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L I ' } ' --~, -FOR THE 'FISCAf YEAR :ENDED JUNE.30, 200} ,. :,. : ,; & \ / , r I I J ' - . . , , , r I('_ ' ~ ' ... : '.' ,) /' t ,.. I f .,, J ' ~~I O :, ,' :,: .; ' , \ I : I J ,I,, : ./",, . . .'-'. .' ', , .. .. , I,.. ,. 1, i'. 'I ~ ; _. , . ,_ ',, I, ',) -'' ' (, ''i ' ._.,, . ',:, ~. :','.. :i.., , 11"' ' - ... ' .. . ..,.-. ,., ',,_.. ~- _;-' " _: ,, Ru;~~li ,w: ,. Hi,.nton' ; . '- ..'~i , .. . ' State. A' u,,dit.o-r .,',.',' ' ' .-...,.. -,; ,, , .,- .. . I,,_ I . ' ,_' ' , . ,', '..'., ' J ! . .., : '., . , -, : .,.-.... ..... - ,,.., !-,' i ' ; ' .' ''. , '' ~. ' ' ), ',,' J' ---,.' ; ,,,, - ', ,, ' '< SEMINOLE 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 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS ADDmONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 5 BY SITE Page 2 4 6 7 16 18 20 22 24 26 29 30 31 SEMINOLE 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 wrrn GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE wmI REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL w. 'USSl::1.L HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S W., Suite 214 Atlanta, Georgia 30334-8400 June 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 Seminole 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 Seminole 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 of the Seminole County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our , opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 2001ARL-13 * 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 individua1 schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. * The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a 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 share 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 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 of the Seminole County Board of Education as ofJune 30, 2001, and thr. results ofits 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 June 14, 2002, on our consideration of the Seminole 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 of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Seminole County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) 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 2001ARL-13 procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. 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, . lcJ~. RWH:as 2001ARL-13 State Auditor SEMINOLE COUNfY BOARD OF EDUCATION SEMINOLE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2001 ASSETS Cash and Cash Equivalents Investments Accounts Receivable lnventones Food Donated Commodities Purchased Food GOVERNMENTAL FUND SPECIAL GENERAL REVENUE FUND FUND $ 1,135,22959 $ 570,898 03 600,000 00 121,561.70 114,847.91 4,99760 12,300.07 Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salanes Payable Expired Grant Balances Payable Contracts Payable Deferred Revenue Total Liabilities FUNDEOUITY Fund Balances Reserved For Contmuation of Federal Programs For lnventones Food Donated Commod1t:es Purchased Food For SPLOST ProJects For State Capital Outlay ProJects Unreserved Designated for Self-Insurance Undes1gnated Total Fund Equity $ 11856:791.29 $ ....~1.o.,_3.,04_3_.s_1_ $ 308,565.14 $ 95,346.51 132,333 04 4,216.12 1,206 05 $ 308,56514 $ 233,101.72 $ 4,997.60 12,300.07 $ 5,402 79 1,542,823.36 452,644 22 $ 1,548,226 15 $ 469,941 89 Total Liabilities and Fund Equity $ 118561791.29 $ .......1..o..,_3,=04=.3.s=1... The notes to the general-purpose financial statements are an integral part of this statement. -2- EXHIBIT"A" TYPES CAPITAL PROJECTS FUND TOTALS {Memorandum Onl:tl JUNE 301 2001 JUNE 301 2000 $ 784,959.25 $ 2,491,086.87 $ 2,488,758 61 600,000.00 194,335.57 430,745.18 509,827 42 4,997.60 12,300.07 3,074 57 3,890.98 $ 979,294.82 $ $ 24,900.21 $ 428,811 86 $ 238,148.57 132,333.04 131,736.95 4,216.12 5393 72,710.07 72,710.07 1,206.05 $ 97,610.28 $ 639,27714 $ 369,93945 $ 69,700 95 $ 4,997.60 12,300.07 $ 881,684.54 881,684 54 3,074.57 3,890.98 851,622.89 18,325.00 000 5,402.79 1,995,467 58 9,282.14 1,679,715 60 $ 881 684.54 $ 2,899,852 58 $ 2,635,612.13 $ 979,294 82 $ -3- SEMINOLE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current lnstructJon 