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TALIAFERRO COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL-PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES B " COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS ADDITIONAL FINANCIAL INFORMATION COMBINING AND INDNIDUAL FUND STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES I FIDUCIARY FUND TYPE STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS Page 2 4 6 7 18 20 22 23 24 25 27 29 TALIAFERRO COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 5 BY SITE Page 30 31 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 ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL :lL1,~1,,1.1. \\". H1:-. mr,: STATE AUDITOR (404) 656 2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Wa,hmg1on Street. S W.. Suite 214 Atlanta. Georgia 30334-8400 March 14, 2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Taliaferro County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Ladies and Gentlemen: We have audited the accompanying general-purpose financial statements of the Taliaferro County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Taliaferro County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards apphcable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm1on. As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 2001ARL-13 * The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. * The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Taliaferro County Board of Education as ofJune 30, 2001, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated March 14, 2002, on our consideration of the Taliaferro County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Taliaferro County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits E through I) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required byU. S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part ofthe general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. 2001ARL-13 A copy of this report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. Respectfully submitted, RWH:gp 2001ARL-13 TALIAFERRO COUNTY BOARD OF EDUCATION TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30. 2001 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Food Donated Commod1t1es Purchased Food GOVERNMENTAL FUND SPECIAL GENERAL REVENUE FUND FUND $ 1,724,174.02 $ 39,446.78 34,556.52 42,919.17 28,250.00 235.59 1,208.28 Total Assets $ 1,801,649.71 $ ===6=9=1.=40=6=5== LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Total L1ab1lit1es FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Inventories Food Donated Commodities Purchased Food For SPLOST Proiects For State Capital Outlay ProJects Unreserved Undes1gnated Total Fund Equity $ 19,862.14 $ 8,316.56 37,241 44 330.99 7,948 64 $ 19,862.14 $ 53,837.63 $ 33,210.00 $ 235.59 1,208.28 1,748,577.57 $ 1 781 787.57 $ 13,859.15 15,303.02 Total L1ab1lities and Fund Equity $ 1,801,649.71 $ ===,;6~9~1,~40~6~5= The notes to the general-purpose financial statements are an integral part of this statement -2- EXHIBIT"A" TYPES CAPITAL PROJECTS FUND FIDUCIARY FUND TYPE AGENCY FUND TOTALS (Memorandum Onl~} JUNE 30, 2001 JUNE 30, 2000 $ 169,770.38 $ 7,121.58 $ 1,940,512.76 $ 610,282.28 34,556 52 32,603.97 306,477.98 377,647 15 162,835.69 235.59 1 208.28 1,207.77 1 152.24 $ 476,248 36 $ 7,121.58 $ 2,354,160 30 $===80=8,,..,0=8=1.=9=5 $ 216,955.50 101,020.12 $ $ 317,975.62 $ $ 7 121 58 7121.58 $ 28,178 70 $ 37,241.44 330.99 216,955.50 101,020.12 7,948 64 7 121.58 398,796.97 $ 22,078.91 19,988 41 8,000.00 6,493.99 56,561.31 $ 115,644.21 42,628.53 0.00 $ 158,272.74 $ 33,210.00 $ 3,753.00 235.59 1,208.28 115,644 21 42,628.53 1,762,436.72 $ 1,955,363.33 $ 1,207.77 1,152.24 14,965.15 199,402.00 531,040 48 751,520 64 $ 476,248.36 $ 7,121 58 $ 2,354,160 30 $ ===8=08=,0=81=.95= -3- TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Adm1mstrat1on Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES} Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 2,362,719.74 $ 605,564.54 54,735.62 $ 3,023,019 90 $ 121,07647 614,591.95 5 917 49 741 585 91 $ 1,122,764.58 $ 25,566.71 6,883 32 40,073.79 127,061.27 109,329.68 78,083.94 86,139.78 137,727.58 1,500.00 444,163.20 18,949.76 103,994 70 44,500.79 7,148 62 1,443.28 2,076.42 1,400.06 125,52317 $ 1,735,130.65 $ $ 1,287,889 25 $ 749,200.00 -7 614.09 $ -19,421.92 $ -19 421.92 $ 1,268,467.33 $ 513,320 24 -7,614.09 23,833.25 -972.18 56.04 FUND BALANCE JUNE 30 $ 1 781,787 57 $ =====15=,3=0=3.