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'THOMAS COUNTY BOARD OF EDUCATION



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, THOMASVILLE; GEORGIA

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PN , . REPORT A'UDIT

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, _of'.THE FINANCIAL STATEMENTS- .

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Russell W. Hinton, State Auditor .

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THOMAS COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUPS

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

9

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

I I

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES. EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

THOMAS COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

30

2 SCHEDULE OF STATE REVENUE

32

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

3

BY PROGRAM

34

4

BY SITE

35

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

SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

rn,.,H I W. H1~ ro~
S rATE Al.JOI TOA
(404)",f,2 71

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, SW !,u11c 214 AtlJntJ Gcorg1J 30334-8400
July 24. 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the Thomas County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAi. STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen
We have audited the accompanying general-purpose financial statements of the Thomas County Board of Educat10n, as of and for the year ended June 30. 2002, as hsted in the table of contents These general-purpose financial statements are the respons1b1hty of the Thomas County Board of Education's management Our respons1b1hty 1s to express an op1mon on these general-purpose financial statements based on our audit
We conducted our audit in accordance with auditing standards generally accepted in the Umted States of Amenca and the standards apphcable to financial audits contamed in Government Auditing Standards. issued by the Comptroller General ofthe United States Those standards reqmre that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmatcnal misstatement An audit includes examining, on a test basis, evidence supportmgthe amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement prcsentat10n We beheve that our audit provides a reasonable ba~1s for our op1mon.
As described in the note~ to the general-purpose financial statements, the Board of Education'~ financial statements have been prepared usmg certam accounting practice~ and policies which. m our opinion, vary m some respects from generally accepted accountmg principles These variances are described as follows

2002ARL-14

School acuv11y accounts maintained at the individual schools are not included m the general-purpose financial statements To conform to generally accepted account.mg pnnc1ples, these accounts should be included m the general-purpose financial statements.
For fiscal year 2002, the School District changed its method of accountmg for the final two payments on one hundred and ninety day employment contracts and the related revenue due from the State to fund these contracts Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and frmge benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. No adjustment was made for the similar salanes and benefits earned m fiscal year 200 I but recorded m fiscal year 2002 as tlus mforrnallon was not readily available. The net effect of the above accountmg treatment resulted in the accompanymg financial statements reflectmg fourteen months of expenditures for a majonty of General Fund salanes and frmge benefits and fourteen months of revenue from the State to fund these contracts Generally accepted accountmg principles require that expenditures be recorded when incurred, 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 determmed, but are believed to be matenal
In our opmion. except for the effects on the general-purpose financial statements of the matters referred to in the precedmg paragraph, the general-purpose financial statements referred to above present fairly. m all matenaJ respects, the financial position of the Thomas County Board of Education as of June 30, 2002, and the results of its operations and the cash flows of Its nonexpendable trust fund for the year then ended, m conformity with accounting principles generally accepted in the United States of America.
As discussed m Note I to the general-purpose financial statements, during fiscal year 2002, the Board ofEducaUon completed a comprehensive mventory of its general fixed assets for mclusion m the general-purpose financial statements Tius change 1s m accordance with accountmg pnnc1ples generally accepted in the Umted States of America.
In accordance with Government Auditmg Standards, we have also issued our report dated JuJy 24, 2003, on our eons1derauon of the Thomas County Board of Education's internal control over financial reportmg and our tests of its compliance with certam proVJsions of laws, reguJat1ons, contracts and grants That report 1s an integral part of an audit performed m accordance with Government Aud1tmg Standards and shouJd be read m conJuncuon with this report m cons1denng the resuJts of our audit
Our audit was performed for the purpose of forming an opm10n on the general-purpose financial statements of the Thomas County Board of Education taken as a whole The accompanymg combirung statements (Exh1b1ts G through J) and the financial scheduJes (ScheduJes I through 4), which includes the ScheduJe of Expenditure; of Federal Awards as reqmred by U S Office of Management and Budget Circular A-133. Audit~ of States. Local Governments, and Non-Profit
2002ARL-l4

Orgamzatwns. are presented for purposes of additional analysis and are not a reqwred part of the general-purpose financial statements Such mfonnat10n has been subjected to the audnmg procedures apphed m the audit ofthe general-purpose financial statements and in our op1mon, except for the effects ofthe matters referred tom the third paragraph, such information is fairly stated, mall matenal respects, in relation to the general-purpose financial statements taken as 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 of the State, as provided for by Official Code ofGeorgia Annotated Sect10n 506-24
Respectfully submmed.
~~ ~-~~ Hinton State Auditor
RWHgp 2002ARL-14

THOMAS COUNTY BOARD OF EDUCATION

THOMAS !:;QU!fil'. !!Q~Q QE laQU~TIQtl
@Mi!IH!;Q BAlAN!:;i; Sl;IEET
~LL F!.,!~Q IYfj;~ 6!:fQ e&t;;Q~NT ~BQ!,H~
JUNE 30 2002

~
Cash and Gash Equlvalenll
ln\iest.nenta
Accounts RaceJvable
lnventones Consumable Suppl,es Food Domned CommodlbOS Purchased Food
GeneralFr<edAslels Land Buildings Equq,menl lmprovemenll Other than Buildings
Amounl to be Provided m Future Years For Payment of
Gaprtal Lease Agreements Compensated -
Total Aaaell

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

s 3192,132 97 $

&45.206 70 s

100 000 00

203 3<1

3,369 53110

1&41,94683

n,680 12

46 503 68 49 548 97

s 6,634,547 53 s 2,383:206 16 $

100 000 00

L'~ILITIES ANQ FUND i;QUIIY
LIABILITIES
Cash Overdraft AccoLlnts Payable Salanes Payable Exp,nsd Gren1 Balances Payable Retarnages Payable Capital Lease Agreemoms Compensated Absences
TotalL-
FUNDECUIJY
Investment Ill General Flxed Asaets Fund Balances
Reserved For Bus Replacement FUl'lds For Charter School For Endowment Corpus For tnventortes Consumable SUP!llles Food
Don81ed GommodibOS
Purdlased Food Ur;eserved
Designated for S.W-lnsurance Undesagnated
Total Fund EqLlly

s s 1,137 780 94
2,714173 35

269,780 26 &42,435 98
2 013 15

s $ 3,851,954 29

914 229 39

s

J.17,976 88

s

72,680 12

46 503 66 49,548 97

424 385 75 2,285,527 37

1 024 947 26 s

s $ 2,782,593 24 $ 1468978TT

100 000 00 100 000 00

Total Llal>I- and Fund Equll'j

s s 6 63<1547 53 21383,206 16 s

The notes to the generat-purpose financ:tal stat&i 1..ants are an mtegra1 part of this atatement

-2-

100,000 00

EXHIBIT "A"

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

$

312 63

75 148 25

2 559 35

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS

(Memorandum On!):!