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 Other Support Services Food Services Operation Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES {USES) Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 8,142,483.38 $ 2,743,420 49 80,219 16 $ 10,966,123 03 $ 369,793 94 1,454,864.03 102,593 79 1,927,251 76 $ 7,070,657 38 $ 1,021,076.31 312,758.76 395,745.37 415,528.76 195,307.82 862,049 90 156,487.83 760,197.67 492,644 59 8,750.00 4,058.00 53,838.75 24,010 98 16,681.96 1,639 90 5,09949 49,669.22 805,154 42 $ 10,674,186.08 $ $ 291,936 95 $ 1977171 03 -49 919 27 $ 154.00 $ -24,022 46 $ -23,868.46 $ 24,02246 24,02246 $ 268,068.49 $ 1,280,157.66 -25,896 81 485,506 58 1,923 03 8,409 09 FUND BALANCE JUNE 30 $ 115481226.15 $ -==--4161119_1,..94..,1_8;;,;9.., The notes to the general-purpose financial statements are an integral part of th:s statement -4- EXHIBIT"B" CAPITAL PROJECTS FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 363,173.00 $ 8,875,450.32 $ 7,820,158.78 1,454,864 03 1,838,268.62 833,712.07 3,577,132.56 3,157,586.92 108,775.32 291,588 27 232A14.60 $ 1,305,660 39 $ 14,199,03518 $ 13,048,428 92 $ 8,091,733.69 $ 7,670,735.02 $ 1,293,769.74 366,597.51 419,756 35 415,528 76 211,989.78 862,049.90 156,487.83 761,837.57 497,744 08 58,419.22 809,212.42 1,293,769.74 506,274.44 481,337.37 380,469.17 211,772.12 801,895.66 118,590.33 649,564.70 468,477.77 45,356.91 744,891.38 538,028.43 $ 1,293i769.74 $ 13,945,126 85 $ 12,617,393 30 $ 11,890.65 $ 253,908.33 $ 431,03562 $ 24,17646 $ 36,325.00 $ -154.00 -24 176 46 -36,325.00 $ -154 00 $ 000 $ 000 $ 11,736.65 $ 253,908.33 $ 431,035.62 869,947.89 2,635,612.13 2,227,864.44 1,923.03 8,409.09 -21,706 98 -1,580 95 $ 881,684 54 $ -5- SEMINOLE COUNTY BOARD Of EDUCATION COMBINED STATEMENT Of REVENUES EXPENDITURES ANO CHANGES IN FUND BALANCES BUDGET AND ACTUAL CNON-GAAP BASIS> GENERAL AND SPECIAL REVENUE FUNDS YEAR ENQED JUNE 30 2001 EXHIBIT"C" GENERAL FUND ACTUAL (BUDGET BUDGET BASIS} REVENUES State Funds Federal Funds Taxes Other Funds $ 7,935,897.00 $ 8,142,483 38 2,555,862 00 69,00000 2,743,420 49 80,219 16 Total Revenues $ 10,560,759 00 $ 10,966,123 03 EiPENDITURES Current lnstrucbon Support SeMces Pupil SelVlceS Improvement of Instructional SeMces Educabonal Media SelVlces General Adm1mstra1Jon School Adm1mstrabon Business Adm1mstrabon Maintenance and Operation of Plant Student Transportabon SeMces Other Support SelVlceS Food Services Opera!Jon $ 7,091,744 00 $ 7,070,657 38 369,727 00 383,549 00 267,277.00 196,153 00 876,876.00 153,613.00 674,445.00 513,716 00 9,00000 312,758 76 395,745 37 415,528 76 195,307.82 862,049 90 156,487 83 760,197 67 492,644 59 8,75000 4 058 00 Total Expenditures Excess of Revenues over (under) Expenditures $ 10,536,100 00 $ 10,674,186 08 s 24,65900 $ 291,936 95 Qit:!ER FINANCING SOURCES cusESl Other Sources Other Uses $ 154 00 -24,022 46 Total Other Financing Sources (Uses) $ -23,868 46 Excess of Revenues and Other F1nanang Sources over (under) Expenditures and Other Finanang Uses $ 24,659 00 $ 268,06849 fUtU2 eALANCE Jl.11.Y l 2000 1,241,353 00 1,280,157 66 Ad1ustments Food Inventory - Net Change in Penod Donated Commod1bes Purchased Food -3,046 00 f!.!ND BALANCE JUNE 30 2001 $ 112621966 00 $ 11548122615 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS} $ 93,616 00 $ 369,793 94 1,806,291 00 1,454,864 03 87,306 00 102,593 79 $ 1,987,213 00 $ 1,927,251 76 $ 993,716 00 $ 1,021,076 31 54,11000 30,714 00 32,800 00 28000 53,838 75 24,010 98 16,681 96 700 00 2,00000 59,206 00 804,961 00 1,639 90 5,09949 49,669 22 805,154 42 $ 1,978,487 00 $ 1,977,171 03 $ 8,726 00 $ -49 919 27 $ 10,700 00 $ 24,02246 $ 10,700 00 $ 24,022 46 $ 19,426 00 $ -25,896 81 488,33900 485,506 58 47,936 00 1,923 03 840909 $ 5ssi701 oo $ 469 941 89 The notes to the general-purpose finanaal statements are an integral part of this statement -6- SEMINOLE COUNTY BOARD OF EDUCATION EXHIBIT" D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Seminole County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a 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 to report on its financial position and the results of its 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. General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 