

81,651 00 1,497,314 00

73,834 16 1,471,82663

3 968 00

$ 3,494,806 00 $ 3,744,510 10

$

28600 $ 57,833 99

$

286 00 $ 57,833 99

327,521 68

321,926 06

6 245 77 2 235 57

$ 327 807 68 $ 388,241 39

Toe notes to the general purpose-financial statements ere an 11tegral pert of thlS statement -6-

SCREVEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Screven County Board of Education (School D1stnct) was established under the laws of the State of Georgia and operates under the gmdance of a school board elected by the voters and a Supenntendent appomted by the Board. The School D1stnct 1s organized as a separate legal entity and has the power to levy taxes and issue bonds Its budget 1s not subJect to approval by any other entity. Accordmgly, the School D1stnct 1s a pnmary government and consists of all the organ1zallons that compose its legal entity
FUND ACCOUNTING
The School D1stnct uses funds and an account group to report on its financial position and the results of1ts operatmns. Fund accountmg 1s designed to demonstrate legal comphance and to aid financial management by segregatmg transactions related to certam governmental functions or act1v1t1es. A fund 1s a separate accountmg entity with a self-balancmg set of accounts An account group 1s a financial reportmg device designed to provide accountab1hty for certain assets and llab1ht1es that are not recorded m the funds because they do not drrectly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures m the various funds at the time of purchase. A General Fixed Assets Account Group 1s not presently maintamed by the School D1stnct To conform to generally accepted accountmg pnnc1ples, a General Fixed Assets Account Group should be maintamed for reporting the cost of assets acqmred by governmental fund types
Although "school activity accounts" are maintained at the md1v1dual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes m fund balances of these accounts are reflected m these financial statements To conform to generally accepted accountmg pnnc1ples, these accounts should be recorded m the general-purpose financial statements
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School D1stnct, m compliance with generally accepted accountmg pnnc1ples applicable to governmental umts, unless otherwise disclosed m these notes Funds and the account group presented m this report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's cducatmnal act1v1t1es Governmental Fund Types mclude
GENERAL FUND - the fund used to account for all financial resources of the School District except those reqmred to be accounted form another fund These transactions relate to resources obtained and used for services proVJded by a board of educatmn

- 7-

SCREVEN COUNTY BOARD OF EDUC'ATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restncted to expenditures for specified purposes These funds are received pnmanly from the Georgia Department ofEducal!on and from the Federal government to accomplish specific educational obJeclives
DEBT SERVICE FUND - the fund used to account for the accumulatmn ofresources for, and the payment of, general long-term pnnc1pal, mterest and paymg agent fees
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reportmg deVIce used to account for general obhgat1on debt outstandmg
BASIS OF ACCOUNTING
The accounling and financial reportmg treatment applied to a fund 1s determmed by its measurement focus. All governmental funds are accounted for usmg a current financial resources measurement focus With this measurement focus, only current assets and current hab1ht1es generally are mcluded on the balance sheet. Operatmg statements ofthese funds present mcreases (1 e , revenues and other financmg sources) and decreases (1 e., expenditures and other financmg uses) m net current assets. Their reported fund balance 1s considered a measure of available spendable resources
L1ab1lit1es which are expected to be financed from available spendable resources are reported as hab1lit1es m the governmental funds Other liab1lit1es, wluch are not expected to be financed from available spendable resources, are reported m the General Long-Term Debt Account Group.
Governmental funds are accounted for usmg the modified accrual basis of accountmg under which
Revenues are recogiuzed when suscepl!ble to accrual (1 e , when they become both measurable and available) "Measurable" means the amount of the transaclion can be determmed and "available" means collecl!ble w1thm the current pcnod or soon enough thereafter to be used to pay liab1lilles of the current penod. The School D1stnct considers receivables collected w1thm sixty days after yearend to be available Property taxes, sales taxes and mterest are considered to be suscepl!ble to accrual Nonexchange transacl!ons, m which the School D1stnct gives (or receives) value without directly rece1vmg (or givmg) equal value m exchange, mclude property taxes, local opl!on sales taxes, mtergovemmental grants and donations Revenue for property taxes 1s recogmzed m the fiscal year for which the taxes are levied Revenue from sales taxes 1s recogmzed m the fiscal year the resources are received or susceptible to accrual Revenue from grants and donations 1s recogmzed m the fiscal year m wluch all elig1b1lity reqmrements have been satisfied
Expenditures are generally recogmzed when the related fund liability 1s mcurred

- 8-

SCREVEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
For fiscal year 2002, the School D1stnct changed its method of accounting for the final two payments on one hundred and mnety day contracts and for the related revenue due from the State to fund these contracts Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salanes and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts This change 1s in accordance with generally accepted accounting pnnc1ples No adjustment was made for the similar salanes and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as tlus information was not readily available
The net effect of the above accounting treatment resulted rn the accompanymg financial statements reflecting fourteen months of expenditures for a majonty of General Fund salanes and fnnge benefits and the related revenue due from the State to fund these contracts Generally accepted accounting pnnc1ples require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Screven County Board of Educatmn's budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s based upon estimates of expenditures together with probable funding sources There 1s no statutory proh1b1t1on regarding overexpend1ture ofthe budget at any level. The budget for all governmental funds 1s prepared by fund, function and object The legal level of budget control was established by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accounting principles
The budget process begins when the School D1stnct's adm1mstrat1on prepares a tentative budget for the Board's approval After approval oftlus tentative budget by the Board, such budget 1s advertised at least once in a newspaper of general circulatmn in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes rev1s1ons as necessary and adopts a final school budget Th!S final budget 1s then submitted, in accordance with proV1s1ons of the Quality Basic Education Act, OCGA Sectmn 20-2-167(c), to the Georgia Department of Education The Board may mcrease or decrease the budget at any time dunng the year All unexpended budget authonty lapses at fiscal year-end
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with onginal matuntles of three months or less from the date of acqms1t10n in authonzed financial instltut10ns Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit Its funds m one or more solvent banks or msured Federal savings and loan associations

