Tattnall County Board of Education, Reidsville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

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TATTNALL COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDIDONAL 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

FIDUCIARY FUND TYPE

K

COMBINING BALANCE SHEET

30

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

31

TATTNALL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDIDONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

32

2 SCHEDULE OF STATE REVENUE

34

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

37

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

38

5

BY SITE

39

SECTION II ..
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE wrrn GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE wrrn REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE wrrn
O:MB 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

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Sune 214 Atlanta, Georgia 30334-8400
May 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 Tattnall 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 Tattnall 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 Tattnall County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
Except as discussed in the following paragraph, 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2001ARL-13

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:
* The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and 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 Tattnall County Board of Education as ofJune 30, 2001, and the results of its 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 May 14, 2002, on our consideration of the Tattnall 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.
2001ARL-13

Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Tattnall County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through L) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effect ofadjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

RWH:as 2001ARL-13

State Auditor

TATTNALL COUNTY BOARD OF EDUCATION

JATTNALb !.Q!.!NIY f!QABP QE EQ!.!!.AIIQN
!.QMf!INEP f!ALANQE S!::!EET ALL FUND IYeEs AND A!.!.Q!.!NI ~BQUP
JUNE 30 2001

~ Cash and Cash Equivalents
Investments
Accounts Receivable
lnventones Food Donated Commod1lles Purchased Food
Amount Available m Debt Service Fund
Amount to be Provided m Future Years For Payment of Bond Debt Capital Lease Agreements Long Term Debt
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

832,296 83 $

494,356.34 $

140,630 75

245,589 08

228,361 82

34,015 90

34,551 08 14,164 21

$

110771885 91 $

77143345 $

174 646 65

LIABILITIES AND FUND EQU[[Y
LIABILITIES
Accounts Payable Salanes Payable Expired Grant Balances Payable Contracts Payable Retamages Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable Long Term Debt Payable
Total LIabIhlles
FUND EO!,!ITY
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For lnventones Food Donated Commodrbes Purchased Food For Purpose of SPLOST Pro1ects For State Capital Outlay Pro1ects Unreserved Undes1gnated
Total Fund Equity

$

63,009 73

272,686 69

23,757 00

6,073 13

$

365,526 55

$

68,852 56

$

34,551 08

14,164 21

$

1,009,033 35

$

1 077 885 91 $

357 191 61 405 906 90 $

76,586 52 93,741 81
4 318 32
17464665

Total LIabIhbes and Fund Equity

$

1 077 885 91 $

The notes to the general-purpose financ:1al statements are an integral part of this statement

-2-

771 433 45 $

174 646 65

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum On~l

JUNE 30, 2001

JUNE 30, 2000

$

854,751 94

$ 2,322,035 88 $ 3,806,512 89

$

469,501 80

469,501 80

543,562.33

226,387.91

734,354 71

859,493 05

34,551 08 14,164.21

28,338 19 12,448 78

$

1,081,139 85

1,081,139 85

1,170,223.98

2,139,110 79 86,553 03
2,429,749.36

2,139,110 79 86,553 03
2,429,749 36

2,454,845 62 119,963.86
3,449,930 40

$

11081 I139 85 $

469 501 80 $

5?361553 03 $ 91311116069 $ 1214451319 10

$

63,009 73 $

113,277.28

272,686.69

257,93842

23,757 00

16,695 31

228,212 54

180,986 13

6,073 13

$

(16,553 03

86,553.03

119,963 86

2,595,000 00

2,595,000 00

2,830,000.00

3,055,000 00

3,055,000 00

4,245,000 00

$

5,736,553 03 $ 6,102,079 58 $ 7,992,073 54

$ 1,081,139 85

0 00 $

$

11081 I139 85 $

469 501 80 469 501 80

$

68,852 56

1,081,139 85 $ 1,170,223.98

2,160.19

376.58

34,551.08 14,16421 76,586 52 93,741 81

28,338.19 12,448 78 858,951 77 511,086.00

1,840,045 08

1,869,660 07

$ 3,209,081 11 $ 4,453,245 56

$

1 081 139 85 $

469 501 80 $

5?361553 03 $ 9131u6068 $ 12i4451319 10

3.