JUNE 30, 2002

JUNE 30 2001

s s 3 937,652 30

3 593,88314

75 351 59

62,729 48

5 014 037 28

2 734 860 18

s

210 270 00

23 063 913 00

4 997,475 00

1,866,837 00

72,880 12
46 503 66 49,548 97
210.270 00 23 063,913 00
4,997,475 00 1,866 837 00

92 566 68
45,860 58 55,299 70
210 270 00 23 063 913 00
4,896 408 00 1,783,812 00

s

42 054 82

187 805 00

42,054 82 167 605 00

80 287 61 175 809 70

s

s 78 020.23

3011381495 00 $

2091659 82 s 3915431928 74 s 3615951500 07

s

373 558 09

$

1 407,561 20

1005694 46

3 356,809 33

807 731 51

2 013 15

47,608 87

s

42 054 82

42 054 82

78,108 89 80,287 81

187 805 00

187 805 00

175 809 70

s

s s 209,659 82

4 975 843 50

2,368,799 13

$ 30 138,495 00

s

75 026 84

2 993 39

0 00

$

s 78 020 23

30,138,495 00

$ 30,13849500 $ 29,754 403 00

347 978 88 75 026 84

20,297 00 205,059 99
82 500 00

72 680 12

92 566 88

46,503 66 49 548 97

45,860 58 55 299 70

424 385 75 3,413,468 02

430,883 59 3,559,830 40

s $ 34,568,085 24

34 228 700 94

s

s s 78 020 23

30,136.495 00

s 209,659 82

39,543,928 74 s 36 595,500 07

- 3-

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THOMAS 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 Taxes Other Funds
Total Revenues
EXPENDITURES
Current lnstrucbon Support SaMces Pupil Services Improvement ol lnatrucbonal Services Educabonal Media Sarv,ces General Adm1mstral!on School Admm1strat:Ion Business Admm1strabon Maintenance and Operabon of Plant Student Transportsbon Services Central Support SaMces Other Support Serv,ces Food SaMOOS Operabon
Capital Outlay Debt Service
Pnncipal Interest
Total Expendrtures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES {USES!
Capital Leases Operabng Transfers In Operabng Transfers Qui
Total Other Financing Sources (Usas)
Excess of Revenues end Other Fmanang Sources over (under) Expendrtures and Other Financing Uses
FUND BALANCE JULY 1

GENERAL FUND

SPECIAL REVENUE
FUND

$ 26,906 853 56 $
5,879,061 07 252 517 52
$ 33,038,432 15 $

3,251,221 75 4,433,160 41
1 22101765
8.905.399 81

$ 24,428,515 46 $
946,063 98 440,201 92 658,63703 345,490 31 1,778,785 51 291,750 78 2,370,075 02 1,708,868 30 248,552 84

4,555,254 93
808,75505 468,54328
23,828 56 102,255 60 257,125 46
82,903 51 9,812 97 1,650 00
186,226 21 2,218,338 60

$ 33,216.941 15 $

$

-178 509 00 $

38,23279 8 02615
8. 760,953 11
144 446 70

$

$

-139 203 30

$

-139 203 30 $

50,782 29 50 782 29

$

-317,712 30 $

195,228 99

3.100,305 54

1273747 78

FUND BALANCE JUNE 30

$

s 2,7a21s93 24

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

-4-

1468976 77

EXHIBIT"B"

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

s 300000

30,161,075 31 $ 26,047,627 13

4,433,160 41

3,735,394 66

5,879 061 07

5,762,643 86

147353517

1,470,296 34

$

300000 $ 41946831 96 $ 37,015,961 99

$ 28,983,770 39 $ 23,672,883 08

s

23,312 12

1754,81903 908,745 20 682,465 59 447,745 91
2,035,910 97 291,750 78
2 452,978 53 1,718,681 27
250,202 84 186,226 21 2,218,338 60
23,312 12

1,665,991 60 949828 90 621,398 66 429,09329
1,879,928 34 230,919 51
2,360,TTS 53 1,475,718 17
245,545 15 177,518 95 2,147,437 40 664,430 92

38,232 79 8 02615

46,121 21 137 73

$

23 31212 $ 42,001,206 38 $ 36,567,729 44

$

-2031212 $

-54 374 42 $

448232 55

s

126,408 82

s

88,421 01 $

139,203 30

255 008 37

-139,203 30

-255 008 37

$

88 421 01 $

000 $

126,408 82

$

68,108 89 $

-54,374 42 $

574,641 37

3189111

4405944 43

3,831,303 06

$

100,000 00 $ 4 35157001 $ 4405 94443

-5 -

THOMAS COUNTY BOARD QF EDUCATION
COMBINED STATEMENT OF REVENUES EXfENDIIURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - lNON:GMP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENPEP JUNE 30 2002

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds
Federal Funds
Taxes
other Funds
Total Revenues
EXPENDITURES

s 23,432 664 00 s 26 906,653 se

5 801 608 00 102 000 00

5 879 061 07 252 517 52

s 29,3361272 00 s 33 038 432 15

Cu:nln1
1nstrudLOll SupportSeMces
Pupo! Services
Improvement of lnstruchonel ServlC8I Educabonal MedL8 Services
General Admlrntratlon
School Admrn1strabon BUSlneSI Administrabon Maintenance and opersuon o1 Plant
Student TransportabOn SeMC81
Central Support SeMCeS
Other Support Services Food SeMces Operat1011 Debi Service
Total Expendrtures
Excess of Revenues over (under) Expenditures

s 21 780 000 00 s 24,428,515 48

783 000 00 444 000 00 61140000 339 000 00 1,758,500 00 312,000 00 2 553 100 00 1,589 000 00 235 750 00

946 063 88 440 201 92 858 637 03 345,-490 31 1 778 785 51 291 750 78 2 370 075 02 1,708 868 30 248,552 84

s 3013851750 00 s 3321694115 s -1 049 478 00 s -178 509 00

OTHER FINANCING SOURCES <USESl

OtherSoun:ea OtherU,ee

s -220 000 00 s

To<al Other F,nanang Sou-coo (Uses)

s -220 000 00 s

Excess o1 Revenues and Other F1n11ncmg Sources
over (under) Expendilures and Other Finanang Uses s -1269478 00 s

-139 203 30 -139 203 30
-317 712 30

FUND BALANCE JULY 1 2001 Adiustmenta

2 530 002 99 2 104 98

3 100 305 54

FUND i;!ei~CE JUN!; ~ ~2

s 1 262 629 95 s 2 782 593 24

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s 3,620 725 00 s 3 251 221 75

3,574,000 00

4 433 160 41

7681000 00

1 22101765

s 7,9621725 00 s 8 905 399 81

s 4 193 225 00 s 4 555 254 93

!1100000 420,500 00
87,000 00 187,000 00

808,755 05 468 543 28
23 828 56 102 255 60 257 125 48

25 000 00
359 000 00 2,000,000 00

82 903 51 9,812 97 1,650 00
186 228 21 2,218 338 BO
46 258 94

s 8 082 725 00 s 876095311

s -120 000 00 s 144 446 70

s 120 000 00 s 50 782 29

s 120 000 00 s 50 782 29

s

000 s 195 228 99

1 355 863 95

1 273 747 78

586 120 38

s 1 941 984 33 s 1 48B 976 77

The notes to the general-purpose finanaal a.tatements are an integral pert of th.111 statement
. 7.

THOMAS COUNJY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE IBUST FUND YEAR ENDED JUNE 30 2002

EXHIBIT "D"

OPERATING REVENUES Donations
OPERATING EXPENSES Current Support Services General Admlmstrabon Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Net Income
FUND BAL,ANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND BOBBY
SINGLETARY FAMILY
SCHOLARSHIP FUND

TOTALS {Memorandum On!):)
YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

s

12,526 84 s

12,526 84 $

000

$

4 251 00 $

4 251 00 $

3 600 00

s

8,275 84 $

8,275 84 $

-3,600 00

3 39088

3,390 88

4 668 58

$

11,666 72 $

11,666 72 $

1,068 58

66,353 51

66 353 51

65.284 93

$

78102023 $

781020 23 $=~66=13;,;;53;;,;5~1~

The notes to the genera~purpose financial statements are an integral part of this statement -8-

THOMAS COUNTY BOARD OF EDUCATION
STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND
YEAR ENDED JUNE 30. 2002

EXHIBIT "E"

Cash Flows from Operating Ad1vrtJes Cash Received from Donations Cash Paid for Scholarships
Net Cash Provided (Used) by Operating AclMIJes
Cash Flows from lnvesbng Ad1vrtJes Interest Received on Investments Purchase of Investments (Net)
Net Cash Provided (Used) by Investment Ac:llvrt1es
Net Increase 1n Cash
Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