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. -7- SEMINOLE COUNTY BOARD OF EDUCATION EXHIBIT " D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Governmental funds are accounted for using the modified accrual basis ofaccounting 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 eligibility 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 of the 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 - 8- SEMINOLE COUNTY BOARD OF EDUCATION EXHIBIT " D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. Generally 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. BUDGET The Seminole 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 aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative bucf:get by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 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 are reported at fair value. The Official Code of Georgia -9- SEMINOLE COUNTY BOARD OF EDUCATION EXHIBIT " D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, 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 for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. PROPERTY TAXES The Seminole County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 31, 2000 (levy date). Taxes were due on January 31, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Seminole County Tax Commissioner bills and collects the property taxes for the School District and remits the taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $2,729,231.82. - 10- SEMINOLE COUNTY BOARD OF EDUCATION EXHIBIT " D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The tax millage rate levied for the 2000 tax year (calendar year) for the Seminole County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 15.04 mills SALES TAXES Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $833,712.07 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $860,144.88 has been collected or on June 30, 2002, whichever occurs first. INVENTORIES FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. INTERFUND TRANSACTIONS The School District has the following types of interfund transactions: Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations 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. - 11 - - - - - - - - - - - - - - - - - - - - - - - -- - - --------- SEMINOLE COUNTY BOARD OF EDUCATION EXHIBIT " D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 200 I Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one ofor any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS AtJune30, 2001, the bank balances were $3,611,399.29. The amounts ofthe total bank balances are classified into three categories of credit risk: - 12 - SEMINOLE COUNTY BOARD OF EDUCATION EXHIBIT " D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 2: DEPOSITS Category I - 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 in 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 I $ 209,932.59 2 3,401,466.70 3 0.00 Total $ 3,611,399.29 Note 3: NON-MONETARY TRANSACTIONS The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGEMENT The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. However, the errors or omissions policy excludes coverage for sexual harassment and discrimination. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. The School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk in the past three years. - 13 - SEMINOLE COUNTY BOARD OF EDUCATION EXHIBIT " D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 4: RISK MANAGEMENT The School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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. 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 End of Year Liability $ 0.00 $ 0.00 $ 0.00 $ 0 00 $ 0.00 $ 4,058.00 $ 4,058.00 $ 0 00 The School District has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Amount Superintendent Each Principal Financial Director Each Lunchroom Supervisor $ 100,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 Note 5: ON-BEHALF PAYMENTS The School District has recognized revenues and expenditures in the amount of $142,177.60 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. Georgia Department ofEducation Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $115,364.60 Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$26,813.00 - 14 - SEMINOLE COUNTY BOARD OF EDUCATION EXHIBIT " D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 6: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements. Note 7: 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. 