Telfair County Board of Education, McRae, Georgia, report on audit of the financials statements of the fiscal year ended June 30, 2002

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. Russell W. Hinton

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TELFAIR COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STAl EMENTS

COMBINED STATEMENTS-OVERVIFW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL I UND TYPES

4

C

COMBINED STATEMENT or REVENUES, EXP[NDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE~ UNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPI:NDI fURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

11

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

23

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

24

SCHEDULES

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

25

2 SCHEDULE Of STATE REVENUE

27

3 SCHEDULE or APPROVED LOCAL OPTION SALES TAX PROJECTS

29

TELFAIR COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENLRAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

30

5

BY SITE

31

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

SECl ION Ill AUDITEE'S RESPONSE TO PRIOR YtAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUI:S I IONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

Rt,~~FI 1. W. lll'lmN
STATE AU0110A
1.:0-.i 6~ 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJ~hmglon ~.trcct, SW Su11c 214 AIIJnla, Gcorg1J 30334-84011
July 23, 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of Education
and Supermtendent and Members of the Telfair County Board of Educatton
INDEPENDENT AUDITOR'S COMBINED REPORT ON GI-.NERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDf:RAL AWARDS
Ladies and Gentlemen
We have audited the accompanymg general-pwpose financial statements ofthe Telfair County Board of Education, as of and for the year ended June 30, 2002. as h~tcd in the table of contents These general-purpo,e financial statement~ are the respons1b1hty ofthe I clfair County Board ofEducatton's management Our respons1b1hty 1s to express an opinton on these general-purpose financial statements ba~ed on our audit
We conducted our audit in accordance wtth aud1tmg standards generally accepted in the United States of Amenca and the standards applicable to financial audits contamcd in Government Auditing Standards, issued by the Comptroller General of the Umted States Those standards reqmre that we plan and perform the audit to obtain reasonable assurance about whether the financial statements arc free ofmatenal misstatement An audit includes examining, on a test basis. evidence supporting the amounts and disclosures m the financial statements An audit also mcludes asscssmg the accounting pnnctples used and s1gmficant estimates made by management, as well as evaluating the overd.11 financial statement presentallon We heheve that our audit provides a reasonable basis for our op1mon
As described in the notes to the general-purpose financtal statements. the Board of Education's financial statements have been prepared using certain accountmg practices and pohc1cs which, in our opinton, vary in some respects from generally accepted accounting pnnc1plcs These variances are descnbed as follows

2002ARL-l3

The general-purpose financial statements of the Board of Educat10n did not contam a General Fixed Assets Account Group to account for property and eqmpment owned by the Board of Education which should be mcludcd to conform to generally accepted accounting pnnc1ples
School activity accounts mamtained at the md1vidual schools are not mcluded m the general-purpose financial statements To conform to generally accepted accountmg pnnc1ples, these accounts should be mcludcd m the general-purpose financial statements
The Board of Education did not recognize a~ expenditures, m the year ended June 30, 2002, a port10n of salaries and the corrcspondmg employer's cost of related benefits earned for contractual services completed pnor to June 30. 2002 Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded salanes and related benefits were not recorded as revenue in the year under review Conversely, the similar expenditures and related revenues for contractual services completed pnor to June 30. 2001, were improperly recorded m the year ended June 30, 2002 To conform to generally accepted accountmg pnnc1ples. revenues should be recorded when available and measurable and expenditures should be recorded when mcurred, rather than when funds are received or disbursed
The aggregate effects on the general-purpose financial statements of these vanances or om1ss10ns have not been dctermmed, but are believed to be matcnal
In our opm10n, except for the effects on the general-purpose financial statements of the matters referred to m the precedmg paragraph. the general-purpose financial statements referred to above present fairly.mall matenal respect~. the financial pos1t1on ofthe Telfair County Board ofEducat10n lib of June 30, 2002, and the results of Its operations for the year then ended. m conformity with accountmg principles generally accepted m the United States of Amcnca
In accordance with Government Aud1tmg Standards, we have also issued our report dated July 23, 2003, on our consideration of the Telfair County Board of Education's internal control over financial reportmg and our tests of its compliance with certam prov1s10ns of laws. regulations. contracts and grants That report is an mtegral part of an audit performed in accordance with Government Auditing Standards and should be read m conJunct10n with this report m cons1denng the results of our audit
Our audit was performed for the purpose of formmg an opm1on on the general-purpose financial statements of the Telfair County Board of Education taken as a whole The accompanymg combmmg and md1v1dual fund statements (Exh1b1ts E through I) and the financial schedules (Schedules I through 5), which mcludes the Schedule ofExpenditures ofFederal Awards lib required by U S Office of Management and Budget C1Tcular A-133, Audas o{States, Local Governmentl. and Non-Profit Orgamzatwns. are presented for purposes of add1t1onal analysis and are not a reqmred part of the general-purpose financial statements Such mformat10n has been subjected to the
2002ARL-13

auditing procedure~ applied m the audit of the general-purpose financial statements and m our opinion. except for the effects of the matters referred to m the thud paragraph, such mforrnation 1s fairly stated, mall matenal respects, m relallon to the general-purpose financial statements taken ai, a whole. A copy ofth1s report has been filed as a permanent record m the office of the State Auditor and made
available to the press ofthe State, a~ provided for by Official Code of Georgia Annotated Secllon 50-
6-24 Respectfully submitted,
RWHas 2002ARL-13

TELFAIR COUNTY BOARD OF EDUCATION

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

TELFAIR COUNTY BOARD OF EDUCATION
COMBINED BALANCE SHEET ALL FUND TYPES
JUNE 30 2002

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

217,343 04 $ 186,310 51

2445

244,803 27

138,768 18

19 382 90 2 690 08

$

462 170 76 $ _..;;.34;.;,7_;1;:.51,;.8::,:7_

LIABILITIES AND FUND EQUITY
UABILIJIES
Cash Overdraft Accounts Payable Salanes Payable Explf8d Grant Balances Payable Contracts Payable Retamages Payable Deferred Revenue Funds Held for Others
Total Laab1hl!es
FUND EOUIIY
Fund Balances Reserved For Bus Replacement Funds For lnventones Food Donated Commodrties Purchased Food For SPLOST Projects For State Caprtal Outlay Pro)9cts Unreserved Undes,gnated
Total Fund Equity

$

194 805 93 $

42,703 55

7,167 22

169,302 67

1 076 50

5,00000

1,218 20

$

206 973 15 $ 214,300 92

s

21 272 44

s

1938290

2,690 08

233,925 17

11077777

s

255 197 81 $ 132,850 75

Total l.Jab1lllles and Fund Equity

$

462 170 76 $ ~-34=7_,:1,;:.51,;.6::..;7_

The notes to the genera4>urpose finanoal statements are an integral part of lh!S statement
-2 -

EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

$

4 488 12

FIDUCIARY FUND TYPE AGENCY FUND

TOTALS

(Memorandum On!}:!