ENDOWMENT FUND BOBBY
SINGLETARY FAMILY
SCHOLARSHIP FUND

TOTALS (Memorandum Onl~l
YEAR ENDED
JUNE 30, 2002 JUNE 30, 2001

$

12,526 84 $

12,526 84

-4 251 00

-4 251 00 $

-3 600 00

$

8 275 84 $

8 275 84 $

-3 600 00

s

4,561 12 $

4,561 12 $

-12 617 25

-12,617 25

3,688 01 -31 00

$

-8 05613 $

-8 056 13 $

3 657 01

$

219 71 $

219 71 $

57 01

9292

92 92

3591

$

312 63 $

312 63 $==--92_9_2__

The notes to the general-purpose financial statements are an lrrtegral part of this statement -9-

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note J SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Thomas County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Supenntendent appointed by the Board The School D1stnct 1s organized as a separate legal enllty and has the power to levy taxes and issue bonds Its budget 1s not subject to approval by any other entity. Accordingly, the School Distnct 1s a pnmary government and consists of all the organ1zat10ns that compose its legal entity
FUND ACCOUNTING
The School Distnct uses funds and account groups to report on its financial pos11Ion and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transacllons related to certain governmental funct10ns or ac1Iv1t1es A fund 1s a separate accounting enllty with a self-balancing set of accounts. An account group 1s a financial reporting deVJce designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
Although "school activity accounts" are maintained at the individual schools, neither the assets. liab1li11es 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 accounting pnnc1ples, 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 Distnct, in compliance With generally accepted accounting principles applicable to governmental units. unless othe!'Wlse disclosed in these notes. Funds and account groups presented in this report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School Distnct's educational act1v1ties. Governmental Fund Types include.
GENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those reqmred to be accounted for in another fund. These transact10ns 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 restncted to expenditures for specified purposes These funds are received pnmarily from the Georgia Department of Educauon and from the Federal government to accomplish specific educat10nal objectives
CAPITAL PROj ECTS FUND - the fund used to account for financial resources to be used for the acqms1t1on or construction of major capital facililles
- II -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, pnvate orgwuzations, other government units and/or other funds This fund includes
NONEXPENDABLETRUSTFUND Bobby Singletary Family Scholarship Fund - the fund used to account for an endowment of
which the corpus is to be invested and preserved intact with the resultant income to be used to
provide scholarship wd to defray college educational expenses
ACCOUNT GROUPS
GENERAL FIXED ASSETS ACCOUNT GROUP -A financial reporting device used to account for all general fixed assets acquired or constructed for use by the School D1stnct.
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for accrued compensated absences and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund 1s determined by its measurement focus All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (1.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets Their reported fund balance is considered a measure of available spendable resources.
L1ab1hties which are expected to be financed from available spendable resources are reported as hab1ht1es in the governmental funds. Other habilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus W1th this measurement focus, all assets and liabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e g., revenues) and decreases (e g.. expenses) in net total assets
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 transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabiht1es of the current period. The School D1stnct considers receivables collected within sixty days after yearend to be available Property taxes and interest are considered to be susceptible to accrual. Nonexchange transact10ns, in which the School District gives (or receives) value without directly
- 12 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
rece1vmg (or g1vmg) equal value m exchange, include property taxes, intergovernmental grants and donations Revenue for property taxes 1s recognized m the fiscal year for which the taxes are levied Revenue from grants and donations 1s recogruzed m the fiscal year in which all elig1b1hty requirements have been satisfied
Expenditures are generally recognized when the related fund habihty 1s mcurred
For fiscal year 2002, the School D1stnct changed its method of accountmg for the final two payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts Adjustments have been made m the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid m July and August2002) and the related revenue due from the State to fund these contracts Tots change 1s in accordance with generally accepted accountmg principles No adjustment was made for the similar salanes and benefits earned m fiscal year 2001 but recorded m fiscal year 2002 as tlus information was not readily available.
The net effect of the above accounting treatment resulted in the accompanymg financial statements reflectmg fourteen months of expenditures for a majority of General Fund salaries and fnnge benefits and the related revenue due from the State to fund these contracts Generally accepted accountmg principles require that revenues be recorded when available and measurable and that expenditures be recorded when mcurred, rather than when funds are received or disbursed.
The accrual basis of accountmg, as required by generally accepted accountmg principles, is utlhzed by nonexpendable trust funds Under the accrual basts of accountmg, revenues are recorded when earned and expenses are recorded at the time hab1lit1es are mcurred
BUDGET
The Thomas County Board of Education's budget is a complete financial plan for the School D1stnct's fiscal year and is based upon estimates of expenditures together with probable fundmg sources There 1s no statutory proh1b1tion regardmg overexpenditure ofthe budget at any level The budget for all governmental funds is prepared by fund. function and object The legal level of budget control was estabhshed by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accountmg pnnciples
The budget process begms when the School District's administration prepares a tentative budget for the Board's approval After approval ofthis tentative budget b) the Board, such budget 1~ advertised at least once in a newspaper of general c1rculat1on m the locality At the next regular meetmg of the Board after advertisement, the Board receives comments on the tentative budget, makes rev1s10ns as necessary and adopts a final school budget This final budget is then submitted, m accordance with prov1s10ns of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education The Board may mcrease or decrease the budget at any ttme durmg the year All unexpended budget authonty lapses at fiscal year-end.
- 13 -

-------------------------- -- ---

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash eqmvalents consist ofcash on hand, demand deposits and short-tenn mvestments with ongmal maturities of three months or less from the date of acqmsit10n m authorized financial mst1tut1ons Georgia Laws OCGA 45-8-14 authonze the School District to deposit its funds in one or more solvent banks or msured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District m nonparuc1pating mterest-eaming contracts (such as
certificates ofdeposit) and repurchase agreements are reported at cost Participating interest-eammg contracts and money market investments with a maturity at purchase ofone year or less are reported at amonized cost. Both participating interest-earnmg contracts and money market mvestments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Armotated Section 36-83-4 authonzes the School District to invest its funds and in selecting among options for mvestment or among institutional bids for deposits, the highest rate ofreturn shall be the obJective, given eqmvalent conditions of safety and liquidity. Funds may be mvested in the following.
(I) Obhgattons issued by the State of Georgia or by other states,
(2) Obhgations issued by the United States government.
(3) Obhgat1ons fully msured or guaranteed by the Umted States government or a United States government agency,
(4) Obhgations of any corporation of the Umted States government,
(5) Pnme banker's acceptances,
(6) The Local Government Investment Pool adnumstered by the State of Georgia, Office of Treasury and F1scal Services,
(7) Repurchase agreements, and
(8) Obhgat10ns of other poht1cal subdivisions of the State of Georgia
RECEIVABLES
Receivables consist of grant rermbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from infonnat10n available Receivables
- 14 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

are recorded when either the asset or revenue recognition cntena has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectiblc receivables.

PROPERTY TAXES

The Thomas County Board of Corrumss10ners fixed the property tax levy for the 2001 tax digest year (calendar year) on September 4, 2001 (levy date) Taxes were due on December 15, 2001 (hen date) Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002 The Thomas County Tax Comm1ss1oner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remit.~ the balance of taxes collected to the School District Property tax revenues dunng the fiscal year ended June 30. 2002 for maintenance and operations amounted to $5,664.567 57

The tax millage rate levied for the 2001 tax year (calendar year) for the Thomas County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value)

School Operat10ns

I2,329 mills

INVENTORIES

SUPPLIES INVENTORIES lnventones of consumable supplies are reported on the Combined Balance Sheet at average cost. The School Distnct uses the consumpt10n method to account for the invcntones. The con~umable supplies inventones are recorded as an asset when purchased and expenditures are recorded as the inventory items are used The inventories reported on the balance sheet are equally offset by a reservation of fund balance, which indicated that they do not constitute "available spendable resources" even though they are a component of net current assets

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value Purchased foods mventories are reported on the Combined Balance Sheet at cost (weighted average) The School D1stnct uses the consumpt10n method to account for both inventones. Donated food commodities are recorded as an asset and as revenue when received, and expenditures are recorded as the inventory items are used Purchased foods are recorded as an asset when purchased and expenditures are recorded as the inventory items are used The inventones reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constttute "available spendable resources" even though they are a component of net current assets.

