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' ' REPORT
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ON
AUDrr
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OF THE FINANCIAL STATEMENTS 1
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FOR .THE 'FIS. CA(YEA, R ENDED-JUNE 30,'. 2002
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' Russell W. Hinton _State Au~ltor . -
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SEMINOLE COUNTY BOARD or EDUCATION -TABLE or CONTENTS-
Page
SECTION I
FINANCIAL
INDEPENDENT AUDITOR'S COMBINED RF PORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPEND! I URES OF FEDERAL AWARDS
EXHIBITS
GENERAL-PURPOSE FINANCIALS I A I EMENTS
COMBINED STATEMENTS - OVERVIEW
A
COMBINED BALANCE SHEl:T
ALL FUND TYPES
2
B
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
4
C
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
(NON-GAAP BASIS)
GENERAL AND SPECIAL REVENUE FUNDS
6
D NOTES TO l HE GENERAL-PURPOSE FINANCIAL STATEMENTS
7
ADDITIONAL FINANCIAL INFORMATION
COMBINING STATEMENTS
SPECIAL REVENUE FUND
E
COMBINING BALANCE SHEET
16
r
COMBINING STATEMEN I OF REVENUES, tXPENDITURES
AND CHANGES IN FUND BALANCES
18
CAPITAL PROJECTS FUND
G
COMBINING BALANCE SHEET
20
H
COMBINING STATEMENT Or REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
21
SCHEDULES
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
22
2 SCHEDULE OF Sl ATE REVENUE
24
3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
25
ALLOTMENTS AND EXPENDll URES
GENERAL rUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)
4
DY PROGRAM
26
5
DY SITE
27
SEMINOLE COUNTY BOARD OF FDUCATION - TABLE OF CONTENTS -
SECTION II COMPLIANCE AND IN rFRNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
SECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECrlON IV FINDINGS AND QUESTIONED COSTS
SCHEDULE or FINDINGS AND QUESTIONED cos rs
SECTION I FINANCIAL
w. RtlS',H I
HIN w,
STATF Al.JDITr.fl
,4,.,.1; E~6 :>11
DEPARTMENT OF AUDITS AND ACCOUNTS
25,l \\'J,htng.ton ~ln.:ct. !'I W ~u11c :214 All,inlJ Getrg1J 10114-8400
June 17, 2003
Honorable Sonny Perdue, Governor '.'vlembers of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Seminole County Board of Education
fNDEPENDENT AUDITOR'S COMBfNED REPORT ON GENERAL-PURPOSE FrNANCIAL S l"ATEMENTS AND SUPPLEMCNTARY INFORMATION SCHEDULE OF EXPEND I I URES 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. 2002. as listed in the table of contents The,e general-purpose financial statements are the respons1b1lity of the Seminole County Board of Education's management Our respons1b1lity 1s to express an op1mon on these general-purpose financial statement, based on our audit
We conducted our audit in accordance with auditing standards generally accepted in the Umted State, of t\menca and the standards applicable to financial audits contained in Government Auditing Standard,. 1s,ucd by the Comptroller General of the Umted States Those standards require that we plan and p,:rfonn the audit to obtain reasonable assurance about whether the financial ,tatements are free of matenal m1,,tatement An audit includes e'l.arnining. on a test ba,1s. evidence ,upportmg the amount, and disclosures m the financial statements An audit also includes as,essing the accounting pnnc1ple, used and s1gmficant estimates made by management. as well as evaluating the overall financial ,tatement pre,entatlon We believe that our audit provides a reasonable basis for our opm1on
As de,cnbed in the note, to the general-purpose financial statement,, the Board of Educatwn', financial ,tatements have been prepared usmg certain accounting practices and policies which, in our op1mon. vary in some respect, from generally accepted accounting principles fhese vanances are descnbed a, 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 Educat10n which should be included to conform to generally accepted accounting pnnc1ples
School activity accounts maintained at the ind1v1dual schools are not included in the general-purpose financial ~tatements To conform to generally accepted accounting pnnc1ples, 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, 2002, a portion of salanes and the corresponding employer's cost of related benefit, earned for contractual ,erv1ces completed pnor to June 30, 2002 Also fund, received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's ,hare of these unrecorded salaries and related benefits were not recorded as revenue in the year under review Conversely, the s1m1lar expenditures and related revenues for contractual service, completed pnor to June 30, 200 I, were improperly recorded in the year ended June 30, 2002 To conform to generally accepted accounting pnnc1ples, 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 vanances or om1ss10ns have not been determined, but are believed to be matenal
In our op1mon, 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 matenal respects, the financial pos1Uon of the Seminole County Board of Education as ofJune 30, 2002, and the results of 1ts operat10ns for the year then ended, in conforrmty with accounting pnnc1ples generally accepted in the Umted States of America
In accordance with Government Auditing Standards, we have also issued our report dated June 17, 2003, on our cons1deratton of the Seminole County Board of Education', internal control over financial reporting and our tests of its compliance with certain prov1s10ns of laws, regulat10ns. contracts and brrants That report 1s an integral part of an audit performed in accordance with Government Auditing Standards and should be read m conJunctlon With this report in cons1denng the re,ult, 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 (Exh1b11s E through H) and the financial schedules (Schedules I 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 oj States. Local Governments. and Non-Projit Orgamzallons, arc presented for purposes of add1t1onal analysis and are not a required part of the general-purpose financial statements Such information ha~ been subjected to the auditing
2002ARL-13
procedure~ applied m the audit of the general-purpose financial statements and m our op1mon, except for the effects of the matters referred tom the third paragraph, such mformat1on is fairly stated, in all matenal respects. m relation to the general-purpose financial statements taken as a whole
A copy ofth1s report has been filed as a permanent record m the office ofthe State Auditor and made ava1lable to the press of the State, a~ provided for by Official Code of Georgia Annotated Section 506-24
Respectfully submltled.