=02= 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, 2001 JUNE 30, 2000 $ s 938,241.91 3,422,038.12 $ 894,554.99 614,591 95 352,028 31 95,978.45 701,542 99 793,537 19 9 098 94 69,752.05 41,62115 $ 1,043,319 30 $ 4,807,925 11 $ 2,081,741 64 $ 1,566,927 78 $ 1,123,938 43 $ 1,118,835 63 44,516.47 110,878.02 84,574.58 134,209 89 110,772 96 78,083 94 86,139.78 139,804 00 2,900 06 125,523.17 1,118,835 63 10,473.34 83,373.92 77,353.05 119,513.87 86,862.77 65,402.77 85,718.23 196,208 41 2,775.16 100,884.02 99,834.94 $ 1,118,835 63 $ 3,603,166.28 $ 2,052,338 91 $ -75 516 33 $ 1,204,758.83 $ 29,402 73 $ 19,421.92 $ 19,421.92 $ 131,969.46 -19 421 92 -131,969.46 $ 19421.92 $ 000 $ 000 $ -56,094 41 $ 1,204,758.83 $ 29,402 73 214,367.15 751,520.64 721,414.00 -972 18 56 04 791.09 -87 18 $ 158,272 74 $ 1,955,363.33 $ ==7=5=1=,5=20===64= - 5- TALIAFERRO COUNTY BOARD OF EDUCATION EXHIBIT "C" COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2001 GENERAL FUND ACTUAL (BUDGET BUDGET BASIS) REVENUES State Funds Federal Funds Taxes Other Funds s 1,202,778.00 $ 2,362,719 74 634,410 00 11 000 00 605,564.54 54 735 62 Total Revenues EXPENDITURES $ 1,848,188.00 $ 3,023,019.90 Current Instruction Support Services Pupi: Services Improvement of Instructional Services Educational Media Services General Adm1rnstrat1on School Administration Business Adm1nistrat1on Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Capital Outlay Total Expenditures s $ 1,161,036.00 1,122,764 58 47,533.41 9,325.00 37,299.00 127,844.00 129,916.00 71,454.00 104,052.00 152,985.00 2,000.00 25,566.71 6,883.32 40,073.79 127,061.27 109,329.68 78,083.94 86,139 78 137,727.58 1,500.00 18,000.00 s 1 86144441 $ 1,735,130 65 Excess of Revenues over (under) Expenditures $ -13,256.41 $ 1,287,889.25 OTHER FINANCING USES Other Uses 18,000.00 -19,421 92 Excess of Revenues over (under) Expenditures and Other Financing Uses $ 4,743.59 $ 1,268,467 33 FUND BALANCE JULY 1, 2000 585,534.26 513,320.24 FUND BALANCE JUNE 30, 2001 $ 590,277.85 $ 1,781,787 57 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) s s 122,299.46 121,076.47 620,629.00 614,591.95 5,550.00 5,917 49 s 748,478.46 $ 741,585.91 $ 430,009 00 $ 444,163.20 6,250.00 104,174 00 41,270.00 7.116 00 1,350 00 18,949 76 103,994.70 44,500.79 7,148 62 1,443.28 2.518 00 1,000 00 119,910.00 2,076 42 1,400.06 125,523.17 s $ 713,597.00 749,200.00 $ 34,881.46 $ -7,614.09 $ 34,881.46 $ -7,614.09 0.00 2147324 $ 34,881.46 $ 13,859 15 The notes to the general-purpose financial statements are an integral part of this statement -6- TALIAFERRO COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Taliaferro County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. FUND ACCOUNTING The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accountmg entity with a self-balancing set of accounts. General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. -7- TALIAFERRO COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. Governmental funds are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning -8- TALIAFERRO COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. BUDGET The Taliaferro County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" of this report: - 9- TALIAFERRO COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS ruNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Special Revenue Fund FUND BALANCE JULY 1, 2000 $ 23,833.25 Adjustments Inventories - July 1, 2000 Food Donated Commodities Purchased Foods -1,207.77 -1,152.24 Fund Balance July 1, 2000 (Budget Basis) $ 21,473.24 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses -7,614.09 FUND BALANCE JUNE 30, 2001 (Budget Basis) $ 13,859.15 CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: (1) Obligations issued by the State of Georgia or by other states, - 10 - TALIAFERRO COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) Obligations of any corporation of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations of other political subdivisions of the State of Georgia. RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. PROPERTY TAXES The Taliaferro County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on December 20, 2000 (levy date). Taxes were due on February 20, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Taliaferro County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $595,908.66. The tax millage rate levied for the 2000 tax year (calendar year) for the Taliaferro County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 16.39 mills SALES TAXES Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. The