GA. Aiooo .'"RI E'..l ld 15 ' ;,oi-.;l,o .~~ , ' ~' ... , " .. '... ' ' , . ' . .-. ' ': ., .. ,, ' . ... . I ,J: ' ' , .. ' .' .. ' I ~ I V ' ,r \ , STATE OF GEORG.IA:,.. . , , . , , ., . ' . ,, 'DEPARTMENT' of.AU...D-, ITS AND ACCOUNTS ' ,. . , ,. , '. , \.. ' , ', . ' . . ' '. . ' . . .:: .... , ,. . ' , ; . ' '' ,. ,' . ' ., ..'' ' ' . \ '. ; ' V ~ '. ,. "7 .., .. .. - ,, . ' .' ,' , ' ,_ ,' ' I ' 1 ., ; . '' > , . ,. ,. , . ,' C , '' , , ' ,, ; I ',, ; ., ,' . C ~\ . .'' ' " ,, .'.,'. - . ' ,. ' ''.' " TIFT COUNTY.. BOA.RD .OF EDUCA.T'IO' N 'aJ TIFTON, ~~EORGIA . - .. ' ., , , ... ' s > REPORT ON AUDIT ; . ' OF THE FINANCIAL STATEMENTS FOR-THE FISCAL YEAR ENDED.~UNE'30,'2002 ' . . .' :; ~ ' . ' :, " '..' C I ~ '~' . ' ( \ - . , . ', .,._,, ,' ' ' ,, .. ' .. .. ,. Ru'sseli W. Hinton: , ,. .. .. . ,, . "', State Auditor ., . ' ' '. r ' ' J ' y ' ' -,. .... ~~~ . . . ,, " . ' r ,, ' . . ' . ' ' ' . ' '' . ' ..,. II ; - " TIFT COUNfY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL-PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS ADDITTONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND I COMBINING BALANCE SHEET J COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SCHEDULES I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS Page 2 4 6 7 20 22 24 26 28 29 30 32 33 TIFT COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION! FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 5 BY SITE Page 34 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 Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSl S SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL R11<,St.I I. W. HINTON <;TATE AUDI TOR (404) e56 2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Wa.;;hmgton Street.~ W ~u1tc 214 A1l.mt..1. Gcorg1.1 30334-8400 June 4, 2003 Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education and Supenntendent and Members of the Tift County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Ladies and Gentlemen We have audited the accompanymg general-purpose financial statements ofthe Tift County Board of Educatwn, as of and for the year ended June 30, 2002, as hsted m the table of contents These general-purpose financial statements are the respons1b1hty of the Tift County Board of Education's management Our respons1b1hty 1s to express an opm1on on these general-purpose financial statements based on our audit We conducted our audit m accordance with aud1tmg standards generally accepted m the Umted States ofArnenca and the standards applicable to financial audits contamed m Government Aud!tmg Standards, issued by the Comptroller General of the Umted States Those standards reqmre that we plan and perform the audit to obtam reasonable assurance about whether the financial statements arc free ofmatenal misstatement An audit mcludes exammmg, on a test basis, evidence supportmg the amounts and disclosures m the financial statements An audit also mcludes assessmg the accountmg pnnc1plcs used and s1gmficant estimates made by management, as well as evaluating the overall financial statement presentallon We believe that our audit provides a reasonable basis for our opm1on As descnbcd m the notes to the general-purpose financial statements. the Board of Education's financial statements have been prepared usmg certam accounting pracl!ces and pohc1es which, m our opm1on, vary m some respects from generally accepted accounting pnnc1plcs These vananccs arc descnbed as follows 2002ARL-13 * The general-purpose financial statements of the Board of Education did not contam a General Fixed Assets Account Group to account for property and eqmpment owned by the Board of Education which should be included to conform to generally accepted accounting pnnc1ples. * School activity accounts mamtained at the md1v1dual schools are not mcluded m the general-purpose financial statements To conform to generally accepted accountmg pnnc1ples, these accounts should be mcluded m the general-purpose financial statements * The Board of Education did not recogmze as expenditures, m the year ended June 30, 2002, a portion of salanes and the correspond mg 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 umecorded salanes and related benefits were not recorded as revenue m the year under review Conversely, the s1m1lar 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 om1ss1ons have not been determmed, but are believed to be matenal. In our opm1on, 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 respects, the financial position of the Tift County Board ofEducation as of June 30, 2002, and the results of its operations for the year then ended, m conformity with accountmg pnnc1ples generally accepted m the Umted States of Amenca In accordance with Government Aud1tmg Standards, we have also issued our report dated June 4, 2003, on our cons1dera!ion of the Tift County Board of Education's internal control over financial reportmg and our tests of1ts compliance with certam proV1s10ns of laws, regulations, contracts and grants That report 1s an mtegral part of an audit performed m accordance with Government Auditing Standards and should be read m conJuncuon with this report m cons1denng the results of our audit. Our audit was performed for the purpose of formmg an op1mon on the general-purpose financial statements of the Tift County Board of Education taken as a whole The accompanying combmmg statements (Exh1b1ts E through J) and the financial schedules (Schedules I through 5), which mcludes the Schedule of Expenditures of Federal Awards as reqmred by U S Office ofManagement and Budget C1rcular A-133, Audits ofStates, Local Goiemments, and Non-Profit Orgam=allons, are presented for purposes of additional analysis and are not a requ1red part of the general-purpose financial statements Such mfow1a!ion has been subjected to the aud1tmg procedures applied m the I 2002ARL-13 audit of the general-purpose financial statements and m our op1ruon, except for the effects of the matters referred to m the th.trd paragraph, such mformallon 1s fairly stated, m all matenal respects, m 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 ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24 RWHas 2002ARL-13 State Auditor TIFf COUNTY BOARD OF EDUCATION TIFT COUNTY BOARD OF EDUCATION COMBINED B.Al/',NCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2002 ~ Cash and Cash Equrvelents Investments Accounts Recewable lnventones Food Donated Corrmochbes Purchased Food Amount Avallable in Debt SeMca Fund Amount to be Pf'OVlded 1n Future Years For- Payment ot Bond Debi Capital Lease Agreements TotalAueto GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND s 4,054 503 00 s 591 865 76 s 5,073 965 76 4 767 004 27 653,180 25 959 146 34' 1 366 349 66 44,398 89 21 962 43 s 4 707 683 25 s 1 617 373 42 s 1120731989 LlAB!UTIES AND FUND ECVITY UABJUTIES Caoh Overdnlft Att;tJunta Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Contracts Payable Retalnages Payable Ceprtet Leeee Agruements Gene~ Obllgetlon Bonda Payable Total Laab11rtln FUNPEQUIIY Fund Balances Reae"'8d For Debt 5eMce For lnventones Food Donated CommodrtJea Purchaaecl Food For Purpose of Bond Issue For- SPLOST Projacta For Staie Ceprtel Outlay Pro,octs Unreserved Undealgnated Toiat Fund Equrty s 40,435 16 S 125,,411 42 439,560 