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% $ 820,652.83 $ 757,945.96 $ 765,813.80 - 15 - SEMINOLE COUNTY BOARD OF EDUCATION COMBINll'(JG BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 481,685.32 $ 43,580.26 1,666.62 529.25 4,997.60 12.300.07 Total Assets LIABILITIES AND FUND-EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Total Liabilities FUND-EQUITY Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity See notes to the general-purpose financial statements. -16- $ 500,649.61 $ ===--44==1'=09==51== $ 16,186.77 $ 14,685.93 14,520.95 29,423.58 $ 30.707.72 $ 44.109.51 $ 4,997.60 12,300.07 452.644.22 $ 0.00 $ 469.941.89 $ 0.00 $ 500.649.61 $ ====44""""'"1',ic09==51..,, EXHIBIT"E" FEDERAL PROGRAMS TOTALS JUNE 301 2001 JUNE 30, 2000 $ 45,632.45 $ 570,898.03 $ 431,125.28 112,652.04 114,847.91 260,021.12 4,997.60 12,300.07 3,074.57 3,890.98 $ 158,284.49 $ 703,043.61 $ =-=6=9=8=1,.1...1...9=5= $ 25,951.67 $ 64,473.81 $ 95,346.51 64,435.66 88,388.51 132,333.04 122,164.11 4,216.12 4,216.12 53.93 1,206.05 1,206.05 $ 158,284.49 $ 233,101.72 $ 212,605.37 $ 69,700.95 $ 4,997.60 12,300.07 3,074.57 3,890.98 $ 0.00 452,644.22 408,840.08 $ 0.00 $ 469,941.89 $ 485,506.58 $ 158,284.49 $ 703,043.61 $==6=9=8_.1_1,..1.""'95.... -17- SEMINOLE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES Operating Transfers In Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food FUND BALANCE JUNE 30 SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 55,346.00 $ 289,146.06 691,018.77 102.593.79 $ 848.958.56 $ 289,146.06 $ 235,793.67 53,83~.75 231.00 3,701.76 1,639.90 $ 805,154.42 $ 805,154.42 $ 295,205.08 $ 43,804.14 $ -6,059.02 $ 43,804.14 $ 415,805.63 1,923.03 8,409.09 6.059.02 0.00 0.00 $ 469,941.89 $ =======0.=00= See notes to the general-purpose financial statements. - 18 - EXHIBIT.F" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 25,301.88 $ 369,793.94 $ 375,089.22 763,845.26 1,454,864.03 1,838,268.62 102,593.79 95,120.56 $ 789 147.14 $ _.....;..1;;,.;9;,2,;7...,a2; 51.76 $ 2,308,478.40 $ 785,282.64 $ 1,021,076.31 $ 1,316,718.58 23,779.98 12,980.20 5,099.49 49,669.22 53,838.75 24,010.98 16,681.96 1,639.90 5,099.49 49,669.22 805 154.42 51,078.61 42,902.69 26,671.24 2,504.75 3,656.68 36,446.64 744 891.38 $ 876,811.53 $ 1,977,171.03 $ 2,224,870.57 $ -87,664.39 $ -49,919.27 $ 83,607.83 17,963.44 24,022.46 17,167.27 $ -69,700.95 $ -25,896.81 $ 100,775.10 69,700.95 485,506.58 408,019.41 1,923.03 8,409.09 -21,706.98 -1,580.95 $ 0.00 $ 469,941.89 $ -===4,_8_5=,506=.5-=8.,.. - 19 - SEMINOLE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 ASSETS Cash and Cash Equivalents Accounts Receivable REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 0.00 $ 23,515.29 49,194.78 Total Assets $ 0.00 $ ===7=2=7,=10==07= LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Contracts Payable Total Liabilities FUND EQUITY Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity $ 72,710.07 $ 72,710.07 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Total Liabilities and Fund Equity $ 0.00 $ ===7=2;i,,;,7..1.=0.=07= See notes to the general-purpose financial statements. -20- EXHIBIT"G" SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 761,443.96 $ 784,959.25 $ 749,226.11 145,140.79 194,335.57 134,609.24 $ 906,584.75 $ 979,294.82 $ ==-8-=8=3=,8...,35==35= $ 24,900.21 $ 24,900.21 $ 13,887.46 72,710.07 $ 24,900.21 $ 97,610.28 $ _ _-'1'-"'3=,8_87.;..a.4...;.;6:.... $ 881,684.54 $ 881,684.54 $ 851,622.89 18,325.00 0.00 0.00 0.00 $ 881,684.54 $ 881,684.54 $ _ _8...,6_9_..._,94_7_._8__9___ $ 906,584.75 $ 979,294.82 $ ==8=8=3:!:ii,8=:35==35_ - 21 - SEMINOLE 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 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 REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 2,500.00 $ 326,923.00 $ 2,500.00 $ 326,923.00 $ 2,346.00 $ 692,006.39 $ 2,346.00 $ 692,006.39 $ 154.00 $ -365,083.39 $ 346,758.39 $ -154.00 $ -154.00 $ 346,758.39 $ 000 $ -18,325.00 0.00 18,325.00 FUND BALANCE JUNE 30 $ 0.00 $-===-===---==0==00= See notes to the general-purpose financial statements. -22- EXHIBIT"H" SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 33,750.00 $ 363,173.00 833,712.07 833,712.07 $ 787,725.67 108,775.32 108,775.32 19,823.50 $ 976,237.39 $ 1,305,660.39 $ _ _8__0_7_._,5_4_9"-".