-9-

SCREVEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School D1stnct m nonparllc1patmg mterest-earmng contracts (such as certificates of deposit) and repurchase agreements arc reported at cost Part1c1patmg mterest-eammg contracts and money market mvestments with a matunty at purchase ofone year or less are reported at amortized cost Both part1c1patmg mterest-eammg contracts and money market mvestments With a matunty at purchase greater than one year are reported at fair value. The Offic1al Code ofGeorgia Annotated Section 36-83-4 authonzes the School D1stnct to mvest its funds and m selectmg among options for mvestrnent or among mslltuuonal bids for deposits, the lughest rate ofreturn shall be the obJecUve, given equivalent cond1Uons of safety and hqu1d1ty Funds may be mvested m the followmg
(I) Obhgauons issued by the State of Georgia or by other states,
(2) Obhgauons issued by the Umted States government,
(3) Obhgations fully insured or gJiaranteed by the Umted States government or a Umted States government agency,
(4) Obhgat1ons of any corporation of the Uruted States government,
(5) Pnme banker's acceptances,
(6) The Local Government Investment Pool admm1stered by the State ofGeorgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obhgat10ns of other pohllcal subd1v1s10ns of the State of Georgia
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from mformallon available Receivables are recorded when either the asset or revenue recogmllon cntena has been met Receivables recorded on the general-purpose financial statements do not mclude any amounts wluch would necessitate the need for an allowance for uncollecuble receivables
PROPERTY TAXES
The Screven County Board of Comm1ss1oners fixed the property tax levy for the 200 I tax digest year (calendar year) on October 11, 2001 (levy date) Taxes were due on December 20, 2001 (hen
. 10.

SCREVEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

date) Taxes collected within the current fiscal year or w1thm 60 days after year-end on the 2001 tax digest are reported as revenue m fiscal year 2002 The Screven County Tax Comrmss10ner bills and collects the property taxes for the School D1stnct, withholds 2 5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School D1stnct. Property tax revenues dunng the fiscal year ended June 30, 2002 for mamtenance and operations amounted to $3,409,544 05

The tax m11lage rate levied for the 2001 tax year (calendar year) for the Screven County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value)

School Operations

~ mills

SALES TAXES

Special Purpose Local Optmn Sales Tax revenue dunng the year amounted to $1,025,911.33 and 1s to be used for capital outlay for educational purposes or debt service This sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years

INVENTORIES

FOOD INVENTORIES lnventones of donated food commodities used in the preparation of meals are reported on the Combmed Balance Sheet at their Federally assigned value Purchased foods mventones are reported on the Combmed Balance Sheet at cost (first-m, first-out) Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods mventones are recorded as expenditures at the time of purchase The mventones reported on the balance sheet for donated food commod11!es and for purchased foods are equally offset by reservations of fund balance which md1cates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets

GENERAL OBLIGATION BONDS

The School D1stnct issues general obhgation bonds to provide funds for the acqu1s1t1on and construct10n ofmaJor capital fac1hties Bond premmms and discounts, as well as issuance costs, are recogmzed m the financial statements dunng the year bonds are issued General obhgat1on bonds are direct obhgations and pledge the full faith and credit ofthe government. The outstandmg amount of these bonds is recorded m the General Long-Term Debt Account Group

INTERFUND TRANSACTIONS

The School D1stnct has the following types of mterfund transact10ns

- 11 -

,------------- -- --

SCREVEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements of expenditures 1mtially made from a fund that are properly applicable to another fund are recorded as expenditures m the re1mbursmg fund and as reductions of expenditures m the fund that 1s reimbursed
Operating transfers are recorded for all interfund transactions other than reimbursements
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to fac1htate financial analysis Data m these columns do not present financial position or results of operat10ns m conformity With generally accepted accountmg pnnc1ples. Neither are such data comparable to a consohdatlon Interfund ehminatlons have not been made in the aggregat10n ofth1s data
Note 2 DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money wruch has not been secured by surety bond, by guarantee ofmsurance, or by collateral The aggregate of the face value of such surety bond and the market value of secuntles pledged shall be equal to not less than 110 percent of the pubhc funds being secured after the deduction ofthe amount ofdeposit insurance If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value ofthe sccuntles pledged to secure a pool ofpubhc funds shall be not less than I 10 percent oftheda!lypool balance OCGA Section 45-8-11 (b) provides an officer holding pubhc funds may, in his d1scret10n, wa1ve the reqmrement for secunty in the case ofoperating funds placed in demand deposit checkmg accounts
Acceptable secunty for deposits consists of any one of or any combmation of the followmg
(I) Surety bond signed by a surety company duly qua!, lied and authonzed 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 obhgat10ns of the Umted States or of the State of Georgia,
(4) Bonds, bills. notes, certificates of indebtedness or other obhgat,ons of the counties or mun1c1pal1t1es of the State of Georgia,
(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, providing that the statute that created the authonty authonzed the use of the bonds for this purpose,
- 12 -

SCREVEN COUNTY BOARD OF EDUCATJON

EXHIBI f "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

(6) Industnal revenue bonds and bonds of development authonttes created by the laws of the State of Georgia, and

(7) Bonds, bills, notes, certificates of mdebtedness, or other obhgatlons of a subs1d1ary corporation of the Umted States government, which are fully guaranteed by the Umted States government both as to pnnc1pal and interest or debt obhgatlons issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credll Bank, the Central Bank for Cooperauves, the Farm Credit Banks, the Federal Home Loan Mortgage Associalion, and the Federal National Mortgage Association

CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $1,736,466.72 The amounts ofthe total bank balances are classified mto three categones of credit nsk

Category I - Cash that 1s insured (e g, Federal depository insurance) or collaterahzed with secuntles held by the School D1stnct or by the School D1stnct's agent m the School D1stnct's name.
Category 2 - Cash collaterahzed with secunlies held by the pledgmg financial mstltutlon's trust department or agent m the School D1stnct's name
Category 3 Uncollaterahzed deposits (This includes any bank balance that 1s collaterahzed with secunt1es held by the pledgmg financial mstltut1on, or by its trust department or agent but not m the School D1stnct's name.)