TATTNALL COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS 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 Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Pnncipal Interest Paying Agent Fees
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 Fmancmg Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Penod Donated Commod1t1es Purchased Food

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 14,817,003.88 $ 5,661.62
3,270,885.66 235,124.61
$ 18,328,675 77 $

832,852.39 $ 2,460,342.16
359,601.68
3,652,796.23 $

340,159.00
30,084.78 370,243.78

$ 11,535,483.35 $
1,041,789.36 560,598.33 408,068.56 296,715.98
1,307,325.40 128,954.08
1,435,47410 834,158 39 15,528.10
89,151 62
33,410.83 6,54917

1,733,280 43
214,004.10 85,792.96
99,550 00 32941
15,796 60 11,871 94 13,491.45
415.50 2,003,171.65
$

1,569,752.58

$ 17,693,207.27 $

$

635,468.50 $

4,177,704.04 $ -524,907 81 $

1,569,752.58 -1,199,508.80

$

$

-17 174.72

$

-17 174.72 $

17,174 72 17 174 72

$

618,293 78 $

-507,733 09 $ -1, 199,508.80

459,592.13

905,711.67

1,374,155.45

6,212 89 171543

FUND BALANCE JUNE 30

$ 1,077,885 91 $

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

405,906 90 $===17=4"=64===6=65=

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 15,990,015.27

2,466,003.78

$ 1,563,498.47

4,834,384.13

70,105.35

694,916 42 $

$ 1,633,603.82 $ 23,985,319.60 $

$ 15,537 49

15,990,015.27 $ 2,466,003.78 4,834,384.13
710,453.91

14,444,439 66 2,692,186.51 4,320,519.52
739,416 95

15,537 49 $ 24,000,857.09 $ 22,196,562.64

$ 13,268,763.78

1,255,793 46 646,391.29 408,068.56 396,265.98 $
1,307,654.81 128,954.08
1,451,270 70 846,030.33 29,019.55 415.50
2,003,171.65 1,658,904.20

$ 1,425,000.00 297,68795

1,458,410 83 304,237.12

$ 1,722,687.95 $ 25,163,351 84 $

$

-89,08413 $ -1,178,032.24 $

$ 13,268,763.78 $ 12,838,139 48

89,598.02

1,255,793 46 646,391.29 408,068.56 485,864.00
1,307,654.81 128,954.08
1,451,270.70 846,030.33 29,019.55 415.50
2,003,171.65 1,658,904.20

1,368,583 67 540,569.77 351,201 40 476,107 87
1,043,599.80 115,141.82
1,280,373 99 914,078.61 55,36919 2,089.69
1,376,062.76 4,322,277.26

1,458,410.83 304,237.12

1,156,392.33 361,464 93 750.00

89,598 02 $ 25,252,949.86 $ 26,202,202.57

-74,060.53 $ -1,252,092.77 $ -4,005,639.93

$

17,174.72

-17 174 72

$

000

$

-89,084.13 $ -1, 178,032.24 $

1,170,223.98

3,909,683.23

6,212.89 1 71543

$

17,174.72

-17 174 72

$

0.00

-74,060.53 $ 543,562.33

-1,252,092.77 $ 4,453,245.56

-4,005,639.93 8,465,969.17

6,212.89 1 715 43

-9,283.77 2,200 09

$ 1,081,139.85 $ 2,739,579 31 $

469,501 80 $ 3,209,081.11 $ 4,453,245.56

-5-

TATTNALL COUNTY BOARD OF EDUCATION 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

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

$ 14,411,724.00 $ 14,817,003.88

5,661.62

3,302,122.00 3,270,885 66

115,000.00

235,124.61

$ 17,828,846.00 $ 18,328,675.77

Current Instruction Support SeMces Pupil SeMces Improvement of Instructional Services Educational Media SeMces General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation SeMces Central Support Services Other Support Services Food Services Operation
Capital Outlay DebtSeMce
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 11,660,209.00 $ 11,535,483.35

817,545.00 340,878.00 500,241.00 416,975.00 1,394,123.00 139,312.00 1,541,687.00 877,872.00
16,000.00

1,041,789.36 560,598.33 408,068 56 296,715.98
1,307,325.40 128,954.08
1,435,474.10 834,158.39 15,528.10