RWHgp 2002ARL-13
Hmton Sta e Auditor
SEMINOLE COUNTY BOARD OF EDUCATION
SEMINOLE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES
JUNE 30. 2002
ASSETS
Cash and Cash Equ1Valents
Investments
Accounts Receivable
Prepaid Items
lnventones Food Donated Commodrties Purchased Food
GOVERNMENTAL FUND
SPECIAL
GENERAL
REVENUE
FUND
FUND
$ 2,076,353 33 $ 417,648 02
127,507 08
373,435 91 1,500 00
8 927 35 11,04553
Total Assets
$ 21203.860 41 s ___8_12_1..5.56='=8""1""
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salanes Payable Expired Grant Balances Payable Contracts Payable Deferred Revenue
Total Llab1ht1es
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Commodrties Purchased Food For SPLOST ProJects Unreserved Designated for Self-Insurance UndesIgnated
Total Fund Equity
$
310,608 99 $ 196,407 27
4,203 60
130,716 72
97928
$
314,812 59 $ 328,103 27
$
8,927 35
11,045 53
$ 1,889,047 82 $ 1,889,047 82 $
464480 66 464453 54
Total L1ab1lrt1es and Fund Equity
$
2.203 860 41 s ___8_12_.5__56_8_1_ 1
The notes to the genera~purpose financial statements are an integral part of this statement -2 -
EXHIBIT"A"
TYPES CAPITAL
PROJECTS FUND
TOTALS
(Memorandum Only)
JUNE 30, 2002
JUNE 30, 2001
$
754,877 94 $ 3,248,879 29 $ 2,491,086 87
600,000 00
210,124 30
711,067 29
430,745 18
1,500 00
8,927 35 1104553
4,997 60 12 300 07
$
965 002 24 $ 3 98141946 $ 3,539,129 72
$
1182033 $
518,836 59 $
428,811 86
134,920 32
132,333 04
97928
4,216 12
15,075 48
15,07548
72,710 07
120605
$
26 895 81 $
669 811 67 $
639 27714
$
8,927 35 $
4,997 60
11,045 53
12,300 07
$
938,106 43
938,106 43
881,684 54
000
2,353,528 48
5,402 79 1,995,467 58
$
938 106 43 $ 331160779 $ 2,899,852 58
s
398141946 $ 3,539,12972
-3-
SEMINOLE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2002
REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educabonal Media Services General Adm1mstrat1on School AdminIstratIon Business Admin1strat1on Maintenance and Operation of Plant Student Transportation SeMces Other Support SeMces Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES /USES}
Opera11ng 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 Penod Donated Commodrues Purchased Food
GENERAL FUND
SPECIAL REVENUE
FUND
$ 8,432 918 20 $
2,711,842 63 80,385 38
$ 11,225,14621 $
352,351 11 1,820,579 39
13891786
2 31184836
$ 7,312,804 00 $ 1,162,533 56
312,127 78 356,605 76 416.402 90 249,655 84 768,832 30 155,293 70 774,403 25 512,727 63
8,750 00 4,516 92
34,060 23 116,162 24
50,96063
70000 4,416 06 11,342 95 53,342 68 878,698 03
$ 10,872,120 08 $
$
353,026 13 $
2,312,216 38 -368 02
$
$
-12 204 46
$
-12 204 46 $
12,204 46 12 204 46
$
340,821 67 $
1,548,226 15
11,836 44 469,941 89
3,929 75 -125454
FUND BALANCE JUNE 30
$ 118891047 82 $ =~""484"'='4""53==-54---
The notes to the general-purpose financial statements are an integral part of this statement -4-
EXHIBIT "B"
CAPITAL PROJECTS
FUND
TOTALS
(Memorandum Only)
YEAR ENDED
JUNE 30, 2002
JUNE 30, 2001
$
31,250 00 $ 8,816,519 31 $ 8,875,450 32
1,820,579 39
1454,86403
858,199 89
3,570,042 52
3,577,132 56
28 915 37
248 218 61
291,588 27
$
918,365 26 $ 14,455,359 83 $ 14,199,035 18
$ 8,475,337 56 $ 8,091,733 69
$
861 943 37
346,188 01 472,768 00 416,402 90 300,616 47 768,832 30 155,993 70 778,819 31 524,070 58
62,092 68 883,214 95 86194337
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 1293769 74
$
86194337 $ 14,046,279 83 $ 13,945,126 85
$
56 421 89 $
409 080 00 $
253,908 33
$
12,204 46 $
24,176 46
-12 204 46
-24176 46
$
000 $
000
$
56,421 89 $
409,080 00 $
253,908 33
881,684 54
2,899,852 58
2,635,612 13
3,929 75 -1 254 54
1,923 03 8 409 09
$
938 106 43 $ 331160779 $ 2,899,852 58
-5 -
SEMINOLE COUNTY BOARD OE EDUCATION COMBINED STATEMENT OF REVENUES EXPENRtTUBES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
VEAR ENDED JUNE 30 2002
EXHIBIT "C"
REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
GENERAL FUND
BUDGET
ACTUAL
s 827115400 s 8 432 918 20
2 716,551 00 56 000 00
2711,84263 80 385 38
s 11 043 705 00 s 1122514621
EXPENPIIURES
Current lnstructJon Support Services PupdSeMces Improvement of lnatruc:tlO!lal SeMces Educabonal Mec:ha Services General AdllllruttratJon School Adm1niat:ratJon Bu&iness A1Jm1nistnlti0n Mamtenance and Operabon of Plant Student Transportaoon Services Other Support Se<vices Food SeMces Operahon
Total Expenditure!
Excess of Revenua over (under) Expendrtures
s 7 126 504 00 s 7 312 804 00
300 894 00 470 423 00 416 272 00 254 643 00 778 047 00 152 848 00 741 781 00 540 037 00
9 000 00
312 127 78 356 605 76 416 402 90 2 9 655 84 768 832 30 155 293 70 774 403 25 512 727 63
8 750 00 4 516 92
s 10 788 549 00 s 10,872,120 08
s 255 156 00 s 353 026 13
Oil::iEB El~tiCING SCURCES U.ISEf.i)
Other Sources Other Use!
Total Other Fmanang Sources (Uses)
s -94 42!5 00 s s s -94 425 00
-12 204 -46 -12 204-48
Excess of Revenues and Other Financing Sources
s over {under) Expendrture& end Other F1nanong Uses
160731 00 s
340 821 67
FUND BALANCE JULY 1 2001
AIJJustments Food ln"8n1or, Net Change in Penod
Oonatecl Commod1bes PurdlasedFood
1,!522-492 35 -20 577 00
1 548 226 15
FUND BALANCE JUNE 30 2002
S 168264635 S 188904782
SPECIAL REVENUE FUND
BUDGET
ACTUAL
s 389 564 00 s 35235111
1 835 525 00
1 820 579 39
111.463 00
138 917 86
s 2 339 552 00 s 2,311,848 36
s 126B 11600 s 1 162 533 56
57 921 00 30 241 00
34,060 23 11616224
60 333 00 1,786 00
5,577 00 56 804 00 85 825 00
50 960 63
70000 4,41606 ,, 342 95 53 342 68 878 698 03
s 2 335,603 00 s 2,312,216 38
s
3.949 00 s
-368 02
s 12 600 00 s 12 204 48
s 12,600 00 $
12 204 46
s s 16 549 00
1183844
384 810 00
469 941 89
135 290 00
3 929 75 -1 254 54
S 536 649 00 S 484 -453 54
Tha notes to the general-purpose financaal statement5 are an integral part of th,s statement -6 -
SEMINOLE COUNTY BOARD OF EDUCATION
EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE rlNANCIAL STATEMENTS
JUNE 30, 2002
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICll::S
REPORTING ENTITY
The Scmmole County Board ofEducat10n (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 Supermtendent appomted by the Board The School Dbtnct 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 enllty Aceordmgly, the School D1stnct 1s a pnmary government and consists of all the orgamzat10ns that compose its legal enllty
FUND ACCOUNTING
The School D1stnct use~ funds to report on Its financial pos1t10n and the results of its operallons ~und accounting 1s designed to demonstrate legal compliance and to a.Id financial management by scgrcgatmg transact10ns related to certam governmental functions or activilles. A fund 1s a separate accountmg entity with a sclf-balancmg set of accounts
General Fixed Asset~ are recorded as expenditures m the var10us funds at the ume of purchase A General fixed Assets Account Group 1s not presently mamta.Jned by the School D1~tnct To conform to generally accepted accountmg pnnciples, a General Fixed Assets Account Group should be ma.Jntamed for reporting the cost of assets acqmred by governmental fund types
Although "school activity accounts" are mamtamed at the ind1v1dual schools, neither the assets, liab1lit1es and fund eqmty, nor the revenues, cxpcnd!tures and changes m fund balances of these accounts are reflected m these financial statement~ To conform to generall) accepted accountmg prmc1ples, 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 D1stnct, m compliance with generally accepted accounting pnnc1ples apphcablc to governmental umts, unless otherwise disclosed m these notes. Funds presented m th1~ report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's educallonal activities Governmental Fund Types mclude
Gl::NERAL FUND - the fund used to account for all financial resources of the School D1stnct ei,.cept those reqmred to be accounted for m another fund. These transacllons relate to resources obtamed and used for services provided by a board of educat10n