School District collected revenue from two separate sales tax referendums during the fiscal year. - 11 - TALIAFERRO COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Sales tax revenues on the first referendum during fiscal year 2001, which terminated on September 30, 2000, amounted to $23,387.87 and were recorded in the Capital Projects Fund. Collections on the second referendum began on October 1, 2000, and sales tax revenues during the fiscal year amounted to $72,590.58. These amounts were recorded in the Capital Projects Fund. The State will terminate collection of this second tax once an additional $427,409.42 has been collected or on September 30, 2005, whichever occurs first. INVENTORIES FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. INTERFUND TRANSACTIONS The School District has the following types of interfund transactions: Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2: DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not - 12 - TALIAFERRO COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 2: DEPOSITS AND INVESTMENTS 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 securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $2,138,330.78. The amounts ofthe total bank balances are classified into three categories of credit risk: Category I - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the ' School District's name. - 13 - TALIAFERRO COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 2: DEPOSITS AND INVESTMENTS Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) The School District's deposits are classified by risk category at June 30, 2001, as follows: Risk Category Bank Balance 1 $ 107,590.66 2 2,030,740.12 3 0.00 Total $2,138,330.78 CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value ofthe School District's total investments was $34,556.52 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows: The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAArn rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. - 14 - TALIAFERRO COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 2: DEPOSITS AND INVESTMENTS Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. Note 3: NON-MONETARY TRANSACTIONS The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGEMENT The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. The School District has obtained commercial insurance for risk of loss associated with torts and assets. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years. The School District has elected to self-insure for all losses related to natural disaster. In addition, the School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years. The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. The School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December l, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00. - 15 - TALIAFERRO COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 4: RISK MANAGEMENT The School District has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Amount Superintendent Principal Bookkeeper Office Clerk Secretary Athletic Director $ 70,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 Note 5: ON-BEHALF PAYMENTS The School District has recognized revenues and expenditures in the amount of $26,486.09 for health insurance and retirement contributions paid on the School District's behalfby the following 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$21,123.09 Office of Treasury and Fiscal Services Paid to 'the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $5,363.00 Note 6: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001, together with funding available: Project Unearned Executed Contracts Funding Available From State 01 /O0S-731-006 $ 1.550.712.52 $ 856,376.09 The amounts described in this note are not reflected in the general-purpose financial statements. - 16 - TALIAFERRO COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 7: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by, grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. Note 8: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 2001 2000 1999 100% 100% 100% $ 120,216.26 $ 88,164.91 $ 85,302.02 - 17 - TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2001 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 21,857.89 $ 13,518 43 1,161.00 235.59 11208.28 Total Assets $ 24,462.76 $ ===1=3=5=1=8.