Toombs County Board of Education, Lyons, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

... ,,

---i,". I
,''

.. --.
I ,

' 1'

,, .-.

,., -' -
,...... ,

"

-. . I I .

~ :
-,

s'
l ,-. -

'I. "".

' -. ,1' ,,

.,,, '
I
' '

I ,,

1 ~

.... -.,
I

1' ~

;
~ :',i: I ~ ' ; ,
.'"
1', .'' .
"'

'i I,..-

<'

' r ..

':-.,,

~

J ,'. ',.

, , . '.J'

. ,- ..

I:' {

1

,, ... :; '

......- . ,. l

'.: .....

,'.',.,1.

,, '

' ~ "'..t

'
', i I,";_

','
.... ;, .

I ;

/

Io ..

. ' '1 ' '
..
-' ,'
., .. '

,r

' ',; .,J.
1,:
,, ., ,.
,'
t
-','

,, '
''
"\
;' ..'
,, ,,
.'.

I.,'.\.,.., ,.
~--, I.~. 4 .~:
. , , ', ' ';, ~'~

-- ...,

, I

< ,\

''''

'.., ' .,,i ..

.-,.. "'
.,,
,,
'

'. ...,,,_,,.
'I ' .

. . ,-, ... ,:...

' ,,
...... _

., ..' ,

-_.. -~ ' i '

..... ,

,;,
, , I,' "
'.,

. ' .. ,

,,. -

,-:\. -' ,

.,_......
. _, :'''

','

-,. ..... ' ...~

--c

...

,:
,

,..-

,,

,, 1

I' .. ' .

- -=~ .
.,_J

.,

f.',,. ,.l l

. : ,
' .,

,,'!

~_. ' '. I,.
- , r :'"'{
., '

: Russell w:. . . . -~ . J.. .... - :_

'

- . ~ (. ~

'

'

. '..

,,

.. ' . .

Hinton
...... \

. Sta'.t...e.::-.A.. uditor' 11 '

,,,

'J,

l'

"!/ ' .....'..

..
.. .,.,, .,.
,...' .,
. .

~ 1" I

..'' '

j !-.'.
,,',

.,,
''

',' >-,' . i

TOOMBS 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

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 NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

24

2 SCHEDULE OF STATE REVENUE

26

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

27

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

28

5

BY SITE

29

TOOMBS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
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 COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

R1,-.-.~u. \\'. H111.ror,
STATE AUDITOP 1400\ 656 217J

DEPARTMENT OF AUDITS AND ACCOUNTS
:25--1 W..i,hrng1on S1rcc1. SW_ Su11c :! 14 A1l..in1a. Georgia 3m34-8400
March 21, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Toombs County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
'
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Toombs County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Toombs County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted m the United States of Amen ca and the standards applicable to financial audits contained m Go\'cmment 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures m the financial statements. An audit also includes assess mg the accountmg pnnc1ples used and significant estimates made by management, as well as c, aluatmg the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm1on.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary m some respects from generally accepted accounting principles These variances are described as follows:

2001ARL-13

* The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and eqmpment owned by the Board of Education which should be included to conforn1 to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to m the preceding paragraph, the general-purpose financial statements referred to above present falfly, in all material respects, the financial position of the Toombs County Board of Education as of June 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated March 21, 2002, on our consideration of the Toombs County Board of Education's internal control over financial reportmg and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Toombs County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) arid the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audas of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing
2001ARL-13

procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph. such mforrnation is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. A copy of this report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
RWH:gp 2001ARL-13

TOOMBS COUNTY BOARD OF EDUCATION

TOOMBS COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL-FUND TYPES
JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commod1t1es Purchased Food

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$ 1,543,954.79 $ 312,612.88

341,446.81

471,448.58

24,307.57 17,926.85

Total Assets

$ 1,885,401.60 $ ==82=6=,2=9=5.=88=

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable
Total L1abil1t1es
FUND EQUITY
Fund Balances Reserved For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commod1t1es Purchased Food For SPLOST ProJects For State Capital Outlay Proiects Unreserved Undes1gnated
Total Fund Equity

