Sumter County Board of Education, Americus, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002

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SUMTER COUNTY BOARD OF EDUCATION

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AMERICUS, GEORGIA '

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REPORT, ON AUDIT

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, . OF THE FINANCIAL STATEMENTS:

FOR
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THE

FISC- A, "\ i

YE-A,,R.END'ED

JUNE30, ,

200:i

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Russell W. Hinton

State Auditor

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SUMTER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION!

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDillONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AW >\RDS

30

2 SCHEDULE OF STATE REVENUE

32

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

35

SUMTER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL Il\'FORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

36

5

BY SITE

37

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

SECTION III AlJDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION JV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

1u,sEl,L w. IIINTOl'
STATE AUOITOn
(4(..Lt) 656-217.:

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa.shmgton Street. SW Suite 214 AtlantJ, Georg1J 30334-8400
May 22, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the Sumter 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 accompanymg general-purpose financial statements of the Sumter County Board of Educahon, as of and for the year ended June 30, 2002, as hsted m the table of contents These general-purpose financial statements are the respons1b1hty of the Sumter County Board of Education's management Our responstbthty 1s to express an opmton on these general-purpose financial statements based on our audit.
Except as discussed m the followmg paragraph, we conducted our audit m accordance with aud1tmg standards generally accepted m the Umted States of Amenca and the standards apphcable to financial audits contamed m Government Aud1tmg Standards, issued by the Comptroller General of the Umtcd States. Those standards reqmre that we plan and perform the audit to obtam reasonable assurance about whether the financial statements are free of matenal rn1sstatcment An audit mcludes exarnmmg, on a test basis, evidence supportmg the amounts and disclosures m the financial statements An audit also mcludes assessmg the accountmg pnnc1ples used and s1gmficant estimates made by management, as well as evaluatmg the overall financial statement presentation We beheve that our audit provides a reasonable basis for our op1mon
We did not observe the takmg of either the Federal donated commodities mventory or purchased foods mventory at June 30, 2002, nor could we satisfy ourselves as to the accuracy of the amounts stated as mvcntones through alternative procedures

2002ARL-13

As descnbed m the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared usmg certam accountmg practices and pohc1es wluch, m our opm1on, vary m some respects from generally accepted accountmg pnnc1ples These vanances are descnbed as follows:
., The general-purpose financial statements of the Board of Educahon did not contam a General Fixed Assets Account Group to account for property and eqmpment owned by the Board of Education wluch should be mcluded to conform to generally accepted accountmg pnnc1ples
., School achVIty accounts mamtamed at the md1VIdual schools are not mcluded m the general-purpose financial statements To conform to generally accepted accountmg pnnc1ples, these accounts should be mcluded m the general-purpose financial statements
., The Board of Educahon did not recognize as expenditures, m the year ended June 30, 2002, a portion of salanes and the correspondmg employer's cost of related benefits earned for contractual services completed pnor to June 30, 2002 Also funds received, subsequent to June 30, 2002, from the Georgia Department of Educat10n for the State's share of these unrecorded salanes and related benefits were not recorded as revenue m the year under review. Conversely, the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30, 2001, were improperly recorded m the year ended June 30, 2002 To conform to generally accepted accountmg pnnc1ples, revenues should be recorded when available and measurable and expenditures should be recorded when mcurred, rather than when funds are received or disbursed
The aggregate effects on the general-purpose financial statements of these variances or om1ss10ns have not been determined, but are believed to be matenal
In our op1mon, except for the effects of such adJustments, 1fany, on the Special Revenue Fund, as might have been determmed to be necessary had we been able to satisfy ourselves as to the accuracy of the food semce inventones as discussed in the tlurd paragraph, and except for the effects on the general-purpose financial statements of the matters referred to m the precedmg paragraph, the general-purpose financial statements referred to above present fairly, in all matenal respects, the financial pos1t1on ofthe Sumter County Board of Education as ofJune 30, 2002, and the results ofits operations for the year then ended, m conformity with accountmg pnnc1ples generally accepted m the Umtcd States of Amenca
In accordance with Government Auditing Standards, we have also issued our report dated May 22, 2003, on our consideration ofthe Sumter County Board ofEducat1on's mternal control over financial reporting and our tests of its compliance with certam prov1s10ns oflaws, regulations, contracts and grants That report 1s an integraJ part of an audit performed in accordance With Government Auditing Standards and should be read m conJunctlon with this report m cons1denng the results of cJr audit
2002ARL-13

Our audit was performed for the purpose of fonrung an op1mon on the general-purpose financial statements of the Sumter County Board of Educat10n taken as a whole The accompanymg comb1mng statements (Exlub1ts E through J) and the financial schedules (Schedules I through 5), which mcludes the Schedule of Expenditures of Federal Awards as reqmred 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 add11Jonal analysis and are not a required part of the general-purpose financial statements Such mformallon has been subJected to the aud1tmg procedures applied m the audit of the general-purpose financ1aJ statements and m our op1mon, except for the effect of adjustments, 1fany, on the Special Revenue Fund, as might have been dctermmed to be necessary had we been able to satisfy ourselves as to the accuracy of the food service mventones as discussed m the third paragraph, and except for the effects of the matters referred to m the fourth paragraph, such mformatlon 1s frurly stated, m aJl matenaJ respects, m relation to the general-purpose financial statements taken as a whole
A copy ofthts report has been filed as a permanent record m the office of the State Auditor and made avrulable to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Sect10n 506-24
Respectfully submitted,
L<l~~
II W Hmton
RWHas 2002ARL-13

SUMTER COUNTY BOARD OF EDUCATION

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

~ Cash and Cash EqurvaSentl
Investment>
J\ccounts ReceMlble
lnventones
Food
Donated Commodrttes Purchased Food
Amount Available in Debt Sef'VIC9 Fund
Amount to be PrcV1ded In Future Years
For Payment ot Bond Debt
Capital Lease Agreements
TotalAsleta

GENERAL FUND

~VERNMENTALFUNDTYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 3,454,495 84 $ 356,705 10 $ 8 222 412 09

250,000 00

592 037 59

743,036 30

665 291 50

487 634 45

57,851 04 50,419 24

,_J_ s 4 19153214 s 13ao,26688 s __0.._30_..2.0_8_4_

L\ABIUTIES AND FUND EQUITY
UABIUTIES
Cash Overdraft Accounts Payabfe
Satanes Payable Expnd Grant Balances Payable Contracts Payabla
Retatnagaa Payable Deferred Revanoo
Capital L.eaae Agr-,,ants
General Obhgation Bondi Payable
Total ua.bll:bes
EllliO~
Fund Balances Resarved For Bus Roplacernant Funds
For Debt 5eMce Forlnvent0081
Food Donated Commodidea Purdlased Food
For PU'P()SO of Bond Issue For SPLOST Pro,ed1 UnraseM>d Undesrgnated
Total Fund Equrty

$ 170 492 89 $ 305 076 30 $

2,173 82

471,381 63

1158 23

12 209 74

4 850 42

28 091 49
5 144 00 159 795 15

$ 178 673 36 $ 788 667 67 s

193 030 84

$

20,258 00

$
3 998 602 78 $ 4 018 858 78 $

57 851 04 50 419 24
$
483 328 93 591 599 21 $

a 862 n2 34 244 990 09
1 291 06
9 109 053 49

Total Liabilities and Fund Equrty

$ 4 197 532 14 $ 1 380 266 88 $

The notes to the general-pu:rpou finanoal statements are an integral part of this statemenL

. 2.

9 302 084 13

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum Onl~}

JUNE 30, 2002

JUNE 301 2001

$

124,896 81

$ 12,158 509 s.t $ 3 737 853 81

1,446,079 67

2,288 117 26

2 248,251 46

921,293 68

2,817 255 93

2 909,620 81

$

2 492 270 16

57 851 04
50,419 2-1
248227016

53,520 16 44,447 38
2 259,325 11

10,132 729 84

10,132,729 8<4

4 095,874 89 4 078 62

$ 249227016 S

12 625 000 00 $ 29 997 153 31 S 15,352 772 24

$

612 881 22

s

503 660 68

525 599 94

473 555 45

451 324 57

13 365 97

s,430n

5 144 00

120 232 91

159 795 15

228 421 78

4 850 42

$

12 625 000 00

12 a2s 000 oo

1

1

4 078 62 6 355 000 00

$

12 625 000 00 $ 13 785 371 67 $ 81302 969 81

$ 2,492,270 16
0 00 $ 2 492 270 16

$

20 256 00

2,492 270 16 $ 2 259 325 11

57,851 04 5041924 8 862 772 34 244,990 09
4 483 222 77
$ 18 211 761 64 $

53 520 16 44 447 38 1-46 128 38 4 546 381 40 7 049 802 43

s $ 2 492 270 16

12 625 000 00 $ 29 997 153 31 $ 15 352 772 24

. 3.