107,761.00

89,151.62 39,960.00

$ 17,812,603.00 $ 17,693,207.27

$

16,243.00 $ 635,468 so

OTHER FINANCING SOURCES (UESl

Other Sources Other Uses

$ -17 174 72

Total Other Financing Sources (Uses)

$ -17 174 72

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Finanang Uses $
FUND BALANCE JULY 1 2000
AdJustments Food Inventories - Net Change m Period
Donated Commodities Purchased Food

16,243.00 $ 356,348.57
-1,599.00

618,293.78 459,592.13

FUND BALANCE JUNE 30, 2001

$ 3701992 57 $ 110111885 91

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 705,285.00 $ 832,852.39 2,608,887.00 2,460,342.16

387,300.00

359,601.68

$ 3.701,472.00 $ 3,652,796.23

$ 1,763,152.39 $ 1,733,280.43

123,009.20 118,175.00 40,468 00 49,284.00

214,00410 85,792.96
99,550.00 329.41

19,500 00
1,993,816.00 30,11540

15,796.60 11,871 94
13,491.45
415 so
2,003,171.65

$ 4,137,519 99 $ 4,177,704.04 $ -436,047.99 $ -524,907 81

$ 17,174.72

$ 17174 72

$ -436,047.99 $ -507,733.09

886,030.93

905,711 67

59,382.15

6,212 89 1 715 43

$ 509136509 $ 405,906 90

The notes to the general-purpose financial statements are an integral part of this statement. -7-

TATINALL 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 Tattnall County Board ofEducation (School District) was established under the laws ofthe 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 and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities 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 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.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group 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.

-8-

TATTNALL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

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 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.
DEBT SERVICE FUND- the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
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:
EXPENDABLE TRUST FUNDS 4-H Club Trust fund - the fund used to account for proceeds from the sale of4-H property and used to provide for the assistance of Tattnall County children enrolled at the College of Agriculture of the University of Georgia.
Deferred Compensation Plan - the fund used to account for financial resources to be used for the employees of the School District.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding, promissory notes and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust 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 of these 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. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.

-9-

TATTNALL COUNfY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental and expendable trust 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 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.
BUDGET
The Tattnall 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.
- 10-

TATINALL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE30.2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia 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,
(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 ofGeorgia, Office of Treasury and Fiscal Services,
- 11 -

TATINALL COUNTY BOARD OF EDUCATION

EXHIBIT"D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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 Tattnall County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on November 2, 2000 (levy date). Taxes were due on February 15, 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 Tattnall County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes coliected 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 $3,259,063.78 and for school bonds amounted to $403,929.74.

Tax millage rates levied for the 2000 tax year (calendar year) for the Tattnall County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

14.47 mills 1.67 mills

16.14 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,159,568.73 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $3,719,017.94 has been collected or on March 31, 2003, whichever occurs first.

- 12 -

TATINALL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost(first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
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.

- 13 -

TATTNALL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one 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 ofdevelopment 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 $3,901,103.25. The amounts ofthe total bank balances are classified into three categories of credit risk:

- 14 -

..' '' -

TATINALL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS AND INVESTMENTS

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

The School District's deposits are classified by risk category at June 30, 2001, as follows:

Risk Category

Bank Balance

1

$ 577,298.60

2

3,323,804.65

3

0.00

Total

$ 3,901,103.25

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the fair value ofthe School District's total investments was $433,485.45 and this entire amount is categorized as Unclassified - Deferred Compensation Plan pooled investments.

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 of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

The School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk in the past three years.

- 15 -

TATINALL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 4: RISK MANAGEMENT

The School District is self-insured with regard to unemployment compensation claims. 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.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

2000 2001

$

1.706.00 $

5.519.24 $

4.025.24 $

3.200.00

$

3,200.00 $

3.318.00 $

6.119.00 $

399.00

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

Position Covered

Amount

Superintendent All Employees

$ 50,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Tattnall County Board of Education has entered into various lease agreements as lessee for purchase of equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception.