- 15 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL FIXED ASSETS
General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the vanous funds at the time ofpurchase All purchased general fixed assets are valued at cost where h1stoncal records are available and at estlillated histoncal cost where no historical records exist Donated general fixed assets are recorded at fair market value on the date donated Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets 1s not capitalized
COMPENSATED ABSENCES
Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered This obhgat10n relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obhgat1on as this amount is deemed immatenal to the general-purpose financial statements.
INTERFUND TRANSACTIONS
The School D1stnct has the following types of interfund transactions
Reimbunements ofexpenditures/expenses innially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that 1s reimbursed.
Operating transfen are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facihtate financial analysis Data in these columns do not present financial position, results ofoperations or cash flows in conformity with generally accepted accounting pnnc1ples Neither are such data comparable to a consolidation. Interfund ehminat10ns have not been made in the aggregation ofthis data. Certain reclass1ficat10ns have been made to the comparative data to conform to the current year class1ficat1ons.
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 ofthe face
- 16 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS
value of such surety bond and the market value of secuntJes pledged shall be equal to not less than 110 percent ofthe pubhc funds bemg secured after the deduction ofthe amount ofdeposit insurance If a depository elects the pooled method (OCGA 45-8-13 I) the aggregate of the market value ofthe secunlles pledged to secure a pool of public funds shall be not less than 110 percent ofthe dally pool balance OCGA Sect10n 45-8-1 l(b) provides an officer holding pubhc funds may, m his d1scret1on, waive the requirement for secunty m the case ofoperating funds placed m demand deposit checkmg accounts
Acceptable security for deposits consists of any one of or any combmat10n of the following
(I) Surety bond signed by a surety company duly quahfied and authonzed to transact busmcss within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes. certificates of mdebtedness or other duect obhgat10ns of the United States or of the State of Georgia,
(4) Bonds, bills, notes. certificates of mdebtedness or other obhgat10ns of the counties or mun1c1pahties of the State of Georgia,
(5) Bonds of any pubhc authonty created by the laws of the State of Georgia. prov1dmg that the statute that created the authority authonzed the use of the bonds for this purpose.
(6) lndustnal revenue bonds and bonds of development authonlles created by the laws of the State of Georgia, and
(7) Bonds, bills, notes. certificates of mdebtedness, or other obligat10ns of a subs1d1ary corporation of the Umted States government, which are fully guaranteed by the United States government both as to pnnc1pal and mterest or debt obhgallons issued by the Federal Land Bank, the Federal Home Loan Bank. the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Associat10n, and the Federal National Mortgage Assoc1at10n.
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $5,396,116.74 The amounts ofthe total bank balances are classified mto three categones of credit nsk.
Category I - Cash that 1s msured (e.g., Federal depository insurance) or collaterahzed with securities held by the School D1stnct or by the School District's agent m the School District's name
Category 2 - Cash eollaterahzed With '!CCunt1es held by the pledgmg financial mslltullon's trust department or agent in the School D1stnct's name
- 17 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

Category 3 - Uncollateralized deposits (This includes any bank balance that is collateralized
with securities held by the pledging financial inshtutmn, or by its trust department or agent but not in the School District's name.)

The School District's deposits are classified by risk category at June 30, 2002, as follows

Risk Category

Bank Balance

I

$ 375,148.25

2

5,020,968.49

3

000

Total

$ 5.396. II6.74

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value ofthe School District's total investments was $203.34 which is matenally the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categonzed since the School D1stnct did not own any specific 1denufiable secunhes in the pool The investment pohcy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qu1d1ty Portfolio) does not provide for investment m denvatives or sunilar investments. A descnption of the Primary L1qmdity Portfolio is as follows

The Pnmary L1quid1ty Portfolio consists of Georgia Fund I, which is a combination local and state government investment pool, and Fund 6 Georgia Fund I 1s a stable net asset value investment pool which follows Standard and Poor's cnteria for AAAm rated money market funds The pool is not
registered with the SEC as an mvestment company but does operate Georgia Fund I in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a-
7 hle pool. The pool's pnmary objectives are safety of capital, investment income, liqmdity and d1vcrsificallon while maintaining principal ($1 00 per share value) Net asset value is calculated weekly to ensure stability The pool distnbutes earnings (net of management fees) on a monthly basis and values paruc1pant's shares sold and redeemed based on $ I 00 per share Pooled cash and cash equivalents and investments are reported at cost which approximates fa.1r value The pool does not issue any legally binding guarantees to support the value of the shares Participation 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 obligations, secunhcs issued or guaranteed as to pnnc1pal and interest by the U S Government or any of its agencies or instnJrnentalities, banker's acceptances and repurchase

- 18 -

THOMAS COUNTY BOARD OF EDUCATION

EXIIIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

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 duration for Fund 6 on June 30, 2002, was 0.75 years.

Note 3 NON-MONETARY TRANSACTIONS

The School D1stnct receives food commod11tes from the Umted States Department of Agnculture (USDA) for school breakfast and lunch programs. These commodittes are recorded at their Federally assigned value See Note 1 - Inventories

Note 4 GENERAL FIXED ASSETS

The following ts a summary ofchanges in the General Fixed Assets Account Group during the fiscal year

Balance JUI) I, 2001

Improvements

Other Than

LIID~

llmld1!l~

liY1ld1D&ii

Egu1nmcnt

Iotal

s

000 s

000 s

000 s

000 s

000

Retroactive Restatement of rnor Ycar Balances

ilQ,270 QQ 23,Q23,9Q QQ 1.183,Bii,oo 4,696,408 QQ i2,754,403 00

Balance July I, 2001 Restated

S 210.270 00 $23,063,913 00 S 1,783,812 00 $ 4,696,408 00 $29,754 403 00

Additions Balance June 30, 2002

83 025,QQ 301,067 QQ 384,022 00
S 2JO 270 99 523 063 2lJ 00 S . J . ~ S,,,4.227.41WO oo S:l0.138.495

Note 5: RISK MANAGEMENT

The School D1stnct 1s exposed to vanous nsks of loss related to torts, theft of. damage to, and dcstruct10n of assets, errors or om1ss10ns, Job related illness or inJunes to employees; acts of God and unemployment compensatton

The School Dtstnct has obtained commercial insurance for risk ofloss associated v,11th torts, aso;ets, errors or omissions.job related illness or inJunes to employees and acts of God The School D1stnct has not incurred losses (settlements) which exceeded the School D1stnct's insurance coverage in any ofthe past three years For the current fiscal year, due to the costs ofavailable coverage. the School D1stnct s1gmficantly reduced coverage for workers compensatton

The School District part1c1pates in the Georgia School Boards Associatton Rtsk and Insurance Management System, a pubhc enttty nsk pool organized on July I, 1994, to develop and administer a plan to reduce nsk of loss on account of general hab1lity, motor vehicle hab1hty. or property damage, including safety engineenng and other loss prevention and control techniques, and to

- I9 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5. RISK MANAGEMENT

administer one or more groups of self-insurance funds, including the processing and defense of claims brought agamst members ofthe system. The School District pays an annual premium to the system for its general insurance coverage Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (includmg coverage for flood and earthquake), general hab1hty (including coverage for sexual harassment, molestat10n and abuse) and automobile nsks. Payment of excess insurance for the system vanes by line of coverage.

The School D1stnct 1s self-insured with regard to unemployment compensation claims In connect10n with this program, a self-insurance reserve has been established withm the General Fund by the School Distnct The School D1stnct accounts for claims within the General Fund 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.