SUMTER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND B.A.L.ANCES
ALL GOVERNMENTAL FUND IXPES YEAR ENPEP JUNE 30 2002

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revanuea
EX.PENPIIURES
Current Instruction Support Services Pupil Serv1ces Improvement of lnstrucbonal Serw:es
Educ:abonal Media SeMce1
General Adrrunt1trabon School AdlTllnLltrabon BuSU\El&a Adm1n11tnmon Mallltenance and Operabon of Plant Student Tl'Wl8pcrtabon SeMC81 Central Support Serw:es Other Support SetviC<ls Food SeMcea Openobon Community SaMCel Operabons
Caprtal Outlay
DebtS8MCe
PnnClpal
Interest Pay,ng Agent Foea
Total Expenditures
Excess of Revenua over (under) Expencitures
OillEB fl~CING SOURCES {USliSl
Accrued lnt9'Ml on Bonds Sold Premrum on Bonds Sold Proceoda from General ObltgaliOn Bonds
Par Value Opeming Transfers In Operabng Tranafera Out
Total Other Flf\BnClng Sources (Uses)
Excess of Revenuea and Other Financing Sources over (under) Expendrtlses end Other Frnanong Uses
FUND BALANCE JULY 1
Adjustments For Poor Year Expendrtures/Payables
Food Inventory Nat Change In Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
The notes to the generalpurpoM flnanaal stetementl ere an integrel part of thrs statement
. 4.

GENERAL FUND

SPECIAL
REVENUE
FUND

s 24 244 291 50 s
23,128 03 7 665,188 26
442 428 93
s 32,375,036 72 s

1,554,627 72 5,754 059 68
277 602 66
7 586.290 08

s 22,020 820 92 s
546 180 22 1 081 890 90
786 489 09 277 202 39 2 707,728 84 240,137 89 2 507,018 51 1 698 766 58
98,076 41 130 288 80
155 736 33

3 658 433 19
206,393 32 537,844 52
111,28896
7 076 92 22 047 96 65,653 97
240 94 24 314 48 2 900 925 61 218 78943

4 078 62 9569

s 3225451119 s

s

120 525 53 s

7 751 009 30 164 719 22

s

120,525 53 s

3 898 333 25

164 719 22 74601569

4 330 88 5 971 86

s 4 018 858 78 s

591 599 21

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum On~I YEAR ENDED

JUNE 30 2002

JUNE 30 2001

s s 25 798,919 22 24,398 985 76

5,777,187 71

5 258,916 58

s

90 534 78 s

3 342 996 51

11 098,719 55

11,258,920 13

9 839 00

42 516 34

772 187 85

992 941 22

s

100 174 68 s 3 385 512 85 s 43 447 014 33 s 41909763 67

s 25 677 254 11 s 24 942,083 20

s

231 266 ,cg

34 710 98

752 573 64 1 619 735 42
786 489 09 J88 491 35 2 707,728 64
.c1e e1 30
2 529 066 47 1 764 420 55
98 317 35 154 603 28 2 900 925 81 374,525 76 34,710 98

734 539 57 1 179 199 12
748 699 67 529,711 86 2 666,415 83 296 096 11 2 515 387 48 1 870 422 84
10 450 02 147,024 13 2 727,175 64 441,940 28 758 565 55

s 2,730,000 00
439 172 50
2 082 80

2,734 078 62 439 268 19 2 082 80

2 581,082 96 548,041 67 2 114 25

s

265 sn 47 s s 3 171 255 30 43 442 753 26 s 42 676 949 96

s

-165 802 79 s

214 257 55 s

4 261 07 s

-767 186 29

s

s

102,827 90

9 000 000 00

s

910282790 $

1868750 S

18 887 SO 102 827 90
9 000 000 00
s

18 687 50 S 912151540 S

642 88
-642 ee
000

s 893702511 s

232 945 05 s 9 125 776 47 s

-767 186 29

1-48 128 315

2,259,325 11

7 o-t9 802 43

7 822 742 81

25 900 00

25,000 00
4 330 88 5 971 86

-5 405 93 -348 18

s 910905349 I

249227016 $ 1621178164 S 7 049 802 43

-5-

SUMTER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENPITIJBES AND CHANGES IN FUND B.t\LANCES
BUDGET AND ACTUAL CNON-GAAP BASIS)
YEAR ENPEP JUNE 30 2002

EXHIBIT "C"

RE\IENUES
State Funde Federal Funds
Taxes
Other Funds
TOUII Revenues
EXPENPO:VBES
Current
lnstrucilon
Support Servlcel Pupil SelVIC8S
Improvement of lnslrucbonal S..-s Educaltonal Mec:ha S.MCeS Genera!Admnstmon School Admllllltratton
Busineas AdmlnlstrabOn Maintenance and Operabon of Plant
Student TransportobOn SeMces Central Support SeMces Other Support Seivlces Food SOMCea Oporstlon
Community ServlC8I Oparabons
Cap,tat Outley DebtServlce
Total Expendrturas
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY l 2001
AdJUstrnonts
Food Inventory - Net Change in Penocl
Donated CommodlU&S
Purdl&Sed Food
FUND BALANCE JUNE 30 2002

GENERAL FUND

BUDGET

ACTUAL

s 22 966 380 00 s 24 244,291 50

162 928 00

23,128 03

7 800,000 00

7 685 188 26

392,038 00

442 428 93

$ 31 321 34-4 00 s 32 375 036 72

$ 21 906 416 00 s 22 020 820 92

605 375 00 1 018,945 00
773 71300 245 313 00 2 73172900 235 923 00 2 682 244 00 1 780 749 00 134 237 00 136,000 00

546 180 22. 1,081,890 90
786,489 09 277,202 39 2 707,728 84 240,137 89 2 507,018 51 1 698,768 58
98,076 41 130,288 80

362,364 00 257,250 00

155 736 33 4 174 31

s $ 32,850,258 00 32 254 51119

$ -1,528 914 00 s 120,525 53

3 485 499 59

3 898 333 25

3,373 2

S 195995883 S 401885878

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s 1,22.7 939 00 s 1,554 627 72
5 235 599 00 5 754,059 68

265 600 00

277 602 68

s 6 729 138 00 s 1 see 200 08

s 3 181 578 00 s 3 656 433 19

139 385 00 280 429 00

206 393 32 537,844 52

202 728 00

111,28896

24 162 00 40 530 00
62 138 00 2 828 902 00
3 000 00

7 076 92 22047 96 65 653 97
240 94 24 314 48 2 900 925 61 218 789 43

s 6,762,852 00 $ 7 751 009 30 s -33 714 00 s -164 719 22

734,240 08

748,015 69

70 907 99

4 330 88 5 971 86

S 771 434 07 S -.:5;;:9.:.1.:59a,B:.2'-'1'-

The notes to the general-purpose finanoal statements are an rntegral part of ttua ltatemenl . 6.

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TifE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Sumter County Board ofEducahon (School D1stnct) was estabhshed under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Supenntendent appointed by the Board The School D1stnct 1s organized as a separate legal enhty and has the power to levy taxes and issue bonds Its budget 1s not subiect to approval by any other entity Accordingly. the School D1stnct 1s a pnmary government and consists of all the organ1zat1ons that compose its legal enllty
FUND ACCOUNTING
The School D1stnct uses funds and an account group to report on its financial pos1t1on and the results of1ts operations Fund accounting 1s designed to demonstrate legal comphance and to aid financial management by segregating transachons related to certain governmental funct10ns or acllv1!ies A fund 1s a separate accounting enllty with a self-balancing set of accounts An account group 1s a financial reporhng device designed to provide accountab1hty for certain assets and hab1hlles that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the vanous funds at the time of purchase A General Fixed Assets Account Group 1s not presently maintained by the School D1stnct To conform to generally accepted accounting pnnc1ples, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acqmred by governmental fund types
Although "school acllv1ty accounts" are maintained at the ind1v1dual schools, neither the assets, hab1ht1cs 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 pnnc1ples, 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, in comphance with generally accepted accounting pnnc1ples apphcable to governmental umts, unless otherwise disclosed m these notes Funds and the account group presented in tlus report arc as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's educational acl!v1t1es Governmental Fund Types include
GENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those reqmred to be accounted for in another fund These transactions relate to resources obtained and used for services provided by a board of educallon