$

43,772.51 $

61,828.48

242,177.87

28,653.06

$

43 772.51 $ 332,659.41

$

24,307.57

17,926.85

$ 1,841,629.09 $ 1,841,629 09 $

451,402 05 493,636 47

Total L1ab1l11tes and Fund Equity

$ 1,885,401.60 $ ===82=6,.;;,2=9=5.=88=

The notes to the general-purpose financial statements are an integral part of this statement. -2-

EXHIBIT"A"

TYPES' CAPITAL
PROJECTS FUND

TOTALS

(Memorandum Onl:r)

JUNE 30, 2001

JUNE 30, 2000

$ 2,821,445.70 $ 4,678,013.37 $ 1,995,741.58

308,587 18

1,121,482.57

1,041 ,859 .25

24,307.57 17,926.85

24,218.97 19,512.83

$ 3,130,032.88 $ 5,841,730 36 $ 3,081,332.63

$

105,600.99 $

139,413.84

242,177.87

262,826.06

28,653.06

42.61

$

376,431.92 $

402,282.51

$

2,326.83

$

24,307 57

17,926 85

$ 2,146,448 36

2,146,448.36

983,584.52

983,584.52

24,218.97 19,51283 402,133.58

0 00

2,293,031.14

2,230,857.91

$ 3,130,032.88 $ 5,465,298 44 $ 2,679,050 12

$ 3,130,032.88 $ 5,841,730 36 $ 3,081,332.63

-3-

TOOMBS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Adm1nistrat1on School Admin1stratIon Business Admm1strat1on Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other F1nanc1ng Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Penod Donated Commod1tIes Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 12,104,335.83 $
2,444,982.34 285,390 40
$ 14,834,708 57 $

865,825 04 2,135,689 61
2801053 03
31281,567.68

$ 9,783,947 27 $
414,354 09 239,550 86 343,968 62 200,502 97 805,937.72 198,124 70 818,914 05 761,442 64
1,433 98 13,325 73
94,607 67
$ 13,676,110 30 $
$ 11158,598 27 $

1,591,688 99
164,517 01 153,543 57
23,384 60 4,018 19
23,486 97 48,151 60
17,800 30 1,240,458 80
14,862 00
31281,912 03
-344 35

$

-400,000 00

$

-400,000 00

$

758,598 27 $

1,083,030 82

-344 35 495,478 20

88 60 -1 585 98

FUND BALANCE JUNE 30

$ 1,841 ,629 09 $ ==4==9=3'=63==6==4==7=

The notes to the general-purpose f1nanc1al statements are an integral part of this statement -4-

EXHIBIT "B"

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 12,970,160 87 $ 11,934,118 74

2,135,689 61

2,102,665 34

$ 1,709,471 75

4,154,454 09

3,015,797.36

34,843 03

600,286 46

5311357 57

$ 1,744 314 78 $ 19,860,591.03 $ 17,583,939 01

$ 11,375,636.26 $ 10,797,457.79

$

1141823 00

578,871 10 393,094 43 367,353.22 204,521 16 805,937 72 198,124.70 842,401 02 809,594 24
1,433.98 31,126 03 1,240,458.80 2241292 67

675,192 37 408,769.66 349,920.04 234,245 00 828,629.50 167,200.03 807,158 40 819,318 36
2,012 09 31,460 46 1,159,291.31 3701065 91

$

114,823 00 $ 17,072,845 33 $ 16,650,720 92

$ 1,629,491 78 $ 21787,745 70 $

933,218 09

$

400,000 00 $

400,000 00 $ 1,041,250 44

-400,000 00

-1,041,250 44

$

400,000 00 $

0 00 $

0 00

$ 2,029,491 78 $ 2,787,745 70 $

933,218 09

1,100,541 10

2,679,050 12

1,744,559 48

88.60 -1,58598

-6,158 32 7 430.87

$ 3,130,032 88 $ 5,465,298 44 $ 2,679,050.12 -5-

TOOMBS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2001

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds

s s 11,696,499 00

12. 104,335 83

80,000 00

2,345,087 00

2,444,982 34

72,206 00

285,390 40

Total Revenues EXPENDITURES

$ 14,193,792 00 $ 14,834,708 57

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Adm1mstrat1on School Administration Business Adm1mstrat1on Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures

s 9,846,556.28 $ 9,783,947 27

306,436 46 224,309.13 339,415 56 206,595 68 822,597.93 207,016 63 806,925.50 777,179.95
59,604 09 13,717.42