SPI:CIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for maJor capital projects) that are legally restnctcd to expenditures for ~pec1fied purpo~s These funds are received pnmanly 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 TH[ GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2002
Note I SUMMARY OF SIGNIFICANT ACCOUNl ING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqms1t10n or construction of maJor capital facih!les.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund 1s 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 habihlles generally are included on the balance sheet. Operating statements of these funds present increases (1 e, revenues and other financing sources) and decreases (1 e, expenditures and other financing uses) in net current ru,sets Their reported fund balance 1s considered a measure of available spendable resources
L1ab1h11es which are expected to be financed from available spendable resources are reported as hab1hllcs in the governmental funds
Governmental funds arc accounted for using the modified accrual basis of accounting under which
Revenues are recognized when susceptible to accrual (1.e., when they become both measurable and available) "Measurable" mean~ the amount of the transaction can be determined and "available" means collect1ble within the current penod or soon enough thereafter to be used to pay hab1h11es of the current period The School D1stnct considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be suscepllble to accrual. Nonexchange transact10ns, in which the School D1stnct 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 1s recognized in the fiscal year for which the taxes are levied Revenue from sales taxes 1s recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donat10ns is recognized in the fiscal year in which all ehg1b1lity reqmrements have been satisfied
Expenditures arc generally recognized when the related fund hab1lity 1s incurred
A departure from the above definillons 1s the accounting treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. Dunng fiscal year 2002, a sub~tant1al number of personnel of the School D1stnct were employed for a one hundred and ninety day penod beginning in August 2001 and ending in early June 2002 Personnel contracts for this employment period specify that compensat10n be paid in twelve equal monthly payments beginning in September 200 I and ending in August 2002 State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Educa!lon to the School D1stnct in the same twelve months As of June 30, 2002, compensat10n under these employment contracts had been earned. but two of the twelve monthly pa)'ments, due for July and August 2002. had not been made Payments for these two months were made and recorded as expenditures by the School
- 8-
SEMINOLE COUN I Y BOARD OF EDUCATION
EXHIBIT "D"
NOTf.S IO THE GENERAL-PURPOSE FINANCIAL STATf.MENTS
JUNE 30, 2002
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
D1stnct subsequent to June 30, 2002 Also, the State's portion of the compensation paid m July and August 2002 was received and recorded as revenue m the fiscal year subsequent to June 30, 2002 Conversely, the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30. 200 I, were recorded m the year ended June 30. 2002 Generally accepted accountmg principles reqmre that revenues be recorded when available and measurable and that expendnures be recorded when mcurred, rather than when funds are received or disbursed
BUDGET
The Scmmole County Board of Educallon's budget 1s a complete financial plan for the School District's fiscal year and 1~ ba~d upon esllmates of expenditures together with probable fundmg sources There 1s no statutory proh1b1t10n regarding overexpenditure 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 fund, was prepared on a b~1, other than generally accepted accountmg pnnc1ples
The budget process begins when the School D1stnct's adrn1mstrat1on prepares a tentallve budget for the Board', approval. After approval ofthis tentallve budget by the Board. such budget 1s advertised at least once ma newspaper of general circulation m the locality. At the next regular meetmg of the Board after adveruscment. the Board receives comments on the tentative budget. makes rev1s1ons as necessary and adopts a final school budget This final budget 1s then submitted. m accordance v.1th prov1s1ons of the Quality Basic Educallon Act. OCGA Sect10n 20-2-167(c), to the Georgia Department of Education The Board may mcrcase or decrease the budget at any time dU11ng 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 mvestmenl~ with origmal maturities of three months or less from the date of acqms1t10n m authorized financial mslltullons Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds m one or more sol vent banks or msured Federal savings and loan as,ociallons.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grant, for expenditures made but not reimbursed and other receivables disclosed from mforrnallon available. Receivables arc recorded when enher the asset or revenue recogmt10n cnteria has been met Receivables recorded on the general-purpose financial statements do not mclude any amounts which would necessitate the need for an allowance for uncollcctible receivables
-9-
SEMINOLf COUNTY BOARD OF EDUCATION
EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL Sl ATEMENTS
JUN C 30, 2002
Note I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PROPERTY TAXES
The Seminole County Board of Comm1ss1oners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 30, 2001 (levy date) Taxes were due on January 31, 2002 (hen date) Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002 The Seminole County Tax Comm1ss1oner bills and collects the property taxes for the School D1stnct and remits the taxe~ collected to the School Dtstnct -Property ta-... revenues dunng the fiscal year ended June 30, 2002 for mamtenancc and operat10ns amounted to $2,697,534.88
The tax millage rate levied for the 2001 tax year (calendar year) for the Semmole County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value)
School Operallons
U,.ilmtlls
SALES TAXES
Special Purpose Local Opt10n Sales Tax revenue dunng the year amounted to $858,199 89 and ts to be used for capital outlay for educat1onal purposes or debt service This sales tax wa~ authorized by local referendum and the sales tax must be re-authonzed at least every five years
INVENTORIES
FOOD INVENTORIES Invcntones of donated food commod1ttes used in the preparauon of meals are reported on the Combmed Balance Sheet at theu Federally assigned value Purchased foods mventones arc reported on the Combined Balance Sheet at cost (first-in. first-out) Donated food commod1ttes arc recorded as revenues and expenditures at the ttmc commodity items are received Purchased foods inventones are recorded as expenditures at the ume ofpurchase The mventories reported on the balance sheet for donated food commod1t1es 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 arc a component of net current assets
PREPAID ITEMS
Payments made to vendon, for services that will benefit penods subsequent to June 30. 2002, are recorded a~ prepaid items
INTERFUND TRANSACTIONS
The School D1stnct has the following types of mtcrfund transacttons
- IO -
SEMINOLE COUNTY BOARD OF [DUCATION
EXHIBIT "D"
NOTES ro THE GENERAL-PURPOSE FINANCIAL STJ\1 [MENTS
JUNE 30. 2002
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements of expend!lures in1t1ally made from a fund that arc properly applicable to another fund are recorded as expend!lures in the reimbursing fund and as reductions of expenditures in the fund that 1s reimbursed.