GENERAL OBLIGATION DEBT - PROMISSORY NOTES As authorized in a county-wide referendum held on November 4, 1997, the Tattnall County Board of Education has entered into a lending agreement with a commercial lending institution. The debt associated with this agreement is as follows:

Purpose

Interest Rate

Amount

General Government

4.50%

$ 3.055.000.00

GENERAL OBLIGATION DEBT - BONDS General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Refunding- Series 1999 3.10% - 4.00% $ 2.595.000.00

- 16 -

TATINALL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows:

Balance July I , 2000

Capital Leases

Prorrussory Notes

General Obhgatton
Bonds

Total

$ 119,963.86 $ 4,245,000.00 $ 2,830,000.00 $ 7,194,963.86

Deductions Debt Retired
Balance June 30, 2001

33,410.83 1,190,000.00

235,000.00 1,458,410.83

$ 86 553 03 $ 3 055 000 00 $ 2 525 000 00 $ 5 :Z36 553 03

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
2002 2003 2004 2005 2006 2007 - 2011
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture M1mmum Lease Payments

Capital Leases

Promissory Notes

General Obligation
Bonds

Total Debt

$ 39,960.00 $ 1,482,475.00 $ 344,335.00 $ 1,866,770.00

39,960.00 1,786,950.00

345,760.00 2,172,670.00

13,320.00

346,580.00

359,900 00

351,775.00

351,775.00

346,135 00

346,135.00

1,393,905.00 1,393,905.00

$ 93,240.00 $ 3 269 425 00 $ 3 I28 490.00 $ 649115500

6,686.97

$ 86 553 03

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $249,208.83 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 $201,481.83

- 17 -

TATTNALL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 6: ON-BEHALF PAYMENTS

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 $47,727.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001:

Project

Unearned Executed Contracts

OILW/00S-732-007

$ 103,095.34

The amount described in this note is not reflected in the general-purpose financial statements.

Note 8: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.

The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements.

Note 9: 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 ofGeorgia (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.

- 18 -

TATfNALL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 9: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 1,345,669.23 $ 1,335,392.40 $ 1,343,128.38

- 19 -

TATTNALL 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

$ 443,751.65 $ 80,919.64

2,551.94

34,551.08 14,164.21

Total Assets

$ 495,018.88 $ 80,919.64

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general-purpose financial statements.
-20-

$

15,716.99 $ 15,754.00

73,394.99

65,165.64

$

89,111.98 $

80,919.64

$

34,551.08

14,164.21

357,191.61 $

0.00

$ 405,906.90 $

0.00

$ 495,018.88 $ 80,919.64

EXHIBIT"E"

FEDERAL PROGRAMS

OTHER PROGRAM

TOTALS
JUNE 30, 2001 JUNE 30, 2000

$ 20,970.00 $ 545,641.29 $ 1,040,205.59

$ 225,809.88

228,361.82

245,765.20

34,551.08 14,164.21

28,338.19 12,448.78

$ 225,809.88 $ 20,970.00 $ 822,718.40 $ 1,326,757.76

$ 51,284.95 31,538.74
134,126.06 2,787.00 $ 6,073.13
$ 225,809.88 $

$ 20,970.00 20,970.00 $

51,284.95 $ 63,009.73 272,686.69 23,757.00
6,073.13
416,811.50 $

66,680.20 79,732.16 257,938.42 16,695.31
421,046.09

$

2,160.19

$

34,551.08

14,164.21

28,338.19 12,448.78

$

0.00 $

0.00

357,191.61

862,764.51

$

0.00 $

0.00 $ 405,906.90 $ 905,711.67

$ 225,809.88 $ 20,970.00 $ 822,718.40 $ 1,326,757.76

- 21 -

TATTNALL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Penod Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements.
- 22-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 104,690.00 $ 1,031,959.99 359,601.68
$ 1,496,251.67 $

728,162.39 728,162.39

$ 602,682.25
82,574.06 6,677.40
14,252.09
11,101.00 10,767.00

$ 2,001,824.57

120.80

$ 2,001,824.57 $ $ -505,572.90 $

728,174.60 -12.21

$ -505,572.90 $ 903,551.48
6,212.89 1 715.43

12.21
0.00 0.00

$ 405,906.90 $ ====0==00==

EXHIBIT"F"

FEDERAL PROGRAMS

OTHER PROGRAM

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 301 2000

$ $ 1,428,382.17
$ 1,428,382.17 $

0.00 $

832,852.39 $ 2,460,342.16
359,601.68

807,489.69 2,692,002.75
336,223.38

0.00 $ 3,652,796.23 $ 3,835,715.82

$ 1,130,598.18 $
131,430.04 79,115.56 85,297.91
329.41 4,695.60 1,104.94 13,491.45
415.50 1,226.28
$ 1,447,704.87 $
$ -19,322.70 $