414,354 09 239,550.86 343,968.62 200,502 97 805,937.72 198,124.70 818,914 05 761,442.64
1,433.98 13,325 73

102,500.00

94,607.67

$ 13,712,854 63 $ 13,676,110.30

Excess of Revenues over (under) Expenditures $ OTHER FINANCING USES

480,937.37 $ 1,158,598.27

Other Uses

-400,000.00

-400,000 00

Excess of Revenues over (under) Expenditures

and Other Financing Uses

$

80,937.37 $ 758,598.27

FUND BALANCE JULY 1, 2000

1,008,202 51

1,083,030 82

Adjustments Food Inventory - Net Change in Penod
Donated Commod1t1es Purchased Food

-33,049 66

FUND BALANCE J!,JNE 30, 2001

$ 1.0561090 22 $ 1,841,629 09

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 830,522 97 $ 865,825 04

2,088,594 55

2,135,689 61

318,12000

280,053 03

s 3,237,237.52 $ 3,281,567 68

$ 1,559,045.95 $ 1,591,688 99

155,819 43 171,960 00
23,392.00 4,876.00

164,517 01 153,543 57
23,384 60 4,018.19

15,484 63 10,654.00

23,486.97 48,15160

16,779.51 1,261,921.85
14,862 00

17,800.30 1,240,458 80
14,862.00

$ 3,234,795.37 $ 3,281,912.03

$

2,442 15 $

-344 35

$

2,442 15 $

-344.35

493,336.52

495,478.20

1,525 70

88 60 -1,585 98

$ 497,304 37 $ 493,636 47

The notes to the general-purpose financial statements are an integral part of this statement - 7.

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note l: SUMMARY OF SIGNIFICANT ACCOU~'TING POLICIES
REPORTING ENTITY
The Toombs 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 Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.

-8-

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is 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 of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility reqmrements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School Distnct subsequent to June 30, 2001. Also, the State's portion of the compensation paid in July and
-9-

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

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting prmc1ples reqmre that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Toombs County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

- 10 -

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Toombs County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on August 8, 2000 (levy date). Taxes were due on December 20, 2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Toombs County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $2,436,428.59.

The tax millage rate levied for the 2000 tax year (calendar year) for the Toombs County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

13.0 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,709,471.75 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $5,766,394.67 has been collected or on March 31, 2005, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventones of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

INTERFUND TRANSACTIONS

The School District has the following types of interfund transactions:

Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

- 11 -

- - - - - - - - - - - - - - - - - - - - --------- ------ -- - - - - ~ = = - - - - - -

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to mdicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than I IO percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed m demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) lndustnal revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
- 12 -

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $5,611,029.56. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial .institution, or by its trust department or agent but not in the School District's name.)

The School District's deposits are classified by risk category at June 30, 2001, as follows:

Risk Category

Bank Balance

1

$ 100,000.00

2

4,628,548.25

3

882,481.31

Total

$ 5,611,029.56

Note 3: NON-MONETARY TRANSACTIONS

The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note l - Inventories

Note 4: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

- 13 -

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

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 I

Note 4: RISK MANAGEMENT

The School District has obtained commercial insurance for risk of loss associated with torts, assets, errors or omiss10ns and job related illness or mjuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

The School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk in the past three years.

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

2000 2001

Begmnmg of Year L1ab1hty

Claims and Changes m Estimates

Claims Paid

End of Year L1ab1hty

$

0.00 $

0.00 $

0.00 $

0.00

$

0.00 s

896.00 $

640.00 $

256.00

The School District has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

Superintendent Each Principal Each School Secretary Each School Food Service Cashier School Food Service Secretary School Food Service Director Driver's Education Teacher Each Bookkeeper

$ 30,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00
$ 10,000.00
$ 2,500.00 $ 10,000.00

Note 5: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $230,879.71 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