-7-

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restncted to expenditures for specified purposes. These funds are received pnmanly from the Georgia Department of Education and from the Federal government to accomphsh specific educational objectives
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqms1t1on or construction of major capital fac1ht1es
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-tenn pnnc1pal, mterest and pa)'lng agent fees
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reportmg deVJce used to account for general obligation debt outstandmg
BASIS OF ACCOUNTING
The accountmg and financial reportmg treatment apphed to a fund 1s detennmed by its measurement focus All governmental funds are accounted for usmg a current financial resources measurement focus With tins measurement focus, only current assets and current habiht1es generally are mcluded on the balance sheet Operating statements of these funds present mcreases (1 e , revenues and other fmancmg sources) and decreases (1 e, expenditures and other fmancmg uses) m net current assets Their reported fund balance 1s considered a measure of available spendable resources
L1ab1hties wluch are expected to be financed from available spendable resources are reported as hab1ht1es m the governmental funds. Other hab1ht1es, which are not expected to be financed from available spendable resources, are reported m the General Long-Tenn Debt Account Group
Governmental funds are accounted for usmg the modified accrual basis of accountmg under which
Revennes are recogmzed when susceptible to accrual (i e., when they become both measurable and available). "Measurable" means the amount of the transaction can be detennmed and "available" means collectible WJtinn the current penod or soon enough thereafter to be used to pay hab1ht1es of the current penod. The School D1stnct considers receivables collected w1thm sixty days after yearend to be available Property taxes, sales taxes and mtcrcst are considered to be susceptible to accrual Nonexchange transactions, m which the School D1stnct gives (or receives) value without directly rece1V1ng (or g1vmg) equal value m exchange, mclude property taxes, local option sales taxes, mtergovernmental grants and donations. Revenue for property taxes 1s recogmzed m the fiscal year for wluch the taxes are levied Revenue from sales taxes 1s recogmzed m the fiscal year the resources are received or st:;cept1ble to accrual Revenue from grants and donat10ns 1s recogmzed m the fiscal year m which all ehg1b1hty reqmrements have been satisfied

- 8-

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recogmzed when the related fund hab1hty 1s mcurred
A departure from the above defimtions 1s the accountmg 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. Durmg fiscal year 2002, a substantial number ofpersonnel of the School D1stnct were employed for a one hundred and mnety day penod beginmng m August 2001 and endmg m early June 2002 Personnel contracts for this employment penod specify that compensation be paid m twelve equal monthly payments beginnmg m September 2001 and endmg m August 2002 State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School D1stnct m the same twelve months. As of June 30, 2002, compensahon under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made. Payments for these two months were made and recorded as expenditures by the School D1stnct subsequent to June 30, 2002 Also, the State's port10n ofthe compensation paid m July and August 2002 was received and recorded as revenue m the fiscal year subsequent to June 30, 2002 Conversely, the similar expenditures and related revenues for contractual services completed pnorto June 30, 2001, were recorded m the year ended June 30, 2002 Generally accepted accountmg principles reqmre that revenues be recorded when available and measurable and that expenditures be recorded when mcurred, rather than when funds are received or chsbursed.
BUDGET
The Sumter County Board ofEducation's budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s based upon estimates of expenditures together with probable funchng sources There 1s no statutory prohibition regardmg overexpenchture of the budget at any level The budget for all governmental funds 1s prepared by fund, function and obJect The legal level of budget control was established by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accountmg pnnc1ples.
The budget process begms when the School District's adm1mstrat:1on prepares a tentative budget for the Board's approval. After approval ofth1s tentative 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 advertisement, the Board receives comments on the tentahve budget, makes rev1s10ns as necessary and adopts a final school budget This final budget 1s then submitted, m accordance with prov1s1ons of the Quahty 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 dunng the year All unexpended budget authonty lapses at fiscal year-end.

-9-

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TI1E GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash eqmvalents consist ofcash on hand, demand deposits and short-term mvestments with ongmal matuntles of three months or less from the date of acqms1t1on m authonzed financial mstitutions Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds m one or more solvent banks or msured Federal saVIngs and loan associations
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School D1stnct m nonpart1c1patmg mterest-earnmg contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost Part1c1pating mterest-earnmg contracts and money market mvestments with a matunty at purchase of one year or less are reported at amortized cost. Both part1c1patmg mterest-eammg contracts and money market mvestments with a matunty at purchase greater than one year are reported at frur value The Official Code ofGeorgia Annotated Section 36-83-4 authonzes the School D1stnct to mvest its funds and m selectmg among options for mvestment or among institutional bids for deposits, the Jughest rate ofreturn shall be the obJect1ve, given equivalent conditions of safety and hqmd1ty. Funds may be mvested m the followmg
(1) Obhgations tssued by the State of Georgia orby other states,
(2) Obhgations issued by the Umted States government,
(3) Obhgations fully msured or guaranteed by the Umted States government or a Umted States government agency,
(4) Obhgations of any corporation of the Umted States government,
(5) Pnme banker's acceptances,
(6) The Local Government Investment Pool adrmrustered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obhgations of other pohtical subd1v1s1ons of the State of Georgia.

- 10 -

SUMfER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECEIVABLES

Receivables consist of grant reunbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from mformatlon available. Receivables are recorded when either the asset or revenue recogmtlon cntena 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 uncollectlble receivables

PROPERTY TAXES

The Sumter County Board ofComrmss10ners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 29, 2001 (levy date). Taxes were due on January 18, 2002 (hen date) Taxes collected w1tlun the current fiscal year or w1thm 60 days after year-end on the 200 I tax digest are reported as revenue m fiscal year 2002 The Sumter County Tax Comrmss10ner bills and collects the property taxes for the School D1stnct, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School D1stnct Property tax revenues dunng the fiscal year ended June 30, 2002 for mamtenance and operations amounted to $7,496,710 97.

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

School Operations

lA.12 m1 lls

SALES TAXES

Special Purpose Local Option Sales Tax revenue dunng the year amounted to $3,433,531 29 and 1s to be used for capital outlay for educat10nal purposes or debt service ThlS sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years

INVENTORIES

FOOD INVENTORIES Inventones of donated food commodities used in the preparation of meals are reported on the Combmed Balance Sheet at theu Federally assigned value Purchased foods inventones are reported on the Combined Balance Sheet at cost (first-in, fust-out) Donated food commod11Ies are recorded as revenues and expenditures at the time commodity items are received Purchased foods mventones are recorded as expenditures at the time ofpurchase The mventones reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which md!cates that these amounts do not conshtute "available spendable resources" even though they are a component of net current assets.

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO 1HE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL OBLIGATION BONDS
The School District issues general obhgatlon bonds to proVIde funds for the acqms1tlon and construction ofmaJor capital fac11It1cs Bond premmms and discounts, as well as issuance costs, are recogruzed m the financial statements dunng the year bonds are issued In addition, general obhgat1on bonds have been issued to refund existing general obligation bonds General obligalion bonds are direct obhgalions and pledge the full faith and credit ofthe government The outstandmg amount of these bonds 1s recorded m the General Long-Term Debt Account Group
INTERFUND TRANSACTIONS
The School D1stnct has the followmg type ofmterfund transactions
Reimbursements of expenditures m1tially made from a fund that are properly apphcable to another fund are recorded as expenditures m the re1mbursmg fund and as reduct10ns of expenchtures m the fund that 1s reimbursed
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 m these colmnns do not present financial pos1t1on or results of operations m conformity with generally accepted accountmg pnnc1ples. Neither are such data comparable to a consolidation Interfund ehmmat10ns have not been made m the aggrcgat10n of th.is data
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time many depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofmsurance, or by collateral The aggregate of the face value of such surety bond and the market value of secuntles pledged shall be equal to not less than 110 percent ofthe pubhc funds bemg secured after the deduction ofthe amount ofdeposll msurance If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe secun!Ies pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe dailypool balance OCGA Sect10n 45-8-11 (b) provides an officer holding public funds may, m his d1screlion, waive the reqmrement for secunty m the case ofoperatmg funds placed m demand deposit checkmg accounts
Acceptable secunty for deposits consists of any one of or any combmalion of the followmg
(I) Surety bond signed by a surety company duly qualified and authonzed to transact busmess w1thm the State of Georgia,
- 12 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMEl\'TS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of mdebtedness or other direct obhgatlons of the Umted States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of mdebtedness or other obhgatlons of the countles or munJcipahtles of the State of Georgia,

(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, providmg that the statute that created the authonty authonzed the use of the bonds for this purpose,

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

(7) Bonds, bills, notes, certificates of mdebtedncss, or other obhgahons of a subs1d1ary corporation of the Uruted States government, which are fully guaranteed by the Uruted States government both as to pnncipal and mterest or debt obhgahons JSsued by the Federal Land Bank, the Federal Home Loan Bank, the Federal lntermechate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Assoc1ahon, and the Federal Nahonal Mortgage Assocrnhon

CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were SI 3,671,051 44 The amounts of the total bank balances are classified mto three categones of credit nsk

Category 1 - Cash that 1s msured (e g, Federal depository msurance) or collaterahzed with secunhes held by the School D1stnct or by the School D1stnct's agent m the School D1stnct's name
Category 2 - Cash collaterahzed with secun!Jes held by the pledgmg financial msbtut1on's trust department or agent m the School D1stnct's name
Category 3 - Uncollateral1zed deposits (This mcludes any bank balance that 1s collaterahzed with secunhes held by the pledgmg financial mshtut10n, or by its trust department or agent but not m the School D1stnet's name )