17,162.51

$

-2, 160.19 $

2,160.19

$

0.00 $

0.00 $ 1,733,280.43 $ 1,712,163.16

214,004.10 85,792.96 99,550.00 329.41 15,796.60 11,871.94 13,491.45 415.50
2,003, 171.65

325,048.18 133,551.01 100,774.21
1,278.89 12,237.42 16,893.09 23,196.85 2,089.69 1,376,062.76 22,086.00

0.00 $ 4,177,704.04 $ 3,725,381.26

0.00 $ -524,907.81 $ 110,334.56

17174.72

0.00 $ 0.00

-507,733.09 $ 905,711.67

110,334.56 802,460.79

6,212.89 1 715.43

-9,283.77 2,200.09

0.00 $ 405,906.90 $ 905,711.67

-23-

TATTNALL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2001

ASSETS Cash and Cash Equivalents Accounts Receivable

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

4,318.32 $

59,725.91

34,015.90

Total Assets

$

4,318.32 $ ===9=3=,7=4=1=.8=1

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Contracts Payable Retamages Payable
Total liabilities
FUND EQUITY
Fund Balances Reserved For Purposes of SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

93,741.81

$ ____4,..3.._18_._32_

0.00

$

4,318.32 $ ___9.;.;3;.r.l7;..4;.;.1.;.;;.8-'-1

Total Liabilities and Fund Equity

$

4,318.32 $ ===9=3=7=4=1=.8=1

See notes to the general-purpose financial statements. - 24-

EXHIBIT"G"

LOAN PROCEEDS
FUND

TOTALS

JUNE 301 2001

JUNE 301 2000

$

76,586.52 $

140,630.75 $ 1,813,354.12

$

76,586.52 $

174,646.65 $ 1,813,354.12

$

30,000.00

228,212.54

180,986.13

$ ____43....9._._,1.;.;;9..a.8-'.6_7_

$

76,586.52 $

76,586.52 $

858,951.77

93,741.81

511,086.00

0.00

4,318.32

4117.68

$

76,586.52 $

174,646.65 $ 1,374,155.45

$

76,586.52 $

174,646.65 $ 1,813,35412

- 25-

TATTNALL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Other Funds
Total Revenues EXPENDITURES
Capital Outlay Building and Building Improvements
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

340,159.00

$

20064

$

200.64 $

340,159.00

$

0.00 $

757,503.19

$

200.64 $

-417,344.19

$

200.64 $

-417,344.19

4117.68

511,086.00

FUND BALANCE JUNE 30

$

4,318.32 $ ===9=3=7=4=1=8=1

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

EXHIBIT"H"

LOAN PROCEEDS
FUND

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ $ _ __,;2=9"'-',8;..a.8.4..._1_4__

$

29,884.14 $

340,159.00 30,084.78 $ _ _..1.8..;;..;6..._,_1_5_;.;;.9.;.;;;.5=-3

370,243.78 $

186,159.53

$

812,249.39 $ 1,569,752.58 $ 4,227,042.29

$

-782,365.25 $ -1,199,508.80 $ -4,040,882.76

$

547,066.00

-547,066.00

$

0.00

$

-782,365.25 $ -1, 199,508.80 $ -4,040,882. 76

858,951.77

1,374,155.45

5,415,038.21

$

76,586.52 $

174,646.65 $ 1,374,155.45

- 27-

TATTNALL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND
JUNE 30, 2001

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR
BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 301 2000

$

425,716.32 $

429,035.62 $

854,751 94 $

838,775.56

30,172.89

196,215.02

226,387 91

331,448 42

Total Assets

$

455,889.21 $ 625,250.64 $ 1,081,139.85 $ 1,170,223.98

FUND EQUITY

Fund Balances

Reserved

For Debt Service

$

Unreserved

Undes1gnated

455,889.21 $ 0.00

625,250.64 $ 000

1,081,139.85 $ 0.00

1,170,223.98 000

Total Fund Equity

$

455,889.21 $ 625,250.64 $ 1,081,139 85 $ 1,170,223.98

See notes to the general-purpose finanCJal statements.