Changes in the unemployment compensation clrums liability 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

$

0 00 $

3,440.50 $

3 440 50 $

0 00

$

0 00 $

6,502 70 $

6,502 70 $

000

The School District has purchased surety bonds to provide add111.onal insurance coverage as follows

Position Covered

Amount

Supenntendent All Other Employees (Per Loss)

$ I00.000.00 $ 10,000.00

Note 6. GENERAL LONG-TERM DEBT

CAPITAL LEASES The Thomas County Board of Education has entered into vanous lease agreements as lessee for computers These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future m1mmum lease payments as ofthe date ofthe1r mception

The changes in General Long-Term Debt during the fiscal year ended June 30. 2002, were as follows.

- 20 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 6 GENERAL LONG-TERM DEBT

Capital Leases

Compensated Absences

Total

Balance July I, 2001

$ 80,287 61 $ 175,809 70 $ 256,097.31

Deductions Annual Leave Earned and Utilized (Net) Debt Retired

38,232.79

8,204.70

8,204.70 38,232 79

Balance June 30, 2002

$ 42,054.82 $ I67.605 QQ $ 209,659.82

At June 30, 2002, payments due by fiscal year which includes pnncipal and interest for these items are as follows

Fiscal Year Ended June 30

Capital Leases

2003

$ 46,258 94

Deduct Imputed Interest

4,204 12

Net Present Value of Future M1mmum Lease Payments
Note 7 ON-BEHALF PAYMENTS

$ ~2-!l~:1.82

The School D1stnct has recognized revenues and expenditures in the amount of $397,9 I 7 76 for health insurance and retirement contributions paid on the School District's behalf by the followmg State Agencies

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $356,287 76

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer"s Cost In the amount of $41,630 00

- 21 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 8 CONTINGENT LIABILITIES
Amounts received or receivable pnnc1pally from the Federal government are subJect to audit and review by grantor agencies. This could result m requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such d1sallowances, if any, will be immatenal to its overall financial pos1t1on.
The School D1stnct 1s a defendant in vanous legal proceedings pertaining to matters mc1dental to the performance ofroutme School D1stnct operations. The ultimate disposition of these proceedings 1s not presently determinable, but is not believed to be matcnal to the general-purpose financial statements.
Note 9 SUBSEQUENT EVENTS
On September 17, 2002. the voters of Thomas County voted in favor of a Special Purpose Local Option Sales Tax of one percent to be imposed on all sales and uses in Thomas County for a period of time not to exceed 20 calendar quarters and for the raismg of not more than $35,000,000 00 A portion of the proceeds from the tax are to be used for the benefit of the Thomas County Board of Educat10n as stated m part on the Official Ballot of Thomas County as follows
"Shall a one percent sales and use tax for educational purposes be imposed m Thomas County for a period oftime not to exceed twenty calendar quarters and for the raising ofnot more than $35,000,000 00. (a) $22,400,000 of which shall be received by the Thomas County School Distnct for the purposes of acqumng land, constructing and equippmg a new PreK/Kindergarten school, a new middle school, and a new 9th grade academy. renovating and improvmg Garrison Pilcher Elementary, Cross Creek Elementary, Chappelle, Central Middle, and Thomas County High Schools, constructing and equippmg transportation fac1lit1es and acquinng equipment, mcludmg school buses; improvmg adm1mstrative fac1lit1es and acquinng and constructing athletic facilities and related equipment, and purchasing and installing classroom technology together with required networks and administrative systems? If imposition of the tax 1s approved by the voters, such vote shall also constitute approval of, ..(a) the issuance of general obligat10n debt of the Thomas County School D1stnct in the maximum pnnc1pal amount of$ l 5,000,000 for the purpose of financmg the cost ofthe capital outlay projects of the Thomas County School D1stnct descnbed above "
On December 13, 2002, the Thomas County School D1stnct issued General Obligatlon School Bonds, Series 2002, m the pnncipal amount of $15,000,000.00. The interest rates on the bonds range from two percent to four percent. The first payment on the bonds 1s due in 2003.
Note IO ACCUMULATED EMPLOYEES' LEAVE
Twelve month employees cam ten days ofvacat10n annually, provided they have been employed at least nme months of the previous fiscal year, With a maximum accumulation of thirty day~. Upon retirement or termmatlon ofemployment, employees have the option ofearly release or payment for accumulated vacation time at their current rate of pay. See Note 1 - Compensated Absences
- 22 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TI-IE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 11: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, adrnirustrative and clerical personnel employed by local school chstncts are covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, d1sab1hty retirement and survivors benefits for its members in accordance with State statute. The Teachers Retuement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the School Distnct who are covered by TRS are required by State statute to contnbute 5% of their gross earnings to TRS. The School Distnct makes monthly employer contribut10ns to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as advised by their mdependent actuary. The required employer contnbul!on rate 1s 9 24% and employer contnbuuons for the current fiscal year and the preceding two fiscal years are as follows

Fiscal Year

Percentage Contributed

Required Contribution

2002 2001 2000

100% 100% 100%

$ 2.063,143.78 $2,301,901 99 $ 2,146, I 12.50

- 23 -

THOMAS COUNTY BOARD Of EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30 2002

ASSETS
Gash and Cash Equ1VSlents
Accounts Receivable
lnventones Food Donated Commodrt1es Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 1,175,041 93 $

145,859 13

9,876 87

46,50366 49 548 97

Total Assets

$ 1 271 094 56 $=~1=55===,7~36=00===

LIABILmES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total L1ab1hbes
FUNDEOUIJY
Fund Balances Reserved For Charter School For Inventories Food Donated CommodrtJes Purchased Food Unreserved Undes1gnated
Total Fund Equity

$

s 39,531 47

40,149 04

110,563 20

115,586 96

$

150 094 67 $

155 736 00

$

46,503 66

49,548 97

1,024,947 26 $

$ 1,120,999 89 $

000 000

Total L1abtlrtJes and Fund Equrty

$ 1,2711094 56 $_~1:..::55===7~36=00::::,,

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

EXHIBIT "G"

FEDERAL
PROGRAMS

OTHER
PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$ 1,320,901 06 $ 1,111,515 51

$ 1,570,228 98 $

61,840 98

1,641,946 83

2,384,144 44

46,503 66 49 548 97

45,860 58 55,299 70

$ 1,570,228 98 $

6184098 $ 3,058,900 52 $ 3,596,820 23

s

615,243 49 $

188,709 64

416,285 82

2 01315

$ 1,222,252 10 $

60,450 87 $ 1,390 11
6184098 $

675,694 36 $ 269,780 26 642,435 98
2 01315
1,589,923 75 $

1,485,073 60 232,813 28 601.425 51 3 76006
2,323,072 45

$

347,976 88

000 $

$

347 976 88 $

$

347,976 88 $

205,059 99

000 000 $

46,503 66 49,548 97
1,024,947 26
1468976 77 $

45,660 58 55,299 70
967 527 51
1,273,747 78

$ 1,570,228 98 $

6184098 $ 3,058,900 52 $ 3,596,820 23

- 25 -

THOMAS 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 lnstructJon Support SeMces Puptl S8IVIC8s Improvement of lnstrucllonal Services Educallonal Media SeMCes General Admlmstration School Admlmstrallon Maintenance and Operabon of Plant Student Transportation SBMces Central Support SeMces Other Support Services Food SeMceS Operation
Debt SeMce Prlndpsl Interest
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other F1nsnang Sources over (under) Expendrtures
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

161.TT4 00 $ 1,105,705 04

1,517,969 25

590 907 45

$ 2,270,650 70 $ 1,105,705 04

$

860,501 42

167,241 50 29368

46,682 60 37,671 69

$ 2,218,338 60

29808

34,46313 7 238 99

$ 2,218,338 60 $ 1156411 09

$

52,312 10 $

-50,706 05

$

52,312 10 $

1,068,687 79

50 706 05
000 000

$ 1,120,99989 $~~-~0~00-

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

EXHIBIT"H"