==43= LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Total Liabilities FUND EQUITY Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity $ 823.32 $ 2,752.16 8,336.42 10,435.28 330.99 $ 9159.74 $ 131518.43 $ 235.59 1,208.28 131859.15 $ 0.00 $ 151303.02 $ 0.00 Total Liabilities and Fund Equity $ 24,462.76 $ ===1=3=5=18===43= See notes to the general-purpose financial statements. - 18 - EXHIBIT"E" FEDERAL PROGRAMS TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 4,070.46 $ 39,446.78 $ 33,328.45 27,089.00 28,250.00 20,908.38 235.59 1,208 28 1,207.77 1 152.24 $ 31,159.46 $ 69 140.65 $ ===5=6,5=96=.8= 4 $ 4,741.08 $ 8,316.56 $ 4,775.18 18,469.74 37,241.44 19,988.41 330.99 7 948.64 7 948.64 8,000.00 $ 31,159.46 $ 53,837.63 $ 32,763.59 $ $ _ _ _ _o_.o_o_ $ 0 00 $ 235.59 $ 1,208.28 1,207.77 1,152.24 13 859 15 21 473.24 15,303.02 $ _ _--'-2_3...._,8_3__3_._2_5_ $ 31 159.46 $ 69 140 .65 $ ===5=6=,5=96=.8=4= - 19 - TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Student Transportation Services Other Support Services Food Services Operation Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 6,708.00 $ 100,574.47 105,283.59 5917.49 $ 117,909.08 $ 100 574 47 $ 84,733.40 14,000.01 1,841.06 $ 125,523.17 $ 125,523.17 $ 100 574 47 $ -7,614.09 $ 0.00 23,833.25 0.00 -972.18 56.04 FUND BALANCE JUNE 30 $ 15,303.02 $ =====0.0=0 See notes to the general-purpose financial statements. - 20 - EXHIBIT "F" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 13,794.00 $ 121,076.47 $ 94,110 06 509,308.36 614,591.95 352,028.31 5 917.49 5,459.34 $ 523,102.36 $ 741,585.91 $ _ _4....;;5_1"""5...;;..97----'-71-'-- $ 359,429.80 $ 444,163.20 $ 243,259.66 18,949.76 89,994.69 44,500.79 7,148.62 1,443.28 235.36 1,400.06 18,949.76 103,994.70 44,500.79 7,148.62 1,443.28 2,076.42 1,400.06 125,523.17 4,626.00 43,271.74 38,128.08 16,623.50 8,526.18 1,025.16 100,884.02 $ 523,102.36 $ 749,200.00 $ 456 344.34 $ 0.00 $ -7,614.09 $ -4,746.63 0.00 23,833.25 27,875.97 -972.18 56.04 791.09 -87.18 $ 0.00 $ 15,303.02 $ =======2=3=,8=3=3=.=2=5= - 21 - TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2001 EXHIBIT"G" ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2001 JUNE 30, 2000 s 67,819.15 $ s 101,951.23 169,770.38 $ 199,402.00 292,785 00 13,692 98 306,477 98 1496515 s 360,604.15 $ 115644.21 $ 476,248 36 $ 214,367 15 LIABILITIES AND FUND EQUITY LIABILITIES Contracts Payable $ Retainages Payable Total L1ab11lbes $ FUND EQUITY Fund Balances Reserved For SPLOST Projects For State Capital Outlay ProJects $ Unreserved Undes1gnated Total Fund Equity $ 216,955.50 101,020.12 317,975.62 $ 216,955 50 101,020.12 s 317,975 62 $ 42,628.53 0 00 42,628 53 $ 115,644.21 $ 0.00 115 644.21 $ 115,644.21 $ 42,628.53 0.00 158,272.74 $ 14,96515 199,402.00 0.00 214,367.15 Total L1ab1hties and Fund Equity $ 360,60415 $ 115644.21 $ 476,248.36 $ 214,367.15 See notes to the general-purpose financial statements - 22- TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2001 EXHIBIT "H" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 REVENUES State Funds Taxes Other Funds Total Revenues s 938,241 91 s 938,241.91 s 95,978 45 95,978.45 $ 109,485 54 4 398.33 4 700 61 9 098 94 1,771 56 s s s s 942,640.24 100,679 06 1,043,319.30 111 257.10 EXPENDITURES Capital Outlay Land and Land Improvements Building and Bu1ld1ng Improvements Equipment Total Expenditures Excess of Revenues over (under) Expenditures s s 2,143.15 1,116,692.48 $ 1,118,835.63 $ $ -176,195 39 $ 0 00 $ s 2,143.15 1,116,692.48 0 00 s s 1,118,83563 100,679 06 $ -75,516 33 $ 63,263.80 35,366 32 1,204 82 99,834.94 11 422 16 OTHER FINANCING SOURCES {USES} Operating Transfers In Operating Transfers Out $ 19,421.92 $ 19,421.92 $ 263,267.30 -131,297.84 Total Other Financing Sources (Uses) $ 19 421 92 $ 19,421.92 $ 13196946 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other F1nanc1ng Uses $ FUND BALANCE JULY 1 -156,773.47 $ 199,402 00 100,679 06 $ 14 965 15 -56,094.41 $ 214367.15 143,391 62 70,975.53 FUND BALANCE JUNE 30 s 42,628.53 $ 115644.21 $ 158,272 74 $ 214,367.15 See notes to the general-purpose financial statements - 23 - TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2001 EXHIBIT "I" STUDENT ACTIVITY FUND ASSETS Cash and Cash Equivalents LIABILITIES Funds Held for Others BALANCE JULY 1, 2000 ADDITIONS DEDUCTIONS BALANCE JUNE 30, 2001 $ 6,493 99 $ 10,788.40 $ 10,160.81 $ ===7=1=21=.58= $ 6,493.99 $ 10,788.40 $ 10,160.81 $ ===7=12=1=.58= See notes to the general-purpose financial statements. - 24 - TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Agriculture, U S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program Total Child NutntIon Cluster . 10 553 . 