JUNE 30, 2002

JUNE 30, 2001

s

408 141 67 $

949,054 10

2,097,398 51

2 097 422 96

1,712,71642

390,562 01 $

49,848 70

823 98216

449 785 51

1938290 2 690 08

8 725 47 2 500 48

$ 2,492,448 64 $

4984810 s 3351,61911 s ___3_12_2._1_8_1_98_

$

$

301 037 00

64,636 66

$

365 873 66 $

29,501 43 $ 1,322 26 5,666 66
13,358 35 49,848 70 $

29,501 43 238,831 74 $ 182,136 55
1,076 50 301,037 00 64,636 66
6,218 20 13,358 35
836,996 43 $

33,310 21 146,TT2 73
14 665 59 194,748 53

$ 2,126 574 98
000 $ 2,126,574 98

$

21 272 44 $

1,376 53

19,382 90 2,690 08 2,126,57498
344 702 94 $ 2 514 623 34 $

8,725 47 2 500 48 1,715169 30 180 789 00
1019472 67
2 928 033 45

$ 2,492 448 64 $

49,84B 10 s 3,351,61911 s _ _3._,.,12"'2,_,7.a.1....98...._

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TELFAIR COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2002

REVENUES
State Funds Federal Funds Taices Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educabonal Media Services General Admm1strat1on School Adm1mstrabon Busnl8ss Adm1n1stratmn Maintenance end Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Servtces Operation
Caprtal Outlay
Total Expendrtures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change m Penod Donated Commodrttes Purchased Food
FUND BALANCE JUNE 30

GENERAL FUND

SPECIAL REVENUE
FUND

$ 8,575,711 07 $
2,036,568 16 84 705 39
$ 10,696,984 62 $

381,298 37 1,718,283 33
90,013 07
2, 189,594 77

$ 8, 199,575 85 $ 1,050,434 75

227,357 03 82,377 51
290,032 01
332,129 00
797,602 33 93,843 72
727,511 96
600,032 31 155 25
13,211 00 9,619 00

109,262 09 59,968 06
55,02568 9,379 71
23,276 90 30,533 10
303 00 17,931 54 811,891 41

$ 11 373,446 97 $

$

-676,462 35 $

931,659 96

2,168,006 24 21,588 53
100,415 19

10,657 43 189 60

$

255 197 61 $ ~ = =13"2,-85"0-7~ 5

The notes to the genera~purpose finanetal statements are an integral part of this statemerrt -4-

EXHIBIT "B"

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only) YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

490,261 57 $ 9,447,271 01 $

9,182,161 37

1,718,283 33

1,547,33619

937,131 89

2,973,700 05

3,322,677 00

47,325 30

222,043 76

228,513 65

$ 1 474 718 76 $ 14,361,298 15 $ 14,280,688 21

s 9,250,010 60 $

8,878,323 64

$ 1,244,102 08

336,61912 142,345 57 290,032 01 387,154 68 806,982 04
93,843 72 750,788 86 630,565 41
458 25 31,14254 821,510 41 1,244,102 08

297,971 53 148,203 85 292,631 96 378,153 50 820,611 04
92,102 50 715,971 18 627,260 02
3,765 19 34 089 08 803,318 71 331,293 51

$ 1,244,102 08 $ 14,785,555 29 $ 13,423,695 71

$

230,616 68 $

-424,257 14 $

856,992 50

1,895,958 30

2,928,033 45

2,081,083 37

10,657 43 189 60

-10,700 15 657 73

$ 2,126,574 98 $ 2,514,623 34 $ --==2=,9=2=8=,0,;;;33;;,,.;;45;;.

-5-

TELFAIR COUNTY BOARD OE EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BAl.ANCES
BUDGET ANO ACTUAL - (NOtJ:GAAP 13ASISl
GENERAL AND SPEClAL REVENUE FUNDS YEAR ENDED JUNE 30 2002

EXHIBIT "C-

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Currom lnstruc:tJon Support SeMces Pupil SeMCeS Improvement of lnstructJonal Servtces Educat101181 Madia SeMces General Adm1niat111bon School Adm1ru,trabon Business Admm1strabon Maintenance and Operation of Plant S1uden1 Transportabon 5eMces Cen1ral Support 5eMces 00- Support SeMces Food 5eMces Operebon
Coprtsl Outley
TOUM Expenddun,s
Exceee of Re..,.,..,,_ (.,_I Expenditures
FUND BALANCE JULY 1 2001
Food Inventory - Net Change 1n Penod Dona1ed Convnodlbes Purchased Food

GENERAL FUND

BUDGET

ACTUAL

$ M13,94320 $ 8 575,711 07

6 500 00

2,318,426 00

2 038 568 16

49 500 00

84 705 39

$ 10 787 969 20 $ 10,696,984 62

$ 7 970 318 18 $ 8,199,575 85

217,036 00 n,s1900
261 029 00 329,188 00 795 781 00
94 735 00 703 871 00 585 092 00
4 000 00 1321100
9 619 00 27 000 00

227 357 03 82 3n 51
290 032 01 332 129 00 797 602 33
93 843 72 72751198 600 032 31
155 25 1321100
9 619 00

$ 11 08849718 $ 11 373 446 97
s -300 527 96 s -676,-162 35

693 662 24

931,659 96

FUND BALANCE JUNE 30 2002

s

593 134 20 s _...,:2aa5:::5~1,::97'-"6'-1

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 381,027 00 s 381 298 37

1 697 913 00

171828333

93 378 00

90 013 07

$ 2 172 316 00 $ 2 189 594 77

$ 1 101 967 00 s 1050434 75

107 057 00 101 080 00

109 262 09 59 968 06

61 79-4 00 120000

55,025 68 9,379 71

27 291 00 5 000 00
20 058 00 820 156 00

23,276 90 30,533 10
30300 17,931 5,4 811 89141

s 2,245 603 00 s 2 168 006 24

s -73,287 00 s

21 588 53

95,809 63

100 -115 19

10 657 43 189 60

s

2261263 S 132 850 75

The notes to the general-purpose flnancial statements are an integral part of hs sta1ement
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TELFAIR COUNTY BOARD OF EDUCATION

FXHIBIT "D"

NOTES TO THI:' GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Telflllr County Board of Education (School District) was established under the laws ofthe State of Georgia and operates under the gmdance of a school board elected by the voters and a Superintendent appointed by the Board The School D1stnct 1s organized as a separate legal entity and has the power to levy taxes and issue bonds Its budget 1s not sub1ect 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 D1stnct uses funds to report on 1l~ financial pos1tion and the results of its opcrallons Fund accounting is designed to demonstrate legal compliance and to llld financial management by segregating transactions related to certllln governmental funct10ns or aet1v1ties A fund 1s a separate accounting entity with a self-balancing set of accounts
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase A General Fixed Assets Account Group 1s not pre~ently maintlllned by the School District To conform to generally accepted accounting principles. a General Fixed Assets Account Group ~hould be maintained for reporting the cost of assets acqmred by governmental fund types
Although "school activity accounts" are maintained at the ind1v1dual schools, neither the assets, liab1lit1es and fund eqmty, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements To conform to generally accepted accountmg 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 presented in this report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct'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 tran~t10ns relate to resources obtained and used for services provided by a board of education
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for maJor capital proJects) that are legally restricted to expenditures for specified purposes These funds are received primanly from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives

-7-

TELFAIR COUNTY BOARD OF EDUCATION

EXIIIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND-the fund used to account for financial resources to be used for the acquis11Ion or construct10n of maJor capital fac1hlles
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for ind1v1duals, pnvate organ1zat10ns, other government units and/or other funds This fund includes
AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is detcnmned by its measurement focus All governmental funds are accounted for using a current financml resources measurement focus With this measurement focus, only current assets and current hab1hlles generally are included on the balance sheet Operating statements ofthe,e funds present increases (1e , revenues and other financing sources) and decreases (1 e., expend!lures and other financing uses) in net current assets Theu reported fund balance 1s considered a measure of available spendable resources
Liab1h11es which are expected to be financed from avrulable spendable resources arc reported as hab1 htics in the governmental funds
Agency funds are purely custodial in nature and do not involve measurement ofresults ofopcral!ons
Governmental funds are accounted for using the modified accrual basis of accounting under which
Revenues are recognized when susceptible to accrual (1 e, when they become both measurable and available) "Measurable" means the amount of the transacllon can be determined and "avrulable" means collectible within the current penod or soon enough thereafter to be used to pay hab1ht1e, of the current penod The School D1stnct considers receivables collected within sixty days after yearend to be available Property taxes, sale, taxes and interest are considered to be ,u,ccpllble to accrual Nonexchange transact10ns, in which the School D1stnct gives (or receives) value without directly receiving (or giving) equal value in exchange. include property taxes, local opllon sales taxes, intergovernmental grants and donallons Revenue for property taxes is recognized m the fiscal year for which the taxes are levied Revenue from sales taJ..es is recognized in the fiscal year the resources are received or suscepllble to accrual Revenue from grants and donations 1s recognized in the fiscal year in which all ehg1b1hty requirements have been sallsfied
Expenditures are generally recogmzed when the related fund hab1hty 1s incurred
A departure from the above definillons is the accounting treatment afforded the final two payment, on General Fund teachers' and bus drivers' contract~. and the resources avmlable from the Georgia Department of Educauon for the State's share of these contracts Dunng fiscal year 2002. a
-8-

TELFAIR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
substan!ial number of personnel of the School D1stnct were employed for a one hundred and mnety day penod begmmng m August 2001 and endmg m early June 2002 Personnel contracts for this employment penod specify that compensauon be paid m twelve equal monthly payments beginnmg m September 200 I and ending in August 2002 State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Educat10n to the School District m the same twelve months As of June 30, 2002, compensat10n under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made Payments for these two months were made and recorded as expenditures by the School D1stnct subsequent to June 30, 2002 Also, the State's port10n of the compensa!ion paid m July and August 2002 was received and recorded as revenue in the fiscal year sub:.equent to June 30, 2002 Conversely, the similar expenditures and related revenues for contractual services completed pnor to June 30, 2001, were recorded m the year ended June 30, 2002 Generally accepted accountmg pnnc1ples require that revenues be recorded when available and measurable and that expendnures be recorded when mcurred, rather than when funds are received or disbursed
Agency fund, arc accounted for usmg the modified accrual basis ofaccountmg m recogmzmg assets and liab1li11es
BUDGET
The Telfair County Board of Education's budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s based upon estimates of expenditures together with probable fundmg sources There 1s no statutory proh1b111on regardmg overexpend1ture of the budget at any level The budget for all governmental funds 1s prepared by fund, func!ion and obJect fhe legal level of budget control was established by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accountmg pnnc1ples
The budget process begins when the School District's adm1mstra11on prepares a tentative budget for the Board's approval After approval ofth1s tentative budget by the Board, such budget 1s advertised at least once ma newspaper of general c1rculat10n m the locality At the next regular meetmg of the Board after advertisement, the Board receives comments on the tcnta!ive budget, makes rev1s10ns a~ necessary and adopts a final school budget This final budget 1s then submitted, m accordance with prov1s10ns of the Quality Basic Educat10n Act, OCGA Section 20-2- I67(c), to the Georgia Department of Educat10n The Board may increase or decrease the budget at any time dunng the year All unexpended budget authonty lapses at fiscal year-end
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash eqmvalents consist ofcash on hand. demand deposit, and short-term investments with ongmal matun!ies of three months or Ies~ from the date of acqms1t1on m authon.cd financial ms!itut10ns Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds m one or more solvent banks or msured Federal savmgs and loan assoc1at10ns
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TELFAIR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TH~- Gf,NERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School D1stnct in nonpart1c1pating interest-eaming contracts (such as ceruficates ofdeposit) and repurchase agreements are reported at cost. Part1c1pating interest-earning contracts and money market investments with a matunty at purchase of one year or less are reported at amortized cost Both part1c1pating interest-caming contracts and money market investments with a maturity at purchase greater than one year are reported at fau value. The Official Code of Georgia Annotated Sect10n 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among inst1tut10nal bids for deposits, the highest rate ofretum shall be the obJecuve, given eqmvalent cond1t10ns of safety and hqmd1ty Funds may be invested in the following
(I) Obhgauons issued by the State of Georgia or by other states,
(2) Obhgallons issued by the Umted States government.
(3) Obhgat10ns fully insured or guaranteed by the Umted States government or a United States government agency,
(4) Obhgat10ns of any corporat10n of the Umted State~ government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services.
(7) Repurchase agreements, and
(8) Obhgat1ons of other pohucal subd1v1s10ns 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 informat10n available Receivables are recorded when either the asset or revenue recognition criteria has been met Receivables recorded on the general-purpose financial statemenb do not include any amounts which would necessitate the need for an allowance for uncollecuble receivables

- IO -

TELFAIR COUNTY BOARD OF EDUCATION

EXHll31T "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Telfair County Board ofComm1ss10ners fixed the property tax levy for the 200 I tax digest year (calendar year) on December 20, 2001 (levy date) Taxes were due on February 20, 2002 (hen date) Taxes collected within the current fiscal year or within 60 days after year-end on the 200 I tax digest are reported as revenue in fiscal year 2002 The Telfair County Tax Comm1~s1oner bills and collects the property taxes for the School D1stnct, withholds 2 5% of taxes collected a~ a fee for tax collection and remits the balance of taxes collected to the School D1stnct Property tax revenues dunng the fiscal year ended June 30, 2002 for maintenance and operation~ amounted to $1,984,224 22

The tax millage rate levied for the 2001 tax year (calendar year) for the Telfair County Board of Education was as follows (a mill equals SI per thousand dollars of asses~ed value)

School Operations

)0.942 mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue dunng the year amounted to $937,131 89 and 1s to be used for capital outlay for educational purposes or debt service This sales tax was authorized by local referendum and the sale~ tax must be re-authonzed at least every five years

INVENTORIES

FOOD INVENTORIES lnventones of donated food commodities used m the preparation of meals are reported on the Combined Balance Sheet at their Federally as~1gned value Purchased foods inventones arc 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 Item; are received Purchased foods inventones are recorded as expenditures at the time of purchase The inventories reported on the balance ~heel 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 ~set~.