Operating transfel"'I 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 arc presented only to fac1htate financial analys1, Data in these columns do not present financial position or results of operation, in confonmty with generally accepted accounting pnnc1plcs Neither arc such data comparable to a consolidation lnterfund eliminations have not been made in the aggregauon of this data
Note 2 DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a Ume 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 of the face value of such surety bond and the market value of secuntles pledged shall be equal to not Ie,s than 110 percent of the pubhe funds being secured after the deduction ofthe amount ofdeposit insurance If a depository elects the pooled method (OCGA 45-8-13 I) the aggregate of the market value ofthe '>Ccunuc, pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe daily pool balance OCGA Section 45-8-11 (b) provides an officer holding publtc funds may, in his discretion, waive the reqmrement for secunty in the case of operating funds placed in demand deposit checking accounts
Acceptable security for depo,1ts consists of any one of or any combination of the following
(I) Surety bond signed by a surety company duly qualified and authorized to transact business wllhin the State of Georgia,
(2) Insurance on accounts pro\1ded by the Federal Deposit Insurance Corporation,
(3) Bonds, b1lb, 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 obligaUon~ of the counties or mumc1paht1cs of the State of Georgia,
(5) Bonds of any public authonty created by the laws of the State of Georgia, providing that the statute that created the authority authonzed the use of the bonds for this purpose,
- II -
- - --- -- - - - - - - - - - - - - - - - - - - - - - - - - - -
SEMINOLE COUNTY BOARD OF EDUCATION
EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STA fEMENTS
JUNE 30. 2002
Note 2 DEPOSITS
(6) lndustnal revenue bonds and bonds of development authont1es created by the laws of the State of Georgia. and
(7) Bonds. bills, notes, certificates of indebtedness. or other obligations of a subs1d1ary corporation of the United States government, which are fully guaranteed by the United States government both as to pnncipal and interest or debt obhgat10ns issued by the Federal Land Bank. the Federal Home Loan Bank. the Federal Intermediate Credit Bank. the Central Bank for Cooperauves. the Fann Credit Banks. the Federal Home Loan Mortgage Assoc1at1on. and the Federal National Mortgage Association
CATEGORIZATION OF DEPOSITS At June 30, 2002. the bank balances were $3,619.180 99 The amounts ofthe total bank balances are classified into three categones of credit nsk
Category I - Cash that 1s insured (e g, Federal depository insurance) or collateralized with secunlles held by the School District or by the School D1stnct's agent in the School D1stnct's name
Category 2 - Cash collaterahzed with secunues held by the pledging financial institution's trust department or agent in the School District's name
Category 3 - Uncollaterahzed deposits (This includes any bank balance that 1s collateralized with secunt1es held by the pledging financial inst1tut10n. or by its trust department or agent but not in the School D1stnct's name)
The School D1stnct's deposits are classified by nsk category at June 30. 2002, as follow~
Risk Categorv
Bank Balance
I
2 3
Total
$ 210,879 78 2,060.237 33 1,348.063 88
$ 3.6)9.180 99
Note 3 NON-MONETARY TRANSACTIONS
The School D1stnct receives food commod111es from the United States Department of Agnculture (USDA) for ~chool breakfast and lunch programs lbcse commodities are recorded at their Federally assigned value See Note 1 - Inventories
- 12 -
SEMINOLE COUNTY BOARD OF EDUCAl ION
EXHIBI r "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2002
Note 4 RISK MANAGEMENT
The School D1stnct 1s exposed to vanous nsks of loss related to torts; theft of, damage to, and destruct10n of assets. errors or om1ss10ns, job related illness or inJunes to employees, acts of God and unemployment compensat10n
The School District has obtained commercial insurance for n~k ofloss associated with tons, assets, errors or om1ss10ns and Job related illness or inJunes to employees However. the errors or om1ss10ns pohcy excludes coverage for sexual harassment and d1scnminauon The School D1stnct has neither s1gmficantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School D1stnct's insurance coverage in any of the past three years
The School D1stnct ha~ elected to self-insure for all losses related to acts of God The School D1stnct has not ell.penenced any losses related to this nsk in the past three years
The School D1stnct 1s self-insured \'.11th regard to unemployment compensat10n claims The School D1stnct accounts for claims within the General Fund with expenditure and hab1hty being reported when 1t 1s probable that a loss ha~ occurred. and the amount of that loss can be reasonably estimated
Changes in the unemployment compensat10n claims hab1hty dunng the last two fiscal years are as follows
2001 2002
Begmnmg of Year L1ab1hty
Claims and Changes m l:st1mates
Claims Paid
End of Year L1ab1htv
$
0 00 $
4 058 00 $
4 058 00 $
0 00
$
0 00 $
4 893 23 $
4 893 23 $
0 00
The School D1stnct has purchased surety bonds to provide additional in~urance coverage as follows
Po~1tion Covered
Amount
Supenntendent Each Principal financial Director Each Lunchroom Supervisor
$ l 00,000 00 $ 5,000 00 $ 5.000 00 $ 5.000 00
Note 5 OPERATING LEASES
Seminole County Board of Education has entered mto various leases as lessee for copy machme~ These leases arc considered for accountmg purposes to be operatmg le~cs Lease expenditures for the year ended June 30. 2002. amounted to $13.145 14 Future mm1mum lease payments for these leases are as follows
- 13 -
SEMINOLE COUNTI' BOARD OF EDUCATION
EX! IIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STA fEMENTS
JUNE 30, 2002
Note 5 OPERATING LEASES
Year Endmg
Amount
2003 2004 2005 2006 2007
$ 52.580 52 52.580 52 43.350 08 15,658 80 11 744 I 0
Total Note 6 ON-BEHALF PAYMENTS
$ 175,914,02
The School D1stnct has recognized revenues and expenditures m the amount of$ 133,699 81 for health msurance and retirement contnbut10ns paid on the School D1stnct's behalf by the follov.10g State Agencies
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$ 117.687 81
Office of Treasury and Fiscal Services Paid to the Public School Employees Retuement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$16.012.00
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 arc disallowed under grant terms. The School D1stnct believes that such d1sallowances, 1f any. will be 1mmatenal to its overall financial pos1t10n
The School D1stnct is a defendant m various legal proceedings pertairung to matters mc1dental to the performance ofroutme School D1stnct operation~. The ultimate disposition of these proceedings 1s not presently determinable, but 1s not believed to be material to the general-purpose financial ,tatements
- 14 -
SEMINOLE COUN rY BOARD OF EDUCATION
EXHIBIT "D"
NOT[S TO THE G[NERAL-PURPOSE rINANCIAL STATEMENTS
JUNE 30, 2002
Note 8 RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substanllally all teachers. adm1mstra11ve and clencal per.,onnel employed by local school d1stncts are covered by the Teachers Reurement System of Georgia (TRS), which 1s a cost-shanng muluple employer defined benefit pension plan TRS provides service rellrement. d1sabihty rellrement and survivors benefits for its members in accordance with State statute The Teachers Retirement System of Georgia issue, a .cparate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts
TRS CON fRIBUTIONS REQUIRED AND MADE l:.mployees of the School D1stnct who arc covered by TRS are required by State ,tatute to contribute 5% of their gross earnings to TRS The School D1stnct makes monthly employer contnbullons to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as adv1.ed by their independent actuary The required employer contribut10n rate 1s 9 24% and employer contnbullons for the current fi'>Cal year and the preceding two fiscal years are as follows
Fiscal Year
Percentage Contnbuted
Required Contnbut10n
2002 2001
:woo
I00% 100% JOO%
$ 687.148 78 $ 820.652 83 $ 757,945 96
- 15 -
SEMINOLE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 2002
ASSETS
Cash and Cash Equivalents
Accounts Receivable
Prepaid Items
lnventones Food Donated Commodmes Purchased Food
SCHOOL FOOD
SERVICES FUND
LOTTER' PRQGRA,.]_
$
471,993 61 $
41,578 51
4,29062
5,377 00
8,927 35 1104553
Total Assets
$
496 257 11 $ ~--46..,..9.,.55..,5=1=
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue
Total Liab1lrt1es
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Commod1t1es Purchased Food Unreserved Undes,gnated
Total Fund Equity
$
11,80357 $
19,226 43
27,729 08
$
11 803 57 $
46 955 51
$
8,927 35
11,045 53
464 480 66 $
000
$
484453 54 $
000
Total Liab1lrt1es and Fund Equity See notes to the general-purpose financial statements
- 16 -
$
496 257 11 $ ---46=9.;5,_5.;5.1..