25 I 275 00 10,754 78 s 1 056,610 00 485 553 00 s 4043516 $ 5TT 001 45 S 1 542 163 00 s 44 398 89 21 962 43 s 3 136 599 71 8,318 966 33 s 4 667 248 09 974 010 65 209 590 65 s 4 887 248 09 $ 1 CM0 371 97 S 9 665 156 69 Total Liabi\lles and Fund Equity 470768325 S 16'\737342 $ 1120731969 The notes to the general-purpose t'lnanaal statements ere an integral part of this statement 2- EXHIBIT"A" DEBT SERVICE FUND ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS {Memorandum O!!!J:l JUNE 30, 2002 JUNE 30 2001 s s 9 720,334 52 5 284,582 49 s 4 789,560 24 9 556 564 51 19,046,996 52 25,355 52 3,004,031 77 1 990,144 54 s 192 320 75 44,398 89 21,96243 192 320 75 41,948 35 17 850 49 463,-482 20 10,742,679 25 429 962 52 10 742,679 25 429 962 52 20 681 517 BO 408 416 48 s 481491576 S 11 384 962 52 S 33 712 254 64 S 47 934 938 85 s 4,822 595 01 s s 4 622 595 01 s s 429 962 52 10 935 000 00 4 622,595 01 165 646 58 s 439,560 25 1 275 00 10 754 78 1056,61000 485 553 00 429,962 52 10 935 000 00 794 374 89 367,931 41 71,338 12 13,906 78 408 416 46 21 145 000 00 s s 1136496252 18 147 157 14 221800 967 66 s 192 320 75 0 00 s 192 320 75 s 192 320 75 s 463 482 20 44,398 89 21,062 43 3 136 599 71 6 318 966 33 41,948 35 17,850 49 9 416 150 !,8 10 558 392 12 183,615 89 5 850 649 39 4 452 331 26 s s 15 565 097 50 25 133 971 19 s 4 814 915 76 s 11 364 962 52 s 33 712.254 64 s 47 934 938 85 -3- TIFT 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 T a x. . Other Funds Total Revenues EXPEND[URES Currem lnstruc:bOn Support 5eMces Pupil SeMces Improvement of lnstructtonal Services Educa1Jonal Media Services General Adm1n1strab0n School AdrnlmstrabOn Busrness Admmistranon Maintenance and Operation of PIBnt Student Transportation Services Central Suppon SeMces Other Support SeMces Food Servia,s Opera1Jon Commoolt;' SeMCeS Operabons Caprtal OutlaY DebtSeMce Principal Interest Paying Agent Fees ToUII Expenditures Excess of Revenues over {under) Expenchtures OTHER FINANQING SQ!!RQES (l,lSESl Proceeds from General Obr,getJon Bonds Par Value Capital Leases Operatng Transrer, In Operatmg Transfers Out Total Other F,nanoog Sources (Uses) Exce,s of Re"enues end Other Fmancing Sourcn. over (under) Expenchtures and Other Fmancmg Uses FUND BALANCE JULY 1 Food Inventory - Net Change m Period Donated Commodrtles Purchased Food GENERAL FUND SPECIAL REVENUE FUND s s 32 070 472 02 10 341,176 72 809 012 94 s 43.;120,661 68 $ 1 025 760 66 5 325 867 16 524 759 42 6,676,387 24 s s 30 612 976 46 1,16217062 707 725 31 1139 662 19 308 303 16 3 076 167 09 23451510 2,764 667 89 1,466,565 99 223268 65 27267 52 86 164 31 304116034 315,76811 359,902 38 42,604 62 251 921 86 1161756 23 101 54 70 659 35 74 5034' 2 662 996 50 s s 42 031 476 51 s s 1 169 165 17 6,654,657 70 21 729 54 s s -67 682 36 s s -67 682 38 s s 1,12150279 3 545,745 30 67,6B2 38 67 682 38 69 411 92 944 397 57 2,450 54 4 111 94 FUND BALANCE JUNE 30 The notes to the general-purpose flnanCISI statements are an integral part of ttus statement . 4. s 4,667.2-48 09 S 1 040 371 97 EXHIBIT"B" CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS (MemoranclLm Only) YEAR ENDED JUNE 30, 2002 JUNE 30. 2001 $ 1 08547700 s $ 34 181 709 68 32 038 268 17 s 101 291 76 6 289 742 21 5 325 867 18 16,732,210 69 5,001,710 62 15,868 420 53 207 621 99 209 842 43 1 751 236 78 1 731 301 17 s s s s 1 394 390 75 6 499 584 84 57 991 024 31 54 639 700 49 s $ 33 854 158 80 32 230,430 57 s 7 583,929 96 1497938 73 1,067,627 69 1,182,286 81 560,225 04 3,087 984 65 234 515 10 2 787 769 43 1,537,425 34 223.268 85 101,770 96 2 662 998 50 88 184 31 7,583,929 96 1 538,884 68 1,247,178 02 1,104 728 73 716 592 32 2 966 926 74 382,057 79 2 842 750 84 1 511,751 92 249 442 68 124 885 27 2,486 849 09 85,350 56 1 540,079 79 s 321 722 94 10.210,000 00 902 686 37 5 256 00 10 531,722 94 902 686 37 5 256 00 1 462 061 51 677 886 40 8 027 00 s s s s 7 905 652 90 11 117 942 37 87 909 729 48 51 153 683 91 s s s s -6,511,262 15 ~ 818 357 73 -9 918 705 17 ~1 3 486 016 58 s 343,269 00 s ~ 347 196 28 s s ~ 003 927 28 s 4 347 196 28 s 4 347 196.28 s 343 269 00 441487866 ~ 414 878 68 s 343 269 00 10 000 000 00 650 477 97 6614743 -66 147 43 10 650.477 97 s s -10,515 189 43 20 180 346 12 s -271 161 45 -9,575 436 17 $ 14 136 494 55 463 482 20 25,133,97119 10,991 421 89 2 450 54 411194 10 578 92 --4 524 17 966515669 $ 192 320 75 S 15,565.097 50 S 25 133 97119 . 5. TIFT COUNTY BOARD OF EDUCATION COMBlNEP STATEMENT OF RE\JENUES EXPENDITURES AND CHANGES IN FUND BAl..ANCES BUDGET AND ACTUAL - CNON-GAAP BASIS\ GENERAL AND SPl;C\AL REVENUE FUNDS YEAR ENPEP JUNE 30 2002 EXHIBIT "C" REVENUES State FWlds Federal FWlds Taxes Other Funds Total Revenues EXPENDITURES Cunt1nt lnstrucbon Support SeMCM Pupos Purchased Food GENERAL FUND BUDGET ACTUAL s 31 248,807 00 s 32,070 472 02 9,978,183 00 393 000 00 10,341176 72 80901294 s 41 819 970 00 s 43 2201861 68 s 30 912 000 00 s 30 812,978 48 1 302 000 00 738 537 00 1,267 200 00 393,000 00 3 189 492 00 230 000 00 3 105,000 00 1 593,000 00 234 000 00 27,300 00 1182,170 62 707 725 31 1,13968219 308,303 18 3 076 167 09 234 515 10 2,764,667 89 1,466 565 99 223 268 85 27,267 52 88 344 00 88 164 31 s 43 079 873 00 s 42 031 476 51 s -1 459 903 00 s 1 189 185 17 s -74 000 OD s s -74 000 00 s 437 682 38 -'!J7 682 38 s _, 533 903 00 s 1 121 502 79 3 1&2,6~5 78 3 545,745 30 EU~D RALANCE JU~~ at! zgg;z s 1 648 792 78 s 4 667 248 09 SPECIAL REVENUE FUND BUDGET ACTUAL s 757,889 00 s 1 025 760 66 5116,TTOOO 5 325 867 16 484 200 00 524 759 42 s 6 358 859 00 s 6 876 387 24 s 2 890 958 00 s 3041,18034 125 637 00 494,626 00 36,029 00 335 178 00 5,963 00 31576811 359 902 38 42 B04 62 251 921 86 11,817 56 48 673 00 23 101 54 10 asg 35 101 ASS 00 2 428 240 00 74 503 44 2 662 998 50 s 6 456 759 00 s 6 854 657 70 s -97 900 00 s 21 729 54 s 74,000 00 s 67 682 38 s 74 000 OD s 67 882 38 s -23 900 00 s 89411 92 996,518 53 944 397 57 -15,400 79 2,450 54 411194 s 957 215 74 s 1.040 371 97 The notes to the gener1ll-purpos fimmoal statements are an integral part of this statement - 6. TIFf COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Tift County Board ofEducallon (School D1stnct) was established under the laws ofthe State of Georgia and operates under the gmdance of a school board elected by the voters and a Supenntendent appomted 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 subject to approval by any other entity Accordmgly, the School D1stnct 1s a pnmary government and consists of all the orgaruzatlons that compose its legal entity FUND ACCOUNTING The School D1stnct uses funds and an account group to report on its financial position and the results of1ts operahons. Fund accountmg 1s designed to demonstrate legal compliance and to aid financial management by segregatmg transactions related to certam governmental funct10ns or acuv1t1es A fund 1s a separate accountmg entity with a self-balancmg set of accounts. An account group 1s a financial reportmg device designed to provide accountability for certam assets and liab1lihes that are not recorded in the funds because they do not duectly affect expendable available financial resources. General Fixed Assets are recorded as expenditures m the vanous funds at the time of purchase A General Fixed Assets Account Group 1s not presently mamtained by the School