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

Risk Category

Bani,. Balance

I

$ 300,000 00

2

9,462,985 90

3

3,908,065 54

Total

$13.671.051.44

- 13 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS Investments are classified as to nsk by the three categones descnbed below

Category 1 - Insured or registered, or secunltes held by the School D1stnct or the School D1stnct's agent m the School D1stnct's name.
Category 2 - Uninsured or unregistered, with secunttes held by the counterparty's trust department or agent in the School D1stnct's name
Category 3 - Unmsured or unregistered, with secuntles held by the counterparty, or by its trust department or agent but not m the School D1stnct's name

At June 30, 2002, the carrying value of the School D1stnct's total mvestments was $2,038,117 26 wluch 1s matenally the same as fau value. The investments are classified as to nsk categones as follows:

Type of Investment
U S Government
Local Government Investment Pools
Total Investments

Risk Categones

Carrying
Amount

Fair V4lyc

s 624 875 50 s

o.oo s,____,o,,,oo.. s 624.s1s so s 624.s1s so

1,413.241 76 1,413,241 76 S 2 038 117 26 s-2.03g 117 26

The carrymg amounts shown above mcludes amounts mamtamed man mvestment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services m wluch the School D1stnct owns no identifiable secunt1es. The mvestment pohcy ofthe State ofGeorgia, Office ofTreasury and Fiscal SeTVIces for the Local Government Investment Pool (Pnmary L1qmd1ty Portfolio) does not provide for mvestment m denvat1ves or similar mvestments. A descnpt10n ofthe Pnmary L1qwd1ty Portfol.to ts as follows

The Pnmary L1qmd1ty Portfolio consists of Georgia Fund 1, which 1s a combmatlon local and state government mvestment pool, and Fund 6. Georgia Fund 1 1s a stable net asset value mvestment pool which follows Standard and Poor's critena for AAAm rated money market funds The pool is not registered with the SecuntJes and Exchange Comrmss1on as an mvestment company but does operate Georgia Fund I ma manner consistent With Rule 2a-7 of the Investment Company Act of 1940 and ts considered to be a 2a-7 hke pool. The pool's pnmary obJectJves are safety of capital, mvestment mcome, hqu1d1ty and d1vers1ficatlon wlule mamtammg pnnc1pal ($ 1.00 per share value) Net asset value 1s calculated weekly to ensure stabthty The pool d1stnbutes earnmgs (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1 00 per share Pooled cash and cash eqmvalents and mvestments are reported at cost which approximates fau value The pool does not issue any legally bmdmg guarantees to support the value of the shares Partic1pat1on m the pool ts voluntary and deposits consist of funds from local governments, operatmg and trust funds of Georgia's state agencies, colleges and uruvers1ttes, and current operating funds of the State of Georgia's General Fund

- 14 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

- JUNE 30. 2002

Note 2 DEPOSITS AND INVESTMENTS

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U S Treasury obhgauons. secuntles issued or guaranteed as to pnnc1pal and interest by the U S Government or any of its agencies or mstrumentahtles, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund 1 may not exceed 60 days The weighted average matunty for Georgia Fund I on June 30, 2002, was 0 12 years The average investment duration for Fund 6 on June 30, 2002, was 0 75 years

Note 3 NON-MONETARY TRANSACTIONS

The School District receives food commod1t1es from the Uruted States Department of Agnculture (USDA) for school breakfast and lunch programs These commod1t1es are recorded at theIT Federally assigned value. See Note 1 - Inventories

Note 4 RISK MANAGEMENT

The School D1stnct 1s exposed to vanous nsks of loss related to torts, theft of, damage to, and destruction of assets, errors or om1ss1ons, Job related illness or inJunes to employees, acts of God and unemployment compensation

The School D1stnct has obtamed commerc1al insurance for nsk of loss associated with torts, assets and errors or om1ss1ons. The School D1stnct has neither s1gn1ficantly reduced coverage for these nsks nor incurred losses (settlements) which exceeded the School D1stnct"s insurance coverage m any of the past three years.

The School D1stnct has elected to self-msure for all losses related to acts of God The School D1stnct has not expenenced any losses related to tlus nsk in the past three years

The School District 1s self-insured with regard to unemployment compensation claims The School D1stnct accounts for claims within the same fund that the employee"s salary and benefits were paid Claims are accounted for with expenditure and hab1hty being reported when 1t 1s probable that a loss has occurred, and the amount of that loss can be reasonably estimated

Changes in the unemployment compensation claims hab1hty dunng the last two fiscal years are as follows

2001 2002

Begmnmg of Year Lrnb1hty

Claims and Changes m Estimates

Claims Paid

End of Year Liabthty

$

0 00 $

1,220 00 $

1,220 00 $

0 00

$

0 00 $

1 171 00 $

1 171 00 $

000

- 15 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4 RISK MANAGEMENT

The School D1stnct participates in the Georgia School Boards Association Workers' Compensation Fund, a pubhe entity nsk pool organized on July 1, 1992, to develop, implement, and adm1mster a program ofworkers' compensation self-insurance for its member orgaruzat1ons The School D1stnct pays an annual premium to the Fund for its general insurance coverage Add1t1onal msurance coverage 1s provided through an agreement by the Fund with the Umted States F1dehty and Guaranty Company to provide coverage for potential losses sustamed by the Fund in excess of$350,000 00 loss per occurrence, up to the statutory hm1t

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

Position Covered

Amount

Supenntendent All Employees

$ 100,000 00 $ 100,000 00

Note 5 GENERAL LONG-TERM DEBT

CAPITAL LEASES The Sumter County Board of Education has entered into a lease agreement as lessee for a computer system 'flus lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future m1mmum lease payments as of the date of Its inception

GENERAL OBLIGATION DEBT OUTSTANDING General Obhgat1on Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Refundmg - Senes 1993 General Government - Senes 1997 General Government - Senes 2002

2.70% - 5 15% 3.90% - 4 55% 2.00% - 3.50%

$ 2,300,000 00 1,325,000 00 9,000,000 00

$ I2.625 000 00
The changes m General Long-Term Debt dunng the fiscal year ended June 30, 2002, were as follows

- 16 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5 GENERAL LONG-TERM DEBT

Balance July I, 2001

Capital
Leases

City of
Americus General
Obhga!ion
School Bonds

General
Obhga!ion
Bonds

Total

s 4,078 62 $ 315,000 00 S 6,040,000 00 S 6,359,078 62

Add111ons GO Bonds

9,000,000 00 9,000,000 00

Deductions Debt Ret1rcd
Balance June 30, 2002

4 078 62

315,000 00 24!500000 2 734 078 62

$

ggg $

gQ:g SJ~ ~,~ QQil gg sIi ~~~ 000,.00

At June 30, 2002, payments due by fiscal year winch includes pnnc1pal and interest for these items are as follows

Fiscal Year Ended June 30

City of Amencus General Obhgat1on School Bonds

General Obhgatlon
Bonds

Total Debt

2003 2004 2005 2006 2007 2008 - 2010

$ 76,542.50 $ 1,907,573 75 $ 1,984,116 25 2,275,870.00 2,275,870 00 2,285,760 00 2,285,760 00 2,299,605 00 2,299,605 00 2,303,697 50 2,303,697.50 2,999,327 50 2,999,327 50

Total Pnnc1pal and Interest $ 76.54250 $14.071.833,75 $!4,148.376.25

Note 6 SHORT-TERM DEBT

The School D1stnct issues tax an!ic1patlon notes m advance of property tax collect10ns, depositing the proceeds in its General Fund This short-term debt 1s to provide cash for operations until property tax collect10ns are received by the School D1stnct Article IX, Sect10n V, Paragraph V of the Constitution ofthe State ofGeorgia hm1ts the aggregate amount ofshort-term debt to 75 percent of the total gross mcome from taxes collected m the preceding year and reqmres all short-term debt to be repaid no later than December 31 of the calendar year in winch the debt was incurred

Tax Ant1c1pabon Notes

Begmmng Balance

Add11Ions

Payments

Endmg Balance

$____,o.,o,,o $J ooo ooo oo $1 ooo ooo oo $~_ _,o...o.,.o

- 17 -

SUMTER COUNTY BOARD OF EDUCATYON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

mNE 30. 2002

Note 7 ON-BEHALF PAYMENTS
The School D1stnct has recogruzed revenues and expenditures m the amount of $426,326 54 for health msurance and retrrcment contnbutlons paid on the School D1stnct's behalfby the followmg State Agencies
Georgia Department of Education Paid to the Georgia Department ofCommumty Health For Health Insurance ofNon-Certified Personnel In the amount of$374.021.54
Office of Treasury and Fiscal Services Paid to the Pubhc School Employees Retirement System For Pubhc School Employees Retirement (PSERS) Employer's Cost In the amount of $52,305 00
Note 8 CONTINGENT LIABILITIES
Amounts received or receivable pnnc1pally from the Federal government are subJect to audit and review by grantor agencies Tlus could result m requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms The School District believes that such d1sallowances, 1f any, will be 1mmatenal to its overall financial position
The School D1stnct 1s a defendant m vanous legal proceedmgs pertainmg to matters mc1dental to the performance ofroutme School D1stnct operations The ultimate d1spos1tlon ofthese proceedmgs 1s not presently determmable, but 1s not beheved to be matenal to the general-purpose financial statements
Note 9 RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, adm1mstratlve and clencal personnel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-sharmg multiple employer defined benefit pension plan. TRS provides service retrrement, d1sab1hty ret.trement and survivors benefits for its members m accordance with State statute The Teachers Rettrement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts

- 18 -

SUMTER COUNfY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TifE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 9 RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School D1stnct who are covered by TRS are required by State statute to contnbute 5% of their gross earrungs 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 advised by their independent actuary. The required employer contnbullon rate 1s 9 24% and employer contnbullons for the current fiscal year and the preceding two fiscal years are as follows

Fiscal Year

Percentage Contnbuted

Reqmred Contnbuuon

2002 2001 2000

100% 100% 100%

$ 2,040,499 13 S 2,396,245 35 $2,291,047 80

- 19 -

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable lnventones
Food Donated Commod1t1es Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

331,124 39 $

221,609 56

250,000 00

72,075 53

4,467 90

57,851 04 50 419 24

$

76147020 $_-==22==6._0_77.__46_

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable
Total L1ab11tt1es
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Commodrt1es Purchased Food Unreserved Undes1gnated
Total Fund Equity
Total llab11tbes and Fund Equity
See notes to the general-purpose financial statements
- 20 -

$

54,352 20 $

89,888 51

115,518 79

128,988 18

7 200 77

$

169 870 99 $

226 077 46

$

57,851 04

50,419 24

483,328 93 $

000

$

591 599 21 $

000

$

761 470 20 $ _ _2_2_6._0._77_46.....,

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

552,733 95 $

660,860 03

250,000 00

250,000 00

$

588,748 07

665,291 50

1,223,122 68

57,851 04 50 419 24

53,520 16 44 447 38

$

588 748 07 $

2,231,950 25

$

196,028 85 $

196,028 85 $

815,655 27

160,835 59

305,076 30

213,523 95

226,874 66

471,381 63

451,324 57

5 008 97

12 209 74

5 430 77

$

588 748 07 $

984,696 52 $ 1,485,934 56

$

$ _ _ _ _~0~0!!...0

$

000 $

57,851 04 $ 50,419 24

53,520 16 44,447 38

483 328 93

648 048 15

591,599 21 $ _ _7:..;:4:,:6,.:e0c:;15,:_6:,:9e._

$

588 748 07 $ 1,576,295 73 $ 2,231,950 25

- 21 -

SUMTER 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 Instruction Support Services Pupil Services Improvement of lnstructlonal SeMces General Adm1mstrabon Business Adm1mstrabon Maintenance and Operabon of Plant Student Transportation Services Central Support Services Other Support Services Food Services OperaUon Communrty Services Operations
Total Expendrturas
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and 01her Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change 1n Penod Donated Commodrties Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

196,680 00 $ 1,357,947 72

2,261,923 71

277 602 68

$ 2,736,206 39 $ 1357947 72

s 1,148,41443
127,107 90 33,666 54
7,076 92 15,545 93 26,136 00

$ 2,900,925 61

$ 2,900,925 61 $ 1357947 72

$ -164,719 22 $

000

$ -164,719 22 $

000

746,015 69

000

4,330 88 5 971 86

FUND BALANCE JUNE 30
See notes to the general-purpose financial statements - 22 -

$

591 599 21 $~=~-::..0~00::.,

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 1,554,627 72 $ 1,566,136 73

$ 3,492,135 97

5,754,059 68

5,258,916 56

277,602 68

288,818 66

$ 349213597 $ 7,586,290 08 $ 711387195

$ 2,508,018 76 $ 3,656,433 19 $ 3,473,582 19

79,285 42 504,177 98 111,288 96
6,502 03 39,517 97
24094 24,314 48
218,789 43

206,393 32 537,844 52 111,288 96
7,076 92 22,047 96 65,653 97
24094 24,314 46 2,900,925 61 218 789 43

186,359 02 421,766 36 108,335 91
21,168 05 53,522 24
27,161 04 2,727,175 64
234,952 21

$ 3,492,135 97 $ 7 75100930 $ 7,254,022 66

$

000 $ -164,719 22 $ -140, 150 71

64288

$

000 $ -164,719 22 $ -139,507 83

000

746,015 69

891,277 61

4,330 88 5 971 86

-5,405 93 -348 16

$

000 $

591.599 21 $ _ _7~46=0;,,:,1;;;,5,;:;6_9

- 23 -

SUMTER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2002

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$ 8,886,100 51

28,091 53

3 970 94 $ _ _.,:;48e,3,.,66=3c.:5:..:1_

$ 8,918, 162 98 $ _ _.,48_3..,,6_6_3_5_1_

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Reta:nages Payable
Total L:abll:tles
FUND EQUITY
Fund Balances Reserved For Purpose of Bond Issue For SPLOST ProJects Unreserved Undes:gnated
Total Fund Equity
Total l.Jab:l:t:es and Fund Equ:ty

$

344,732 45

$

28,091 49

5,144 00

2215515

137 640 00

$

55 39064 $

482 372 45

s 8,862,772 34
000 $ $ 8,862,772 34 $

1 291 06 1 291 06

$ 8,918, 162 98 $ ~-,.;;48;;.;3;;.,66=3..5_1,_

See notes to the genera~purpose financial statements - 24 -

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2002 JUNE 30, 2001

$ 8,886,100 51 $

54,239 64

$

563,946 06

592,037 59

463,711 00

487 634 45

489 158 05

$

563 946 06 $ 9,965:772 55 $ 1 007 108 69

$

318,955 97 $

663,688 42 $

512,325 62

28,091 49

5,144 00

120,232 91

159 795 15

228 421 78

$

318 955 97 $

856 719 06 $

860,980 31

$ 8,862,772 34

$

244,99009

244,990 09 $

146,128 38

000

1 291 06

0 00

$

244 990 09 $ 9, 109,053 49 $ _ _1.,_4'-=6....,1.:28:a..::38.._

$

563 946 06 $ 9.965,772 55 $ 1 007 108 69

- 25 -

SUMTER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002

REVENUES
Taices Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Admlmstrabon
Capital Outlay Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES !USES}
Premiums on Bonds Sold Proceeds from General Obligation Bonds
Par Value Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Fmancmg Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
AdJustments For Pnor Year Expenditure/Payables
FUND BALANCE JUNE 30

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

000

$

1 312 97

$

1 312 97 $

000

$

231,266 49

10 102 04 $

$

241 368 53 $

$

-240,055 56 $

24 608 94 24 608 94 -24 608 94

$

102,827 90

9,000,000 00

$ 9,102,827 90

$ 8,862,772 34 $ 000

-24,608 94 000

25 900 00

s _ _ _ $

8 862 772 34
11

1=29:;.1:.:oo"""

See notes to the general-purpose financial statements - 26 -

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30. 2001

$

90,534 78 $

90,534 78 $

643,593 75

8 326 93

9 639 90

58 364 36

$

98 861 71 $

100 174 68 $ _ _~70~1~9~58=1~1_

$

000 $

231,266 49 $

3,175 00

34 710 98

4,450 00 584 339 30

$

000 $

265 977 47 $_~5~9~1=9~64~30~

$

98 861 71 $ -165 802 79 $ _ _1~0_9~99~3~8~1_

$

102,827 90

9,000,000 00 $

$ 9,102,827 90 $

579,839 02 -579,839 02
000

$

98,861 71 $ 8,937,025 11 $

109,993 81

146,128 38

146,128 38

36,134 57

25 900 00

$

244,990 09 $ 91109p53 49 s _ _1._46...._1_2.8.3..8..,

- 27 -

SUMTER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SEBYICE FUND JUNE30 2002

EXHIBIT"!"