INTERFUND TRANSACTIONS

The School D1stnct has the followmg type of mterfund transactions

Reimbunements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reduct10ns of expenditures in the fund that 1s reimbursed

- 11 -

TELFAIR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented onl) to fac1htate financial analysis Data in these columns do not present financial posit10n or results ofoperations in confomuty With generally accepted accounting pnnc1ples Neither are such data comparable to a consohdallon Interfund eliminations have not been made in the aggregation of this data
Note 2 DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral The aggregate of the face value of such surety bond and the market value of secunties pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction ofthe amount ofdeposit insurance If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe :.ccuntles pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe da!ly pool balance. OCGA Section 45-8-11 (b) provides an officer holding pubhc funds may, in his discretion. waive the reqmrement for security in the ease of operating funds placed in demand deposit checking accounts
Acceptable secunty for deposits consists of any one of or any combination of the following
(I) Surety bond signed by a surety company duly qualified and authorized to transact business 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 Umted States or of the State of Georgia,
(4) Bonds, bills, notes, ceruficates of indebtedness or other obligations of the counties or mumc1pal11Ies of the State of Georgia,
(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, providing that the statute that created the authonty authonzed the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authonties created by the laws of the State of Georgia.. and

- 12 -

TELFAIR COUNTY BOARD OF EDUCATION

EXI IIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

(7) Bonds. b1lls, notes, certificates of indebtedness. or other obhgations of a subs1d1ary corporation of the Uruted States government, which are fully guaranteed by the United States government both as to pnnc1pal and mterest or debt obhgatlons issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Jnterrncd1ate 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. 2002. the bank balances were $1,505.775 49 The amounts ofthe total bank balances are classified into three categories of credit nsk

Category I - Cash that 1s msured (e g., Federal depository msurance) or collaterahzed v.~th secunues held by the School D1stnct or by the School D1stnct's agent m the School District's name
Category 2 - Cash collaterahzed with secunues held by the pledgmg financial inst1tut1on's trust department or agent in the School D1stnct's name
Category 3 - Uncollateral1zed deposits (This mcludes any bank balance that 1s collateralJZed With ~ecuntles held by the pledgmg financial msutuuon, or by its trust department or agent but not in the School District's name )

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

Risk Category

Bank Balance

I 2 3
Total

$ 300,000 00 1.205,775 49 000
$ l..W,i.2I5A2

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrymg value of the School District's total mvestments was $2,097.422 96 which is matenally the same as fair value This investment consisted entirely of funds mvested m the Local Government Investment Pool admm1stered by the State ofGeorgia, Office ofTreasury and
Fiscal Services which are not reqmred to be categonzed smce the School D1stnct did not own any
~pecific identifiable securities m the pool. The mvcstment pohcy of the State of Georgia, Office of Treasury and Fiscal SeTVJccs for the Local Government Investment Pool (Pnmary L1qmd1ty Portfoho) does not provide for investment m denval!ves or s1m1lar mvestmcnts A description ofthe Pnmary L1qmdity Portfolio 1s as follows

The Pnmary L1qu1d1ty Portfolio consists of Georgia Fund I. which 1s a combination local and state government mvcstment pool. and Fund 6 Georgia Fund I 1s a stable net asset value mvestment pool which follows Standard and Poor's cntena for AAAm rated money market funds The pool is not

- 13 -

TELFAIR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 Dl::POSITS AND INVESTMENTS
registered with the SEC as an investment company but does operate Georgia Fund I in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and 1s considered to be a Rule 2a7 hke pool. The pool's pnmary objectives are safety of capital, investment income, hqmdlty and d1vers1ficat1on while maintaining pnnc1pal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earmngs (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $ I 00 per share Pooled cash and ca~h equivalents and investments are reported at cost which approximates fair value The pool does not issue any legally binding guarantees to support the value of the shares Part1c1pat1on in the pool 1s voluntary and deposits consist of funds from local governments, operating and trust funds of Georgia's state agencies, colleges and universities, and current operating funds of the State of Georgia's General Fund
Investments in Georgia Fund I and Fund 6 are directed toward short-term instruments such as U S Treasury obhgauons, secunues issued or guaranteed as to pnnc1pal and interest by the U S Government or any of its agencies or instrumentalities, banl..er's acceptances and repurchase agreements The weighted average matunty of Georgia Fund I may not exceed 60 days The weighted average matunty for Georgia Fund I on June 30, 2002, was O 12 years. The average investment durat10n for Fund 6 on June 30, 2002, was O75 years
Note 3 NON-MONETARY TRANSACTIONS
The School District receives food commod1t1es from the Umted States Department of Agriculture (USDA) for school breakfast and lunch programs These commodities are recorded at their Federally assigned value. See Note I - Inventories
Note 4 RISK MANAGEMENT
The School D1stnct is exposed to vanous nsks of loss related to torts, theft of, damage to, and destruct10n of as~ets, errors or omissions, Job related illness or injuries to employees, acts of God and unemployment compensation
The School D1stnct has obtained commercial insurance for risk ofloss associated with torts, assets, errors or om1ss1ons and Job related illness or inJunes to employees The School D1stnct has neither s1gmficantly reduced coverage for these risks nor incurred los~es (settlements) which exceeded the School Distnct's insurance coverage in any of the pa~t three years.
The School D1stnct has elected to self-insure for all losses related to acts of God The School D1stnct has not experienced any losses related to this risk in the past three years
The School D1stnct 1s self-insured \\1th regard to unemployment compensat10n claims The School Distnct accounts for claims Within the same fund that the employee's salary and benefits were paid Claims are accounted for With expenditure and liability being reported when it 1s probable that a loss has occurred, and the amount of that loss can be reasonably estimated.
- 14 -

TELFAIR COUNTY BOARD OF EDUCA flON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIALS I ATEMENTS

JUNE 30, 2002

Note 4 RISK MANAGEMENT

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

Begmnmg
of Year L1ab1hty

Claims and
Changes m Estimates

Claims Paid

End of Year L1ab1htv

2001 2002

$

480 00 $

2,303 00 $

2,783 00 $

0 00

$

0 00 $

5 639 00 $

5 639 00 $

000

The School D1stnct has purchased a commercial cnme msurance policy to provide add1t1onal msurance coverage as follows

Position Covered

Amount

All Employees

$ I00,000.00

Note 5 OPERA1 lNG LEASES

Telfair County Board of Education has entered mto various leases as lessee for copiers and phone systems These leases are considered for accountmg purposes to be operatmg leases Lease expenditures for the year ended June 30, 2002, amounted to $32,439 42 Future mm1mum lease payments for these leases are as follows

Year Endmg

Amount

2003 2004 2005 2006 2007
fotal
Note 6 ON-BEHALF PAYMENTS

$ 40.945 44 40,945 44 40,945 44 33.640 12 24,732 00
$_l8 l ,208 44

The School D1stnct has recognized revenues and expenditures m the amount of $178,414 69 for health msurance and retirement contnbullons paid on the School D1stnct's behalf by the followmg State Agencies.
Georgia Department of Educat10n Prud to the Georgia Department ofCommumty Health For Health Insurance ofNon-Cert1fied Personnel In the amount of $146,706 72

- 15 -

TELFAIR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 6 ON-BEHALF PAYMENTS

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$13.916 97

Office of Treasury and Fiscal Services Paid to the Pubhc School Employees Retirement System For Pubhc School Employees Retirement (PSERS) Employer's Cost In the amount of $17,791 00

Note 7 SIGNIFICANT COMMITMENTS

The following 1s an analysis of significant outstandmg construction or renovation contracts executed by the School D1stnct as of June 30, 2002, together with funding available

Project

Unearned Executed Contracts

Funding Available From State

Air Cond1t10mng Telfair County High School Gymnasium
02LW/0IS-734-052

$ 146,564 00 5,648,885 77 $ 1,646,126 43

$ 5,795,449.77 $ 1,646. I26,43

1 he amounts descnbed in tlus note are not reflected m the general-purpose financial statements