-'-"17_ $ 41,518.58 $ 41,518.58 294,145.96 988,498.35 $ 515,217.01 263,752.81 263,752.81 22,811.42 $ 599,417.35 $ 1,293,769.74 $ 538,028.43 $ 376,820.04 $ 11,890.65 $ 269,520.74 $ 346,758.39 $ -346,758.39 -346,912.39 $ $ -346,758.39 $ -154.00 $ -36,325.00 -36,325.00 $ 30,061.65 $ 11,736.65 $ 233,195.74 851,622.89 869,947.89 636,752.15 $ 881,684.54 $ 881,684.54 $_====a..6...,91..9.,4=7=.8=9= - 23- SEMINOLE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2001 SCHEDULE "1 FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Agna.allure, U. S Department of Child Nutnbon Cluster Pass-Through From Georgia Department of Educabon Food and Nutrition Program FoodSeMces School Breakfast Program National School Lunch Program . 10.553 . 10.555 NIA $ NIA 208,034.99 445,896.92 $ (2) 768,067 56 (3) Total Child Nutribon Cluster $ 653,931 91 $ 768,067.56 Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food D1stnbution Program (1) 10550 NIA Fresh Produce Program (1) 10550 NIA 31,08686 600000 31,086.86 6,00000 Total U S. Department of Agriculture $ 691,018.77 $ 805,15442 Education, U. S Department of Speaal Education Cluster Pass-Through From Georgia Department of Educabon lndlVldUals with Disabilities Education Ad Part B - Special Education Flow Through Preschool Capacity Building Improvement 84.027 84.173 84173 NIA $ NIA NIA 115,113.90 $ 15,64600 3 994 00 115,113 90 17,446 25 (3) 3,994 00 Total Special Education Cluster $ 134,753.90 $ 136,554.15 Other Programs Pass-Through From Chattahoochee Fhnt Regional Educabonal SeMce Agency d/b/a Two Rrvers Migrant Educabon Agency Elementary and Secondary Education Ad Trtlel Migrant Education 84 011 NIA Pass-Through From Georgia Department of Education Elementary and Secondary Education Ad Tltlel Grants to Local Educatlonal Agencies 84010 NIA Trtlell Eisenhower Professional Development 84.281 NIA Title Ill Technology Literacy Challenge Fund Grants 84 318 NIA TrtleVI lnnovabve Educabon Program Strategies 84298 NIA Class Size Reduction 84340 NIA Goals 2000 State and Local Education Systemic Improvement Grants 84.276 NIA 30,313 40 30,313 40 472,838.34 12,293 95 -1,971 33 14.84400 69,99000 472,838 34 14,026.21 (3) 64,995.53 (3) 14,871 11 (3) 79,98061 (3) 1,897.92 (3) -24- SEMINOLE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Education, U S. Department of Other Programs Pass-Through From Georgia Department of Education Vocational Education - Basic Grants to States High School Program Basic Grant Total U S Department of Education CFDA NUMBER PASSTHROUGH ENTITY lD NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 84048 NIA $ $ 30,783 00 $ 763,845 26 $ 36,032.38 (3) 851,509.65 Total Federal Finanaal Assistance $ 1,454,864 03 $ _,.,,,.,1.,,6-=56=.664=-_0_1_ NIA = Not Available Notes to the Schedule of Expendrtures of Federal Awards (1) The amounts shown for the Food Dlstnbution and Fresh Produce Programs represents the Federally as&1gned value of nonmonetary assistance for donated commodllles rece:ved and/or consumed by the system dunng the current fiscal year (2) Expendrtures for the School Breakfast Program were not ma:nta1ned separately and are lnduded In the 2001 National School Lunch Program (3) Expend:tures for this program indude State, and/or Other Funds Expenditures are not maintained by fund source. MaJor Programs are identified by an astensk c> in front of the CFDA number The School D1stnct d:d not proVJde Federal Assistance to any Subredp:ent. The accompanying schedule of expendltUres of Federal awards indudes the Federal grant activity of the Seminole County Board of Education and :s presented on the modified acaual bas:s of accounting which 1s the bas:s of accounting used in the presentation of the general-purpose financial statements See notes to the general-purpose finanaal statements - 25- --------------------------- ---- SEMINOLE COUNTY BOARD Of EDUCATION SCHEDULE Of STATE REVENUE YEAR ENDED JUNE 30 2001 SCHEDULE "2" AGENCYlfUNDING GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL GRANTS Community Affairs, Georgia