ASSETS Cash and Cash Equivalents lnvesbnents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30 2002 JUNE 30, 2001

$ 128,871 81

$

128,871 81 $

128,690 20

$ 1,446,079 67

1,446 079 67

1,534,540 46

921 293 68

921 293 68

598 742 48

Total Assets

s 128 871 81 $ 213671373 35 $ 2 496 245 16 $ 2 261.973 14

LIABIUTIES AND FUND EQUITY

LIABIUTIES

Cash Overdraft

$

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undes,gnated

$ 128,871 81 $ 000

Total Fund Equity

$ 128 871 81 $

3 975 00 $

3 975 00 $

2 648 03

2,363,398 35 $ 2,492,270 16 $ 2,259,325 11

000

0 00

0 00

2,363,398 35 $ 2,492,270 16 $ 2,259,325 11

Total L1ab1lrtJes and Fund Equity $ 128 871 81 S 2 367 373 35 $ 2 496 245 16 $ 2 261,973 14

See notes to the general-purpose financial statements

-28 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT.r

COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES

DEBT SERYJCE FUND

YEAR ENDED JUNE 30 2002

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

REVENUES Taxes Other Funds
Total Revenues EXPEND(JURES

s s 3,342,996 51 s 3,342,996 51

2,925,330 05

s

93642

4157992

42 516 34

109 283 03

s

s s 93642

3,384,576 43

3,385,512 85 $ 3 034 613 08

Debt Service Principal Interest Paying Agent Fees
Total Expendrtures
Excess of Revenues over (under) Expenc:htures

s s 2 730,000 00

2,730,000 00 $ 2,555,000 00

s

757 80

439,172 50 1 325 00

439,172 50 2,082 80

547 565 00 2 114 25

s

s s s 757 80

3170497 50

3,171,255 30

3 104 679 25

s

s 178 62

214,078 93 $ 214,257 55 $ -70,06617

OTHER FINANCING SQURCES Acaued lrrteres1 on Bonds Sold

18.687 50

18 687 50

Excess of Revenues end Other Flnanang Sources

over (under) Expendrtures

s

s s 17862 $ 232,766 43

232,945 05

-70,066 17

FUND BALANCE JULY l

128 693 19

2 130 631 92

2,259,325 11

2,329,391 28

FUND BALANCE JUNE 30

$ 128,87181 $ 2,363.39835 S 2492.27016 $ 2,259,32511

See notes to the general-purpose finenael statements

- 29 -

SUMTER COUNTY BOARD Of EDUCATION SCHEDULE Of EXPENDITURES Of FEDERAL AWARDS
YEAR ENPEP JUNE 30 2002

SCHEDULE "1"

FUNDING AGENCY
PBOGRAMfGRANI

CFDA NUMBER

PASSTHROUGH
EN"TlTY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agncuttura, U S Department of Chllcl Nutnbon Cluster
Pau-Through From Georg,a Department of Educabon
Food and Nutnbon Program Food SeMce1 School Breakfast Program National School Lunch Program

10 553 10 SSS

NIA $

631 405 26

(2)

NIA

1466658 25 $

2 737 065 41 (3)

Total Child Nutrition Cluster

$

2 098 063 51 $

2 737,085 41

Other Program, Pass-Through From Georg1e Department of Education Food and Nutnbon Program Food Dls1nbubon Program (1)

10 550

NIA

163 860 20

163 860 20

Total U S Departmon1 of AgrbJfture

$

226192371 $

2 9QO 925 61

Educabon U S Department of
Speaal Educatlon Clus\ar Pass-Through From Geor-gra Department of Edueabon lnd1VKfual1 wrth DlllbolUles Educabon Ad
Part B - Speoal Edu:::abon
Flow Through
Capacity Building Improvement Grant

84 027 84 027

NIA $ NIA

548 883 15 $ 9 018 09

548 883 15 9 018 09

Total Speaal Educ:abon Cluster

$

557 901 24 $

557,901 24

Other Programs

Diroct

Elementary and Sacondary Educabon Ad

Trtlo X

Twenty-Fm Century Comml.Vlrty Leaming Centers

84 287

Pan-Through From Georgia Department of EduceOOn

Comprahenetve School Reform Demonstration Pl'Of9d

84 332

NIA

Elementary and Secondary Educabon Ad

TIiie I

AccountabU<ty Grams

84 348

NIA

Granta to LOCZII Educabonal Agenoes

84 010

NIA

Trtlell

E1881lhowef" Professional De.-elopment

84 281

NIA

Trtlelll

Technology Lrteracy Chol- Fund Grants

84 318

NIA

TIiie VI

lnnovabve EducabOn Program Strategies

84 298

NIA

Clau Size Reducbon

84340

NIA

Goals 2000

State and Local Educatlon SystemlC Improvement Grants 84 276

NIA

Safe and Drug-Free Schools end CommunlUBI

84186

NIA

Vocatlonal Education - B8SIC Grants to States

High School Program

Bas,c Grant

84 048

NIA

Pass--Through From cnattahoochee Flint Regional

Educabonal Service Agency

Elementary and Secondary Educabon Ad

H:lel

Grants to Local Educatiooal Agenaes

84 010

NIA

218,496 43 103,017 13
121 948 00 1 600 222 90
43 331 06 125,000 00 48,614 00 263 434 00
37,45611 43 471 47
11568000

218 496 43 103 017 13
121,948 00 1,600,222 90
<$3 331 06 1:ZS 000 00 48 814 00 26'3 434 00
37 456 11 43 471 47
115,680 00

28 226 69

28 226 69

- 30

SUMTER COUNTY BOARD OE EDUCATION SCHEDULE OE EXPENDITURES OF FEDERAL AWARDS
YEAR ENPEP JUNE 30 2002

SCHEDULE "1"

FUNDING AGENCY
PBOGRAMIGRANI
Educalion U S Department of Other Programa Pan-Through From Manon County Board of Educabon d/bla T"WO Rrwra Migrant Educabon Agency Elementary and Seconda,y Educabon AD. Trtle I M,grant Educalk>n
Towl U S Departmen1 of Educa1Jon
Nat1011al Endowment for the HumarvheS Pan-Ttvough From Georgia Humamhes Counol Promotion of the Humanfues
Transpartatlon U S Department of P8!15-Through Frcm Governor's Office of Highway Safety State and Community Highway Saf5ty
Defame, u s Department of
Direct
Department of the Army R O T C Program

CFOA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84 011

s

10s OOB as s _ _~1o~s"'oos=~o=

s 3 412 007 12 $ _ _,3"4e,1c,2o,00=7_,1""2

45 129

NIA s

8 128 03 $ ---~~1~2~~0=3

20 600

NIA $

15 000 00 S _ __,1e,5~0"'00"""00"'

$

001200s s _ __,eo=1~2~~"'-s

Total Federal Flnanaal Assistance

$ 5 777 187 71 S _ _.6"4"'1"'6"1"'8"9"'6"'1

NIA .. Not Available

Notu to Ibo SrnAdule of ExPOOdtb.Jres or FQdm1 Awards

(1) Toa amounts ahown for the Food Distnbubon Program represents the FederaJ!y asS&gned value of nonmonetary awstance for donated commodrues r8C8fV8d and/or consuned by the system dunng the current fiscal year
(2) E.xpendrtures for the School Breakfast Program were not numtalll8d separately and re IOduded tn the 2002 Nal1onal School Lunch Program
(3) Expend.rtures for Uus program include State and/or Other Fund ExpendJtlffS are not maintained by fund S0\6C8

Map Program ere ldanbfied by an asterisk (1 m front of the CFDA number

The School OtstnCI did not provide Federal Au1stance to any Subreoplant

The ac::c:ompanying achedule of expenditures of Federal awards includes the Federal grant ac:tMty of the Sumter County Board Of Education end 1s praa,ented on Uie modified acx.rual baSls of accounting which ~ the ba8IS of accountng used m the presentaoon of the general-purpose financial statement

See notes to the general-purpose ftnanoal statements

- 31 -

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

SCHEDULE "2''

AGENCY/FUNDING
GRANTS Educabon Georgie Department of Quelrty Basic Educalton Direct lnstruc:bonal Cost Kindergarten Program Kmdergarten Program Eerty lntervenbon Program Pnmary Grades (1-3) Program Pnmary Grades. Eariy lnterverruon (1-3) Program Upper Elementa,y G,_. (4-5) Program Upper Elementary Grades Early Intervention (4-5) Program Mddle School (6--8) Program High School General EducatK>11 (!1-12) Program Vocational Laboratory (9-12) Program Students w,th Dmeblhbes Category I Category It Category Ill Catagory IV Category V Giftad Studant - Category VI
Remedral EctucatJon Program Altemabve EducabOn Program Meche Center Program Staff and ProtesS>Onat Davelopmen1 Indirect Cost Twenty Add1bcmel Days Categonca:J Grants Pupd Transportstton
Regular Bue Replacement Spars,ty Nursing Services PnoopalSupplomento Vocat10nal $upeMSOre Migrant Educabon Educabon E~IZ81.Jon Funding Grant Food ServlC8S Vocallonat Educal>On Other State Programs ApprentlC&Ship Program Health lnaurence K-3 Stetew>de After School Program 4-8 Statewrde After School Program Mentor Teachere
Outdoor Classrooms Pay for Performance
Post Secondary Optrons
Lottery Programs
ASSIBt1va Technology ComputSB m the Clauroom
Office of School Reedineu Pre-Kindergarten Program
Office of Tn:msury end Fracel Services Pubhc SChool Emptoyees Retirement
CONTRACTS EducatJon Georgie Department of Elementary School Foreign Language Model Program Middle Sdlool - ASTEP Ennchment Program Ple1na H1Qh School PJ'Ojed
32-