D1stnct To conform to generally accepted accountmg pnnc1ples, a General Fixed Assets Account Group should be mamtamed for reportmg the cost of assets acquired by governmental fund types Although "school activity accounts" are mamtamed at the md1v1dual schools, neither the assets, hab1ht1es and fund eqwty, nor the revenues, expenditures and changes m fund balances of these accounts are reflected m these financial statements To conform to generally accepted accountmg pnnc1ples, these accounts should be recorded m the general-purpose financial statements. The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School D1stnct, m comphance with generally accepted accountmg pnnc1ples applicable to governmental units, unless otherwise disclosed m these notes Funds and the account group presented m this report are as follows GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's educallonal achVJties. Governmental Fund Types mclude GENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those reqmred to be accounted form another fund. These transactions relate to resources obtamed and used for services provided by a board of educat10n -7- TIFf COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note l SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for maJor capital projects) that are legally restncted to expenditures for specified purposes These funds are received pnmanly from the Georgia Department of Educa!Jon and from the Federal government to accomplish specific educa!Jonal obJect1ves CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqws11Ion or construchon of maJor capital fac1h!Ies DEBT SERVICE FUND - the fund used to account for the accumula!Ion ofresources for, and the payment of, general Jong-term pnnc1pal, interest and pa}'lng agent fees. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for generaJ obhgahon debt outstanding and capital lease obhgahons BASIS OF ACCOUNTING The accounhng and financial reporting treatment apphed to a fund 1s determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. Wtth this measurement focus, only current assets and current hab1ht1es generaJJy are included on the balance sheet. Operatmg statements ofthese funds present increases (1 e, revenues and other financmg sources) and decreases (1.e, expenditures and other financing uses) in net current assets Thelf reported fund balance 1s considered a measure of available spendable resources L1ab1hlies which are expected to be fmanced from available spendable resources are reported as hab1hlies in the governmental funds Other hab1h!Ies, which are not expected to be financed from available spendable resources, are reported m the General Long-Term Debt Account Group. Governmental funds are accounted for using the modified accrual basis of accounting under which Revenues are recogmzed when suscep!Ible to accruaJ (1.e, when they become both measurable and available). "Measurable" means the amount of the transac!Jon can be determined and "available" means collechble w1thm the current penod or soon enough thereafter to be used to pay hab1hhes of the current penod The School D1stnct considers receivables collected within sixty days after yearend to be available Property taxes, sales taxes and interest are considered to be suscepllble to accrual. Nonexchange transaclions, in which the School D1stnct gives (or receives) value without dITectly receiving (or giving) equal value m exchange, include property taxes, local option sales taxes, mtergovemmental grants and donalions. Revenue for property taxes 1s recognized in the fiscal year for which the taxes are levied Revenue from sales taxes 1s recogmzed in the fiscal year the resources are received or suscep!Ible to accrual Revenue from grants and donations 1s recogruzed in the fiscal year in which all ehgib1hty requirements have been satisfied - 8- TIIT COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures are generally recognized when the related fund hab1hty 1s mcurred A departure from the above defiml!ons 1s the accountmg treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts, and the resources available from the Georgia Department of Educat10n for the State's share of these contracts Dunng fiscal year 2002, a substantial number ofpersonnel of the School D1stnct were employed for a one hundred and mnety day penod beginnmg m August 2001 and cndmg m early June 2002 Personnel contracts for this employment penod specify that compensation be paid m twelve equal monthly payments beginning m September 2001 and endmg m August 2002. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School D1stnct m the same twelve months As of June 30, 2002, compensallon 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 portion of the compensallon paid m July and August 2002 was received and recorded as revenue m the fiscal year subsequent to June 30, 2002 Conversely, the s1m1lar 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 expenditures be recorded when mcurred, rather than when funds are received or disbursed BUDGET The Tift County Board ofEducallon's budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s based upon esllmates of expenditures together with probable fundmg sources There 1s no statutory proh1b1tion regardmg overexpend1ture of the budget at any level. The budget for all governmental funds 1s prepared by fund, function and obJect. The legal level of budget control was established by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accountmg pnnc1ples The budget process begins when the School D1stnct's adm1mstral!on 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 circulat10n m the locality At the next regular meetmg of the Board after advertisement, the Board receives comments on the tentative budget, makes reV1s1ons as necessary and adopts a final school budget Tlus final budget 1s then submitted, m accordance with proV1s1ons of the Quality Basic Educallon Act, OCGA Section 20-2-167(c), to the Georgia Department ofEducallon The Board may mcrease or decrease the budget at any llme dunng the year All unexpended budget authonty lapses at fiscal year-end -9- TIFf COUNTY BOARD OF EDUCATION EXHIBIT "D" 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-term investments with onginal matunt1es of three months or less from the date of acqms1tlon in authonzed financial 1nstltu1Ions. Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds in one or more solvent banks or insured Federal savings and loan associations INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the School D1stnct in nonparticipating interest-earnmg contracts (such as certificates of deposit) and repurchase agreements are reported at cost Part1c1pating mterest-earning contracts and money market investments with a matunty at purchase ofone year or less are reported at amortized cost. Both part1c1pating mterest-earning contracts and money market investments with a matunty at purchase greater than one year are reported at fa1.r value The Official Code of Georgia Annotated Section 36-83-4 authonzes the School D1stnct to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent cond!tmns of safety and hqu1d1ty. Funds may be invested m the following (I) Obligations issued by the State of Georgia or by other states, (2) Obligations issued by the Uruted States government, (3) Obhga!Ions fully insured or guaranteed by the Uruted States government or a Uruted States government agency, (4) Obhgatlons of any corporation of the Uruted States government, (5) Pnme banker's acceptances, (6) The Local Government Investment Pool adm1mstered by the State of Georgia, Office of Treasury and Fiscal Sel'V!ces, (7) Repurchase agreements, and (8) Obhgatlons of other poht1cal subd1v1s10ns of the State of Georgia. - 10 - TITT COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TifE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note l SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES RECEIVABLES Receivables consist ofgrant 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 recogmtlon 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 uncollect1ble receivables PROPERTY TAXES The Tift County Board of Comm1ss1oners fixed the property tax levy for the 2001 tax digest year (calendar year) on August 8, 200l(levy date) Taxes were due on November 15, 2001 (hen date) Taxes collected withm 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 Tift County Tax Comm1ss1oner bills and collects the property taxes for the School D1stnct, withholds 2.5% of taxes collected as a fee for tax collechon 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 operations amounted to $10,063,453 73 and for school bonds amounted to $86.34. The tax millage rate levied for the 2001 tax year (calendar year) for the Tift County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value) School Operal!ons 13.742 mills SALES TAXES Special Purpose Local Option Sales Tax revenue during the year amounted to $6,390,947 63 and 1s to be used for capital outlay for educal!onal purposes or debt servJce This sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years INVENTORIES FOOD INVENTORIES lnventones of donated food commocht1es used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value Purchased foods inventones are reported on the Combined Balance Sheet at cost (first-in, first-out) Donated food commod11Ies arc recorded as revenues and expenditures at the lime commodity items are received Purchased foods inventones are recorded as expenditures at the time ofpurchase The inventones reported on the balance sheet for donated food commod11Jes and for purchased foods are equally ofTset by reservations of fund balance which indicates that these amounts do not conshtute "available spendable resources" even though they are a component of net current assets - 11 - TIIT COUNTI BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES GENERAL OBLIGATION BONDS The School D1stnct issues general obhgallon bonds to provide funds for the acqms1hon and construction ofmaJor capital fac1hhes Bond premiums and discounts, as well as issuance costs, are rccogmzed m the financial statements dunng the year bonds are issued General obhgat10n bonds are direct obhgat10ns and pledge the full faith and credit ofthe government The outstandmg amount of these bonds 1s recorded m the General Long-Term Debt Account Group INTERFUND TRANSACTIONS The School Distnct has the followmg types of mterfund transactions. Reimbursements of expenditures 1mtJ.ally made from a fund that are properly apphcable to another fund are recorded as expenditures m the re1mbursmg fund and as reductions of expenditures m the fund that 1s reimbursed Operating transfers are recorded for all mterfund transactions other than reimbursements MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general-purpose financial statements are captioned "Memorandum Only" to md!cate that they are presented only to fac1htate financial analysis. Data m these columns do not present financial position or results of operations ID conformity with generally accepted account1Dg principles Neither are such data comparable to a consohdatlon Interfund ehmmat1ons have not been made ID the aggregation of this data. Note 2. DEPOSITS AND INVESTME1'.1TS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time ID any depository for a tJ.me longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofmsurance, or by collateral. The aggregate of the face value of such surety bond and the market value of secuntles pledged shall be equal to not less than 110 percent ofthe pubhc funds be1Dg secured after the deduction ofthe amount ofdeposit 1DSurance Ifa depository elects the pooled method (OCGA 45-8-13 1) the aggregate ofthe market value ofthe secunues pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holdmg pubhc funds may, ID his d1scret1on, waive the requirement for sccunty m the case ofoperating funds placed ID demand deposit checkmg accounts Acceptable secunty for deposits consists of any one of or any combmatlon of the followmg - 12 - TIFT COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TifE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2 DEPOSITS AND INVESTMENTS (1) Surety bond signed by a surety company duly quahfied and authonzed 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 obhgahons of the Umted States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obhgahons of the counties or mumc1paht1es 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 authonty authonzed the use of the bonds for this purpose, (6) Industnal revenue bonds and bonds of development authontles created by the laws of the State of Georgia, and (7) Bonds, bills, notes, certificates of mdebtedness, or other obhgat1ons of a subs1d1ary corporation of the Uruted States government, which are fully guaranteed by the Umted States government both as to pnnc1pal and mterest or debt obhgahons issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credll Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $10,824,547 89 The amounts of the total bank balances are classified mto three categones of credit nsk Category l - Cash that 1s msured (e g, Federal depository msurance) or collateral1zed with secunlles held by the School D1stnct or by the School D1stnct's agent m the School D1stnct's name Category 2 - Cash collaterahzed with secunues held by the pledging financial mstltut1on's trust department or agent m the School D1stnct's name Category 3 - Uncollaterahzed deposits (This mcludes any bank balance that 1s collateral1zed with secunhes held by the pledgmg financial mshtuhon, or by its trust department or agent but not in the School D1stnct's name ) The School D1stnct's deposits are classified by nsk category at June 30, 2002, as follows - 13 - TIFT COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2 DEPOSITS AND INVESTMENTS Risk Category Bank Balance 1 $ 502,81101 2 10,321,736 88 3 000 Total $10,824,547.89 CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrymg value of the School D1stnct's total mvestmcnts was $9,556,564 51 which 1s matenally the same as fair value This mvestment consisted entirely of funds mvested m the Local Government Investment Pool achrurustered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not reqmred to be categonzed smce the School D1stnct did not own any specific identifiable secuntles m the pool The mvestment pohcy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qmd1ty Portfolio) does not proVJde for mvestment m denvatlves or surular mvestments A descnpuon ofthe Pnmary L1qu1d1ty Portfolio 1s as follows The