Note 8. CONTINGENT LIABILITIES

AmounL~ received or receivable principally from the Federal government are subject to audit and review hy grantor agencies. This could result m requests for reimbursement to the grantor agency for any expenditures winch are disallowed under grant terms. The School District believes that such d1sallowances. 1f any. will be 1mmatenal to Its overall financial posit10n

The School D1stnct 1s a defendant m various legal proceedings pertrumng to matters mc1dental to the performance ofroutme School D1stnct operations. The ultimate d1spos1t1on of these proceedmgs 1s not presently determmable, but 1s not believed to be material to the general-purpose financial statements

- 16 -

TELFAIR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 9 SUBSEQUENT EVENTS

On July 19. 2002, the School D1stnct issued General Obligation Sales Tax Bond. Senes 2002 in the amount of$4.000,000 00 This bond was issued m conjunction with an approved Special Purpose Local Option Sales Tax which shall commence upon the expiration of the special one percent sales and use tax currently being levied m Telfair County

Note IO RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clencal personnel employed by local school d1s1ncts arc covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-shanng multiple employer defined benefit pens10n plan TRS provides service retirement, d1sab1lity retirement and survivors benefits for its members m accordance ,,..,th State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the School District who arc covered by TRS arc required by State statute to contnbute 5% of their gro'iS earnings to TRS The School District makes monthly employer contnbullons to TRS al rates adopted by the TRS Board of Trustees m accordance with State statute and as advised by their mdependent actuary The required employer contribut10n rate 1s 9 24% and employer contnbutlons for the current fiscal year and the precedmg two fiscal years are as follows

Fiscal Year

Percentage Contnbuted

Required Contnbut10n

2002 2001 2000

100% 100% 100%

$ 736,503.01 $ 860,769 31 $ 854,691 33

- 17 -

TELFAIR COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2002

ASSETS Cash and Cash Equrvalents Accounts Recervable lnventones
Food Donated Commodrt1es Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 154.882 90 $ 3011218

38947

19.382 90 2,690 08

$ 177,345 35 $_..;30;;;;,,;1~12;.,,.;.;18;...

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total l.Jab1hbes
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Commod1t1es Purchased Food Unreserved Undes,gnated
Total Fund Equity
Total L1ab1ht1es and Fund Equrty
See notes to the general-purpose financial statements
- 18 -

$

3,683 34 $

6,663 28

40,811 26

23,448 90

$ 44,494 60 $ 30,112 18

$ 19,382 90 2,690 08

110,777 77 $

000

$ 132,850 75 $

000

$ 177,345 35 $ _ ....3.0.a,,a,11aa2a.1a,.Ba.

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS
JUNE 30, 2002 JUNE 30, 2001

$

1,31543 $

186,310 51 $

162,176 90

138,378 71

138,768 18

121,224 10

19,382 90 2 690 08

8,725 47 2 500 48

$ 139,694 14 $ 347,151 67 $ 294,626 95

$

32,356 93 $

105,042 51

1,076 50

1 218 20

$ 13969414 $

$ 42,703 55 169,302 67
1,076 50 1,218 20
214,300 92 $

20,718 86 32,053 51 141,439 39
194,211 76

$

19,382 90 S

2,690 08

8,725 47 2,500 48

11077777

89189 24

$

000 $ 132,850 75 $ _ _1_00~4_15_19~

$ 139 694 14 $ 347,151 67 $ 294,626 95

- 19 -

TELFAIR COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2002

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of lns1ructtonal Services General Adm1mstrat1on School Adm1mstrat1on Maintenance and Operabon of Plant Student Transportabon Services Central Support Services Other Support Services Food SeMees Operation
Total Expendrtures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Penod Donated Commod1t1es Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

62,920 00 $ 318,378 37

679,033 49

90,013 07

$ 831,966 56 $ 318 378 37

$ 230,384 19
66,000 00 811 43
9,379 71 5,58716 4,702 50

$ 810,378 03

1,51338

$ 810,378 03 $ 318 378 37

$

21,588 53 $

000

100,415 19

000

10,657 43 189 60

FUND BALANCE JUNE 30

$ 132,850 75 s ==----o.aaoo..,

See notes to the general-purpose financial statements - 20 -

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ $ 1,039,249 84

381,298 37 $ 1,718,283 33
90,013 07

369 058 46 1,547,33619
86 333 49

$ 1,039,249 84 $ 2,189,594 77 $ 2,002,728 14

$ 820,050 56 $ 1,050,434 75 $ 939,676 52

43,262 09 59,156 63 55,025 68
17,689 74 25,830 60
30300 17,931 54

109,262 09 59,968 06 55,025 68 9,379 71 23,276 90 30,533 10 303 00 17,931 54
81189141

77,340 12 76,350 52 53,617 01
3,161 98 3,005 92 23,969 61
20,878 08 793,593 36

$ 1,039,249 84 $ 2, 168,006 24 $ 1,991,593 12

$

000 $

21,588 53 $

11,135 02

000

100,415 19

99,322 59

10,657 43 18960

-10,700 15 657 73

s

000 $

s 132,850 15 _...;1~00;;,,,;,4,;,;15==19::..

- 21 -

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

EXHIBIT "G"

~ Cash and Cash EqUJvalents lnvesbnents Accounts Recelveble
Tote! Assets

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

s

14101484

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2002 JUNE 30 2001

s 14101484 $ 180,789 00

s 2,097 398 51

2 097,398 51

1 682 826 26

224 858 82

165 703 19

390,562 01

15241228

s

365 873 66 S 2,263 101 70 S 2 628,975 36 S 2 016 027 54

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Civerdraft

Contracts Payable

s

Reta1nages Payable

Total L1ablirues

$

FUND EQUITY

Fund Balances

Reserved

For SPLOST ProJ8dS

For State Ceprtal Outley Pro)Octs

Unreserved

Undeslgnated

s

Total Fund Equrty

$

$ 301,037 00
64 836 66
365 873 66 $

136,526 72 s

136,526 72 $ 301,037 00
64,836 66

120 069 24

136 526 72 $ 502,400 38 $ 120 069 24

s s 2,126 574 98

2 126,574 98 $ 1,715 169 30

180 789 00

000
000 s

0 00

000

000

s s 2 126 574 98

2 126 574 98

1,895 958 30

Total l.Jabthbes and Fund Equrty

s

365 873 66 $ 2,263,101 70 $ 2,628 975 36 S 2 016,027 54

See notes to the general-purpose financial statements

-22 -

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

EXHIBIT"H"

GEORGIA STATE FINANCING ANO
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED

JUNE 30, 2002

JUNE 30 2001

REVENUES
State Funds Taxes Other Funds
Total Revenues

$

490.261 57

$

490 261 57

s

937 131 89

937 131 89 $

973,413 OB

47 325 30

47 325 30

76 468 39

$

s 490 261 57

984,457 19 $ 1 474 718 76 $ 1 049 881 47

EXPENDITURES

CaprtalOutlay

Land and Lenci Improvements

$

Buddmg and Bu1ldr.ng Improvements

Total Expendrture&

$

Excess of Revenues over (under) Expenditures

s

OTHER FINANCING SOURCES (USES)

Operabng Tranafers In

s

Opera1mg Transfer, Out

Total 01tl8f Fnarx;ing Sources (Uses)

$

Excess of Revenues and Other Flnanang Sources

OY81 (undet) Expenditure& and Other Financing

Uses

$

FUND BALANCE JULY l

24 416 17
s 1 171 575 91
1 195 992 08 $
-705 730 51 $

$ 46 110 00
4811000 $
s 936 347 19

24,416 17 $ 1219685 91
s 1244102 OB
230,618 68 $

1~ 178 00 17011551
326 293 51
723 587 96

524 941 51 $
524 941 51 $

$ -52494151
-524 941 51 $

524,941 51 $ -52494151
0 00 $

237 376 00 -237 376 00
0 00

-180 789 00 $ 180 789 00

41140568 $ 1 715 169 30

230 616 68 $ 1 895,958 30

723 587 96 1 172 370 34

FUND BALANCE JUNE 30

s _ _ _ _~o:,:oo~ s 2,126,574 ea s s 2 126 574 96 1 B95 958 30 1

See notes to the general-purpose finanoal statements

-23 -

TELFAIR COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND
YEAR ENDED JUNE 30 2002

EXHIBIT"!"