- 14 -

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: ON-BEHALF PAYMENTS

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $191,732.71

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 $39,147.00

Note 6: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the School Distnct who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contnbutions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

S 1,076,736.00 S 1,043,969.62 $ 1,033,970.85

- 15 -

- ------ ------------
TOOMBS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commod1t1es Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

493,637 55 $

124,527 66

11,372.14

114.54

24,307.57 17 926 85

Total Assets

$

547 244 11 $ ===12=4=,6=4=2=.2=0=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total L1abilit1es
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undes1gnated
Total Fund Equity
Total Lrabiht,es and Fund Equity

$

4,246.80 $

22,875 47

49,360 84

74,710 40

27,056.33

$

53 607.64 $

124,642.20

$

24,307 57

17,926 85

451 402 05 s

0.00

$

493 636 47 $

0 00

$

547 244 11 $ ===1=24='=64=2=.2=0=

See notes to the general-purpose financial statements. - 16 -

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

618,165.21 $

592,365.89

$

459,961 90

471,448.58

487,877.07

24,307.57 17,926.85

24,218.97 19 512 83

$

459,961 .90 $ 1,131,848.21 $ 1,123,974 76

$

305,552 33 $

305,552.33 $

294,686.61

34,706.21

61,828.48

76,574.91

118,106.63

242,177.87

257,192.43

1 596 73

28,653.06

42.61

$

459,961.90 $

638,211.74 $

628,496.56

$

s _ _ _ _o:;.;...o=--:o'-

$

0.00 $

24,307.57 $ 17,926.85

24,218.97 19,512.83

451,402.05

451 746.40

493,636.47 $ _ _4_9_5,_4_78_.2_0_

$

459,961.90 $ 1,131,848.21 $

- 17 -

-------- ---- -------
TOOMBS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commod1t1es Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements.
- 18 -

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

85,260 00 $

871,341.87

280,053.03

$ 1,236,654.90 $

780,565.04 780,565 04

$

604,046.55

111,244.01 9,175.15

$ 1,236,999.25

23,027.17 19,655.37 9,957.24
3,459.55

$ 1,236,999.25 $

$

-344.35 $

780,565.04 0.00

$

-344 35 $

0.00

495,478.20

0.00

88.60 -1 585.98

$ 493,636 47 $ ====o=.o=o=

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30. 2001

JUNE 30, 2000

$

865,825.04 $

884,973.63

$ 1,264,347.74

2,135,689.61

2,102,665.34

280,053.03

276,026.22

$

s 1 264 '347.74

3,281,567.68 $

3,263,665 19

$

987,642.44 $ 1,591,688.99 $ 1,670,990.59

53,273.00 144,368 42
23,384.60 4,018.19 459.80
28,496 23 7,843.06
14 862.00

164,517.01 153,543.57
23,384.60 4,018.19
23,486.97 48,151.60 17,800.30 1,240,458.80 14,862.00

172,546.93 147,894 48
23,041.63 9,633.26
18,505.72 37,728.28 17,205.93 1,158,374.78

$ 1 264,347.74 $ 3,281,912.03 $ 3,255,921.60

$

0.00 $

-344.35 $

7,743.59

11 950.44

$

0.00 $

-344.35 $

19,694.03

0.00

495,478.20

474,511.62

88.60 -1 585 98

-6,158.32 7 430.87

$

0.00 $

493,636 47 $ ==4=9=5==,4=78=.=20=

- 19 -

TOOMBS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30. 2001

ASSETS Cash and Cash Equivalents Accounts Receivable

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

983,584.52

$ _ _ _ _ _o_.o_o_

Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable FUND EQUITY
Fund Balances Reserved For SPLOST ProJects For State Capital Outlay Proiects Unreserved Undes1gnated Total Fund Equity
Total L1ab1ht1es and Fund Equity