FEDERAL
PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 1,983,74271 2,670,164 29 $ 63011020
$ 5,284,017 20 $

$ 245,026 87

3,251,221 75 $ 4,433,160 41 1,221,017 65

245,026 87 $--=8,9=05",3'99 81 $

3,352,825 09 3,722,723 90 1,065,949 09
8 141 498 08

$ 3,449,726 64 $
641,51355
468,249 60 23,828 56 102,255 60
208,442 86 45,231 82 9,812 97 1,650 00 185,928 13

3,74966 78716

$ 5 141 176 55 $

$

142,84065 $

245,026 87 $
245,026 87 $ 000 $

4,555,254 93 $
808,755 05 468,543 28
23,828 56 102,255 60 257,12546 82,903 51
9,812 97 1,650 00 188,22621 2,218,338 60
38,232 79 8 026 15
8 760 95311 $
144,446 70 $

4,120,184 51
713,854 29 531,99613
2,498 00 100,654 93 243,432 69
49,595 26 6,776 38
172,875 35 2,147,437 40
8,089,304 94
52,193 14

7624

$

142,916 89 $

205,059 99

50 782 29

118 074 42

000 $ 000

195,228 99 $ 1273747 78

170,267 56 1,103,480 22

$

347 976 88 $

000 $ 1468976 77 $ 1 273 747 78

- 27 -

THOMAS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 3Q 2002

EXHIBIT "I"

ASSETS
Cash and Cash Equivalents

REGULAR

LOTTERY PROJECT

TOTALS
JUNE 30, 2002 JUNE 30, 2001

S 100,000 00 S

000 S 100,000 00 S 11000000

LIABILmES AND FUND EQUITY
LIABILITIES
Reta,nages Payable
FUND EQUITY
Fund Ba~nces Unreserved Undesignated

$ 100,000 00 S

$ 76,108 89

o oo s _~100=.ooo=~oo~

3169111

Total Liab1hties and Fund Equrty

S 10000000 $

000 $ 100,000 00 $ 110,000 00

See notes to the general-purpose finanaal statements

- 26 -

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

EXHIBIT "J"

REVENUES State Funds
EXPENDITURES Capl\al Outlay BUIiding and BuJlding lmprovemen1s
Excess of Revenues over (under) Expenchtures OTHER FINANCINQ SQURCES
Operating Transfers In Excess of Revenues and Other Frnancr,g Sources
over (under) Expenditures FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

LOTTERY PROJECT

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30. 2001

$

000 $ 3 000 00 $

s 3 000 00

317 465 78

$

s 000 $ 23,312 12

23,312 12 $ 664430 92

s

000 $ -20 312 12 $

-20,312 12 $ -346,965 14

68,108 89

20,31212

88 421 01

136,933 95

s 68 108 89 $
31 89111

000 $ 000

s 68,108 89

-210,031 19

31 89111

241.922 30

$ 100,000 00 $

0 00 $

s___ 1001000 oo

3_1.,8,.9.1._1_1

See notes to the gene.rel-purpose finanael statements

- 29-

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 3Q 2002

SCHEDULE "1"

FUNDING AGENCY
PROGRAM/GRANT
Agnrullure, U 5 Departmen1 of Child Nutrttlon Cluster Paaa-Through From Georgaa Department of Education Food and Nutr1tlon Program FoodSarvlces School Breakfast Program National School Lunch Program
Total Chld Nutn1lon Cluster
Other Programs Paaa-Through From Georgia Department of Education Food and Nutrttlon Program Food SeMcea Food Dlstri>ution Program (1)
Tola! U 5 Department of Agricullun!
Educa11on, U 5 Depal1mon1 of Spoclal Educabon C'uoter Pass-Through From Georg11 Dopartmen1 of Educa11on lndrvldUIIII wl1h Dloob-. Educa11on Ac. Part B - Speoal Education Flow Through Cspactty Bl.lldlng lmprow,men1
capacity Building - Pr0Jed Winning Team
Preschool severely Emollonally Dislurt>ed Poss-Through From Geo,vlo Deportment of Humen Resources lndhnduala wl1h Disablllbea Educat10n Act Part B - Special Educabon
Flow Through
Total Speaal EducabOn Cluster
Other Programs Pan-Through From Semen County Board of Educabon <l/'ola Southem Pina Migrant Educabon Agency Elomen1ary and Secondary Education Ac. TI1le I M,gnmt Education Paaa-Through From Coastal Plains Reg,onal Educetl01111l 5eMceAgency d/bla Southern Pines Migrant Education Agency Elementary and Secondary Education Act TI1le I Migrant Educabon Pass-Through From Georg,a Department of Educa1Jon Elemerrtary and Sacondary Education Ac. Tltlo I Accoumablltty Grams Grants to Local EducatJonal Agenaes TI1le II Eisenhower Pro1euional Development

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555

NIA

s 351,096 34

(2)

NIA

s 1,046,083 72

2 097 549 41 (3)

s s 1 397 180 06

2,097,549 41

10 550

NIA

120,789 19

120 789 19

s s 1,517,989 25

2,218,338 60

84 027 84 027 84 027 84173 84 027

NIA

s s 744,217 99

NIA

16,331 06

NIA

174 000 00

NIA

55,275 85

NIA

90,919 80

784 467 68 (3) 16,331 06
174,000 00 55,275 85
90 919 BO

84027

NIA

245 026 87

245 026 87

s s 1,325,771 57

1,386,021 26

84 011

NIA

25,832 08

25,832 OB

84 011

NIA

84 348

NIA

84 010

NIA

84 281

NIA

37,006 85
96,900 00 953,081 55
29,847 17

37 006 85
98,900 00 853,081 55
29,647 17

-30-

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

SCHEDULE "1"

FUNDING AGENCY
PROGRAM/GRANT
Educa1Jon, U S Department of Other Programs Pass-Through From Georgia Department of Educahan Elementary and Secondary Educabon Act rrtle VI Innovative EducabOn Program Strategies Class Size Reduction Title X Charter Schools Vocational Education - Basic Grants lo States High School Program
BaBIC Grant
Total U S Department or Education
Defanse, U S Department of Dhd
Department of the Ar Force R O T C Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84 298 84 340 84 282
84048

s NIA

57,15140 $

NIA

179 507 30

NIA

89 887 76

57,151 40 179,507 30
89 887 76

NIA

85,384 00

85 384 00

$ 2,880,16968 $ 292041937

$ 35,021 48 $

35 021 48

Total Federal Financial AsSIStance

S 4,433,16041 $ 5 173 779 45

NIA ci Not AV8llable
Notes to the Schedule ot Expenditures of Federal Awards
(1) The amounts shown for the Food DlltributJon Program represents the Federally assigned value of nonmonetary assistance for donated commodities recetved and/or consumed by the system dunng the ament fiscal year
(2) Expendrtures for the School Breakfast Program were not maintained separately and are ancluded m the 2002 National School Lunch Program
(3) Expendrture& for this program include State, and/or Other Funds Expendrtures are not maintained by fund source

M~or Programs are Identified by an astensk () Ill front of the CFOA number

The School Dlstnd dtd not provide Federal Asslstance to any Subreaptent

The accompanying schedule of expenditures of Federal awards mdude& the Federal grant actrvtty of the Thomas Coooty Board of Educahon and i:s presented on the modifted acaual baals of accounting whlch ts the basis of accounting used In the presentaoon of the generaJ-purpose financial statements