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

s 1 580 134 00
182 625 00 3,152 228 00
615,455 00 1 732 426 00
282,707 00 3 268 517 00 2 094 393 00
902 450 00
1169400 612 106 00 871 679 00
9011200 12 30! 00 186 400 00 92 735 00 22'9 099 00 51191600 90 033 00 3 156 337 00 159 432 00

s 1 580 134 00
182,625 00 3 152 228 00
615 455 00 1,732 426 00
282 707 00 3,268 517 00 2,094 393 00
902,450 00
11,694 00 612 106 00 871,679 00
90,11200 12 308 00 186 400 00 92 735 00 22'9,099 00 511,916 00 90 033 00 3 156 337 00 159,432 00

839 124 00 228 868 00
20 000 00 11818800 21 782 00 37 286 00
7 953 00 1 827 019 00
s
229 292 99

196 680 00

30,549 02 374 021 54
73 671 87 58 9'58 00 26 775 00
1 493 33 194 000 00
5 939 00

4 467 90 13515000

839 124 00 228 868 00
20 000 00 11816800
21 782 00 37 286 00
7 953 00 1827019 00
196 680 00 229 292 99
30,549 02 374,021 54
73 071 87 58 988 00 26 775 00
1 493 33 194 000 00
5 939 00
4,467 90 135 150 00

1 218 329 82

1 218 329 82

52,305 00

52 305 00

79,953 00 25 857 92 72 095 60

79 953 00 25 857 92 72 095 60

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

SCHEDULE "T

AGENCY/FUNDING
CONTRACTS Office of the Governor Georgia Council for the Arts Georgia Chellenge Program
OTHER Communrty Affairs Georgia Department of Georg1a School Age Care Program Local AsSlstance Grants

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

s

19 764 53

s

18 764 53

22,291 70 42 287 00

22,291 70 42 287 00

S 24' 244 291 50 S 1 554 627 72 $ 25 798 919 22

See notes to the general-purpose finanaal statements

33-

SUMTER COUJfil'. BOARD OF EDUCATION SCHEDULE Of ApPRQYED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 2002

SCHEDULE "J"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS(2l

AMOUNT EXPENDED IN CURRENT YEAR(3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS (3) (4)

PROJECT STATUS

The repayment of the pnnopal and Interest on the City of Amenrus General Clt,llgabon
School Bonds, Serles 1990 and Senes 1995, coming due February 1, 1998 through and 1nclLKilng August 1, 2002, and the repayment of the pnnapal and U1lerest on the Sumter
Co'"11y School District General Obligation
Bonds, Serles 1993, coming due June 1, 1998 through and lnclLKilng December 1, 2002, the
maxlmLnl amount of debt to be reUred not to exceed $4,150,000

$ 4,150,000 00 S 4,150,000 00 $

826,652 50 $ 3, 165,668 75 Ongoing

The acqulslUon, cons1ruct1on and equipping of capltat outlay Prqects consisting of a new pnmary school and the acquisition of Mt.nl ochool land sites and ad<fruons, Improvements, renova1Jons, modlflcatJons and equipping of all exlsbng sdiools, tndud1ng the acqu1s1bon of aD necessary property, both real and personal, necessary therefor (the Projectaj the mBX1mum costs of such Projects not to exceed $20,850,000

20,850,000 00 20,850,000 00

34 710 98 1711167861 Ongoing

$ 25100010CK) 00 $ 2510001000 00 $ 88136348 $ 20 277 347 36

(1) The School Distrlc:t'11 original cost estimate es speafied In the resolution caUmg for the 1mposrtJon of the Local OptJon Sales Tax

(2) The School Dlslr1cl's rum,nt esbmate of total cost for the projects Includes all cost from project lncepUon to cornpletlon

(3) The voters of Sumlef Coonty approved the Imposition of a 1% &ales tax to fund the above projects and n,Ure associated debt. Amounts expended for thesa projecls may lnclLKie sales tax proceeds, stete local property taxes and/or -fund over the hie of the projecls

(4) In add,Uon lo the expendrtures shown above, the School Dislncl has mrurred Interest lo provide advance funding
for the above pT0j8ds as follows

Prior Yea~

$ 1,217,01375

Current Year

157,520 00

Total

$ 1 374 533 75

See notes to the general-purpose finandal statements

- 35-

SUMTER COUNTY BOARD OF EDUCATION
GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM !QBE)
ALLOTMENTS AND EXPENDITURES - BY PROGRAM
YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct ln5trudlonal Programs

Kildergarten Program

$

Ksndergarten Program-Early lntervenbon Program

Pnmary Grades (1-3) Program

Pr1mary Grada!-Ear1y Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Upper Elementary Grades-Eany Intervention (4-5)

Program

Middle Grades (6-8) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students wrth DlsabJJrues

category I

category II

category JJJ

Category IV

Category V

Gifted Student - category VI

Remedial Education Program

AHemabve Education Program

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

s 1 791 050 00
207,001 00 3,572,987 00
897,806 00 1,958 097 00

1,458,696 26 $ 170,852 13
3,499,488 18 716,434 58
2,219,748 77

30,826 88 $ 849 13
102,845 45 3,044 97
75,019 77

1 489 523 14 171,501 26
3 802,333 63 719,479 55
2,294,788 84

326,017 00

235,941 05

3,704,799 00 2 373,952 00 1,022 909 00 1,811,187 00
211,281 00 105,113 00 259 679 00

3,923,089 28 3 303 610 39
784 501 92
1,312 32 727,348 59 1,184,150 88
72,635 21 5,634 52
251,043 79 106,522 57 499,696 85

s 18,041,678 00

19,130,707 09 $

626 75 1,512 50 151,017 71 336,217 95 53,091 43
783 57 658 71 3 270 84 9,084 86 1 453 24 476 70 2 184 42

236,567 80 1,51250
4,074,106 99 3,639,828 34
807,593 35 783 57
1 971 03 730 619 13 1 193,205 74
74 08845 6,11122
253,198 21 106 522 57 499 696 65

772,704 58 $ 19 903,411 67

Media Center Program Staff and Profess1011aJ Development

580,248 00 102,052 00

677,009 35 4 988 82

102,133 48 98 857 62

779,142 83 103 848 44

TOTAL QBE FORMULA FUNDS

$

18,723,976 00 $ 19,812,705 26 $ 973 695 68 $ 20,786,400 94

(1) Comprised of Stato Funds plus Local Five MIii Sha111

See notes to the general-purpose finandat statements

- 36 -

SUMTER COUNTY BOARD OF EDUCATION
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM CQBEl ALLOTMENTS AND EXPENDITURES - BY SITE
YEAR ENDED JUNE 30, 2002

SCHEDULE "5"

filIE
Sumter County Pnmary School Sumter County High School Sumter County Elementary School Sumter County Middle School Amencus High School Cherokee Elementary School Sarah Cobb Elementary School Staley Middle School Central Office (Altemallve Educabon Program) Other Aux1hary Facility
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE OBE PROGRAM COSTS

$

2,642,238 00 $ 2,624,596 93

1,754,949 00

2,292,810 65

2,303,330 00

2,419,735 14

2,089,683 00

2, 188,088 44

2,258,689 00

2,814,683 25

2,626,548 00

2,493, 160 65

1,921,568 00

2,196,452 82

2,164,994 00

2,524,338 94

259,679 00

8702

349 457 83

$

See notes to the general-purpose financial statements - 37 -

SECilONII COMPLIANCE AND INTERNAL CONTROL REPORTS

!u1,.,1,,1,1 W. H1:-. ror-.
S fAT[ AUDI TOFI (404) 656-21 /4

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington SLrcct, ~ W Suuc 214 A1lanta, Gcorg1J 30334-8400
May 22, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducatmn
and Supenntendent and Members of the Sumter County Board of Educatmn
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 audi!ed the financial statements of Sumter County Board ofEducatmn as ofand for the year ended June 30, 2002, and have issued our report thereon dated May 22, 2003 This report was quahfied for a scope lim1talion and for vanous departures from generally accepted accountmg pnnc1ples, as 1dent1fied m the auditor's report on the general-purpose financial statements Except as discussed m the followmg paragraph, we conducted our audi! m accordance with aud1tmg standards generally accepted m the Umted States of Amenca and the standards applicable to financial audits contamed m Government Aud1tmg Standards, issued by the Comptroller General of the Umted States
We did not observe the takmg of either the Federal donated commod1t1es mventory or the purchased foods mventory at June 30, 2002, nor could we sallsfy ourselves as to the accuracy of the amounts stated as mventones through alternalive procedures
Compliance
As part of obtammg reasonable assurance about whether Sumter County Board of Educauon's financial statements are free of matenal misstatement, we performed tests of its comphance with certam prov1s1ons oflaws. regulalions. contracts and gnmts, noncompliance with wluch could have a d1Tect and matenal effect on the determmalion of financial statement amounts However, prov1dmg an op1mon on compliance with those prov1s1ons was not an obJeclive of our audit, and accordmgly, we do not express such an opm1on The results of our tests disclosed no mstanccs ofnoncompliance that are required to be reported under Government A11d1tmg Standards
2002YB-40