$

0.00 $ ====9:8:3!>,58:=4.=52=

$

983,584.52

$ _ _ _ _...;;.o"""'.o--'-o_

0.00

$

0.00 $ ___9_8~3,_58_4_.5_2_

$

0.00 $ ===9==8=3'=58=4=.5=2=

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

EXHIBIT "G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30, 2000

s

1,837,861.18 $

2,821,445 70 $

818,395 49

308,587.18

308 587 18

283,738.09

$ 2,146,448.36 $ 3,130,032.88 $ 1,102,133.58

$

1 592.48

$ 2,146,448.36 $ 2,146,448.36 $ 983,584.52

402,133.58

0.00

0.00

698,407.52

$ 2,146,448.36 $ 3,130,032 88 $ 1,100,54110

$ 2,146,448.36 $ 3,130,032.88 $ 1,102,133.58

- 21 -

TOOMBS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2001

REVENUES
Taxes Other Funds
Total Revenues EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

0 00 $

$

0 00 $

0.00 0.00

$

0 00 s

14,385.00

100,438.00

$

0 00 $

114 823.00

$

0 00 $

-114 823.00

s

1,098,407.52

$

-698 407 52

$

-698 407 52 $

1,098,407.52

$

-698,407 52 $

698 407 52

983,584.52 0.00

FUND BALANCE JUNE 30

$

0 00 S====9=83=,5=8=4.=52=

See notes to the general-purpose financial statements - 22 -

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30 1 2001

' JUNE 30 1 2000

$ 1,709,471.75 $ 1,709,471.75 $

34 843 03

34,843.03

402,133.58

s 1 744 314 78 $ 1 744 314.78 $ _ _4...;0;.;;c2.z...;l1-"-33;;;;..;'..c.,58~

$

0 00 $

14,385.00 $

328,392.48

100,438 00

7 500.00

$

0.00 $

114,823.00 $ _ _3_3_5~,8_92_.4_8_

$ 1 744 314 78 $ 1,629,491.78 $ _ _ _6_6~,2_41_._10_

$ 1,098,407.52 $ 1,029,300.00 -698,407.52

$

400,000.00 $ 1,029,300.00

s 1,744,314 78 $ 2,029,491.78 $ 1,095,541.10

402,133 58

1,100,541.10

5,000 00

s 2 146,448.36 $ 3,130,032 88 $ 1,100,541.10

- 23 -

- - ------ - -- -----------
TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U S Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program Nahonal School Lunch Program
Total Child Nutrition Cluster

10 553 10 555

N/A $ 176,793 22

N/A

s 617,373 19

s $ 794,166 41

(2) 1,168,983 08 (3)
1,168,983 08

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food D1stnbuhon Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program
Total U S Department of Agriculture

10 550 10 558

N/A

68,016 17

68,016 17

NIA

9,159 29

s $ 871,341 87

(2) 1,236,999 25

Education, U S Department of Special Education Cluster Pass-Through From Georgia Department of Education lnd1v1duals with D1sab1ht1es Education Act Part B - Special Education Flow Through Preschool Special Education Capacity Bu1ld1ng Improvement Grant

84 027 84 173
84173

NIA s $ 206,524 42

NIA

20,820 21

N/A

12,226 54

206,524 42 20,820.21
12,226 54

Total Special Education Cluster

$ 239,571 17 $

239,571 17

Other Programs

Pass-Through From First D1stnct Regional Educational

Service Agency

d/bla Live Oak Migrant Education.Agency

Elementary and Secondary Education Act

Title I Migrant Education

84 011

NIA

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I Grants to Local Educallonal Agencies

84 010

NIA

Title 11 Eisenhower Professional Development

84 281

NIA

Title VI Innovative Education Program Strategies Class Size Reduction

84 298

NIA

84 340

NIA

Title VII Immigrant Education

84 162

NIA

Vocational Education - Basic Grants to States

High School Program Basic Grant

84 048

NIA

131,643 54
681,351 09 7,205 65
23,421 53 98,162 00 14,862 00
30,478 00

131,64354
681,351 09 7,205 65
23,421 53 98,162 00 14,862 00
30,478 00

Total U S Department of Education

$ 1,226,694 98 $

1,226,694 98

24

TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Justice, U S Department of Pass-Through From Office of the Governor Children and Youth Coordinating Council OJJDP Formula Grant 99J-09-9903-0026

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

16 540

NIA

s

37,652 76 S

37,652 76

Total Federal Financial Assistance

S 2,135,689 61 S ===2.=50=1==,3=4=6=9=9

N/A = No\ Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food 01stnbut1on Program represents the Federally assigned value of nonmonetary assistance for donated commod1ties received and/or consumed by the system during the current fiscal year
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program
(3) Expenditures for this program include State, and/or Other Funds Expenditures are not maintained by fund source