Department of Local Assistance Grants $ 36,250 00 $ 36,250 00 Education, Georgia Department of Quahty Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1hbes Category I Category II Category Ill Category IV Supplemental Speech Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program Staff and Professional Development Indirect Cost Categoncal Grants Pupil Transportation Regular Bus Replacement Nursing Services Pnnc,pal Supplements Vocational Supervisors Migrant Education Education Equahzat1on Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Preschool Handicapped Program Remedial Summer School Lottery Programs Computers in the Classroom $ 327,775 00 82,738 00 1,199,033 00 179,279 00 519,474 00 1,185,638 00 894,508 00 248,304 00 6,408 00 203,024 00 258,547 00 75,966 00 2,807 00 16,378 00 157,828 00 84,99900 175,487 00 44,357 00 1,122,588 00 292,195 00 84,872 00 53,752 00 7,408 00 8,991 00 16,925 00 602,972 00 $ 100,483 00 4,446 08 115,364 60 31,257 00 3,19810 55,346 00 37,943 00 327,775 00 82,738 00 1,199,033 00 179,279 00 519,474 00 1,185,638 00 894,508 00 248,304 00 6,408 00 203,024.00 258,547 00 75,966 00 2,807 00 16,378 00 157,828 00 84,999 00 175,487 00 44,357 00 1,122,588 00 292,195 00 84,872 00 53,752 00 7,408 00 8,991 00 16,925 00 602,972 00 55,346 00 100,483 00 4,446 08 115,364 60 31,257 00 3,198 10 37,943 00 Georgia State Financing and Investment Commission Reimbursement on Construction Pro)8cts 326,923 00 326,923 00 Office of School Readiness Pre-Kindergarten Program 251,203 06 251,203 06 Office of Treasury and Fiscal Services Pubhc School Employees Retirement 26,813 00 26,813 00 - 26 SEMINOLE COUNTY BOARD Of EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2001 SCHEDULE "2" AGENCY/FUNDING CONTRACTS Ba1nbndge College Student Tutor Program Educabon, Georgia Department of Reading First Program GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL $ 8,66860 - - - - - $ 25.301 88 $ 8,66860 25.301 88 s 81142,483 38 s 369?93 94 s 363.173 oo s 818751450 32 (1) The purpose of the funds Is the construction of pav1hon and bleachers at Seminole County High School (2) The purpose of the funds 1s to construct a weight faalrty for Seminole County Board of Educabon (3) The purpose of the funds Is to construct and furnish weight room end field house for Seminole County High School and Middle School See notes to the general-purpose financial statements - 27 - SEMINOLE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30. 2001 SCHEDULE 3 PROJECT Reroofing, remodeling and renovating existing classrooms, Instructional and support space at the elementary school and the audrtonum, the Malcolm gymnasium, and the e,asting football stadium; renovation, paving, fencmg and other development of parking areas, bus loading zones and grounds at the elementary and middle/high school, demolruon of old pnmary school bulldings; purchase school buses, copy machines, computer equipment, lighting, survelllance equipment, desks, tables, lockers and other necessary furniture, equipment and personal property and to construct new classrooms, 1nstructJonal and support space ORIGINAL ESTIMATED COST !1l CURRENT ESTIMATED COSTS!2l AMOUNT EXPENDED IN CURRENT YEAR !3l AMOUNT EXPENDED IN PRIOR YEARS!3} PROJECT STATUS $ 3,200100000 $ 3,2001000.00 $ 112911423 74 $ 661,542 68 Ongoing (1) The School District's ong1nal cost estimate aa specified In the resolution calling for the Imposition of the Local Option Sales Tax. (2) The School Distncfs current estimate of total cost for the project. Includes all cost from proJect inception to completion (3) The voters of Seminole County approved the imposition of a 1% sales tax to fund the above proJect Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the pl'Of8d. See notes to the general-purpose finanaal statements. - 29- ,-------------------------------- - - ---- - SEMINOLE COUNTY BOARD OF EDUCATION GENERAL FUND QUAUTY BASIC EDUCATION PROGRAM COBEl 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 Dtred Instructional Programs Kindergarten Program $ Kindergarten Program-Ear1y lntervenbon Program Pnmary Grades (13) Program Pnmary Grades-Ear1y Intervention (13) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocallonal Laboratory (9-12) Program Students with