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

R1sk Category

Bank Balance

I

$ 115,13686

2

1,621,329 86

3

000

Total

S l,736,466,72

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrymg value of the School D1stnct's total mvestmcnts was $3,275,672 42 which 1s matenally the same as fair value This investment consisted entirely of funds mvested m the Local Government Investment Pool adm1mstered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categonzcd smce the School D1stnct did not own any specific 1dentifiable secunlies in the pool The mvestment pohcy of the State of Georgia, Office of

- 13

SCREVEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS
Treasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qwd1ty Portfolio) does not provide for investment m denvat1ves or snrular mvestments. A descnption ofthe Pnmary L1qmd1ty Portfolio 1s as follows
The Pnmary L1qmd1ty Portfolio consists of Georgia Fund I, which 1s a combmat1on local and state government mvestment pool, and Fund 6 Georgia Fund I 1s a stable net asset value mvestment pool which follows Standard and Poor's cntena for AAAm rated money market funds The pool is not registered with the SEC as an mvestment company but does operate Georgia Fund I m a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and 1s considered to be a Rule 2a7 like pool. The pool's pnmary obJectives are safety of capital, mvestment mcome, hqmd1ty and d1vers1ficatton while mamtammg pnnc1pal ($1.00 per share value) Net asset value 1s calculated weekly to ensure stability The pool d1stnbutes earnmgs (net of management fees) on a monthly basts and values part1c1pant's shares sold and redeemed based on $1 00 per share. Pooled cash and cash eqmvalents and mvestments are reported at cost which approximates fair value The pool does not issue any legally bmdmg guarantees to support the value of the shares. Partic1pat10n m the pool ts voluntary and deposits consist of funds from local governments, operatmg and trust funds of Georgia's state agencies, colleges and un1vers1ttes, and current operating funds of the State of Georgia's General Fund
Investments m Georgia Fund I and Fund 6 are directed toward short-term mstrurnents such as U S Treasury obligations, secunties issued or guaranteed as to pnnc1pal and mterest by the U S. Government or any of its agencies or mstrurnentahties, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund I may not exceed 60 days The weighted average matunty for Georgia Fund I on June 30. 2002, was 0.12 years The average mvestment duration for Fund 6 on June 30, 2002, was O75 years
Note 3 NON-MONETARY TRANSACTIONS
The School D1stnct receives food commodities from the United States Department of Agnculture (USDA) for school breakfast and lunch programs. These commodittes are recorded at the1r Federally assigned value See Note 1 - Inventories
Note 4 RISK MANAGEMENT
The School D1stnct ts exposed to vanous nsks of loss related to torts, theft of, damage to, and destruction of assets, errors or om1ss10ns, Job related illness or mJunes to employees, acts of God and unemployment compensation

- 14 -

SCREVEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4 RISK MANAGEMENT

The School D1stnct part1c1pates m the Georgia School Boards Association Risk and Insurance Management System, a pubhc ent1tynsk pool organized on July I, 1994, to develop and adm1mster a plan to reduce nsk of loss on account of general hab1hty, motor vehicle hab1hty, or property damage, mcludmg safety engmeenng and other loss prevention and control techmques, and to adm1mster one or more groups of self-msurance funds, mcludmg the processmg and defense of claims brought agamst members ofthe system. The School D1stnct pays an annual premmm to the system for its general msurance coverage Add1tlonal coverage 1s provided through agreements by the system with other compames accordmg to their specialty for property, b01ler and machmery (mcludmg coverage for flood and earthquake), general hab1hty (mcludmg coverage for sexual harassment, molestation and abuse) and automobile nsks. Payment of excess msurance for the system vanes by lme of coverage

The School D1stnct 1s self-msured with regard to unemployment compensation clrums The School D1stnct accounts for claims w1thm the same fund that the employee's salary and benefits were prud Claims are accounted for with expenditure and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount of that loss can be reasonably estimated

Changes m the unemployment compensation clrums hab1hty dunng the last two fiscal years are as follows

Begmmng of Year Ltab1hty

Claims and Changesm Estimates

Claims Paid

End of Year L1ab1hty

2001 2002

$

852 00 $ 14,282 00 $ 1076800 $

4 373 00

$

4,373 00 $

227 00 s

4 600 00 $

000

The School D1stnct part1c1pates m the Georgia Educat10n Workers' Compensat10n Trust, a pubhc entity nsk pool organized on December I, 1991, to develop, implement and adm1mster a program of workers' compensation self-msurance for its member organizations The School D1stnct pays an annual premmm to the Trust for its general msurance coverage. Additional msurance coverage 1s provided through an agreement by the Trust with the Umted States F1dehty and Guaranty Company to provide coverage for potential losses sustamed by the Trust m excess of $350.000 00 loss per occurrence, up to $2,000,000 00

The School D1stnct has purchased surety bonds to provide add1t1onal insurance coverage as follows

Position Covered

Amount

Supenntendent All Employees

$ 50,000 00 $ 100,000 00

- 15 -

SCREVEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 5 GENERAL LONG-TERM DEBT

GENERAL OBLIGATION DEBT OUTSTANDING General Obhgallon Bonds currently outstandmg are as follows.

Purpose

Interest Rates

Amount

General Government - Senes 1997

390%-460% S 710,000.00

Voters have authonzed $4,500,000 00 m general obhgalion debt for vanous capital outlay projects wluch was not issued as of June 30, 2002.