See nolet1 to the general-purpose financial alatementa

- 31 -

THOMAS COUNTY BOARD OF EPVCATION
SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCY/FUNP\NG
GRANTS
Comnunrty Afla,~ Georgia Department ol
Local Assistance Grant
Education Georgia Department of Quality BallC EducatJon Direct Instructional Cost Kmdergarten Program Kmdergarten Program - Ealfy lnterven1lon Program Pnmary Grades (1-3) Program Pnmary Grades - Eany Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Eany lntervenbon (4-5) Program Mod<lle Grades (6-8) Program M>ddle School (6-8) Program High School General Educaton (9-12) Program Vocabonal Laboratory (9-12) Program Students wrth O,sab1ICategory I Categoryll Category 111
Ca\ego!'/ rv
Ca\ego!'/ V Speaal Educabon ttioerant Speaal Education &,pplemen1!11 Speech G<fled Studen1 - Category VI Romeaal Educabon Program Altematrve EducatJon Program Engl,sh Speakers of Other Languages (ESOL) Twenty Daya AddlbOnal lnstrucbon Media Center Program Staff and Professlonal Oe'velopment lnduectCOSI Categoncel Grants Pupil Transportation Regular Bus Replacement Spara,ty Grant - Altemetive Program Nursng SeMc:eS Pnnopal ~ Voc.ational SupeN1s,m, Mtd-tenn NJ,ustment Hold-Harmless Educabon EqualizabOO Funchng Grant Food 5eMce& Vocat,on,aJ Educabon Other SIBie Programs 4-8 Statewide After School Program Health ln!IUWICe K3 Statewide Read1ng Program
K-3 5tstewKle Reading Program-SEO Poot Secondary Options (Spnng) Preschool Hanchcapped Program Severely EmotJonalJy D,sturt,ed
Lottery Programs AsslstJve Teclmology Computer, m the Cl""'""'

GOVERNMENTAL FUND TYPES

SPECIAL

CAP1TAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

15,000 00

$ 3,000 00 $

18 000 00

1,197 233 00 357 688 00
3 069,032 00 540,793 00
1 619,551 00
395,374 00 34 260 00
3,216 902 00 2,846 414 00
728,94600
237,907 00 936 974 00 2,221 027 00 4CM 152 00
6,693 00 6,641 00
36000 547 862 00 149,1CM 00 249 BOO 00
37 428 00 166 103 00 539 226 00
95,278 00 3,076,949 00

854 211 00 21129800
20,000 00 11401100
22 165 00 25 B31 00 371 597 00 1 B78 581 00
$ 100 575 59

161 TT4 00

"'6 361 32 356,287 76
44,204 58 3,000 00 9 4CM 00
70,382 00

1 894 505 00

1150670 137,453 17

1 197,233 00 357,688 00
3,069 032 00 540,793 00
1 619,551 00
395,374 00 34 260 00
3,216 902 00 2 646 414 00
728 946 00
237,907 00 936,974 00 2,221,027 00 404,15200
6 693 00 6 641 00
360 00 547,862 00 149,1CM 00 249800 00
37 428 00 166,103 00 539,226 00
95,278 00 3 076 949 00
854 211 00 21129800
20,000 00 11401100
22.165 00 25 B31 00 371 !597 00 1,878 581 00 161,TT4 00 100 575 59
46,361 32 356,287 76
44 204 58 3 000 00 9 4CM 00
70382 00 1 894 505 00
1150670 137 453 17

- 32

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENPEP JUNE 30 2002

SCHEDULE "T

AGENCY/FUNP1NG
GRANTS Georg,a Department of Transportat,on Local Assistance Grant Thomas County Board of Comm1SS1oners
Governors Council on Developmental Disab111hes Kennesaw Slate Un,verarty Prc,ect WINS (Wonn,ng Ideas Netwot1< Schools)
Office of SChool Reachness p,,,_l(,ndergarten Program
Office of Trea&.<Y and F,seal SeMces Publ,c School Employees Rebrement
CONTRACTS
Georgia State Improvement Gr.ant Through Atlanta Pubhc Schools
H'-""'n Resources, Georgla Department of Fam,ty ConnecbOn

GOVERNMENTAL FUNO TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

s

32,546 73

s

32 546 73

8 070 58
s 956 745 17
41,630 00

8,070 58 956 745 17 41 630 00

60 000 00 29237 71

60 000 00 29 237 71

S 26 906 853 56 S 3,251,22175 $ 3 000 00 S 30 161 075 31

See notes to the general-purpose finanaal statements

- 33 -

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

SCHEDULE "3"

DESCRIPTION
Direct lnslrucllonal Programs Kindergarten Program Kindergarten Program-Earty lnterventlon Program Primary Grades (1-3) Program Pnmary Grade5-Ea!1y ln1ervenboo (1-3) Program Upper Elemen1ary Grades (4-5) Program Upper Elemen18ry G.-Earty lnterven1K>n (4-5) Program Middle Grades (6-6) Program Middle School (6-6) Program High School General Education (9-12) Program Vocallonal ~tory {9-12) Program Students - ,sablhtJes category I category II category Ill Gifted Student - Ga1egory VI Remedial EducatJon Program AllernatJve Education Program Enghsh Speaker, of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Med10 Center Program Staff and Professional Dewelc:pment

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

s 1 138 617 00 $ 1 302 095 57

31,35211 $ 1,333 447 66

339 996 00

265 707 76

6 &19 69

272 557 67

2 92165900

2 955 656 37

119&1279

3,075,499 16

514 266 00

557 388 87

5,142 63

562,531 50

1 542 046 00

1,886 671 10

103,069 16

1,989 740 26

375,814 00 32,599 00
3,061,783 00 2,717,151 00
702,705 00 3,830 718 00
521 431 00 14171800 237,603 00 35 543 00

307 TT2 61 3 175 574 06
154845 3290 839 51
537,683 83
179,302 32 821,732 73 2280,10686 250 443 01
38211 55 &1869 95
58 95815

367 44 179,718 79
271,668 26 2121511
1274 78 12 789 79 13710811 5 8&136
1,654 90 3,708 35
35 &I

308,140 05 3,355,292 85
1,548 45 3 562,507 77
556,899 54
180,5TT 10 834,522 52 2 417 214 97 256 327 37
39,866 45 488 578 30
58 993 99

s

s s s 17,913,653 00 18 39 562 72

901,682 91

19,296,245 83

527,562 00 10578000

447,230 13 95 7&146

131,473 10 47 91 26

578,703 23 143,255 72

TOTAL QBE FORMULA FUNDS

s

18 546 975 00 S 18,937 557 31 $ 1 080,&17 27 S 20 018204 56

(1) Compnsed of Stale Funds plus Local Five MUI Share

See notes to the general-l)Urpose finanaal statements

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

SCHEDULE "4"

SITE
The School at Bishop Hall
Thomas County Central High School Cross Creek Elementary School Central Middle School Gamson-P1lcher Elementary School Hand-in-Hand Preschool Southwest Georgia Psychoeducat1onal Program CrossRoads Central Office (Alternative Educatlon Program)
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

303,664 00 $

352,370 77

4,274,059 00

4,460,392 78

4,340,321 00

4,577,339 61

4,095,033 00

4,267,687 15

4,662,973 00

5,035,427 52

154,780 55

19,828 28

428,050 75

237,603 00

368 22

$

17,913,653 00 $ 19,296,245 63

See notes to the general-purpose financial statements - 35-

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

tlJ',.',~ I I \\', 111-.TON
STATE .AUOlmn (J04; 6~fi ~ /4

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washmglon S1ree1 S W Su11c 214
AIIJnla. Georgia )l)"\34-l\400
July 24, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Thomas County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Lad1e~ and Gentlemen
We have audited the financial statements of Thomas County Board of Education as of and for the year ended June 30. 2002, and have issued our report thereon dated July 24, 2003 This report was qualified for various departures from generally accepted accountmg pnnc1ples. as 1den11fied m the auditor's report on the general-purpose financial statements We conducted our audit m accordance with aud1tmg standards generally accepted m the Uruted States of America and the ~tandards applicable to financial audits contamed m Government Aud1tmg Standards, issued by the Comptroller General of the Uruted States
Compliance
As part of obtaimng reasonable assurance about whether Thomas County Board of Education's financial statements are free of material misstatement, we performed tests of Its compliance wllh certam prov1swns oflaws, regulation~, contracts and grants. noncompliance with which could have a direct and material effect on the determmatwn of financial statement amounts However. providing an opmion on compliance with those provisions was not an obJecllve of our audit. and accordmgly, we do not express such an opm1on The results ofour tests d1sclo~d no mstances ofnoncompliance that arc required to be reported under Government Auditing Standards
Internal Control Over Fmancial Reportmg
In plarmmg and performing our audit, we considered Thoma~ County Board of Education's mternal control over financial reportmg m order to determme our aud1tmg procedures for the pur,>0se of expressing our opm1on on the financial statements and not to provide assurance on the internal
2002YB-30