EXHIBIT "E"
FEDERAL PROGRAMS
TOTALS
JUNE 30, 2002
JUNE 30, 2001
$
513,572 12 $
570,898 03
$
363,768 29
373,435 91
114,847 91
1,500 00
1,500 00
8,927 35 1104553
4,997 60 12 300 07
$
908 480 91 $ _ __,7.0.3.e04=3=6;.,;1_
$
95,924 10 $
95,924 10
165,377 27
196.407 27 $
95,346 51
102,987 64
130,716 72
132,333 04
97928
97928
4,216 12
1 206 05
$
365,268 29 $
424 027 37 $
233 101 72
$
$ _ _ _ _..:0'-'00=-
$
000 $
8,927 35 $ 11,045 53
4,997 60 12,300 07
464 480 66
452,644 22
484 453 54 $ _ _46~9~94~1~8=9~
$
365,268 29 $
908 480 91 $ -==7=0=3._0.4.3..6_1_
- 17 -
SEMINOLE 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 lnstrucbon Support Services Pupil Services Improvement of Instructional Services General Admin1strat1on Business Admin1strat1on Maintenance and Operation of Plant Student Transportat,on Services Other Support Services Food Services Operabon
Total Expendrtures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expendrtures
FUND BALANCE JULY 1
Food lnven1ory - Net Change In Penod Donated Commod1t1es Purchased Food
FUND BALANCE JUNE 30
SCHOOL FOOD
SERVICES FUND
LOTTERY PROGRAMS
$
55,636 00 $
296,71511
727,144 04
106 977 99
$
889,758 03 $
29671511
$
262,651 59
34.060 23 22594
6.851 98
582 66
$
877,921 59
$
877 921 59 $
304 372 40
$
11,836 44 $
-7,657 29
$
11,836 44 $
469.941 89
3,929 75 -1 254 54
7 657 29
000
o oo
$ 484 453 54 s~=~-o_o_o_
See notes to the general-purpose financial statements - 18 -
EXHIBIT"F"
FEDERAL
PROGRAMS
TOTALS
YEAR ENDED
JUNE 30, 2002
JUNE 30, 2001
$
352,351 11 $
369,793 94
$ 1,093,435 35
1,820,579 39
1,454,864 03
31 939 87
138 917 86
102 593 79
$ 1, 125,375 22 $ 2,311,848 36 $ 1 927 251 76
$
899,881 97 $ 1,162,533 56 $ 1,021,076 31
115,936 30 44,108 65 70000 3,833 40 11,34295 53,342 68 77644
34,060 23 116,162 24
50,96063 70000
4,416 06 11,34295 53,342 68 878,698 03
53,838 75 24,010 98 16,681 96
1,639 90 5,099 49 49,669 22 805 154 42
$ 112992239 $ 2,312,216 38 $ 1 977 171 03
$
-4,547 17 $
-368 02 $
-49,919 27
4 547 17
12 204 46
24 022 46
$
000 $
11,83644 $
-25,896 81
000
469,941 89
485,506 58
3,929 75 -1 254 54
1,923 03
8 409 09
$
000 $
484 453 54 $ _ _ _46;,;9;,;94a.;,;1.;;8;,;:9~
- 19 -
SEMINOLE COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUND
JUNE 30 2002
EXHIBIT "G"
ASSlli
Gash and Cash Equrvalents Accounts Re~vab'e
Total Assets
GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION
SPECIAL PURPOSE LOCAL OPTION SALES TAX
TOTALS JUNE 30 2002 JUNE 30, 2001
s
s s s 0 00
754,877 94
754 877 94
784 959 25
210,124 30
210 124 30
194 335 57
s
000 S
965 002 24 $ 979.294 82
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable Contracts Payable
Total Llab11rtles
FUND EQUITY
Fund Balances
Reserved
For SPLOST PrOJedS
Unreserved
Undesignated
s
T01al Fund Equity
s
Total L1ablhtles end Fund Equity
s
s
11,82033 s
11,820 33 $
24 900 21
15 075 48
15 075 48
72 710 07
s
s 26 895 81
s 26 895 81
97 610 28
s
000
000 s
938 106 43 $ 000
938 106 43 s
938,106 43 $ 0 00
938 106 43 $
881,684 54 000
881 684 54
000 S
965,002 24 $ 979 294 82
See notes to the genera~ finanC&al statements
-20 -
SEMINOLE COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES CAP[TAL PROJECTS FUND
YEAR ENPEP JUNE 30 2002
EXHIBIT i;
REVENUES
State Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Cap<tal Outtay
Land and Land Improvements Burld1ng and Bu1tdlng Improvements
EqlOpment
Total Expenditures
Excess of Revenues over (under) Expenditures
QT!::li;B Fl~N~~G SOURCES {USESl
Operating Transfers In Operating Transfers Out
Total Other F1nancmg Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other F1nanong Uses
FUND BALANCE JULY l
GEORGIA STI'.TE FINANCING ANO
INVESTMENT COMMISSION
SPEC\1'.L PURPOSE LOCAL OPTION SALES TAX
TOTALS YEAAENOEO JUNE 30 2002 JUNE 30 2001
s
0 00 $
31 250 00 $
s 3125000
363 173 00
858 199 89
858 199 89
833 712 07
28 915 37
28 915 37
108 775 32
$
0 00 s
s s 918 365 26
918 365 26
1 305 660 39
s
s 81,825 00
s 81 825 00
41 518 58
s
2 848 10
764 548 82
767 396 92
988 498 35
12 721 45
12.721 45
263 752 81
s
s 2 848 10
s s 859 095 27
861 943 37
1 29376974
s
s -2 848 10
s 59 269 99
s 56 421 89
1189065
s
2 848 10
$
s 2 848 10
346 758 39
s
-2 848 10
-2 848 10
-346 912 39
s
s 2 84810
-2 848 ,o s
000 s
.154 00
s
000 $
56 421 89 $
s 56 421 89
1173665
000
881 684 54
881 684 54
869 947 89
FUND BALANCE JUNE 30
s
000 $
s s 938 106 43
938 106 43
881 684 54
See notes to the generalpurpose finallClal statements
21
SEMINOLE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002
SCHEDULE "1"
FUNDING AGENCY PROGRAM/GRANT
Agncullure U S Department of Child Nutrttlon Cluster Pass-Through From Georgia Department of EducabOn Food and Nutnhon Program
Food Services School Breakfast Program
Nabonal School Lunch Program
Total Child Nutrition Ctuster
Other Programs Pass-Through From Georgia Department of Education Food and Nutntmn Program Food Distnbutlon Program (1)
Total U S Departmenl of Agnculture
Education U S Department of Speaal Education Cluster Pass-Through From Georgia Department of Education 1nd1vtduels with Dlsabllltles Educatron Act Part B Speaal Educanon Flow Through Preschool Capacity Bu11dmg Improvement
Total Spee1al Educatk:>n Cluster
Other Programs Pass-Through From Chattahoochee - Fltnt Regional Educational Sefw::e Agency d/b/a Two Rrvers Migrant Education Agency Elementary end Secondary Education Ad THle I Migrant Education Pass-Through From Georgia Department of Educabon Elementary aoo secondary Educat,on Act Trtlel Accountab11rty Grants Grants to Local Educational Agencies Title II Eisenhower Profess10nal Development Tltle VI lnnovatrve Educat10n Progrem Strategies Class Size Reduction VocabonalEducalion Basrc Grants to States High School Program Basic Grant
Total u s Department of Education
CFDA NUMBER
PASSTHROUGH
ENTITY ID
NUMBER
FEDERAL REVENUE
IN PERIOD
EXPENDITURES IN PERIOD
10 553 10 555
N/A s 22.7 962 75
N/A
<463 906 44 s
s s 691 869 19
(2)
842 6<46 74 (3)
842 6<46 74
10 550
NIA
35 274 85
s $ 727 144 04
35 274 85 877 921 59
84 027 84 173 84 027
NIA
s $ 201,900 65
NIA
16 586 00
N/A
3 094 00
s s 221 560 65
201 900 65 18,782 65 (3) 3 094 00
223,777 30
84 011
NIA
52 874 32
52 874 32
84 348 84 010 64 281 84 298 84 340
84048
NIA
9814100
98 532 75 (3)
NIA
570 181 97
570 181 97
NIA
11,00554
1101607 (3)
NIA
1559487
15 594 87
NIA
87,064 00
87,210 50 (3)
NIA
37 013 00
38 794 74 (3)
s s 1,093,435 35
1 097 982 52
Total Federal Fmanaal AsSJ&tance NIA a Not Available
s s ___ 1 520 519 39
1_9_7_5._9_0_4 _1~1
11
- 22 -
SEMINOLE COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002
SCHEDULE "1"
Notes to the Schedule of Exoendttures of Federal Awards
(1) The amounts shown for the Food O1:stnbu0on Program represents the Federally assigned value of nonmonetary asslstence for donated commodlbes rece!Ved and/or consumed by the system dunng the ament fiscal year