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

Capital Leases

General Obhgallon
Bonds

Total

Balance July I, 2001

$ 3,623 74 $ 2,075,000.00 $ 2,078,623 74

Deductions Debt Retired

3,623 74 1,365,000 00 1.368,623 74

Balance June 30, 2002

$

21QQ $ 21Q.QQQ QQ $ ZIQ,!lQQ,QQ

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

Fiscal Year Ended June 30

General Obhgat1on
Bonds

2003 Note 6 ON-BEHALF PAYMENTS

S Z26.33Q,Q!l

The School D1stnct has recognized revenues and expenditures m the amount of $223,180.58 for health msurance and retirement contnbullons paid on the School D1stnct's behalf by the followmg State Agencies

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Cerhfied Personnel In the amount of $195,071 58

- 16 -

SCREVEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 6- ON-BEHALF PAYMENTS

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Pubhc School Employees Retirement (PSERS) Employer's Cost In the amount of $28, I09.00

Note 7 CONTINGENT LIABILITIES

Amounts received or receivable pnnc1pally from the Federal government are subject to audit and review by grantor agencies This could result m requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms The School D1stnct believes that such d!sallowances, 1f any, will be 1mmatenal to its overall financial position

The School D1stnct 1s a defendant m vanous legal proceedmgs pertammg to matters mc1dental to the performance ofroutme School D1stnct operations The ultimate d1spos1t10n ofthese proceedmgs 1s not presently determmable, but 1s not believed to be matenal to the general-purpose financial statements

Note 8 RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, admm1strat1ve and clencal personnel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS), wluch 1s a cost-shanng multtple employer defined benefit pens10n plan TRS provides service retirement, d1sab1lity retirement and survivors benefits for its members m accordance with State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts

TRS CONTRIBUTIONS REQULRED AND MADE Employees of the School D1stnct who are covered by TRS are reqmred by State statute to contnbute 5% ofthe1r gross earnmgs to TRS The School D1stnct makes monthly employer contnbut1ons to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as advised by thetr mdependent actuary The requtred employer contnbutlon rate 1s 9 24% and employer contnbutlons for the current fiscal year and the precedmg two fiscal years arc as follows

Fiscal Year

Percentage Contnbutcd

Reqmred Contnbutlon

2002 2001 2000

100% 100% 100%

$ 1,152,901 30 $ 1,325,675 94 $1,316,289.57

- 17 -

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodrt1es Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

439,733 96 $

44,268 78

5,495 72

5,990 94

24,639 24 1105467

Total Assets

$

480 923 59 $ =-..;5;.;0.,;2;.;5_9_7_2

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total l.Jab1l1t1es
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodrt1es Purchased Food Unreserved Undes1gnated
Total Fund Equity
Total L1ab11it1es and Fund Equity

$

15,584 93 $

9,015 56

77,097 27

41,244 16

$

92 682 20 $

50 259 72

$

24,639 24

11,054 67

352 547 48 $

0 00

$

388 241 39 $

0 00

$

48092359 s _ _..;s;.;.2;.;s..,9.7..2_

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

EXHIBIT"E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30 2001

$

484,002 74 $

369,824 49

$

271,284 86 $

34,044 31

316,815 83

350,039 57

24,639 24 11 054 67

18,39347 8 819 10

$

271 284 86 $

34 044 31 $

836 512 48 $==,;..74~7.0;.;.7..,6.;;6,;.3

$

157,036 11 $

22,080 32

92,168 43

$

271 284 86 $

34,044 31 $ 34,044 31 $

191,080 42 $ 46,680 81 210,509 86
448 271 09 $

188,564 62 41,96638 190,681 01
210 15 3 728 41
425,150 57

$

24,639 24 $

18,393 47

11,054 67

8,819 10

$

ooo $ ----~o~oo~

352 547 48

294,713 49

$

o oo s

o oo s

388 241 39 $ _ _3a:;2:.:1..::9;26::....:c06~

$

271 284 86 $

34,044 31 $

836 512 48 $ _ _7;..4;.;,7,.;;0.76;;.;;;;63;.

- 19 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current lnstructJon Support SeMces Pupil Services Improvement of lnstructJonal SeMces General Admm1strat1on School Adm1rnstrat1on Maintenance and Operabon of Plant Student Transportation Services Other Support Services Food SeMces Operabon
Debt Service Pnnc1pal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change m Period Donated Commod1t1es Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

101.726 00 $

1.182.936 99

247 169 91

s 1,531,832 90 $

457.640 74 457 640 74

$

$ 1,470,030 91

3,623 74 344 26

$ 1 473 998 91 $

$

57,833 99 $

321,926 06

376.960 36 41.08981 12.976 17
91 56 25.13916
1.383 68
457 640 74 000 000

6,245 77 2 235 57

$ 388124139 s-~~~.::.o.::.oo;;;.

See notes to the genera~purpose financial statements - 20 -

EXHIBIT"F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

$

1,705,610 76

$

1,705,61076 $

107,259 69 $ 107,259 69 $

666,626 43 $ 2,888,547 75
247 169 91

703,643 58 2,308,166 82
256 130 91

3,802,344 09 $ _ _,,3,.2,,,6:..7e::94::,,1'-"-31,._

$ 1,242,643 39 $
172,26219 69,97547
106,922 23 4,135 47 2,631 60
31,410 53 73,83416
1,79572

$ 1,705,610 76 $

$

o oo $

000

25,000 00 $ 82,259 69
s 107 259 69
000 $ 000

1,644,603 75 $
213,352 00 82,951 64
189,27348 4,13547
27,770 76 32,794 21 73,834 16 1,471,826 63
3,623 74 34426
3 744 510 10 $
57,833 99 $
321,926 06

1,226,31943
217,342 54 79,085 70
215,777 86 300 00
11,775 50 28,486 37 42,913 19 1,397,671 76
3,309 36 65864
3,223,640 35
44,300 96
282,971 00

6,245 77 2 235 57

-5,288 82 -57 08

$

000 $

000 S

s_ _ 388.241 39

.:;:3:.,21~.9~2.::6~00:::.