Pnmary L1qu1d1ty Portfolio consists of Georgia Fund I, which 1s a combmatlon local and state government mvestment 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 registered with the SEC as an mvestment company but does operate Georgia Fund I m a marmer consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and 1s considered to be a Rule 2a7 hke pool. The pool's pnmary obJecllves are safety of capital, mvestment mcome, hqmd1ty and d1vers1ficat1on while mamtammg pnnc1pal ($1.00 per share value) Net asset value 1s calculated weekly to ensure stab1hty. The pool dJstnbutes eammgs (net of management fees) on a monthly basis and values part1c1pant0s shares sold and redeemed based on $1 00 per share Pooled cash and cash eqmvalents and mvestments are reported at cost which approximates fair value The pool does not issue any legally bmdmg guarantees to support the value of the shares Part1c1patlon m the pool 1s voluntary and deposits consist of funds from local governments, operatmg and trust funds of Georgia's state agencies, colleges and un1vcrs11les, and current opcratmg funds of the State of Georgia's General Fund Investments m Georgia Fund I and Fund 6 are directed toward short-term mstruments such as U. S Treasury obligat10ns, secunlles issued or guaranteed as to pnnc1pal and mterest by the U S Government or any of its agencies or mstrumentahties, banker'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 mvcstment duration for Fund 6 on June 30, 2002, was O75 years - 14 - TIFT COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 3 NON-MONETARY TRANSACTIONS The School D1~trict receives food commoditie~ from the United States Department of Agriculture (USDA) for school breakfast and lunch programs These commodities are recorded at their Federally assigned value See Note 1 - Inventories Note 4 RISK MANAGEMENT The School D1stnct is exposed to vanous nsks of loss related to torts, theft of, damage to. and destruction of assets. errors or omissions, job related illness or inJunes to employees. acts of God and unemployment compensat10n The School D1stnct has obtained commercial insurance for risk of loss associated with tort~, assets and errors or omissions The School D1stnct has neither significantly reduced coverage for these nsks nor incurred losses (settlements) which ei.ceeded the School D1stnct's insurance coverage in any of the pa~t three year~ The School D1stnct has elected to self-insure for all losses related to acts ofGod The School D1stnct has not expenenced any losses related to this nsk in the past three years The School District is self-insured with regard to unemployment compensation claims The School D1stnct accounts for claims Within the same fund that the employee's salary and benefits were paid Claims are accounted for With expenditure and liab1hty being reported when 111s probable that a loss has occurred. and the amount of that loss can be reasonably estimated Changes in the unemployment compensation claims hab1hty dunng the l&t two fiscal years arc as follows: Begmnmg of Year L1ab1hty Claims and Changes m Estimate~ Claims Paid End of Year L1ab1hty 2001 2002 $ I 452 00 $ 4 670 57 $ 4 898 57 s 1.224 00 $ I 224 00 $ 3 485 00 $ 4 469 00 $ 240 00 Inc School D1stnct participates in the Georgia Education Workers' Compensation Trust. a public entity nsk pool organized on December I, 1991, to develop. implement and administer a program of workers' compensation self-insurance for its member organization~ The School D1~tnct pays an annual premmm to the Trust for its general insurance coverage Additional insurance coverage 1s provided through an agreement by the Trust with the Umted States Fidelity and Guaranty Company to provide coverage for potent1al losses sustained by the Trust in excess of $350.000 00 loss per occurrence, up to $2,000,000.00 I he School D1stnct has purchased surety bonds to provide add1t1onal insurance coverage as follows - 15 - TIFT COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 Note 4 RISK MANAGEMENT Pos11lon Covered Amount Supenntendent Each Employee $ 100,000 00 $ 10,000 00 Note 5 GENERAL LONG-TERM DEBT CAPITAL LEASES The Tift County Board of Educallon has entered mto vanous lease agreements as lessee for computer eqmpment These lease agreements qualify as capital leases for accountmg purposes and, therefore, have been recorded at the present value of the future mm1mum lease payments as of the date of their mcept10n GENERAL OBLIGATION DEBT OUTSTANDING General Obhgat10n Bonds currently outstandmg are as follows Purpose Interest Rates Amount General Government - Senes I997 General Government - Senes 2001 3 70%-4 35% S 935,000 00 405% I0,000,000 00 $ I0.935,000,00 The changes m General Long-Term Debt dunng the fiscal year ended June 30, 2002, were as follows Capital Leases General Obhgat10n Bonds Total Balance July I, 200 I $ 408,416 46 $21,145,000 00 $21,553,416 46 Additions Capital Leases 343,269 00 343,269 00 Deductions Debt Rellrcd 321,722 94 10,210,000 00 I0,53 I, 722 94 Balance June 30, 2002 $ ~~2-2~~-~i $ IQ,2J5 000,0Q $ I 1,J!i;! 262 ~" At June 30, 2002, payments due by fiscal year which mcludes pnnc1pal and mterest for these Items are as follows - 16 - TIFT COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 5 GENERAL LONG-TERM DEBT Fiscal Year Ended June 30 2003 2004 2005 2006 2007 2008 - 2012 Capital Leases General Obhgatlon Bonds Total Debt s $ 321,722 94 1,380,672 50 $ 1,702,395 44 117,51471 2,217,537 50 2,335,052 21 2,211,195.00 2,211,195 00 2,206,916 25 2,206,916 25 2,204,498 75 2,204,498 75 2,203,740 00 2,203.740 00 Total Prmc1pal and Interest $ 439,237 65 $,12A24.560.00 $)2.863 797 65 Deduct Imputed Interest 9 275 13 Net Present Value of Future Minimum Lease Payments $ 429,962.52 Note 6 ON-BEHALF PAYMENTS The School D1stnct has recognized revenues and expenditures m the amount of $534,465 58 for health msurance and retirement contnbutlons paid on the School D1stnct'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$420,774 23 Paid to the Teachers Retirement System of Georgia For Teachers Reurement System (TRS) Employer's Cost In the amount of$45,019 35 Office of Treasury and Fiscal Services Paid to the Pubhc School Employees Retirement System For Pubhc School Employees Retl!ement (PSERS) Employer's Cost In the amount of$68,672 00 Note 7 SIGNIFICANT COMMITMENTS The followmg 1s an analysis of significant outstandmg construction or renovat10n contracts executed by the School D1stnct as of June 30, 2002 - 17 - TIIT COUNTY BOARD OF EDUCATJON EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 7 SIGNIFICANT COMMITMENTS Pro1ect Unearned Executed Contracts J T Reddick Elementary School Ce1lmg and L1ghtmg Renovation Norths1de Pnmary School Reroofing Tift County High School Northeast Campus Fieldhouse G O Bailey Pnmary School Reroofing Charles Spencer Elementary School Addition and Renovation New Elementary School $ 14,110 00 275,220 00 141,650 00 187,100 00 1,579,510 55 3,956.3 I7 90 $ 6,153,908.45 The amounts descnbed m this note are not reflected m the general-purpose financial statements 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 D1stnct beheves that such d1sallowances, 1f any. will be 1mmatenal to Its overall financial pos1!lon The School D1stnct 1s a defendant m vanous legal proceedmgs pertammg to