(2) Expenchtures for the Sdlool Breakfast Program were not maintained separately and ere 1ncJuded In the 2002 Natlonal SChool Lunch Program
(3) Expenditures for this program lndode State, and/or Other Funds Expenditures are not mamtatned by fund source
Major Programs are u:ientlfiecl by an asterisk(*) a, front of the CFDA number
The School Distnd did not provide Federal Assistance to any Subreciplent
The eccompanymg achedule of expenditures of Federal awards mciudes the Federal grant activrty of the Semanole County Board of EducallOn and ts presented on the modified accrual basis of account.mg wtuch ts the basis of accounting used 1n the preSentabon of the general-purpose financlel statement!
See notes to the general-purpose financial statements
-23 -
SEMINOLE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENPEP JUNE 30 2002
SCHEDULE "2''
AGENCY/FUNDING
GRANTS Community Affe,ra Goorgia Department of Governor's Emergency Foods
local Asslstanc:e Grants
Educauon Georg,a Department of Oualrty Ba5IC Educabon Direct lnstructJonal Coat Klnoo,varten Program Kindergarten Program - Ear1y Intervention Program Pnmary Grades (1-3) Program Pnmary Grades - Early lntervenoon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Gradel (4-5) Early lntervenbon Program Moddle Grades (6~) Program High School GenereI EducatlOO (9- 12) Program Vocabonal Lelxlretory (9-12) Program Students With Dlsablllt185 Category II Category Ill Ca1agory IV CalegoryV Gifted Student - Category VI Remechel EducabOn Program Altematrve Educebon Program Media Center Program TVl'eflty Days Add1bonal lnstrucborl Staff end Professional Development lnchrect Cost Categoncal Grants Pupd Transportabon Regular Bus Replacement Sparsrty Nu~ng Services Pnncipal Supplements VocatKmel SupeMSOrs Mid-term AdJUStment Hold-Harmlesa EducahOn Equaliza!IOO Funding Grant Food Services VocahorlelEducebon Other State Programs Health Insurance K-3 Stat9Wlde Reading Program -4-8 StateWlde After School Reading Program Preschool Handicapped Program Speaal Educabon Low lnadence Grant lottery Programs Assasltve Technology Computers 1n the Classroom
Office o1 School Readiness Pre-Kindergarten Program
Office of Treasury encl Fiscal Services Public School Employees Retirement
CONTRACT Ba,nbndge College Student Tutor Program
GOVERNMENTAL FUND TYPES
SPECIAL
CAPITAL
GENERAL
REVENUE PROJECTS
FUND
FUND
FUND
TOTAL
S 2000000 S 1125000
20 000 00 1125000
s 352 183 00
151 347 00 1 058,571 00
182 037 00 586,223 00
79 689 00 987,029 00 813 175 00 334 098 00
176,607 00 254 814 00
80 009 00 13,118 00 43,447 00 65 122 00 83 142 00 170 927 00 55 199 00 27 899 00 1 099 353 00
33211900 92 9-47 00 20 000 00 50 753 00 6,667 00 12 017 00
412 540 00 593 300 00
s
109 043 53
55 636 00
11768781 23 672 25 13 457 44 17 899 00 18 265 00
5 342 00 45 600 00
2-45 773 11
16 012 00
2 568 17
352 183 00 151 347 00 1 058 571 00 182 037 00 566 223 00
79 669 00 987 029 00 813 175 00 334 099 00
176,607 00 254 81,400
80 009 00 1311800 43 447 00 65 122 00 83 142 00 170 927 00 55 199 00 27 899 00 1 099 353 00
33211900 92 947 00 20 000 00 SO 753 00 6 667 00 1201700
412 540 00 593 300 00
55 636 00 109 043 53
11768781 23 672 25 13 457 44 17 899 00 18 265 00
5 342 00 45 600 00
2-45 77311
16 012 00
2 568 17
S 843291820 S 35235111 S 3125000 S 881651931
See notes to the general-purpose finenael statements
SEMINOLE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL QPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2002
SCHEDULE "3"
PROJECT
Reroofing remodehng and renovatmg eXJstmg classrooms ITTSlructmnal and support space at the elementary school and aud1tor1um the Malcolm gymnasium and the existing football stadium renovation pavang, fencing and other development of parking areas bus loading zones anci grounds at the elementary and mldd.lelhigh school, demolrtlon of old pnmary school buildings purdlase school buses copy machines computer equipment, hght.1119 surve~lance eqU1pment, desks tables lockers and other necessary furniture eQUlpment and personal property and to construct new dassrooms mstrudronal and support space
ORIGINAL ESTIMATED
COST (1)
CURRENT ESTIMATED COSTS (2)
AMOUNT EXPENDED IN CURRENT
YEAR (3)
AMOUNT EXPENDED
IN PRIOR YEARS(3)
PROJECT STATUS
s s s 312001000 00 3 200,000 00
861 943 37 S 119521966 42 Ongoing
( 1} The SChool Drstnct's ongtnal cost estmate es speariect 111 the resotutmn calhng for the lmpos1bon of the Local Optmn Sales Tax
(2) The School District's current estimate of total cost for the proJE!d Includes all cost from pro,ect rncept10n to complebon
(3) The voters of Sem1note County approved the Imposruon of a 1% sales tax to fund the above pro!ed
Amounts expended for this protect may include saleS tax proceeds, state local property
taxes and/or other funds over the life of the proJect
see notes to the general-purpose financial statements
25 -
SEMINOLE COUNTY BOARD OF EDUCATION
GENERAL FUND QUALITY BASIC EDUCATION PROGRAM <OBEl ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30 2002
SCHEDULE 4
DESCRIPTION
Direct lnstructmnal Programs Kindergarten Program Kindergarten Program-Earty lntervenbon Program Pnmary Grades (1-3) Program Pnmary Gractes-Ear1y Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Etementary Grades-Earty lnterventJon (-4--5)
Program Middle Gracles (6-8) Program High School General Education (9-12) Program Voca11onal Laboratory (9-12) Program Students with c&abHitles
Category I Category II Category Ill Category IV Gifted S1udent - Category VJ Remedial Education Program AHemabve Educ:.atJOO Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff end Professional Oevetopment
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)
ELIGIBLE QBE PROGRAM COSTS
SALARIES
OPERATIONS
TOTAL
$
s 393,433 00 $ 381 094 50
s 22,317 02
403,411 52
169,074 00
243 306 03
47 77
243 353 60
118255700 1,243 464 75
43,703 10
1 287,167 65
203,358 00
76 040 81
232 74
76.273 55
632 543 00
660 819 46
30,8!50 15
691 269 63
89 000 00 1 102,636 00
906 419 00 373 231 00 585 967 00
48 536 00 72,750 00 92 660 00
53 657 39 1,16560912
860 612 60 246 846 84
22 702 00 290 690 74 372 383 00
90,540 00 53 524 06 90,052 67 96,666 50
937 01 5552115 69,590 33 46 304 54
238 00 26,292 53
5 666 00 2 120 00 1 210 62 7,137 15 1 254 85
54 594 40 1,221,130 27
930,202 93 295,153 16
22 940 00 319,163 27 376 049 00
92 660 00 54 734 68 97169 82 99 923 35
s
s s s 5 854 404 00 5 950,014 29
317 222 96
6,267 237 25
190,948 00 31 167 00
251,847 62 14 617 54
37,700 11 18 523 41
269 547 93 33 140 95
TOTAL QBE FORMULA FUNDS
s
6 076 519 00 S 6.216 479 65 S 373 446 46 S 6.569 926 13
(1) COmpnsed of State Funds plus Local Five MIii Shara
See notes to the general-purpose finanoal statements
26 -
SEMINOLE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE
YEAR ENDED JUNE 30. 2002
SCHEDULE "5"
SITE Seminole County M1ddle/H1gh School Seminole County Elementary School Seminole County CrossRoads Altemat1ve School Central Office (Alternative Educa11on Program)