Disabllrt1es Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Educallon Program Allemallve Educabon Program 364,605.00 $ 305,641.69 $ 92,035.00 263,295.99 1,333,762.00 1,226,750 70 199,424.00 55,391.18 577,845.00 624,219.61 1,318,862.00 1,225,575.42 995,019.00 1,354,095 54 276,205.00 213,875.39 608,187.00 18,195.00 314,347.13 312,174 00 88,935.00 18,219.00 55,633.59 175,562.00 206,382.88 94,550.00 95,103 57 11,336.82 $ 1,344.81 18,990 86 2,680.59 16,249.61 28,423.85 ,68,690.16 53,983.56 316,978 51 264,640 80 1,245,741 56 58,071 77 640,469.22 1,253,999.27 1,422,785 70 267,858.95 66600 36,610.48 6,090 00 2,120 00 418 04 11,286.40 1,12942 18,861.00 350,957.61 318,264.00 91,055.00 56,051.63 217,669.28 96,232.99 TOTAL DIRECT INSTRUCTIONAL PROGRAMS $ 6,054,275.00 $ 6,359,616.69 $ 260,020.60 $ 6,619,637.29 Media Center Program Staff and Professional Development 195,205.00 49 342 00 232,390.87 2,434.37 46,637.33 49 04418 279,028.20 51 478.55 TOTAL QBE FORMULA FUNDS $ (1) Comprised of State Funds plus Local Five MUI Share. See notes to the general-purpose financial statements. 30 SEMINOLE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM {QBE} ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 SCHEDULE "5" Seminole County Middle/High School Seminole County Elementary School Seminole County CrossRoads Alternative School Central Office (Alternative Education Program) TOTAL (1) Comprised of State Funds plus Local Five Mill Share. ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS $ 2,903,950.00 $ 3,447,612.12 3,055,775.00 3,075,792.18 96,232.99 9 4 1s s o . o o $ s1054121s.oo $ ==6=16_19==63=7=.2=9= See notes to the general-purpose financial statements. - 31 - SECTION II COMPLIANCE AND INTERNAL CONfROL REPORTS '.ussE1.1. W. H1N roN STATE AUDITOR (404) 6562174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W.. Suite 214 Atlanta, Georgia 30334-R400 June 14, 2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation and Superintendent and Members of the Seminole 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 Seminole County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated June 14, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Seminole County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered Seminole County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 2001YB-41 control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its 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 our judgment, could adversely affect Seminole County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7251-01-01. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7251-01-01 to be a material weakness. This report is intended solely for the information and use of the management, members of the Seminole 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. ~. ~-------Res ectfully submitted, ]..:;;, RWH:as 2001YB-41 tus!>EU. \\'. H1NTON STATE AUDITOR 1404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S W., Suite 214 Atlanta, Georgia 30334-8400 June 14, 2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education and Superintendent and Members of the Seminole County Board of Education REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 Ladies and Gentlemen: Compliance We have audited the compliance of Seminole County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement andBudget (0MB) Circular A133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2001. Seminole 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 of its major Federal programs is the responsibility of Seminole County Board of Education's management. Our responsibility is to express an opinion on Seminole County Board of Education's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-13 3 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 Seminole County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Seminole County Board ofEducation's compliance with those requirements. 2001SA-10 In our opinion, the Seminole 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 Seminole 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 Seminole County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the management, members of the Seminole 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. Res ectfully submitted, l