- 21 -

SCREVEN COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY
ID NUMBER

FEDIERAL REVENUE IN PERIOD

EXPENDfTURES IN PERIOD

Agncutture, U S Department of Chlk:I Nutntion Cluster Pe&s-Through From Georgia Department of Educabon Food and Nutrition Program Food Service& School Breakfast Program National School Lundl Program

10 553 10555

NIA

$ 271,694 53

(2)

NIA

815 170 09 $

1,377 926 54 (3)

Total Child Nutnhoo Cluster

$ 1,088,864 62 $

1,377,926 54

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutr1tlon Program

Food lllstnbuton Program (1)

10 550

NIA

96 072 37

96 072 37

Total U S Department of AgMculture

$ 1,182,936 99 $

1 473 998 91

EducaUon, U S Department of Special EducabOn Cluster Pass-Through From Georgl& Department of Educabon lnd1V1duals wtth Dlsablldies Education Act Part B - Speaal Education Flow Through Capacity Budding Improvement Preschool
Total Spec,al Education Cluster

84027 84027 84173

NIA

$ 347,669 72 $

NIA

6 538 17

NIA

21 280 07

s 375 487 96 $

347 869 72 6,538 17
21 280 07
375,487 96

other Programs Pas&-Through From Fnt Olstnct Reg10nal Educabonal Service Agency d/b/e Live Oak Migrant Education Agency Elementary and 5econdary Education Act TIiie I Migrant Education Pass-Through From Georgia Department of Educat10n Comprehensive School Reform Oemonstrahon Project E~men\ary and Secondary Educa11on Ad TIiie I Grants to Local Educabonat Agencies Title II Eisenhower Professkmal Development Tine Ill Tedmology Uteracy Challenge Fund Grant TIiie VI Innovative Education Program Strategies Class Size Reduction Vocational Education - Basic Grants to States High School Program Ba&1c Grant Tech Prep Education
Total U S Department of Education

84 011 84 332
84010 84 281 64 318 84298 84 340
84 048 84 243

NIA

38,798 30

36,798 30

NIA

51 536 04

51 536 04

NIA

823,859 86

823 859 86

NIA

17,885 64

17,885 84

NIA

102,318 69

102,318 69

NIA

23,401

23,401

NIA

11299894

112,996 94

NIA

81,49543

81,49543

NIA

79,828 48

79 828 46

s 1 705,610 76 $

170581076

- 22 -

SCREVEN COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002

SCHEDULE "1

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

Jusbce, U S Department of Pass-Through From Georgia Department of Juvenile Justice Ch1k1ren and Youth Coordinating Council Juven~e Justice Delinquency Prevenbon and Treatment Grant

16 540

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NIA

$

5,000 OD S

5 ODO 00

Total Federal Flnancial Assistance

$ 2 893,547 75 $ _ _3,..1_5_4_,8_09_6_7

NIA O Nol Available

Notes to the Schedule of Exoendrtures of Federal Awards

{1) The amounts shown for the Food Dtstributlon Program represents the Federally assigned value of nonmonetary assistance for donated commodrbes received and/or consumed by the system during the ament fiscal year
(2) Expenchtures for the School Breakfast Program were not mamta1ned separately and are Included In the 2002 NaUonal School LWlCh Program
(3) Expendlllses for ttus program tnclude State, and/or Other Funds Expenditures are not matntatned by fund source

Major Programs are Identified by an asterisk (*) In front of the CFDA number

The School Da;tnct did not provide Federal Assistance to any Subreapient

The accompanying achedule of expenditures of Federal swards 11dudea the Federal grant activity of the
Screven County Board of Education and \.& presented on the modified acaual basis of accounting which Is
the basis of accounting used m the presentation of the general-purpose finanaal statements

See notes to the general-purpose flnanaal statements

- 23 -

SCREVEN COUNTY BOARD OF EDUCATION SCHEDULE QF STATE REVENUE
YEAR ENPEP JUNE 30 2002

SCHEDULE"2"

AGENCYn=UNPING

GRANTS Communrty Al!alr>, Georgia Department of Local A9SIStance Grants

Education Georgie Department of

Qualrty Basic Educabon

Direct lnstru:tlonal Cost

Kindergarten Program

Kindergarten Program Earty lntervenbon Program

Primary Grades ( 13) Program

Pnnuny Grades - Eeny lntervenbon (1-3) Progr>m

Upper Elementary Grades (4-5) Program

Upper Elementary Grades Early lntervenboo (4-5) Program

G - Mlddle School (~) Program

H,gh School

Educabon (9-12) Program

Vocational Laboratory (9-12) Program

Students wrth "8bl~s

Category I

Category II

Category Ill

Category IV

Gdlod Student - Category VI

Remedial Educabon Program

Attematrve Educebon Program

20 Days Addrtlonal lnstruc:tion

Medla Center Program

Staff and Profess1011al Development

lnd1rect Cost

Categoncal Grants

Puptl TransportetJon

Re,gular

Bus Replacement

SPIQ/ty Grant

Nursing Services

Prmopel Supplements

Vocabonal Supervisors

Mid-term AdJUlltment Hold-Harmless

Deferred Summer Salanes (Current Veer)

Educa!Jon Equalization Fllldlng Grant

Food Services

VocabonelEducalion

Other State Programs

Health Insurance

Mentor Teachers

Poot Secondary Opbons

Preschool Handocapped Program

Stalewide After School (4.-8) Prog111m

Stalewlde Reading (K-3) Program

Lottery Programs

AsslslM! Tochnology

Computers m the Classroom

Office of School Readiness Pre-Kindergarten Program

Office of Treasury and FISCSI Serv,ces Public School Employees Retirement

CONTRACTS Human Resoura.s GeorgLII Department of Femlty Connectton Substance Abuse Prevention and Treatment

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

s

25 000 00 s

25 000 00

s

545,588 00

175 868 00

1 349 865 00

729 885 00

1 018 284 00

229,287 00

1 931 072 00

1,398,419 00

615 785 00

36,355 00 633,253 00 873 936 00
97 894 00 143 577 00 36,681 00 142 880 00 92,778 00 299,197 00 56,030 00 1 813 078 00