TOTAL
(1) Compnsed of State Funds plus Local F,ve Mill Share
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)
ELIGIBLE QBE PROGRAM COSTS
$
2,731,569 00 $
2,965,098 59
3,029,955 00
3,201,866 52
99,923 35
92,880 00
348 79
$
5,854,404 oo s_....e._.2_s=1=,2=3=1=25=
See notes to the general-purpose financial statements - 27 -
SECl ION II COMPLIANCE AND INTERNAL CONTROL REPORTS
w. {1 S',H I
H1,7 0"
STATr AUDITOfl
(4~, 15!:.6 ,,,::.
DEPARTMENT OF AUDITS AND ACCOUNTS
2"4 W,bhrngton ~tn:ct "> W Su11c 211 Atl.rntJ, Gcorg:1.1 J01J4-8400
June 17. 2003
Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of }'_,ducatwn
and Superintendent and Members of the Seminole County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER f!NANCIAL REPORIT\G BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDll ING STANDARDS
Ladies and Gentlemen
We have audited the financial statements of Seminole County Board ofEducatwn ru, of and for the )ear ended June 30. 2002. and have issued our report thereon dated June 17. 2003 This report wa~ qualified for var1otL~ departures from generally accepted accounting principles. as identified in the audllor's report on the geneml-purpose financial statements We conducted our audit in accordance wnh aud!ling standards genemlly accepted in the Umted State~ of America and the standards applicable to financial audits contained m Government Aud1tmg Standards. issued by the Comptroller General of the Umted States
Compliance
As part of obtammg reasonable a~surance about whether Seminole County Board of Educatwn~ financial statements are free of material misstatement. we performed tests of its compliance with certain prov1~1ons oflaw~. regulations. contracts and gmnts. noncompliance wuh whlch could have a direct and material effect on the determinatwn of financial statement amounts However. providing an op1mon on compliance "with those prov1s10ns was not an obJecuve of our audit. and accordingly. we do not expres~ such an opinwn The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards
Internal Control Over financial Reportin11,
In planning and perforimng our audll. we considered Seminole County Board ofEducauon's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2002YB-41
control over financial reportmg However, we noted a ccrtam matter involving the internal control over financial reporting and 11> operat10n that we consider to be a reportable cond1tJon Reportable conditions involve matters commg to our anent1on relating to significant delic1enc1es in the design or operat10n of the internal control over financial reportmg that, in ourJudgment, could adversely affect Seminole County Board of Education's ab1hty to record, process, summanze and report financial data consistent with assertions of management in the financial statement, The reportable condit10n 1s described in the accompanying Schedule of Findings and Qucst10ned Costs as item FS-7251-02-01
A material weakness 1s 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 aud11ed may occur and not be detected wtthm a timely penod by employees m the normal course of performing their assigned functions Our cons1dera11on 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 cond1t10ns that are also considered to be material weaknesses However, we consider item FS-7251-02-0 I to be a material weakness
This report 1s intended solely for the informat10n and use of the management. members of the Seminole County Board of Education, Federal awarding agencies and pass-through entJties and 1s not intended to be and should not be used by anyone other than these specified parties
~~espectfully ~ubmllted,
~--~~ -2~ Hmton Sta e Auditor
RWHgp 2002YB-41
{1 ,,,H.L W. IIIN ION
c; JATI:: AUOITQA
(404) 656 21N
DEPARTMENT OF AUDITS AND ACCOUNTS
254 \VJ...,hmgton \trcc-t, SW SuitL' 214 Atl,.mtJ, C,Lorg1J 30314-84()(1
June 17, 2003
Honorable Sonn) Perdue. Governor Members ol the General As~embly Members ol the State Board of Educatwn
and Supenntendcnt and Members of the Seminole County Board of Educatwn
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO l,.ACH MAJOR PROGRAM AND ON INTf-.RNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WIT! I 0MB CIRCULAR A-133
Lad1e~ and Gentlemen
Compliance
We have audited the compliance of Seminole County Board of Educatwn with the types of compliance rcquiremenL, described in the VS Office <!fManagemenl and Budge/ (OMB! Circular 4-133 Compl,ance Supplemem that are applicable to each of Its maJor Federal program, for the year ended June 30. 2002 Seminole County Board ofEducatwn's ma1or Federal programs are 1dcnt1fied in the Summary of Auditor's Results Section of the accompanying Schedule of I indings and Questwned Costs Compliance with the requirements of laws. regulations. contracts and grant~ apphcahlc to each of1b maJor Federal programs 1s the responsibility of Seminole County Board of Education's management Our respons1b1lity 1s to express an opinion on Seminole County Board of Education\ compliance hased on our audit
We conducted our audit ofcomphance in accordance wllh auditing standards generally accepted in the Umted States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Umted States. and 0MB Circular Al 33. Audas of Stales. Local Government~. and Non-Profil Orgam=allom Those standards and 0MB Circular A-133 require that \\e plan and pcrfonn the audll to obtain reasonable assurance about whether noncompliance 1th the types of comphance 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 h~1s. evidence about the Seminole County Board of Education~ compliance with tho~e requirements and perfonning such other procedure~ as we considered necessary in the c1rcumstanccs We hehevc that our audit provides a re,_-onable basts for our opinwn Our audit does not provide a legal detennination on Seminole County Board of Education's compliance with those requirements
2002SA-30
In our op1mon, the Seminole County Board of Education complied, in all material respects. wilh the requirements referred to above that are applicable to each of !ls maJor Federal programs for the year ended June 30, 2002
Internal Control Over Compliance
The management of Seminole County Board of Education 1s responsible for establishing and mamtainmg 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 of Education's internal control over compliance with requirements that could have a direct and matenal effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opin10n on compliance and to test and report on internal control o~er compliance in accordance with 0MB Circular A-133