10 555 NIA $ 33,009.87 NIA 63,326.99 $ s $ 96,336.86 (2) 121,401 40 (3) 121,401 40 Other Programs Pass-Through From Georgia Department of Education Food and Nutnt1on Program Food DIstnbutIon Program (1) 10.550 NIA Pass-Through From Office of School Readiness Food and Nutntion Program Child and Adult Care Food Program 10.558 NIA 4,121.77 4,824.96 4,121.77 {2) Total U.S. Department of Agnculture $ 105,283.59 $ 125,52317 Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Capacity Building Improvement 84.027 84.173 84.173 NIA $ 11,818.00 $ NIA 4,054.00 NIA 327.00 11,818.00 4,054.00 327.00 Total Special Education Cluster $ 16,199.00 $ 16,199.00 Other Programs Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project 84.332 Elementary and Secondary Education Act Title I Grants to Local Educational Agenaes . 84.010 Title II Eisenhower Professional Development 84.281 Title Ill Technology Literacy Challenge Fund Grants 84.318 TitleVI Innovative Education Program Strategies 84.298 Class Size Reduction 84.340 Goals2000 State and Local Education Systemic Improvement Grants 84.276 Safe and Drug-Free Schools and Communities 84.186 Pass-Through From Office of School Readiness Elementary and Secondary Education Act Title II Pre-K Summer Transition Program 84.336 NIA 65,000.00 NIA 141,794.00 NIA 16,000.00 NIA 125,000.00 NIA 3,231.00 NIA 15,240 00 NIA 112,500.00 NIA 12,293.00 NIA 2,051.36 65,000.00 141,794.00 16,000.00 125,000.00 3,231.00 15,240.00 112,500.00 12,293.00 2,051.36 Total U.S. Department of Education $ 509,308.36 $ 509,308.36 Total Federal Financial Assistance NIA= Not Available - 25- $ 614,591.95 $ 634,831.53 TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001 SCHEDULE "1" Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food D1stnbut1on Program represents the Federally assigned value of nonmonetary assistance for donated commod1bes received and/or consumed by the system dunng the current fiscal year (2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program (3) Expenditures on this program/proJect were not maintained on a program/proiect basis Mai or Programs are identified by an asterisk(") in front of the CFDA number The School D1stnct did not provide Federal Assistance to any Subrecip1ent The accompanying schedule of expenditures of Federal awards includes the Federal grant act1v1ty of the Taliaferro County Board of Education and 1s presented on the modified accrual basis of accounting which 1s the basis of accounting used in the presentation of the general-purpose financial statements See notes to the general-purpose financial statements. - 26- TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001 SCHEDULE "2" AGENCY/FUNDING GRANTS Community Affairs, Georgia Department of Local Assistance Grants Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program Students with D1sab1lilles Category II Category Ill Remedial Education Program Alternative Education Program Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Education Equalization Funding Grant Food Services Other State Programs At-Risk Summer School Program Health Insurance Innovative Programs Preschool Handicapped Program Lottery Programs Computers in the Classroom Georgia State Financing and Investment Commission Reimbursement on Construction Proiects Office of School Readiness Pre-Kindergarten Program Office of Treasury and Fiscal Services Pubhc School Employees Retirement CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program Foreign Language Program GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL s 1,148,000 00 $ 1,148,000 00 18,312 00 20,995.00 87,757 00 39,716 00 65,459 00 120,244 00 28,671.00 38,624 00 5,042 00 5,736 00 14,739.00 3,85800 249,125 00 101,224 00 28,657 00 163,590 00 23,183 00 724.00 8,79900 $ 6,708 00 612 65 21,123.09 5,000 OD 14,256 00 2,899 DO 18,312 00 20,99500 87,757 00 39,716.00 65,459 00 120,244 00 28,671 00 38,624 00 5,042.00 5,736 00 14,739 00 3,85800 249,125 00 101,224 00 28,657 00 163,590 00 23,183 00 724.00 8,799 00 6,70800 612 65 21,123.09 5,000 00 14,256 00 2,899.00 $ 938,241 91 97,675 47 5,363 00 938,241.91 97,67547 5,363 00 117,259 00 26.651 00 13,794 00 117,259 00 13,794 00 26,651 00 See notes to the general-purpose financial statements $ 2,362,719 74 $ 121,076 47 $ 938,241 91 $ 3.422,03812 27- TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30. 