633 193 00 140 958 00
20 000 00 75 779 00 12,872 00 23 810 00 91,975 00 1 783,034 00 1 493 031 00
35 575 64
195 071 58 3 519 00 2 475 00
46 626 00 32,559 58 1120442

28,109 00 22 310 00

101,726 00
B 544 54 80 821 40 368,274 80

545,588 00 175,666 00 1,349,865 00 729 885 00 1,019,284 00 229 287 00 1,931,072 00 1 398 419 00 615,785 00
36 355 00 633,253 00 873 936 00
97,894 00 143 577 00 36,681 00 142,880 00 92 778 00 299,197 00 58 030 00 1 813 078 00
633,193 00 140 958 00 20 000 00 75 779 00
12 872 00 23 810 00 91 975 00 1 783,034 00 1 493 031 00 101,726 00 35 575 64
195,071 58 3 519 00 2,475 00
46 626 00 32,559 58 1120442
8 544 54 80,821 40
368 274 80
28,109 00

82 259 69

82 259 69 22 310 00

See note to the general-purpose financial statements

s 16 872 812 22 s

666 626 43 $ 17 539 238 65

SCREVEN COUNTY BOARD OF EDUCATION SCHEDULE Of APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 2002

SCHEDULE "3"

PROJECT
For the purpose of acqu1rtng, constructing and eQU1J)J)1ng modlflcabons, renovetrons and addrtJon& to Screven County High School
For the purpose of acquiring land for new &ehools and acqu11ng, constructing and equipping !he following caprtal outlay projects renovabons of Screven Elementary School and the Scn,ven Coonty Hrgh School auditorium, renovatrons and/or construcbOn of athletic facilrttes at Screven County High School. construchon of a school syslem office and operations faclUty at lhe old Central Mldcfle School campus, replacement of the roof on the "C" campus portion of Sa-even County High School end System wide renovallons, Improvements, end technology upgrades, mochfk:ations, renovabons, and adchtlons to Screven County High School

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 7,00000000 $ 991908111 $ 79 587 50 $ 9,839,493 61 Completed

6,200,000 00

6,200,000 00

Ongomg

$ 13,200,000 00 $ 16 119,08111 S 79 587 50 S 9,8391~93 61

(1) The School Dlslncf& ortg!nol cost est:ma1e es &peafied :n the resolutlOn calling fllf !ho Imposition of !he Local Option Sales Tax
(2) The School DLStnc:t's airrent estimate of total cost for the protects Includes all cost from prefect Inception to completlon
(3) The voter> of Screven County approved the Imposition of a 1% sales tax to fund the above projects end retJre essoaatecl debt Amounts expended for these proiects may :nclude sales tax procoeds, stale, local property
taxes and/or other funds over the life of the prOfElcts

See notes to the general-purpose finanaal s.tatements

- 25 -

SCRE\/EN COUNTY BOARD OF EDUCATION
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM IQBEI ALLOTMENTS AND EXPENDITURES - By PROGRAM
VEAR ENDED JUNE 30 2002

SCHEDULE 4

DESCRIPTION
Direct lnstruc:tionel Programs Kindergarten Program Kmelgarten Program-Earty Intervention Program Pnmary Grades (1-3) Program Prunary Grades-Early lnterven1ion (1-3) Program Upper Elementary Grades (4--5) Program Upper Elementary Grades-Earty ln1ervontlon (4--5) Program Middle School (6-8) Program High School General Educeton (9-12) Program Vocational Laboratory (9-12) Program Stl.dents with Oiaabllitles Calegory II Category Ill Category IV Gifted Studem - Ca1egory VI Remedial Educabon Program Alternative Educaboo Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Devetopmen1

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION 11 I

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

s 595 691 00

619 338 56 $

11,395 63 s

630 734 19

191,798 00

271,777 96

2,60058

274,378 54

1473,82600

1,845,01041

43,731 98

1,688,742 39

796,912 00

956,616 23

10,262 19

966,878 42

1,112,887 00

1,393,539 49

49,276n

1,442,816 26

250 343 00 2,108,407 00 1,526,839 00
672,33400 1,792,176 00
156,762 00 40,049 00 15600100

231 671 22 2,315 725 29 2, 196,301 69
842 544 30
714,495 45 961,034 49 119,491 46 154,369 33 87,670 54 176 703 98

7,298 81 72,880 97 101,534 82 75,86527
11,9TT48 6 429 76
TT684 6,573 60
2 368 59

238,970 03 2,388,606 26 2,297,838 71
718,409 57
726,472 93 967464 25 120 288 30 160,942 93
87,670 54 179 072 57

$

s s 10,874,025 00 $ 12 486 290 60

402,973 29

12,889,263 89

326 673 00 61 176 00

271,014 59 25 33416

116 894 93 35 841 84

387,909 52 61 176 00

TOTAL QBE FORMULA FUNDS

$

1126187400 $ 12?82,83935 $ 55571006 S 1333834941

(1) Comprised of State F..-.ls plus Local FMI Mill Share

See notes to the general-p...-pose financial statements

- 28 -

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

SCHEDULE "5"

Screven County Elementary School Screven County Middle School Screven County High School Screven County CrossRoads Central Office (Altemahve Educat,on Program)
TOTAL
(1) Compnsed of State Funds plus Local Five MIii Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

5.192.812 00 $

6,036,461 36

2,652,632 00

3,020,093 16

2,872,580 00

3,650,943 40

181,765 97

156,001 00

$

12,889,263 89

See notes to the general-purpose financial statements - 27 -

SECTION ll COMPLIANCE AND INTERNAL CONTROL REPORTS

l') G-.