Maier Programs are 1dent1fied by an astensk (*) in front of the CFDA number

The School D1stnct did not provide Federal Assistance to any Subrec1p1ent

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Toombs County Board of Education and 1s presented on the modified accrual basis of accounting which 1s the same basis of accounting used 1n the presentation of the general-purpose financial statements

See notes to the general-purpose financial statements

25-

TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

GRANTS

Education, Georgia Department of

Quality Basic Education

Direct Instructional Cost

Kindergarten Program

S

Kindergarten Program - Early Intervention Program

Pnmary Grades (1-3) Program

Pnmary Grades - Early Intervention (1-3} Program

Upper Elementary GradElS (4-5} Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12} Program

Students with D1sab11it1es

Category I

Category II

Category Ill

Category IV

CategoryV

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other Languages (ESOL)

Media Center Program

Staff and Professional Development

Indirect Cost

Categorical Grants

Pupil Transportation

Regular

Bus Replacement

Nursing Services

Principal Supplements

Vocational Supervisors

Migrant Education

Education Equalization Funding Grant

Food Services

Vocational Education

Other State Programs

At-Risk Summer School Program

Health Insurance

Innovative Programs

Preschool Handicapped Program

Remedial Summer School

Special Education Low Incidence Grant

Lottery Programs

Computers in the Classroom

440,843 00 169,176 00 1,500,724.00 291,747.00 756,486 00 1,382,503 00 1,083,152.00 305,271.00
62,064 00 296,474 00 822,339.00 189,796 00
12,183 00 124,256 00 274,499 00 100,600 00 245,502 00 244,567 00
72,145 00 1,575,943.00
464,683 00 130,044 00
69,722.00 11,714 00 11,881 00 42,056 00 1,043,663 00
$ 78,782 48
1,181 54 191,732 71
5,000 00 47,555 00
2,08510 14,81900

$
85,260 00 56,441 79

440,843 00 169,176 00 1,500,724 00 291,747 00 756,486 00 1,382,503 00 1,083,152 00 305,271.00
62,064 00 296,474.00 822,339.00 189,796 00
12,183.00 124,256 00 274,499 00 100,600 00 245,502 00 244,567 00
72,145.00 1,575,943 00
464,683 00 130,044 00
69,722.00 11,714 00 11,881 00 42,056 00 1,043,663 00 85,260 00 78,782 48
1,181 54 191,732 71
5,000 00 47,555 00
2,085 10 14,819 00
56,441 79

Office of School Readiness Pre-Kindergarten Program

724,123 25

724,123 25

Office of Treasury and Fiscal Services Public School Employees Retirement

39,147.00

39,147 00

See notes to the general-purpose f1nanc1al statements

$ 12,104,335.83 $ 865,825 04 $ 12,970,160 87 - 26 -

TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2001

SCHEDULE "3"

PROJECT
Acqu1s1t1on, construction and equipping of a new middle school and renovation of Toombs County High School
Construction of a j0Int football stadium With Vidalia Board of Education

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 6,878.000 00 $ 11,735,900 00 $ 114,823 00 $ 330,892 48

1,000,000 00

1,000.000 00

Ongoing

$ 7,878,000 00 $ 12,735,900 00 $ 114,823 00 $ 330,892 48

(1) The School District's original cost estimate as specified m the resolution calling for the ImposItIon of the Local Option Sales Tax
(2) The School District"s current estimate of total cost for the projects Includes all cost from project inception to completion
(3) The voters of Toombs County approved the ImposItIon of a 1% sales tax to fund the above projects Amounts expended for these proiects may mctude sales tax proceeds, state. local property taxes and/or other funds over the life of the projects

See notes to the general-purpose financial statements

- 27 -

- - - - - - - - - - - - - - - - - - - - - - - - - - --- --------- ----- - - - - - - ----- - ---- - -
TOOMBS COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2001

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1ht1es Category I Category II Category 111 Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages {ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