2001 SCHEDULE "3" PROJECT Purchase of a new 60-passenger school bus to transport children to and from school Construction of a covered walkway from Bu1ld1ng 2010 to Building 2030 General renovation of dassrooms 1 - 9 in Building 2020 Acquiring, constructing, installing, furnishing and equipping a new school for grades K-12 in Taliaferro County, induding any school buildings and athletics faciht1es and payment of expenses inetdent thereto ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR(3) AMOUNT EXPENDED IN PRIOR YEARS (3) PROJECT STATUS $ 47,000.00 $ 48,156.00 $ 48,156.00 Completed 56,250 00 28,140.00 28,140 00 Completed 146,750.00 9,980.64 9,980.64 Completed 500,000.00 2,658,899.36 $ 1.118,835 63 63,865.30 Ongoing $ 750,000.00 $ 2,745,176.00 $ 1,118,835.63 $ 150,141.94 (1) The School District's onginal cost estimate as specified m the resolution calling for the imposition of the Local Option Sales Tax. (2) The School DIstnct"s current estimate of total cost for the projects. lndudes all cost from project inception to completion. (3) The voters of Taliaferro County approved the ImposItton of a 1% sales tax to fund the above proJects. Amounts expended for these pro1ects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. See notes to the general-purpose financial statements. -29 - TALIAFERRO COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASiC EDUCATION PROGRAM !QBE} ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED~JUNE 30. 2001 SCHEDULE "4" DESCRIPTION Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (45) Program Middle Grades (6-8) Program Students with D1sab1hlies Category I Category II Category Ill Remedial Education Program Alternative Education Program TOTAL DIRECT INSTRUCTIONAL PROGRAMS Media Center Program Staff and Professional Development ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS SALARIES OPERATIONS TOTAL $ 23,231 00 $ 34,874 71 $ 915 37 $ 35,790 08 26,635 00 26,742 32 400 00 27,142 32 111,330 00 155,130 24 3,286 16 158,416 40 50,384 00 52,360 82 835 00 53,195.82 83,042.00 154,056 70 2.458 27 156,514 97 152.543.00 172,164 15 7,074 57 179,238 72 85,373.00 9,846 00 9,846 00 49,682 43 5,407 89 55,090.32 58,398 93 58,398 93 6.396 00 15,41687 141 52 15,558 39 7.277 00 8.464 73 119 74 8,584 47 $ 546,211 00 $ 727,291 90 $ 30,484 52 $ 757,776 42 18.699 00 4,894 00 30,703 87 5,233 32 8,751 43 150 00 39,455 30 5,383 32 TOTAL QBE FORMULA FUNDS $ 569,804 00 $ 763,229 09 S 39.385 95 $====8=02,,..=61=5=0==4 (1) Compnsed of State Funds plus Local Five Mill Share. See notes to the general-purpose financial statements 30 TALIAFERRO COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 SCHEDULE "5" SITE Taliaferro County Elementary School Sand Hills Psychoeducational Program Central Office (Alternative Education Program) TOTAL (1) Comprised of State Funds plus Local Five Mill Share. ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS $ 538,934.00 $ 737,859.32 11,425.32 7,277.00 8,491.78 $ 546,211.00 $ ===7=5=7=7.=7=6=.4=2 See notes to the general-purpose financial statements. - 31 - SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS Rv-;..,L,1.1. \V. Hi:-. rm; STATE AUDITOR 1404) 656 2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Wa,hmgton Street. S W. Sunc 2 14 AtluntJ. Georgia 3(!:~34-8400 March 14, 2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Taliaferro County Board of Education REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the financial statements of Taliaferro County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated March 14, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Taliaferro County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with ce11ain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opimon on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered Taliaferro County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 2001YB-41 control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgment, could adversely affect Taliaferro County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7311-0101. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7311-01-01 to be a material weakness. This report is intended solely for the information and use of the management, members of the Taliaferro County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, ' ~- . nton State Auditor RWH:gp 2001YB-41 R1 1..,~1-.1.1 \V. H1:vror- s1A1E AUDITOP (404) 656-2170 DEPARTMENT OF AUDITS AND ACCOUNTS 254 W..i,hington Street. S W. Sullc 214 Atl..inta, Georgia 30334-8400 March 14, 2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Taliaferro County Board of Education \ REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 Ladies and Gentlemen: Compliance We have audited the compliance of Taliaferr