control over financial report.mg However, we noted a certam matter involvmg the mtemal control over financial reporting and its operation that we consider to be a reportable cond1t10n. Reportable conditions mvolve matters commg to our attention relating to significant deficiencies in the design or operat10n ofthe internal control over financial reporting that, m ourJudgment, could adversely affect Thomas County Board ofEducal!on's ability to record, process, summanze and report financial data consistent with assertions of management m the financial statements. The reportable cond1t10n 1s descnbed in the accompany.mg Schedule offmdmgs and Quesl!oned Costs as Item FS-7361-02-01
A matenal weakness 1s a cond1t1on m which the design or operation of one or more of the internal control components does not reduce to a relauvely low level the nsk that misstatements in amounts that would be material m relat10n to the financial statements bemg audited may occur and not be detected WJthm a timely period by employees m the normal course of perform.mg thetr assigned funct10ns Our cons1derahon of the internal control over financial report.mg would not necessarily disclose all matters m the mternal control that might be reportable conditions and, accordmg]y. would not necessarily disclose all reportable conditions that are also considered to be matenal weaknesses However, we beheve the reportable cond1t1on described above is not a material weakness.
Tlus report 1s intended solely for the information and use of the management, members of the Thomas County Board of Education, Federal award.mg agencies and pass-through entitles and 1s not mtended to be and should not be used by anyone other than these specified parties
Respectfully submitted,
\<l. 4'::} sl:::.
sell W. Hinton State Auditor
RWH.gp 2002YB-30

w. ~U',!,~,I L HtNfO:\
STAT( AlJ[)HQR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
2~4 WJshington Street, SW Su11e 214 AtlJntJ Gcorg1J 30334-8400
July 24. 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Educatton
and Supenntendent and Members of the Thomas County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen.
Compliance
We have audited the compliance of Thomas County Board of Education with the types of compliance requirement~ descnbed in the US Office ofManagement and Budget (0MB) Circular A-133 Complwnce Supplement that are applicable to each of its maJor Federal programs for the year ended June 30, 2002 Thomas County Board of Education's ma1or Federal programs arc identified in the Summary of Auditor's Results Sectton of the accompanying Schedule of Findings and Questioned Costs Compliance with the reqmrements of laws. regulattons. contracts and grants applicable to each of1ts maior Federal programs is the responsibility of Thomas County Board of Educatton's management Our respons1b1lity 1s to expre,s an opinion on Thomas County Board of Education's compliance based on our audit
We conducted our audit ofcomphance in accordance with auditing standards generally accepted in the United States of America. the standards applicable to financial audits contained in Government Auditing Standards. bsued by the Comptroller General of the Umted States. and 0MB Circular Al 33, AuJ//s ofStates. Local Government~. and Non-Profit Orgamzat10n.1 Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtam reasonable assurance about whether noncomphance with the types ofcomphance requirements referred to above that could have a direct and matenal effect on a maJor Federal program occurred An audit includes examinmg, on a test basts. evidence about the Thomas County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the c1rcumstances We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal detenninauon on Thomas County Board of Education's compliance with those requirements
2002SA-10

In our opmion, the Thomas County Board of Education complied, mall matenal respects, with the requ1rements 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 Thomas County Board of Education 1s responsible for establishmg and mamtaming effective mtemal control over compliance with reqwrements of laws, regulations, contracts and grants applicable to Federal programs In planmng and performing our audit, we considered Thomas County Board ofEducation's internal control over comphance with requ1rements that could have a d1rect and material effect on a major Federal program in order to determine our aud1tmg procedures for the purpose of expressing our op1mon on compliance and to test and report on mternal control over comphance m accordance with 0MB Circular A-133
Our consideration ofthe mternal control over comphance would not necessanly disclose all matters m the mternal control that might be rnatenal weaknesses A matenal weakness 1s a condition in which the design or operation ofone or more ofthe mternal control components does not reduce to a relatively low level of nsk that noncompliance with applicable reqmrements oflaws, regulations, contracts and grants that would be matenal m relauon to a maJor Federal program bemg audited may occur and not be detected withm a umely penod by employees m the normal course of perforrnmg their assigned functions. We noted no matters involving the internal control over comphance and its operat10n that we consider to be material weaknesses.
This report is intended solely for the mformation and use of the management, members of the Thomas County Board ofEducation, Federal awardmg agencies and pass-through entities and 1s not
mtended to be and should not be used by anyone other than these specified parties
:4 l : ~ ... ,,,-R-espectfully submitted, Le) Hmton State Auditor
RWH:gp 2002SA-10

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

THOMAS 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-7361-00-0 I FS-7361-01-0 I

Previously Reported Correcllve Act10n Implemented Prev10usly Reported Corrective Action Implemented

SECTION IV FINDINGS AND QUESTIONED COSTS

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS
I Type of Report Issued on the Fmanc1al Statements The auditor's opm10n on the Thomas County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2 Reportable Condit10ns m Internal Control Disclosed by the Audit of the Fmanc1al Statements The audit report for the Thomas County Board ofEducat10n disclosed a financial statement reportable condition related to the following control category
Employee Compensation
The reportable condition descnbed above 1s not considered to be a material weakness
3. Noncompliance Malena! to the Fmanc1al Statements The audit of the Thomas County Board of Education disclosed no mstances of noncompliance that were deemed to be matenal to the fmanc1al statements.
4. Reportable Conditions in Internal Control Over Mawr Programs The audit report for the Thomas County Board ofEducation did not disclose any reportable conditions m mternal control over ma1or programs.
5 Type of Report Issued on Compliance for Major Programs The auditor's opmion on the Thomas County Board ofEducation's report on compliance with reqmrements applicable to ma1or programs was unqualified
6 Audit Fmdmgs Regmred to be Reported by Section 5 I 0(a) of 0MB Circular A-I 33 The Thomas County Board of Education's audit did not disclose audit findings reqmred to be reported by section 5 IO(a) of 0MB Circular A-133
7 Ma1or Programs Federal awards audited as major programs are as follows I0.553 Food and Nutrition Program - Food Services - School Breakfast Program I0.555 Food and Nutntion Program - Food Services - National School Lunch Program 84.0 IO Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000 00.
9 Low Risk Auditee The Thomas County Board of Education qualified as a low nsk aud1tee as defined by Section 530 ofOMB Circular A-133.
- I-

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS EMPLOYEE COMPENSATION Salary Overpayments/Underpayments Inadequate Leave Records Reportable Condition Fmding Control Number: FS-7361-02-01 The School D1stnct did not have adequate procedures m place to ensure that employee compensation expenditures were properly calculated and approved before disbursement offunds and that employee leave was properly calculated A sample of sixty employees' payroll records revealed six instances where disbursements were improperly made to employees and two mstances where leave was mcorrectly calculated. These defic1enc1es occurred because of management's failure to implement adequate procedures to ensure that employee compensation expenditures are properly processed and approved before disbursement of funds and that leave records are properly mamtamed. The School D1stnct should 1mplcment procedures to ensure that all payroll disbursements are based on approved contracts, salary scales and time worked. Leave records should be accurate and mamtamed m accordance with the School District's sick, personal and vacation leave policies. The Board should review this matter and determine 1f refunds or correcting payments are appropnate. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-