THE TELFAIR FAMILY CONNECTION ASSETS
Cash Accounts Receivable
LIABILITIES Accounts Payable Salanes Payable Funds Held for Others

BALANCE JULY 1, 2001

ADDITTONS

DEDUCTIONS

BALANCE JUNE 30, 2002

$

6,13919 $ 116,110 87 $

15,11644

49 848 70

151,75149 $ 15,11644

-29,501 43 49,848 70

------ $ 21,255 63 $ 165 959 57 $ 166 867 93 $

20,347 27

$

1,256 70 $

85,385 08 $

5 333 34

5,666 66

14 665 59

116,220 00

85,319 52 $ 5,333 34
117,527 24

1,322 26 5,66666 13,358 35

-------- $ 21,255 63 $ 207 271 74 $ 208,18010 $

2034727

See notes to the general-purpose financial statements

-24 -

TELFAIR COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWAADS
YEAR ENDED JUNE 30 2002

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agrtcultu"' u s Depar11nent or
Chid Nutnbon Cluster Pass-Through From Georgia Department of Educatlon Food encl Nutnbon Program Food Services School Breakfast Program National SdlooJ Lunch Program
Total Chlld Nub1tkm Cluster
Other Programs Pass-Through From Georgia Department of Educalion Food and Nutnl!oo Program Food Dls1nbul!oo Program (1)
Total u S Depanment or Agrlcultu"'
Educabon U S Department of Special Education Cluster Pegs..Through Frcm Georgia Department of Educabon lndiw:luals wrth Dtsabllfbes Education Ad Part B - Speaal EducabOn Gapadty Bullchng Improvement Grant Flow Through Pffischool
Total Speaal EducabOn Cluster
Other Programs Pass-Through From Georgia Department of Education Elementary and Secoodary Educabon Ad Trtle I Grants to Local Educabonal Agenaes TIiie II Eisenlxlwer Professional Development Trtle Ill Technology Literacy Challenge Fund Grants Trtle VI lnnovabve Ec!uca11on Program Strategies Ctass S12e Reducbon Vocabonal Educat.Jon - Bas.1c Grants to States High School Program BaslCGrant
Total U S Department or Educabon

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555

NIA

s 202,957 62

NIA

s 413 250 12

s s 616,207 74

(2) 747 552 2B (3)
747 552 2B

10 550

NIA

62,825 75

s s 679 033 49

62 B25 75 810 37B 03

64 027 64 027 64 173

NIA

$

4 112 00 s

NIA

176,673 01

NIA

15,552 00

s s 196 337 01

4 112 00 176 673 01
15 552 00
196,337 01

64 010 64 281 64 318 64 298 64 340
64 048

NIA

672 607 67

672 607 67

NIA

5 900 00

5 900 00

NIA

1 500 00

1 500 00

NIA

17 71900

17 719 00

NIA

96 693 18

96,693 16

NIA

48 493 00

48 493 00

s 1 039.249 64 s

1 039.249 64

Total Federal Finanaai Assistance NIA -= Not Available

$ 1,718 263 33 $ _ _,:1.:;64;:,9::.82=7.:;8"-7

25-

TELFAIR COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE "1"

Notes to the Schedule of Exoendltures of Federal Awards
(1) The amounts shown fof the Food Distr1bubon Program represents the Federally 8&8Qned value of nonmonetary asS1stance tor donated commodmes recetved and/or consumed by the system dunng the current fiscal year
(2) Expendm.n,s for the School Breakfast Program wem oot mairrtamed separately and are Included m the 2002 Nabonal School Lunch Program
(3) Expenditures for ttus program Include State end/or Other Funds ExpendlUlres are not mBJntatned by fund sourr.e
Map!" Programs ere Identified by an a&tensk (*) m front of the CFDA number
The School D,stnct did not provide Federal Assistance to any Subreapient
The accompanying ISChedule of expenditures of Federal awards mcludes the Federal grant actMty of the Telfair County Board of Education and 1s presented on the modified accrual bests of accountlng wtuch 16 the baSIS of accountmg used In the presentation of the generel-p!6p058 finenaal statements

See notes to the general-JllXl)OS8 finanaal statemems 26-

TELFAIR COUNTY BOARD OF EDUCATtoN
SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002

SCHEDULE '7

AGENCY1FUNDING
GRANTS
Education Geo<v,a Department ot Qualrty Basoc Educat>on
Dlred: tnstrucbonal Cost Kl'ldergarten Program Kindergarten Program - Earty tntavenbon Program Pnmary Grades (1-3) Program Pnmary Grades - Earty lntervenbon (1-3) Program Upper Elementary Gradea (4-5) Program Upper Elementary Grades-Earty lntervenbon (4-5) Program
M - School (6--8) Program HLgh School General Education (0-12) Program
VOC8b0o81 Laboratory (9-12) Program
Stucient5 wtth Dlsabdrbes Category I Ca1egory II Ca1egory Ill
CB1egorylV CalegOryV Grfted Student - Category VI Remedial EducabOn Program Alternative Educabon Program English Speakers ol' Other Languages (ESOL)
Media Cen1er Program 20 Addrtlonal Days lnstrucbOn Staff and Professlonel Development Indirect Cost Ca1egoncal Grants
Pupil TransportatJon
RBus Replacement Sparsrty Nursing Services Pnnapal Supplemen1s Vocabonal Superv1scn
Mld-<erm AdJustment Hold-Hlarmless Educabon Equelwill:Jon Funcilng Grant Food SeMces Vocational Educatk>n Other S1ate Programs
Health Insurance Post Seoondery Options Preschool Hand1C8pped Program Statewide After Schoof Program 4-8 Statewide Reach:ng Program K 3 Teachers' Retirement Lottery Programs AssmlveTachnology Computers Ln the Cla:5sroom
Georgia State Flnanong and Investment Comm1sston Reimbll"Sement on Constructlon Pro,ects
Of'hc:e ot School Readineu
Pre-Kindergarten Program
Office of Treasury and Fiscal ServteeS Publk: School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

s 445 031 00
100 375 00 1 038 733 00
263147 00 56512000
4g 184 00 989 995 00 665,280 00 244,724 00
92,814 00 162 TT4 00 06208800
96 288 00 13410 00 116,243 00 160,602 00 71 33g 00
9 485 00 17175200
5198000 30454 00 1,174 711 00

s 445 031 00
100 375 00 1 038 733 00
263 147 00 565 120 00
49 184 00 989 995 00 BBS 2B0 00 244 724 00
92 814 00 1152 TT-4 00 562 566 00
96 288 00 13 410 00 116,243 00 180 602 00 7133900
9 485 00 17175200
~1 980 00 30454 DO 1174 711 00