matters mc1dental to the performance ofroutme School D1stnct opera!lons The ultimate d1spos11Ion ofthese proceedmgs 1s not presently determinable, but 1s not beheved to be matenal to the general-purpose financial statements. Note 9 RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, adm1rustrat1ve and clencal personnel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-sharmg muluple employer defined benefit pension plan. TRS provides service re!lrement, d1sab1hty retirement and survivors benefits for its members m accordance with State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamcd from the Georgia Department of Audits and Accounts. - I8 - TIFf COUNTY BOARD OF EDUCATYON EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 Note 9 RETIREMENT PLANS TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School D1stnct who are covered by TRS are requtred by State statute to contnbute 5% ofthetr gross earmngs to TRS. The School D1stnct makes monthly employer contnbuttons to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as adV1sed by their mdependent actuary The reqmred employer contnbutton rate 1s 9 24% and employer contnbutions for the current fiscal year and the precedmg two fiscal years are as follows. Fiscal Year Percentage Contnbuted Reqmred Contnbut1on 2002 2001 2000 100% 100% 100% $2,734,252 15 $3,147,299 85 $ 2,953,134 77 - I9 - TIFT COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2002 ASSETS Cash and Cash Equivalents Accounts Receivable lnventones Food Donated Commod1t1es Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 1,084,032 26 $ 36,223 30 31,476 08 71,922 00 44,398 89 21 962 43 Total Assets $ 1 181 869 66 $ _ _.;;108=1_,4;;:5~3;;:0~ LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue Total l.Jab1lrt1es FUND EQUITY Fund Balances Reserved For lnventones Food Donated Commod1t1es Purchased Food Unreserved Undes,gnated Total Fund Equity Total Llablllties and Fund Equrty See notes to the genera~purpose financial statements - 20- $ 19,19390 $ 122,303 79 36,057 92 72,087 38 $ 14149769 $ 10814530 $ 44,398 89 21,962 43 974 010 65 $ 0 00 $ 1 040 371 97 $ 000 $ 1 181 869 66 $ =-,;,;10;;;;8:,,.1;,.4~5~3~0- EXHIBIT "E" FEDERAL PROGRAMS TOTALS JUNE 30, 2002 JUNE 30, 2001 $ 1,120,255 56 $ 1,117,64767 $ 855,748 26 959,146 34 560,942 07 44,398 89 21 962 43 41,94835 17 850 49 $ 855 748 26 $ 2,145,763 22 $ 1,738,388 58 $ 528,389 80 $ 528,389 80 $ 209,178 83 70,159 60 125,411 42 151,570 75 245,169 08 439,560 25 367,403 31 1,275 00 1,275 00 65,838 12 10 754 78 10 754 78 $ 855,748 26 $ 1,105,391 25 $ 793 991 01 $ $ _ _ _ _~0~00~ $ 0 00 $ 44,398 89 $ 21,962 43 41,948 35 17,850 49 974 010 65 884 598 73 1 040 371 97 $ _-----'944"--'-'-"'3"'97'-"-57'- $ 855 748 26 $ 2, 145,763 22 $ =-"'1'"-73_8...3_8_8_5_8_ - 21 - TIFT 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 lnstructton Support Services Pupil SeMces Improvement of lnstructtonal Services Educahonal Media Services General Administration School Administration Maintenance and Operation of Plant Student TransportahOn SeMces Other Support Services Food SeMces Operation Total Expenditures Excess of Revenues over (under} Expendrtures OTHER FINANCING SOURCES Operahng Transfers In Excess of Revenues and Other Financing Sources over (under} Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change in Penod Donated Commod1t1es Purchased Food FUND BALANCE JUNE 30 SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 207,836 00 $ 2,019, 169 00 524 759 42 $ 2,751,764 42 $ 817,924 66 817 924 66 $ $ 2,662,352 50 $ 2,662,352 50 $ $ 89,411 92 $ 679,974 97 86,859 83 33 90 33,014 96 13,600 00 3,795 00 64600 817 924 66 000 $ 89,411 92 $ o oo 944,397 57 o oo 2,450 54 411194 $ 1 040 371 97 $ _ _ _ _ _o;..0_,0;.. See notes to the general-purpose financial statements - 22 - EXHIBIT "F" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 1,025,76066 $ 990,934 37 $ 3,306,698 16 5,325,867 16 5,001,710 62 524 759 42 497 545 83 $ 3,306,698 16 $ 6 876 387 24 $ 6,490,190 82 $ 2,361,205 37 $ 3,041,180 34 $ 2,973,732 30 228,908 28 359,86848 42,604 62 218,906 90 11,81756 9,501 54 67,064 35 74,503 44 315,76811 359,902 38 42,604 62 251,921 86 11,81756 23,101 54 70,859 35 74,503 44 2,662,998 50 302,64619 357,14313 18,423 66 257,836 78 35002 185 00 15,14921 81,51846 2,486,649 09 $ 3,374,380 54 $ 6 854 657 70 $ 6,493,633 84 $ -67,682 38 $ 21,729 54 $ -3,443 02 67 682 38 67 682 38 66147 43 $ 000 $ 89,411 92 $ 62,704 41 000 944,397 57 875,638 41 2,450 54 411194 10,578 92 -4 524 17 $ 0 00 $ 1040311 91 s ___944.._.3""9""1_5_1_ - 23 - TIFT COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Total Assets LIABILITIES ANO FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Contracts Payable Retamages Payable Total l.lab1lrt1es FUND EQUITY Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay ProJects Unreserved Undes1gnated Total Fund Equity Total L1ab1ht1es and Fund Equity REGULAR BOND PROCEEDS $ 134,545 66 75,044 99 $ 4,691,959 28 $ 209,590 65 $ 416911959 28 $ 13,196 57 1,056,610 00 485 553 00 $ 1,555,359 57 $ 3, 136,599 71 s 209.590 65 0 00 s 209.590 65 $ 3,136,599 71 $ 2091590 65 $ 4,691,959 28 See notes to the general-purpose financial statements - 24 - EXHIBIT"G" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2002 JUNE 30, 2001 $ 5,185,136 67 $ 5,319,682 33 $ 135,753 09 4,767,004 27 19,046,996 52 $ 232,520 00 1,133,829 66 1,366,349 66 1,032,537 90 $ 232.520 00 $ 6,318,966 33 $ 11.453,036 26 $ 20,215,287 51 $ 232,520 00 $ _~2=3=2=,5=20~0=0~ $ 245,716 57 $ 1,056,610 00 485 553 00 $ 1 787 879 57 $ 21,034 61 13,906 78 34 941 39 $ 3, 136,599 71 $ 9,416,150 88 $ 6,318,966 33 6,318,966 33 10,558,392 12 183,815 89 $ 000 000 209,590 65 21 987 23 $ 000 $ 6,318,966 33 $ 9,665,158 69 $ 20,180,346 12 $ 232,520 00 $ 6.318.966 33 S 11.453.036 26 $ 20.215.287 51 - 25 - TIFT COUNJY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2002 REVENUES State Funds Ta,ces Other Funds Total Revenues EXPENDITURES Current Support Services Business Admin1st.ra11on Capital Outlay Professional and Techmcal Services Supplies Land and Land Improvements Building and Building Improvements Equipment Debt Service Pnncipal Total Expenditures Excess of Revenues over (under) Expendrtures OTHER FINANCJNG SOURCES (USES} Proceeds from General Obhgabon Bonds Par Value Caprtal Leases Operabng Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 FUND BALANCE JUNE 30 See notes to the general-purpose financial statements - 26 - REGULAR BOND PROCEEDS $ 1 99713 $ 197 355 73 $ 1 997 13 $ 197.355 73 $ 0 00 $ 1,012,716 97 44,035 95 4,693,021 21 748,678 83 32172294 $ 000 $ 6,820, 175 90 $ 1 997 13 $ -6,622,820 17 $ 343,269 00 $ 185,606 29 $ 185,606 29 $ 343 269 00 $ 187,603 42 $ -6,279,551 17 21,987 23 9,416,150 88 $ 2091500 es s__3.1.,1_36....._,5..,99._1_1_ EXHIBIT "H" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 1,085.477 00 $ 179040 $ 1,087,267 40 $ $ 101,291 76 6 478 73 107 770 49 $ 1,085,477 00 101,291 76 $ 207 621 99 1 394 390 75 $ 4,518,698 43 56 540 32 4,575,238 75 $ $ 174,960 00 910,517 00 $ 1,085,477 00 $ $ 1 79040 $ 000 $ $ 1,187,676 97 44,035 95 5,603,538 21 748,678 83 321 722 94 000 $ 7,905,652 90 $ 107 77049 $ -6,511,262 15 $ 162,050 00 20,300 00 316,233 45 1,178,25034 242 061 51 1,918,895 30 2,656,343 45 $ 9,538,201 00 $ 343,269 00 650,477 97 185,606 29 $ -185,606 29 $ -4,347, 196 28 -4,532,802 57 $ -185.606 29 $ -434719628 $ -4,003,927 28 $ 10,188,678 97 $ -183,815 89 $ -4,239,425 79 $ -10,515, 189 43 $ 12,845,022 42 18381589 10,558,392 12 20,180,346 12 7,335,323 70 $ 000 $ 6,318.966 33 $ 9,665.156 69 $ 20.180,34612 - 27 - TIFT COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 2002 EXHIBIT"!" ASSETS Cash and Cash Equrvalents Investments Accounts Receivable PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAA TOTALS JUNE 30, 2002 JUNE 30. 