Internal Control Over Fmanc1al Reportmg
In planmng and performmg our audit, we considered Sumter County Board of Education's mtemal control over financial reportmg m order to determme our aud1tmg procedures for the purpose of expressmg our op1mon on the financial statements and not to provide assurance on the mtemal control over financial reportmg However, we noted a certam matter mvolvmg the mtemal control over financial reportmg and its operation that we consider to be a reportable condition Reportable cond11tons mvolve matters commg to our attention relatmg to s1gruficant defic1enc1es m the design or operat10n ofthe mtemal control over financial reporltng that, m ourJudgment, could adversely affect Sumter County Board ofEducation's ab1hty to record, process, surnmanze and report financial data consistent with assertions of management m the financial statements. The reportable cond11ton 1s descnbed m the accompanymg Schedule ofFmdmgs and Quesltoned Costs as Item FS-7291-02-0 I
A matenal weakness 1s a cond1t1on in which the design or operation of one or more of the mtemal control components does not reduce to a relatively low level the nsk that misstatements m amounts that would be matenal m relation to the financial statements bemg audited may occur and not be detected w1thm a timely penod by employees m the normal course of performmg their assigned functions. Our consideration of the mtemal control over financial reportmg would not necessanly disclose all matters m the mtemal control that might be reportable conditions and, accordmgly, would not necessanly disclose all reportable conditions that are also considered to be matenal weaknesses. However, the reportable cond1t1on descnbed above 1s also considered to be a matenal weakness
This report 1s mtended solely for the mformatlon and use of the finance comm11tee, management, members of the Sumter County Board of Education, Federal awardmg agencies and pass-through entitles and 1s not mtended to be and should not be used by anyone other than these specified parties
Respectfully submitted,
- ~:J.1.~
RWH.as 2002YB-40

{l10,Sf LL W. HINTON
STATE AUDITOl-l (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshmgton '>trect, SW Suite 214 AtlJnta Georgia 30334-8400
May 22, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducallon
and Supenntendent and Members of the Sumter County Board ofEducallon
REPORT ON COMPLIANCE WITH REOUlREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen
Comphance
We have audited the comphance ofSumter County Board ofEducatwn with the types ofcomphance requirements descnbed m the US Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are apphcable to each of1ts maJor Federal programs for the year ended June 30, 2002 Sumter County Board of Education's maJor Federal programs are identified m the Summary of Auditor's Results Section of the accompanymg Schedule ofFmdmgs and Queslloned Costs Comphance with the reqmrements of laws, rcgulatwns, contracts and grants apphcable to each of its maJor Federal programs 1s the respons1b1hty of Sumter County Board of Educallon's management Our respons1b1hty 1s to express an op1mon on Sumter County Board of Educatwn's compliance based on our audit
We conducted our audit of comphance m accordance with aud1tmg standards generally accepted m the Umted States of Amenca, the standards apphcable to financial audits contamed m Government Aud1tmg Standards, issued by the Comptroller General of the Umted States, and 0MB Circular A133, Audlls of States, Local Governments, and Non-Profit Orgam=atwns Those standards and 0MB Ctrcular A-133 reqmre that we plan and perform the aucht to obtam reasonable assurance about whether noncomphance with the types ofcompliance requtrements referred to above that could have a direct and matenal effect on a maJor Federal program occurred An audit mcludcs exrummng, on a test basis, evidence about the Sumter County Board of Education's compliance with those reqmrements and performmg such other procedures as we considered necessary m the circumstances We believe that our audit provides a reasonable basis for our op1mon Our audit does not provide a legal determmallon on Sumter County Board of Education's comphance with those reqmrements
2002SA-10

In our op1mon, the Sumter County Board of Educat10n complied, m all matenal respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2002.
Internal Control Over Compliance
The management of Sumter County Board of Educal!on 1s responsible for establishmg and mamtammg effective mtemal control over compliance with reqmrements of laws, regulations, contracts and grants applicable to Federal programs In planmng and perfonnmg our audit, we considered Sumter County Board ofEducation's mtemal control over compliance with reqmremcnts that could have a direct and matenal effect on a maJor Federal program m order to detennme our aud1tmg procedures for the purpose of expressmg our op1mon on compliance and to test and report on mtemal control over compliance m accordance with 0MB Circular A-133
Our consideration ofthe mtemal control over compliance would not necessanly disclose all matters m the mtemal control that might be matenal weaknesses A matenal weakness 1s a condition m which the design or operation ofone or more ofthe mtemal control components does not reduce to a relatively low level of nsk that noncompliance with applicable reqmrements of laws, regulations, contracts and grants that would be matenal m relat10n to a maJor Federal program bemg audited may occur and not be detected Witiun a timely penod by employees m the normal course of performmg their assigned funct10ns. We noted no matters mvolvmg the mtemal control overcomphance and its operation that we consider to be matenal weaknesses.
This report 1s mtended solely for the mfonnat1on and use of the finance comm1ttee, management, members of the Sumter County Board of Education, Federal awardmg agencies and pass-through entitles and 1s not mtended to be and should not be used by anyone other than these specified parties
,,,..-R...e..spectfully submitted,
~u\:<Jik ell W. Hmton State Auditor
RWHas 2002SA-10

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATVS

7291-93-01 FS-7291-00-01 FS-7291-01-01

Partially Resolved - See Corrective Action/Responses No Further Action Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Expenditure Amount $5,693 79 Fmdmg Control Number- 7291-93-01

Reimbursement amounts were made by the Sumter County Comprehensive High School and will be reflected m the fiscal year 2002 audit Additional reimbursement 1s bemg secured from the Sumter County Comprehensive High School as funds become available This balance WIii be reduced over time

GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group FmdmgControl Number. FS-7291-01-01

The Sumter County Board of Education acknowledges th.is requirement for fiscal year 2003 and 1s m the process of 1mplementmg Fixed Asset accounting for fiscal year 2003

SECTION IV FINDINGS AND QUESTIONED COSTS

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS
Type of Report Issued on the Fmanc1al Statements The auditor's opm10n on the Sumter County Board of Education's financial statements was qualified for a scope hm1tatlon and for vanous departures from generally accepted accountmg principles
2. Reportable Conditions m Internal Control Disclosed by the Audit of the Fmanc1al Statements The audit report for the Sumter County Board of Education disclosed a financial statement reportable condinon related to the followmg control category
General Fixed Assets
The reportable condition descnbed above 1s considered to be a matenal weakness
3 Noncomphancc Matenal to the Fmanc1al Statements The audit of the Sumter County Board of Education disclosed no instances of noncomphance that were deemed to be matenal to the financial statements
4 Reportable Conditions m Internal Control Over Mawr Programs The audit report for the Sumter County Board of Education did not disclose any reportable cond1t10ns m mternal control over maJor programs
5 Type of Report Issued on Comphance for Ma1or Programs The auditor's op1mon on the Sumter County Board of Educat10n's report on comphance with reqmrements apphcable to maJor programs was unquahfied
6 Audit Fmdmgs Regmred to be Reported by Section 51 0(a) of 0MB Circular A-133 The Sumter County Board ofEducation's audit did not disclose audit findmgs reqmred to be reported by section .510(a) ofOMB Circular A-133.
7 Ma1or Programs Federal awards audited as maJor programs are as follows I 0.553 Food and Nutnllon Program - Food Services - School Breakfast Program I0.555 Food and Nutntlon Program - Food Services - National School Lunch Program
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000 00
9 Low Risk Aud1tee The Sumter County Board ofEducation quahfied as a low nsk aud1tce as defined by Section .530 ofOMB Circular A-133.
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SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fn,ed Assets Account Group Reportable Cond11lon - Material Weakness Repeated from Pnor Year Fmding Control Number FS-7291-02-01 The Sumter County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles ll11s cond1t1on results in the general-purpose financial statements of the School District being incomplete and not in accordance \\1th generally accepted accounting pnnc1ples Appropnate act10n should be taken by the School D1stnct to estabhsh accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group These subsidiary records should include an inventory of land. bmldmgs and eqmpment owned by the School Distnct and should include but may not be hm1ted to date acqmred, acqmsit1on cost, estimated replacement cost. locat10n and descnption Detailed records should be maintained ofall addiuons and deletions to the General Fixed Assets Account Group
Ill FEDERAL AwARD FINDrNGS AND QUESTIONED cos rs
No matters were reported
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