376,058 00 107,323 00
20,000 00 51,209 00
7 233 00 9 996 00 138 679 00 464 25g OD
s
87 273 00

152 920 OD

148 706 72 5 248 00
29,039 DO 18,181 20 28,782 18 13 916 97

5,883 00 45,300 00

s 490,2151 57

376,059 00 107 323 00
20,000 00 5120900
7 233 00 9 996 00 138 679 00 484 289 00 152 g20 00 67 273 00
148 708 72 5 246 00
29 039 00 18 181 20 28 782 18 13 918 97
5 BB3 00 45 300 00
400 281 57

267 Jg 37

267,395 37

17 791 00

17 791 00

See notes to the general-purpose flnanaal statements

s s s 8 675 711 07

381 2Q8 37

s 490 261 57

9 447 271 01

- 27

TELFAIR COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 2002

SCHEDULE "3"

PROJECT
Renovations or modlficat10ns of the following ex1stmg properties and facilruas end/or new construction Telfair County Middle/High School Teffair County Prvnary School, Central Elementary School, and/or Telfair Altematrve Center

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED IN PRIOR YEARS (3)

PROJECT STATUS

$ s aoo,ooo oo $ s,soo.ooo 00 $ 1,244,102 08 $ 492,925 57 Ongoing

(1) The School 01stnct's ongmal cost estimate as specified In the resolution calling for the 1mposltlon of the Local Option Sales Tax
(2) The School 01stnct's current estrrnate of total cost for the protect lnciudes all cost from pro,teet mcephon to complet10n
(3) The voters of Telfair County approved the mposruon of a 1% sales tax to fund the above pro)9CI Amounts expended for the pr0f6d may mdude sales tax proceeds, state, local property taxes and/or other funds over the life of the proJeCI

See notes to the general-purpose finallClal statements

- 29 -

TELFAIR COUNTY BOARD OF EDUCATION
GENERAL FUND QUALITY BASIC EDUCATION PROGRAM IOBEI
ALLOTMENTS AND EXPENDITURES - BY PROGRAM
YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION
Drrect lnstrucbonal Programs Kindergarten Program Kindergarten Program-Earty Intervention Program Pnmery Grades (1-3) Program Pnmary Grados-Earty Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Earty Intervention (4-5) Program Middle School (6-11) Program High School General Education (9-12) Program Vocahonal Laboratory (9-12) Program Studen1s with Disablrt,es Category I Category II Category Ill category IV Gifted Studen1 - category VI Remedl8I Educatlon Program Attematlve Eduea1Jon Program English Speakers of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Mecha Center Program Staff and Profesgjonal Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1 I

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

s

s s 501,416 00

546,616 61

7 016 73 s

553 635 34

113,093 00

75,647 42

1 160 25

76 607 67

1,170,340 00 1 434,394 06

31 229 75

1,465 623 63

296,488 00

326,997 98

1 189 96

328187 96

636 721 00

934,934 34

31 655 92

968 590 26

55,416 00 1,115,42700
749,571 00 275,731 00 1 045 387 00
130,972 00 160,950 00
60 378 00 10 666 00

91 602 64 1 298,756 16
822,338 59 343,188 77
97 736 41 251,16477 564,4.99 06
14,457 23 111,82023
194 563 02
95 878 31 23106 61

1,177 30 63,518 32 29,396 71 40,699 60
10,159 71 13 249 53 13,679 60 10,568 66
2,000 43
648 76 6 206 63

92,779 94 1 362,276 46
651 735 30
383,866 57
107 896 12 264,434 30 598166 66
25 025 91 11382066 19521178 102 065 14
23 108 61

s

s s s 6 362,576 00 7 247,714 23

263 560 30

7 511 274 53

19351300 3431100

235 651 32

35 866 30
47 529 19

271 717 62 47 529 19

TOTAL QBE FORMULA FUNDS

s

6 590,400 00 S 7 4.93 565 55 $ 34.9 955 79 $ 7 830 521 34

(1) Compnsed of State Funds plus Local FJVe Mil Share

See notes to the general-purpose ftnancial statements

- 30 -

TELFAIR COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE}
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2002

SCHEDULE "5"

SITE Telfa,r County Middle School Te~a,r County High School Central Elementary School Telfair County Pnmary School Te~a,r Ahemabve Center Central Office (Ahemat1ve Education Program)
TOTAL
(1) Compnsed of State Funds plus Local FNe Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

s 1,418,201 00

1,625,375 48

1,537,285 00

1,707,534 87

1,529,829 00

1,910,11414

1,796,883 00

2,108,272 86

159,977 18

80,378 00

$

6,362,576 00 $ =~7~,5;..1;..;1a,:,2;.;.7.;.4..;;5;..3

See notes to the genera~purpose financial statements - 31 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

11!',',tl.l. W. HINTON
~TATE AUDITOR [a!C-l,656-:? 74

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshmgton Street, SW ~unc 214 i\tlJnlJ. Georgia JUU4-84(XJ
July 23. 2003

Honornblc Sonny Perdue, Governor Members of the Gcncrnl Assembly Members of the State Board of Education
and Supcnntendent and Members of the Telfair County Board of [ducallon
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL Rl:PORTING BASED ON AN AUDIT 01- FINANCIAL STATEMENTS PERFORMED IN ACCORDA.NCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen
We have audited the financial statements of I clfa1r County Board of Education as ofand for the year ended June 30. 2002. and have issued our report thereon dated July 23. 2003 This report was qualified for vanou, departures from generally accepted accounting principles. a; 1dent1fied in the auditor's report on the genernl-purpose financial statements We conducted our audit in accordance with auditing standards genernlly accepted in the Umted State; of America and the standards applicable to financial audit; contained in Government Auditing Standard;, issued by the Comptroller General of the Umted States
Compliance
As part of obtaining reasonable assurance about whether 1 clfair County Board of l:ducatlon's financial statement; arc free of matcnal misstatement. we perfonned tests of Its compliance with certain prov1s10ns oflaws, regulations, conlrdet; and grants, noncompliance with which could have a direct and material effect on the detenninat1on offinanc1al statement amounts However, providing an opinion on compliance with those prov1s10ns was not an obJectivc of our audit. and accordmgly. we do not expre;s such an op1mon The results ofour tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards
Internal Control Over Financial Reporting
In planning and perfonning our audit, we considered Telfair County Board of Educat10n's internal control over financial reporting in order to detennmc our aud1tmg procedure; for the purpo~ of expressing our opm1on on the financial statements and not to provide assurnncc on the internal
2002YB-41

control over financial reporting However, we noted a certam matter mvolving the internal control over financial reporting and its operation that we consider to be a reportable condition Reportable cond1uons involve matters coming to our attention relating to s1gmficant defic1enc1es in the design or operation of the internal control over financial reporting that. in our judgment. could adversely affect Telfau County Board of Education's ab1hty to record. proce~s. summarize and report financial data consistent with asscrt10ns of management in the financial statements The reportable condition 1s descnbed in the accompanying Schedule of Findings and Questioned Costs as item FS-7341-02-01
A material weakness 1s a cond1t1on m which the design or operation of one or more of the internal control component, does not reduce to a relatively low level the nsk that m1,statement, in amount, that would be material in relation to the financial statements being audited may occur and not be detected within a timely pcnod by employee~ in the normal course of performing thc1r assigned functions Our cons1derat10n of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable cond1t1ons and, accordingly. would not nccessanly disclose all reportable cond1t1ons that arc also considered to be material weak.nees However, we consider Item FS-7341-02-01 to be a material weakness.
This report 1s intended solely for the information and use of the management. members ofthe Telfa1r County Board ofEducat1on. Federal awarding agencies and pas,-through ent1t1es and 1s not intended to be and should not be u,ed by anyone other than these specified parties
Respectfully submitted.