2001 $ 463,482 20 $ 4,789,560 24 $ 4,789,560 24 $ 218 25.353 34 25,355 52 Total Assets $ 2 18 $ 418141913 58 $ 4 814 915 76 $ ___4_6_3-48aa2a;2_o_ LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft FUNDEQU)TY Fund Balances Reserved For Debt Service $ Unreserved Undes1gnated Totsl Fund Equity $ $ 4 622 595 01 $ 4,622,595 01 218 $ 000 218 $ 192,318 57 $ 000 192 318 57 $ 192,320 75 $ 000 192 320 75 $ 463 482 20 000 463 482 20 Total L1abiht,es and Fund Equity $ 218 $ 41a141s13 sa s 4 a14 s1s 1s s_-'45"'3"'1_4a_2_2_0_ See notes to the genera~urpose flnanaal statements 28- TIFT COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDmJRES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND YEAR ENDED JUNE 30 2002 EXHIBIT"J" REVENUES Taxes other Funds Total Revenues EXPENDITURES Debi Service Principal Interest Paying Agent Fees Total Expenditure& Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES Proceeds from General ObllgaUon Bonds Par Value Operebng Transfers In Total Other F1nancmg Sources Excess of Revenues and Other Fmancmg Sources over (under) Expenditures FUND BALANCE JULY 1 PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 86 34 $ 6,289,655 87 $ 6,289,742 21 $ 1.458 553 10 209 842 43 209 842 43 447 043 50 $ 8634 $ 6,499,498 30 $ 6,499,584 84 $ 1,905,596 60 $ 10,210,000 00 $ 10,210,000 00 $ 1 220 000 00 902,886 37 902,688 37 677 886 40 s 8416 5 171 84 5 256 00 6 027 00 $ 8416 $ 11117 858 21 $ 11117 942 37 s 1,903,913 40 $ 2 18 $ -4 618 359 91 $ -4 618,357 73 $ 1 683 20 $ s 4 347 196 28 s 4 347 196 28 s $ 4.347 196 28 4 347 196 28 $ 461 799 00 461 799 00 $ s 2 18 $ -271,163 63 $ -271,161 45 463,482 20 0 00 463 482 20 463,482 20 0 00 FUND BALANCE JUNE 30 $ 218 $ 192,318 57 $ 192,320 75 S 463 482 20 See notes to the general-purpose finencial statements - 29 - TIFT COUNTY BOARD OF EDUCATION SCHEDULE OE EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 SCHEDULE "1" FUNDING AGENCY PROGRAWGRANT Agriculture U S Department of Child Nutnbon Cluster Pass-Through From Georgie Department of EducaUon Food and Nubttlon Program Food Services School Breakfaat Program Na11o""I School Lunch Program Pesa-Through From Office of Sdlool Readlne&a Food and Nutrttlon Program FoodSen Cluster Pass-Through From Georgie Department of Education lnclrvklual& wtth DlsablllUes Educabon Ad Pan B - Special Education Capacity Building Improvement Grant Flow Through Preschool Total Special Education Cluster Other Programs Pass-TIYough From Geocgla Department of Education Elementary and Secondary Education Ad TIiie I Gran1a to Local Educabonal Agande, Titte II El:sennower Profesaional Development TIiie 111 Technology Lrteracy Challenge Fund Grants TIiie VI Clau SLze Reduction Innovative Education Program Strategies Goal& 2000 State and Local EducaUon Systemic Improvement Grants Safe and Drug-Free Sdlools and Commum0es Stewart B McKtnney Homeless Assistance Act Educabon for Homeless Ch~dren and Youth Voca\tonal Educauon - Bask:. Grants to States H,gh School Program Ba.ate Grant CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 10 553 10 555 NIA s 422 190 92 (2) NIA 1 413,023 81 $ 2 478 844 39 (3) 10 559 NIA 44616 2 $ 1,835,660 69 $ 2,478 844 39 10 550 10 550 NIA 156 896 69 156,696 69 NIA 26 611 42 26 611 42 $ 2,010 169 00 $ 2,662 352 50 84 027 84 027 84 173 NIA $ 11,690 56 $ NIA 746,794 23 NIA 42 706 08 $ 801,283 77 $ 11,69056 746,794 23 42 798 06 801 283 77 84 010 84 281 84 318 84 340 84 298 84 276 84186 84 196 84 048 NIA 1,565,492 24 1 565,492 24 NIA 56,142 60 56 142 60 NIA 94,245 22 94,245 22 NIA 280 424 29 280 424 29 NIA 54,802 00 54,802 00 NIA 5,329 88 5 329 68 NIA 31,302 00 31,30200 NIA 25,550 08 25 550 08 NIA 78,653 00 78,653 00 - 30 - TIFT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Educabon, U S Department of Other Programs Pass-Through From Berrien County Board of Educabon d/b/a Southam Pine Migrant EducaUon Agency Elementary and Secondary Education Act Tltle I M,gram Educabon Total U S Department of Education OTHER FEDERAL ASSISTANCE Defense, U S Department of Olred Department of the Au Force R O T C Program CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 84 011 $ 269 840 70 $ _ _ _2~69~84~0_7~0 $ 3 263,065 58 $ - ~ 3~26~3~,06=5~5~8 $ 43 632 58 $ 111,314 96 (3) Total Federal Financial Assistance $ 5 325 86716 $ ___s._o_36_.7_J_J_04"" NIA a Not Available Notes to the Schedule of fmendrtures ot Federal Awards (1) The amounts shown for the Food Dlstr1butJon and Fresh Produce Programs represent the Federally assigned value of nonmonetary assistance for donated commodlties rea!IVed and/or consumed by the system during u,e ament fiscal year {2) Expenditures for the School Breakfut Program and the Summer Food SeMce Program were not mamtamed separatety and are induded m the 2002 National School Lunch Program (3) Expenchtures for lhls program mcluda State, and/or Other Funds Expenditures are not maintained by fund source Ma1or Programs ara kSentH\ad by an asten&k t) In front of the CFDA number The School Olstrld dld not provide Federal Assistance to any Subreclplent The accompanymg &chedule of expenditures of Federal awards includes the Federal grant adlvlty of the Tift County Board of Educabon and ls presented on the modified acaual basis of accownmg which ls the basis of accounting used In the presentahon of the general-purpose fl:nanaal statements See notes to the general-purpose financial -&\atements - 31 - TIFT COUNTY BOARD OF EPVCATION SCHEDULE OF STAIE REVENUE YEAR ENPEP JUNE 30 2002 SCHEDULE "2" AGENCYtEUNDING GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL GRANTS Education, Georgia Depanment of Quality Buie Education Dlred kiltnJdlonal Cost KlndelgBlten Program Kindergarten Program - Early lntsrvenbon Program s 1,618 473 00 n4 031 oo Pnma,y Graon (1-3) Program 4,158,131 00 Pnma,y Gradel E1111y - . O n (1-3) Program 1 Qg7,203 00 Upper Elemen!ary Grades (4-5) Program 2 148,622 00 M-Upper Elementary Gradel - Earty ln1ervenbon (4-5) Program Middle Grade, (6-8) Program Sdlool (6-8) Program High Sdlool General Educa11on (9-12) Program 3811,058 00 1,208 093 00 2,631 317 00 3,127 225 00 VocoUonal Laboralory (9-12) Program 1,321,11800 Studenta wrth Olsabllrties Category 11 1,154 182 00 Category JU 1 301 583 00 Category N 160,122 00 CotegoryV 17,604 00 G - Student Category VI 344,080 00 Remedial Education Program 104,054 00 Alternative Education Program 304 377 00 EngUlh Speaker. o1 Other L nguage1 (ESOL) 348 832.00 Media Cen1er Program 687,1'1700 Twenty Days Additional lnatruc:tion 212,078 00 Staff and Protewonal DB\ielop.1.e..t 126158 00 Mid-Term Aqustment Hokl-t-larm)ess 56,922 00 lndrract Cost 4 049 238 00 Categonca1Gran1s Pupll Transportation Regular 688 550 00 Bus Replacement 216,040 00 Sparally 20 000 00 NursmgSeMces 154 505 00 Pnnc,pal Supplemenls 