-28-

TATTNALL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30. 2001

EXHIBIT"J"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Pnnapal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

PROPERTY TAXES FOR
BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

403,929.74 $

1,159,568.73 $

1,563,498.47 $

1,609,235.80

19,130.09

50,975.26

70105.35

58 477.28

$

423,059 83 $

1,210,543.99 $

1,633,603.82 $

1,667,713.08

$

235,000.00 $

1,190,000.00 $

1,425,000.00 $

1, 125,000.00

107,325.00

190,362.95

297,687.95

352,897.26

750.00

$

342,325.00 $

1,380,362.95 $

1,722,687.95 $

1,478,647.26

$

80,734.83 $

-169,818.96 $

-89,084 13 $

189,065.82

375,154 38

795,06960

1,170,223 98

981,15816

FUND BALANCE JUNE 30

$

4551889 21 $

6251250.64 $

1!081,139.85 $

1,170,223.98

See notes to the general-purpose financial statements

-29-

ASSETS Investments
FUND EQUITY Fund Balances
Unreserved Undesignated

TATTNALL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPE JUNE 30. 2001

EXHIBIT "K"

4-H CLUB TRUST FUND

DEFERRED COMPENSATION
PLAN

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

36,016 35 $

433,485 45 $

469,501.80 $ ===54=3=,5=6=2=33==

$

36,016.35 $

433,485.45 $

469,501.80 $ ===54=3=,5=6=2.=3=3

See notes to the general-purpose financtal statements.

- 30 -

TATTNALL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 2001

EXHIBIT "L"

REVENUES

4' -H CLUB TRUST FUND

DEFERRED COMPENSATION
PLAN

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 301 2000

Other Funds

$

2,012.37 $

13,525 12 $

15 537 49 $

30 337.11

EXPENDITURES

Current Support SeMces General Administration

$

0.00 $

89,598.02 $

89,598 02 $

0.00

Excess of Revenues over (under) Expenditures $

2,012.37 $

-76,072.90 $

-74,060.53 $

30,337.11

FUND BALANCE JULY 1

34,003.98

509,558 35

543,562 33

513,225.22

FUND BALANCE JUNE 30

$

36,016.35 $

433,485.45 $

469,501 80 $ ===54=3=,5=6=2=.3=3

See notes to the general-purpose financial statements.

- 31 -

TATTNALL COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agnculture, U S Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutntion Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutntion Cluster
Direct Secondary Agnculture Education Grants Aquaculture Research Freshwater Shnmp Farming
Other Programs Pass-Through From Georgia Department of Education Food and Nutntion Program Food D1stnbut1on Program (1) Pass-Through From Office of School Readiness Food and Nutnt1on Program Child and Adult Care Food Program
Total U. S Department of Agnculture
Education, U S Department of Special Education Cluster Pass-Through From Georgia Department of Education lnd1V1duals with D1sab1ht1es Education Act Part B Special Education Flow Through Preschool Capacity Building Improvement Grant
Total Special Education Cluster
Other Programs Direct Impact Aid Pass-Through From First D1stnct Regional Educational Service Agency d/b/a Live Oak Migrant Education Agency Elementary and Secondary Education Act Tltlel Migrant Education Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Titlel Grants to Local Educational Agencies Titlell Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Vocational Education Basic Grants to States High School Program Basic Grant
Total U S Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

.. 10 553 10 555

N/A

$ 273,147 24

(2)

NIA

661,889 19 $

1,926,485 90 (3)

$ 935,036 43 $

1,926.485 90

10 226

3,937 31

3,937 31

10 550 10 558

NIA

75,338 67

75,338 67

N/A

21,584 89

!2)

$ 1,035,897 30 $

2,005,761 88

84 027 84 173 84173

NIA

$ 238,654 00 $

NIA

11,286.56

N/A

7,028 79

$ 256,969 35 $

238,654 00 11,286 56 7,028 79
256,969 35

84 041

1,724 31

(4)

84 011

NIA

97,204 20

97,540 07 (3)

84 010 84 281 84 298 84 340
84 048

N/A

707,488 52

N/A

12,934 33

NIA

25,015.00

NIA

106,481 00

707,488 52
15,094 52
25,015 00 123,307 64 (3)