We noted a certain matter involving the internal control over compliance and its operation that we consider to be a reportable condition Reportable cond1t10ns involve matters coming to our attention relating to ~1gmficant defic1enc1cs in the design or operat10n ofthe internal control over compliance that. m our Judgment, could adversely affect the Seminole County Board of Educal!on's ab1 lity to administer a maJor Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants The reportable condit10n 1s descnbed in the accompanying Schedule of Fmdmgs and Questioned Costs as item FA-7251-02-01
A matenal weakness 1s a cond1t1on in which the design or opcrat10n of one or more of the internal control components does not reduce to a relatively low level of nsk that noncompliance with the applicable requirements oflaws, regulat10ns, contracts and grants that would be matenal m relallon to a maJor 1-ederal program being audited may occur and not be detected wilhm a llmely penod by employees m the normal course of performing their assigned funcllons Our cons1derat1on of the internal control over compliance would not necessanly disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessanly disclose all reportable conditions that are also considered to be matenal weaknesses However, we believe the reportable cond11ton descnbed above 1s not a matenal weakness
This report 1s intended solely for the informat10n and use of the management, members of the Seminole County Board of Education, Federal awarding agencies and pass-through enlllles and 1s not intended to be and should not be used by anyone other than these specified parties
RWHgp 2002SA-30
Hinton State Auditor
SECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SEMINOLE COUNTY BOARD OF EDUCATION AlJDITfE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR END[D JUNE 30, 2002
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
FINDING CONTROL NUMBER Al'I/D STATUS
FS-7251-00-0 I FS-7251-01-01
Further Act10n Not Warranted Unresolved - See Corrective Act10n/Responscs
CORRECTIVE ACTION/RESPONSES
GENERAL FIXl:oD ASSETS Failure to Maintain General Fixed Assets Account Group Fmdmg Control Number. FS-7251-01-01
The School D1stnct has employed the services of a company to value the asseb However. they have not yet been incorporated mto the financial statements Full comphance 1s expected dunng fiscal year 2003
SECTION IV FINDINGS AND QUESTIONED COSTS
SEMINOLE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
SUMMARY OF AUDITOR'S RESULTS
Type of Report Issued on the Financial Statements The auditor's op1mon on the Seminole County Board ofEducat10n's financial statements wru. qualified for various departures from generally accepted accounting pnnc1ples
2 Reportable Cond1t10ns m Internal Control Disclosed by the Audit of the Fmancial Statement~ The audit report for the Semmole County Board ofEducat10n disclosed a financial statement reportable condition related to the followmg control category
General Fixed Assets
The reportable cond1t1on descnbed above 1s considered to be a matenal weakness
3 Noncompliance Matenal to the Fmanc1al Statements The audit of the Semmole County Board of Educat10n disclosed no mstanccs of noncompliance that were deemed to be matenal to the financial statements
4 Reportable Cond1t1ons m Internal Control Over Major Programs The audit report for the Seminole County Board of Education disclosed a reportable cond1t1on in mtemal control over maJor programs for the followmg compliance requirement
Elig1b1hty
The reportable condition descnbcd above 1s not considered to be a matenal weakness
5 Type of Report Issued on Compliance for Major Programs The auditor's opm1on on the Seminole County Board of Educat10n's report on comphance with reqmrements apphcablc to maJor programs was unquahfied
6 Audit Fmdmgs Regmred to be Reported by Sect10n SI0(a) ofOMB Circular A-133 The Semmolc County Board of Education's audit disclosed an audit findmg reqmred to be reported by section 51 0(a) ofOMB Circular A-133 This audit findmg 1s included in secuon IV of this report
7 Ma1or Programs Federal awards audited as maJor programs are as follows IO 553 Food and Nutntion Program - Food Services - School Breakfast Program IO 555 Food and Nutr1tton Program - Food Services - National School Lunch Program
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" program~ was $300.000 00
- I-
SEMINOLE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
SUMMARY OF AUDITOR'S RESULTS
9 Low Risk Aud1tee The Seminole County Board of Educat10n qualified as a low nsk aud1tcc as defined by Sect10n 530 ofOMB Circular A-133
11 Fl"JANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Cond1110n - Material Weakness Repeated From Prior Year Finding Control Number FS-7251-02-0 I
The Seminole County Board of Education did not mamtain a system-wide General Fixed Assets Account Group v.1thin the formal accounting records as reqmred by generally accepted accounting pnnc1ples This cond1t10n results in the general-purpose financial statement~ of the School D1stnct being incomplete and not in accordance with generally accepted accounting principles Appropriate action should be taken by the School D1~tnct to establish accounting controls and procedure~ to provide for maintenance ofa General Fixed Assets AccoW1t Group. These subs1d1ary records should include an inventory of land, buildings and eqwpment owned by the School Distnct and should include. but may not be hm1ted to, date acquired, acquisition cost, estimated replacement cost. location and description Detailed records should be maintained ofall add1!lons and delet10ns to the General Fixed Assets Account Group
III FEDERAi, AWARD FINDINGS AND QUESTIONED COSTS
ELIGIBILITY Failure to Maintain Master List of Ehg1ble Students Reportable Cond1tion U S Department of Agriculture Pass-Through From Georgia Department of Education Finding Control Number FA-7251-02-01
The Seminole County M1ddle/H1gh School master h~t of student\ ehg1ble for free and reduced meals tor the Child Nutntlon Cluster Programs (CFDA IO 553 and 10.555), was not mamtamed in accordance with U S Department of Agnculture's Ehg1hihty Gmdance for School Meals Manual. as reqmred by the Georgia Department of Education The master hst for the school. as presented for examinat10n. contained inehg1ble students that graduated in the pnor year and did not part1c1pate in the program dunng the year under review
-2-
SEMINOLE COUN rv BOARD OF EDUCA rION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR FNDED JUNE 30, 2002
Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS LLIGIBILITY Failure to Mamtam Master L1,t of Ehg1ble Students Reportable Cond1uon U S Department of Agnculture Pass-Through From Georgia Department ofEducat10n Fmdmg Control Number FA-7251-02-01 This cond1t1on occurred because management failed to become fwmharWith Georgia Department of Educauon rcqmrcments as outlined m the Ehg1b1hty Gmdance for School Meals Manual Management ~hould develop adequate mtemal controls to en,ure that master lists are updated regularly and mamtamcd according to estabh,hed gmdelines
-3-