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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-