\' ..trr,

w. ltJ',',l'l,L HIN ION
SI Ar [ AUOITOO
/4041 56-174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa.,hrnglon ~trcct, SW Suite 214 AtlJntJ, Georgia 30334-84(XI
Apnl 30, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducallon
and Supenntendent and Members of the Screven County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen
We have audited the financial statements of Screven County Board of Education as of and for the year ended June 30, 2002, and have issued our report thereon dated Apnl 30, 2003 This report was qualified for vanous departures from generally accepted accountmg pnnc1ples, as 1den11fied m the auditor's report on the general-purpose financial statements We conducted our audit m accordance with aud1tmg standards generally accepted m the Umted States of Amcnca and the standards applicable to financial audits contamed m Government Aud1tmg Standards, issued by the Comptroller General of the Umtcd States
Compliance
As part of obtainmg reasonable assurance about whether Screven County Board of Education's financial statements are free of material misstatement, we performed tests of tis compliance with certam prov1s1ons oflaws, regulations, contracts and grants, noncompliance with which could have a direct and matenal effect on the determmallon of financial statement amounts However, prov1dmg an op1mon on compliance with those prov1s10ns was not an obJecuve of our audit, and accordmgly, we do not express such an op1mon. The results ofour tests disclosed no mstances ofnoncompliance that are rcqmred to be reported under Government Aud1tmg Standards
Internal Control Over Fmanc1al Reportmg
In plannmg and performmg our audit, we considered Screven County Board ofEduca!ton's mternal control over financial reportmg m order to determme our aud1tmg procedures for the purpose of expressmg our opm1on on the financial statements and not to provide assurance on the mtemal
2002YB-40

control over financial reportmg However, we noted certam matters mvolvmg the mtemal control over financial reportmg and its operation that we consider to be reportable cond1t1ons Reportable cond1t10ns mvolve matters commg to our attention relatmg to s1gmficant defic1enc1es m the design or operation ofthe internal control over financial reportmg that, m ourJudgment, could adversely affect Screven County Board ofEducat10n's ab1hty to record, process, summanze and report financial data consistent with assertions of management m the financial statements Reportable conditions are descnbed in the accompanymg Schedule ofFmdmgs and Questioned Costs as items FS-7241-02-01 and FS-7241-02-02
A matenal weakness 1s a condition in which the design or operation of one or more of the mternal control components does not reduce to a relatively low level the nsk that misstatements m amounts that would be matenal m relat10n to the financial statements bemg audited may occur and not be detected w1thm a timely penod by employees in the normal course of performmg theu assigned functions Our consideration of the internal control over financial reportmg would not necessanly disclose all matters m the mternal control that might be reportable conditions and, accordmgly, would not necessanly disclose all reportable conditions that are also considered to be matenal weaknesses However, all of the reportable cond1t10ns noted above are also considered to be matenal weaknesses
This report 1s intended solely for the mformat10n and use of the management, members of the Screven County Board of Education, Federal awardmg agencies and pass-through entitles and 1s not mtended to be and should not be used by anyone other than these specified parties
Respectfully submitted,

RWHgp 2002YB-40

Hmton State Auditor

U~~FI I, W. HIN"ION
<;TAlE AUDITOR
(404) 656-::>174

DEPARTMENT OF AUDITS AND ACCOUNTS
2 ~4 Washington Street, S W Smtc 214 Atlanta. C,corg,a 30334-8400
Apnl 30, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducalion
and Supenntendent and Members of the Screven County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CTRCULAR A-133
Ladies and Gentlemen
Compliance
We have audited the compliance of Screven County Board of Educat10n with the types of comphance requirements descnbed m the VS Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofus maJor Federal programs for the year ended June 30, 2002 Screven County Board of Education's maJor FederaJ programs are identified m the Summary of Auditor's Results Section of the accompanymg Schedule of Fmdmgs and Questioned Costs Compliance with the reqmrements of laws, regulations, contracts and grants applicable to each of1ts maJor Federal programs 1s the respons1b1hty of Screven County Board of Education's management Our respons1b1hty 1s to express an opm1on on Screven County Board of Educalion's compliance based on our audit
We conducted our audit of compliance m accordance with aud1tmg standards generally accepted m the United States of Amenca, the standards apphcable to financial audits contained m Government Auditing Standards, issued by the Comptroller General of the United States, and 0MB Circular A133, Audas of States, Local Governments. and Non-Profit Orgamzatwns Those standards and 0MB Circular A-133 requue that we plan and perform the audit to obtam reasonable assurance about whether noncomphance with the types ofcomphance requirements referred to above that could have a duect and matenal effect on a maJor Federal program occurred An audit includes exarnmmg, on a test basis, evidence about the Screven County Board of Educatton's comphance with those reqmrements and performmg such other procedures as we considered necessary m the cucumstances We believe that our audit provides a reasonable basts for our opinion Our audit does not provide a legal determmatton on Screven County Board of Educatton's comphance with those reqwrements
2002SA-10

In our op1mon, the Screven County Board of Education complied, mall matenal respects, With the reqmrements referred to above that are apphcable to each of1ts maJor Federal programs for the year ended June 30, 2002.
Internal Control Over Comphance
The management of Screven County Board of Education 1s responsible for establishmg and mamtammg effective mtemal control over comphance with rcqmrements of laws, regulations, contracts and grants apphcable to Federal programs In planmng and performmg our audit, we considered Screven County Board ofEducatlon's mtemal control over comphance with rcqmrements that could have a direct and matenal effect on a maJor Federal program m order to determme our aud1tmg procedures for the purpose of expressmg our opm10n on comphance and to test and report on mtemal control over comphance m accordance with 0MB Circular A-133
Our consideration ofthe mtemal control over comphance would not necessanly disclose all matters m the mtemal control that might be matenal weaknesses A matenal weakness 1s a condition m which the design or operation of one or more ofthe mtemal control components does not reduce to a relatively low level of nsk that noncompliance with apphcable rcquuements of laws, regulations, contracts and grants that would be matenal m relation to a maJor Federal program bemg audited may occur and not be detected w1thm a timely penod by employees m the normal course ofperformmg their assigned functions We noted no matters mvolvmg the mtemal control over comphance and its operation that we consider to be matenal weaknesses
This report 1s mtended solely for the mformatlon and use of the management, members of the Screven County Board ofEducat10n, Federal awardmg agencies and pass-through entitles and 1s not mtended to be and should not be used by anyone other than these specified parties
Respectfully submitted,