N/A

59,074 00

59 074 00

$ 1,266,890 71 $

1 284 489 10

-32-

TATTNALL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Labor, U S Department of Direct School-to-Work Opportunities Act of 1994 Urban/Rural Opportunities Grant

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84 278

$ 163,215 77 $ _ _ _1_6_3~.2_1_5_7_7

Total Federal Financial Assistance
N/A = Not Available

$ 2,466,003 78 $ ===-3,""45_3..,,4,.,6=6,.,7,..5

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food D1stnbubon Program represents the Federally assigned value of nonmonetary assistance for donated commodities 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 for this program include State. and/or Other Funds. Expenditures are not maintained by fund source
(4) Funds earned on this program do not require reporting of expenditures

MaJor Programs are identified by an astensk (") 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 Tattnall 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

33

TATTNALL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Community Affairs, Georgia Department of Local Assistance Grants

$ 150,000 00

$ 150,000 00

Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students wrth D1sab11ities Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Canter Program Staff and Professional Development Indirect Cost Categoncal Grants Pupil Transportation Regular Bus Replacement Nursing SeMces Pnncipal Supplements Vocational Supervisors Migrant Education Education Equalization Funding Grant Food SeMces Vocational Education Other State Programs Apprent1cesh1p Program At-Risk Summer School Program Health Insurance Pay for Performance Preschool Handicapped Program Remedial Summer School Lottery Programs Computers 1n the Classroom

729,763 00 55,296 00
1,764,750.00 356,947 00 980,251.00
2,041,156 00 1,314,278 00
549,075.00
5,941 00 268,680 00 795,326.00 153,466 00 157,668 00 227,704 00 142,089 00
38,618.00 302,430.00 80,816 otf 2,052,314 00

529,27600 133,465 00 78,789.00
13,204 00 19,702 00 23,080 00 1,183,635.00
$ 84,271 00

104,690 00

55,000.00 5,601.36
201,481.83 172,000 00
60,122.00 6,147 69

68,00600

729,763 00 55,296 00
1,764,750 00 356,947.00 980,251 00
2,041,156 00 1,314,278 00
549,075 00
5,941 00 268,680 00 795,326 00 153,466 00 157,668 00 227,704 00 142,089.00
38,618 00 302,430 00
80,816 00 2,052,314 00
529,276 00 133,465 00 78,78900
13,204 00 19,702 00 23,080 00 1, 183,635 00 104,690.00 84,271 00
55,000 00 5,601 36
201,481 83 172,000 00
60,122 00 6,147 69
68,006 00

Georgia State Financing and Investment Comm1ss1on Reimbursement on Construction ProJects

$ 340,159 00

340,159 00

Office of School Readiness Pre-Kindergarten Program

660,156.39

660,156 39

Office of Treasury and Fiscal Services Public School Employees Retirement

47,727.00

47,727 00

-34-

TATTNALL COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2001

SCHEDULE "2"

AGENCY/FUNDING
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge
Georgia Forestry Comm1ss1on Wooden Bndge Development

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

32,134.00

4 800 00

$

32,134 00

4 800 00

See notes to the general-purpose finanaal statements

- 35 -

TATTNALL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED
COST(2)

AMOUNT EXPENDED IN CURRENT
YEAR(3)

AMOUNT EXPENDED
IN PRIOR YEARS(3)

PROJECT STATUS

i) To renovate the former Glennville High School for use as a middle grades (6,7,8) school; (ii) to renovate the former Reidsville High School for use as a middle grades (6,7,8) school; (iii) to enlarge and renovate Collins Elementary School; and (iv) to purchase personal property to be used in the above descnbed renovated and expanded facilities

$ 7,450,000.00 $ 7,100,929.63 $ 1,760,115.53 $ 5,340,814.10

Ongoing

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School District's current estimate of total cost for the project. lndudes all cost from proJect inception to completion.
(3) The voters of Tattnall County approved the imposition of a 1% sales tax to fund the above project. Amounts expended for this project may mdude sales tax proceeds, state, local property
taxes and other funds over the life of the project.

See notes to the general-purpose financial statements.