RWHas 2002YB-41

Hinton State Auditor

{U'i.~FI I W. H1,'lllN
STATE AUDITOA (4'\4) tj!)f, 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshmgton Street, SW Suite 214 Atlanta, Gcorg1J 30334-84()()
July 23, 2003

Honorable Sonny Perdue. Governor Member~ of the General Assembly Member~ of the State Board of Educatwn
and Supcnntendent and Members of the Tel fa1r County Board of Educatwn
REPORT ON COMPLIANCE WITII REQUIREMENTS APPLICAHI E TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WIT! I 0MB CIRCULAR A- I33
Ladies and Gentlemen
Compliance
We have audited the compliance of Telfair County Board ofEducatton with the type~ ofcompliance requirements descnbed in the US Office <!f Management and Budget (0MB) C1nular A-133 Compliance Supplement that arc applicable to each of its maJor Federal program~ for the year ended June 30. 2002 Telfa1r County Board of Educauon~ maJor Federal programs arc 1dent1tied in the Summary of Auditor's Results Sectwn of the accompanying Schedule of Finding~ and Questioned Costs Comphance with the requirements of laws, regulations, contracts and grants apphcable to each of Its maJor Federal programs 1s the respons1b1hty of Telfair County Board of Education's management Our rcspons1bihty 1s to express an op1mon on Telfair County Board of Education's compliance based on our audit
We conducted our audit ofcomphance in accordance with auditing standards generally accepted in the Umted States of Amenca. the ~tandards applicable to financial audit~ contained in Govi:mment Auditing Standards, issued by the Comptroller General of the Umted States. and 0MB Circular Al 33. Audlls of StateJ, Local Governmentv. and Non-Profit Or~am=a11ons Those standards and 0MB Circular A-133 reqmre that we plan and perform the audit to obtam reasonable assurance about whether noncomphance with the types ofcompliance reqmrements referred to above that could have a direct and material effect on a maJor Federal program occurred An audit includes cxarninmg. on a test bast~. evidence about the Telfa1r County Board of Education's compliance with those requirements and pcrformmg such other procedures as we considered neces<;ary m the c1rcum~tance~ We believe that our audit provides a reasonable basis for our op1mon Our audit docs not provide a legal determmat1on on Tclfa1r County Board of Educatwn's compliance with those reqmremcnts
2002SA-10

In our opin10n, the Telfair County Board of Education complied, in all material respects, with the reqmrements referred to above that are applicable to each of Its maJor Federal programs for the year ended June 30, 2002
Internal Control Over Compliance
The management of Telfair County Board of Educat10n 1s responsible for establishing and mamtaining effective internal control over compliance with reqmrements of laws, regulations. contracts and grants applicable to Federal programs In planning and performing our audit, we considered Telfair County Board of Education'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 cons1dera1Ion of the internal control over compliance would not necessanly disclose all matter., in the internal control that might be material weaknesses A material weakness 1s a cond1t10n in which the design or opcrallon of one or more ofthe internal control components does not reduce to a relallvely low level of risk that noncompliance with applicable reqmrements 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 llmely period by employees in the normal course of performing their assigned function~ We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses
This report 1s intended solely for the informat10n and use of the management. members ofthe Telfair County Board of Education, Federal awarding agencies and pass-through entities and 1s not intended to be and should not be used by anyone other than these specified parties
---Respectfully submitted. ~uj~ Ru ell W Hinton State Auditor
RWHas 2002SA-10

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7341-00-0 I FS-7341-01-0 I

Further Act10n Not Warranted Unresolved - See Corrective Act10n/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Fwlure to Mamtam General Fixed Assets Account Group Reportable Cond1110n - Matenal Weakne~s Fmdmg Control Number FS-7341-01-01

The School D1stnet 1s m the process of getting the appropnate controls and procedures m place to provide for the mamtenance of a General Fixed Assets Account Group. This 1s bemg implemented accordmg to GASB Statement 34 and should be completed at the end of fiscal year 2003 A consultant 1s under contract to help implement this for us

SECTION IV FINDINGS AND QUESTIONED COSTS

TELFAIR COUNTY BOARD OF tDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
SUMMARY OF AUDITOR'S RESULTS
Type of Report Issued on the Fmanc1al Statements The auditor's op1mon on the Telfair County Board ofEducauon's financial statement~ was qualified for vanous departures from generally accepted accountmg prmc1ples
2 Reportable Cond1t10ns in Internal Control Disclosed by the Audit of the Fmancial Statements The audit report for the Telfair County Board of Education disclosed a financial statement reportable cond1t10n related to the followmg control category
General Fixed Assets
The reportable condition described above is considered to be a matenal weakness
3 Noncompliance Matenal to the Fmancial Statements The audit of the Telfair County Board of Education disclosed no mstances ofnoncompliance that were deemed to be matenal to the financial statements
4 Reportable Cond1t1ons m Internal Control Over Major Programs The audll report for the Telfair County Board of Educat10n did not disclose any reportable eond11Ions m mternal control over maJor programs
5 Type of Report Issued on Compliance for Ma1or Programs The auditor's opm1on on the Teltiur County Board of Educallon's report on compliance vmh requirements applicable to maJor programs was unqualified
6 Audit Fmdmgs Required to be Reported by Sccuon 510(a) ofOMB Circular A-133 The Telfair County Board ofEducallon's audit did not disclose audll findmgs required to be reported by scct10n .510(a) ofOMB Circular A-133.
7 Ma1or Programs Federal award~ audited as maJor programs are as follows IO 553 Food and Nutnt1on Program - Food Services - School Breaklitst Program 10 555 Food and Nutntion Program - Food Services - Nat10nal School Lunch Program
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300.000 00
9 Low Risi,. Auditee The Telfair County Board ofEducat10n qualified as a low nsk aud1tee as defined by Section 530 ofOMB Circular A-133
-I-

TELFAIR COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Pnor Year Fmdmg Control Number FS-7341-02-01 The Telfair County Board of Educat10n did not maintain a system-wide General Fixed Assets Account Group withm the formal accountmg records as required by generally accepted accountmg pnnc1ples ThIS cond1t1on results m the general-purpose financial statements of the School District bemg mcomplete and not m accordance ....,1th generally accepted accountmg pnnc1ples. Appropriate act10n should be taken by the School D1stnct to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group These subsidiary records should mclude an mventory of land. buildings and equipment owned by the School Distnct and should include, but may not be limited to. date acquired, acquisition cost, estimated replacement cost. locallon and descnpt1on. Detailed records should be maintained ofall additions and delet10ns to the General Fixed Assets Account Group III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported
-2-