GA ABoo. ,, ,R1 :_ i;2.l, ' T~1'.- 2001-io _, .'- '. ,. -' ., . ,_ ., -. - : .,,_. ' /,._' --' ,. ' ' .'', ,, '' ,. L ; ,, ,, .1 - ,- J ..,.,. i"' - ,.. - .,.. - ' ' -,,-.TELFAIR-''COUNTY- BOARD-.OF EDUCATION . ~-. -'. ,. ' :' - - :- MCRiA, E. G- EORGIA ' ' ' \ . , ,( ,' ~ , t_ ':- ' '> .: I r I -. .,~ -, ,, ... C -. . ' - -' -- ~ - . . I',., ,/ ' OF REP,ORT ON-AUDIT_ '. THE I >., FINANCIAL ' ST' ATEr ME' NTS " .. . . .--FOR THE ,l ,F.,iSC.ALYEA, IR ENDED JUNE-30; 2002 ' < , ! ' > C, ' ,, . ' .:.. ~~ ' ,. " , .'. ' --.. _, . ' ! ' ,, ~' ".., ' ,, ' ' ! ,_.,. ,- ... 'J ., . , --' -, . ' . Russell W. Hinton '.J: , , , ,_ .' , ,, ., ..-~..-,-. ,! ; '. .' State Auditor '_-1-, J ' ,, " { .-- ; " a l. -' ,, , , ' .; ' ", -.' ,_ ,_ ,, , ,~ :. ,. '. , , ! - '. 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...._ -3 - 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 -6- 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 -9- 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 Geoon 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-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