RWHgp 2002SA-l0

Hmton State Auditor

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7241-99-03 FS-7241-00-01 FS- 7241-00-02 FS-7241-01-01 FS-7241-01-02

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

CORRECTIVE ACTION/RESPONSES

CASH AND CASH EQUIVALENTS Inadequate Separation of Duties Fmdmg Control Number FS-7241-01-01

We concur with the findmg and realize the importance of separation of duhes as an mternal control mechanism Due to current budgetary constramts, the School D1stnct 1s unable to hire add1t1onal staff. After reV1ew of the accountmg procedures m place, duhes were reassigned to provide for separation of duties relative to the control categones outlined m findmg FS-7241-01-01 We beheve that the duties are now assigned to achieve adequate mternal control We will contmue to momtor accountmg procedures and make adjustments m duties whenever possible.

GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group Fmdmg Control Number FS-7241-01-02

We concur with the recommendahon The School D1stnct plans to implement a fixed assets accountmg system as reqmred by GASB 34 dunng fiscal year 2003

SECTION IV FINDINGS AND QUESTIONED COSTS

SCREVEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002

I SUMMARY OF AUDITOR'S RESULTS

I Type of Report Issued on the Financial Statements The auditor's op1ruon on the Screven County Board ofEducation's financial statements was quahfied for vanous departures from generally accepted accounting pnnc1ples

2. Reportable Cond1t1ons in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Screven County Board of Educat10n disclosed financial statement reportable cond11Ions related to the followmg control categones.

Cash and Cash Eqmvalents

General Fixed Assets

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

3 Noncomphance Matenal to the Financial Statements The audit of the Screven County Board of Educal!on disclosed no instances of noncomphance that were deemed to be matenal to the financial statements

4 Reportable Cond111ons in Internal Control Over Ma1or Programs The audit report for the Screven County Board of Educat10n did not disclose any reportable cond11Ions in internal control over maJor programs

5 Type of Report Issued on Comphance for Ma1or Programs The auditor's op1mon on the Screven County Board ofEducal!on's report on comphance with reqmrements apphcable to maJor programs was unquahfied

6 Audit Findings Regmred to be Reported by Section .51 O(a) of 0MB Circular A-133 The Screven County Board ofEducallon's audit did not disclose audit findings required to be reported by section 510(a) ofOMB Circular A-133

7 Ma1or Programs Federal awards audited as maJor programs are as follows 10 553 Food and Nutntlon Program - Food Services - School Breakfast Program 10 555 Food and Nutnl!on Program - Food Services - Nallonal School Lunch Program 84 027 Jnd1v1duals with D1sab1ht1es Education Act - Part B - Special Educallon Flow Through 84 027 Ind1v1duals wtth D1sab1h1Ies Educal!on Act - Part B - Special Educahon Capacity Bmlding Improvement 84 173 Jnd1v1duals with D1sab1h1Ies Educallon Act - Part B - Special Educallon Preschool

8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000 00

- 1-

SCREVEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS
9 Low Risk Aud1tee The Screven County Board ofEducalion did not quahfy as a low nsk aud1tee as defined by Seclion 530 of 0MB Circular A-133
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS Inadequate Separation of Duties Reportable Condition - Matenal Weakness Repeated From Pnor Year Fmdmg Control Number FS-7241-02-01
An exammatlon of the mtemal accountmg control procedures revealed that the School D1stnct did not provide for adequate separation of dulies m the performance of the followmg accountmg functions and related procedures
The bank reconc1hat1on function was not separated from the check preparation or bookkeepmg function. Add1tlonally, bank rcconc1ha11ons were not reviewed by an md1v1dual mdependent of the bank reconc1ha11on process
Blank checks were not stored under the control ofsomeone outside the check wntmgipreparat1on funclion
The bookkecpmg function was not separated from the check wntmg funclion
These conditions were a result ofmanagement's dec1s1on to hm1t the number ofadm1rustrat1ve staff made responsible for accountmg funcllons The School D1stnct should review the accountmg procedures m place, design procedures which would enhance segregalion of duties relative to the above control categones and implement those procedures to strengthen the mternal control over accountmg functions
Management's Response
We concur with the findmg and realize the importance of separation of duties as an mtcmal control mechanism Due to current budgetary constramts, the School D1stnct 1s unable to hire add11ional staff After review of the accountmg procedures m place, dulles were reassigned to provide for separation ofduties relative to the control categones outlmed m fmdmg FS-7241-02-0 I We believe that the dulies are now asslb'llCd to achieve adequate mternal control We will contmuc to momtor accountmg procedures and make adJustrnents m dulies wherever possible
-2 -

SCREVEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group Reportable Cond!tlon - Matenal Weakness Repeated From Pnor Year Fmdmg Control Number FS-7241-02-02 The Screven County Board of Education did not mamtam a system-Wide General Fixed Assets Account Group w1thm the formal accounting records as reqmred by generally accepted accounting pnnc1ples. This condition results m the general-purpose financial statements ofthe School D1stnct bemg mcomplete and not m accordance With generally accepted accounting pnnc1ples Appropnate action should be taken by the School D1stnct to estabhsh accountmg controls and procedures to proVJde for maintenance of a General Fixed Assets Account Group. These subs1d1ary records should mclude an mventory of land, bmldmgs and eqmpment owned by the School D1stnct and shotild mclude, but may not be hrmted to, date acqurred, acqms1hon cost, estimated replacement cost, location and descnpt1on. Detailed records should be mamtamed of all additions and deletlons to the General Fixed Assets Account Group. Management's Response We concur with the recommendation The School District plans to implement a fixed assets accountmg system as reqmred by GASB 34 dunng fiscal year 2003 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-3-