30,494 00 Vocallonal Supar,i'" Education EquaI1Z8bon Funding Grant Food Servk:es 52,000 00 1 ~o gg,g oo s Vocational Education 725,411 51 Other State Programs Apprenlicell>p Program 2,000 00 Health k11urance 420,n4 23 Mentor Teachers 3 672 00 National Teadlar Certdk:abon 6 667 00 Post Secondary QpbOn Spnng 7,622 00 Prachoo1 Hand>Cappad Program 142 g31 00 S - 4-8 Aller School Program 100 318 20 Statawkle K-3 Reading Program 85,8Q1 73 Teachors' Retlromen1 5,019 35 ~ry Programs AeaoslM!Toc:lv1ology Computers In Iha Classroom 207,636 00 10 500 00 186 922 00 s 1 618 473 00 n4,031 oo 4,158,131 00 1,097,203 00 2,148 622 00 369 058 00 1 208 093 00 2 631 317 00 3 127 225 00 132111800 1154 182 00 1 301 593 00 180 122.00 17,604 00 344 080 00 104 054 00 304 3TT 00 348,832 00 667,197 00 212 079 00 126 158 00 55 922 00 4 0 9 236 00 688,550 00 216,040 00 20 000 00 154 505 00 30 494 00 52 000 00 1 940 999 00 207,836 00 725,411 51 n, 2,000 00 420 23 3 672 00 6 867 00 7 822 00 142 931 00 100 318 20 85 891 73 45 019 35 10 500 00 1es,moo Georgia State Financing and Investment Convnlssion RelmbwHfnent on Conatrudion Prcjecta $ 1 085 477 00 1 oas4n oo Office or School Readlnes Pre-Kindergarten Program 620 502 66 620 502 66 Office of Treuury and Fiscal SeMces Public School Empioyees Ratirernent 68 672 00 68 672 00 See notes to the general-pur;,oae flnanaal statements s 32 010 ,12 02 s 1102s:7so ee s 10854n oo s 34 1e1109 66 32- TIFT COUNTY BOARD OE EDUCATION SCHEDULE OF APPROVE LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 3Q 2002 SCHEDULE "3" PROJECT The repayment of pnnapal end interest on the School 01stnct Senes 1995 Bonds matunng February 1, 1998 and thereafter the acquIsrtion o:>nstrucbon and equipping of an audrtonum et the new high school the complellon of the new high school grot..ndS and secunty a new elementary school, improvements at J T Reddick Elementary School and Matt Wilson Elementary School system-wide tedlnology for all schools and Annie Belle Clark Pnmary School renovabons for system-w,de utthzation 1ndud1ng the acqu1s11:Jon of all necessary property The cost of funding the acquisition, construction end equrpp,ng of a new elementary school and maintenance warehouse unprovements at G O Bailey Pnmary School North.side Pnmary School Len Lastinger Pnrnary School and Omega Elementary School and Middle School improvements at certain other exIsbng schools and the conVet"SIOll of Arlnie Belle Clark Pnmary School ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATIED COSTS (21 AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS (3) PROJECT STATUS S 32 000 000 00 S 32,000 000 00 $ 10 335 677 59 S 14 B06 276 09 Ongomg 40 000 000 00 40 000 000 00 7 B07 106 65 Ongoing S 12,000,000 00 $ 12,000,000 00 $ 18 142 786 24 S 14 808 276 09 (1) The Sdlool Distncrs ongmal cost estimate as speofied in the resolution calling for the Impos!bon of the Lcx::al Option Sales Tax (2) The School 01stnct's current estJmate of total cost for the pr(Jfeds Includes alt cost from prOjeCt Incepb0n to complebon (3) The voters of Tift County approved the Impos1llon of a 1% saleS tax to fund the above projects and to retire assooated debt Amounts expended for these pnJf8CtS may include sales tax proceeds, state, tocal property taxes and/or other funds over the life of the l)fOfeCts See notes to the general-purpose financial statements - 33- IIFJ COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM IQBEJ ALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30 2002 SCHEDULE "4" DESCRIPIION ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGFIAM COSTS SALARIES OPERATIONS TOTAL Direct lnstruc:bonal Programs Kindergarten Program s Kindergarten Program-Earty lntervenbon Program Primary Grades (1-3) Program Primary Gradoo-Earty Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early lntervenbon (4-5) Program Mlddlo Gra W Suite 214 AllantJ, Georgia 30334-84(~1 June 4, 2003 Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education and Supenntendent and Members of the Till County Board of Education REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen We have audited the financial statements of Tift County Board of Education as of and for the year ended June 30, 2002, and have issued our report thereon dated June 4, 2003 This report was quahfied for vanous departures from generally accepted accounting pnnc1ples, as 1dent1fied in the auditor's report on the general-purpose financial statements We conducted our audit in accordance with auditing standards generally accepted in the Umted States of Amenca and the standard~ apphcable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Umted States Comphance As part ofobtaining reasonable assurance about whether Tift County Board ofEducallon's financial statements are free of matenal misstatement, we performed tests of its comphance with certain prov1s1ons oflaws, regulations, contracts and grants, noncomphancc with which could have a duect and matenal effect on the determination of financial statement amounts However, providing an opinion on comphance with those prov1s1ons was not an obJect1ve of our audit, and accordingly, we do not express such an opinion The results ofour tests disclosed no instances ofnoncomphance that are required to be reported under Government Aud1tmg Standards Internal Control Over Financial Reporting In planning and performing our audit, we considered Tift County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 2002YB-41 control over financial reportmg However, we noted a certam matter mvolvmg the mtemal control over financial reportmg and its operatton that we consider to be a reportable cond1tton Reportable conditions mvolve matters commg to our attention relatmg to s1groficant defic1enc1es m the design or operation ofthe mtemal control over financial reportmg that, m ourJudgment, could adversely affect Tift County Board of Education's ab1hty to record, process, summanze and report financial data consistent with assertions of management m the financial statements The reportable condition 1s descnbed m the accompanymg Schedule ofFmdmgs and Questioned Costs as item FS-7371-02-01 A matenal weakness 1s a condition m which the design or operatton of one or more of the mtemal control components does not reduce to a relattvcly low level the nsk that misstatements m amounts that would be matenal m relatton to the financial statements bcmg audited may occur and not be detected w1thm a ttmely period by employees m the normal course of performmg their assigned functions. Our cons1derallon of the mtemal control over financial reportmg would not necessanly disclose all matters m the mtemal control that might be reportable cond1t10ns and, accordmgly, would not necessanly disclose all reportable conditions that are also considered to be matenal weaknesses. However, we consider item FS-7371-02-01 to be a matenal weakness This report 1s mtended solely for the mformatlon and use of the management, members of the Tift County Board of Education, Federal awardmg agencies and pass-through entlttes and 1s not mtcndcd to be and should not be used by anyone other than these spec1fieJ parties RWHas 2002YB-41 {L,~H I W. HINTON STATF AUDITOR (4C'IA) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S W Su1lc 214 /\llantJ, Gcurg1J 3U334-84