-37-

TATTNALL COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Pnmary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (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 with D1sabih1tes

Category I

Category II

Category Ill

Category IV

Gifted Student - Category VI

Remedial Education Program

Alternative Educalton Program

English Speakers of Other Languages (ESOL)

796,225.00 $ 60,332.00 1,925,471.00 389,456.00 1,069,526.00
2,227,051.00 1,433,974.00
599,081.00 1,334,833.00

861,348.92 $ 50,278.35
2,002,955.04 365,621.97
1,169,430.61 4,142 91
2,255,540.28 1,621,064 87
482,815.07
8,234.97

172,028.00 248,441.00 155,029.00
42,135.00

1,011,403.45 183,880.67 205,310.79 209,79168 155,934.82 59,474.87

14,398.36 $ 1,345.78 50,954.26 7,554.16 43,162.50
95,325.50 65,122.38 79,795.43

875,747.28 51,624.13
2,053,909.30 373,176.13
1,212,593.11 4,142.91
2,350,865.78 1,686,187.25
562,610 50

965.38 29,594.74
10,656 41 5,141.72
450.01 1,442.99

8,234.97 965.38
1,040,998.19 183,880.67 215,967.20 214,933.40 156,384.83 60,917.86

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$ 10,453,582.00 $ 10,647,229.27 $ 405,909.62 $ 11,053,138 89

Media Center Program Staff and Professional Development

329,972.00 88,178 00

331,596.08 54,191.05

63,828.52 36,601.33

395,424.60 90,792.38

TOTAL QBE FORMULA FUNDS

$

10,871,732.00 $ 11,033,016.40 $ 506,339.47 $ 11,539,355.87

(1) Comprised of State Funds plus Local Five Mill Share.

See notes to the general-purpose financial statements

- 38-

TATTNALL COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (QBE}
ALLOTMENTS AND EXPENDITURES - BY SITE
YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

SITE
Reidsville Middle School Tattnall County High School Glennville Middle School Collins Elementary School Collins Middle School Glennville Elementary School Reidsville Elementary School Tattnall County Alternative Central Office (Alternative Education Program)
TOTAL

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,003,246.00 $ 1,066,670.64

2,657,632.00

2,823,342.12

1,173,482.00

1,226,989.45

879,402.00

1,003,258.80

418,710.00

507,582.50

2,268,035.00

2,328,606.97

1,898,046.00

2,007,118.64

89,569.77

155,029.00

$ 10,453,582.00 $ 11,053,138.89

(1) Comprised of State Funds plus Local Five Mill Share.

See notes to the general-purpose financial statements.
39-

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

w. RtJSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta, Georgia 30334-8400
May 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 Tattnall 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 Tattnall County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated May 14, 2002. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-pwpose financial statements. Except as discussed in the following paragraph, 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.
We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether Tattnall County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
2001YB-41

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Tattnall County Board of Education'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 control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Tattnall County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as itemFS-7321-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7321-01-01 to be a material weakness.
This report is intended solely for the information and use of management, members of the Tattnall County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~a..00 Q.4::\-~ ~sell W. Hinton State Auditor
RWH:as 2001YB-41

RussELL W. HtNT<>N
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S. W., Suite 214 Atlanta, Georgia 30334-8400
May 14, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Tattnall 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 ofTattnall County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Tattnall County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section ofthe accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Tattnall County Board of Education's management. Our responsibility is to express an opinion on Tattnall County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Tattnall County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Tattnall County Board of Education's compliance with those requirements.
2001SA-10

In our opinion, the Tattnall County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Tattnall County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Tattnall County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the Tattnall County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:as 2001SA-10

State Auditor

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

TATTNALL COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7321-98-01 FS-7321-98-02 FS-7321-99-01 FS-7321-00-01

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

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7321-00-01

Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the School District has decided not to pursue the recording of general fixed assets on the financial statements.

SECTIONN _. FINDINGS AND QUESTIONED COSTS

TATTNALL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Tattnall County Board ofEducation's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Tattnall County Board ofEducation disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Tattnall County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Tattnall County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Tattnall County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Tattnall County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition 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 Auditee The Tattnall County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.
- 1-

TATTNALL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
'YEAR ENDED JUNE 30, 2001
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7321-01-01 The Tattnall 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. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND.-OUESTIONED COSTS No matters were reported.
-2-