483,151 00 $ 461,078 62 $

s 18,669 48

479,748 10

185,412 00

272,589 58

1,381 14

273,970 72

1,644,750 00 1,523,819 08

60,887 19

1,584,706 27

319,747 00

304,349 60

626 87

304,976 47

829,086 00

820,338 05

33,828 87

854,166 92

1,515,182 00 1,748,912 89

71,15621

1,820,069 10

1,187,103 00 1.481,353 81

53,603 74

1,534,957 55

334,568 00

314,719 15

139,341 94

454,061 09

1,515,56900

42,333 57

5,288 33

47,621 90

331,378 89

36112

331,740 01

854,162 61

4,634 21

858,796 82

65,694 11

36649

66,060.60

2,221 21

2,221 21

136,181 00

95,013 40

4,714 35

99,727 75

300,843 00

338,661 09

2,945 65

341,606 74

110,255 00

78,405 97

7,762 23

86,168 20

269,064 00

137,367 79

1,633 46

139,001 25

$

8,830,911 00 $ 8,872,399 42 $ 407,201 28 $ 9,279,600 70

268,039 00 79,069 00

287,474 21 40,547 71

50,482 23 50,333 63

337,956 44 90,881 34

TOTAL QBE FORMULA FUNDS

$

9,178,019 00 $ 9,200,421 34 S 508,017 14 $ 9,708,438 48

(1) Comprised of State Funds plus Local Five MIii Share

See notes to the general-purpose financial statements

28

TOOMBS COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

SITE Toombs County High School Toombs County Middle School Lyons Elementary School Toombs Central Elementary School Cedarwood Psychoeducat1onal Program Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,231, 182.00 $

2,584,123.60

2,256,775.00

2,336,890.98

2,802,485 00

2,810,629.38

1,430,214.00

1,510,941.28

37,015.46

110,255 00

$

8,830,911 00 S=====9=,2=7=9=,=6=0=0=7=0=

See notes to the general-purpose financial statements. - 29 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

Ru,!'>~-1.1. \\'. H1:-.1or-
STATE AUC'ITOR (404) 656 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
25-1 W,1,hmg1011,Strcc1. SW. Suite 214 AtlJnta. Gcorg1J 30334-8400
March 21, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Toombs 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 Toombs County Board of Education as of and for the year ended June 30, 200 I, and have issued our report thereon dated March 21. 2002. TlllS report was qualified for vanous departures from generally accepted accounting principles, as 1dent1fied in the auditor's report on the general-purpose financial statements. We conducted our audit m accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contamed in Government Auditing Standards. issued by the Comptroller General of the United States.
Compliance
As part of obtainmg reasonable assurance about whether Toombs County Board of Education's financial statements are free of material misstatement, we performed tests of Its compliance with certam prov1s1ons of laws, regulations, contracts and grants, noncompliance with" h1ch could have a direct and material effect on the determination offinancial statement amounts Ho\\ ever, providmg an opinion on compliance with those provisions was not an objective of our audit. and accordmgly, we do not express such an opinion. The results ofour tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Fmancial Reportmg
In planning and performing our audit, we considered Toombs County Board of Education's internal control over financial reporting 1n 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
2001YB-40

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Toombs County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item ~S-7381-01-0 I.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned funct10ns. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use of the management, members of the Toombs County Board ofEducation, Federal awarding ag~ncies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~~4--
State Auditor
RWH:gp 2001YB-40

R,,,..,1.11. \\". H1,10,
STATE AUC'ITOR f4QG\ 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
25-1 \Va\hmgton S1rc-c1. SW. Suite 21-1 Atlanta. Gt:org1a 10334-8400
March 21. 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Toombs 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 Toombs County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Toombs County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Toombs County Board of Education's management. Our responsibility is to express an opinion on Toombs County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted m the United States of Amenca; the standards applicable to financial audits contained in Government Auditmg Standards, JSsued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizatzons. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Toombs County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Toombs County Board of Education's compliance with those requirements.
2001SA-10

In our opm1on, the Toombs County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Toombs County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Toombs County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program m order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on mternal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters m the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees m the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the Toombs County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp' 2001SA-10

State Auditor

SECTION ill AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

TOOMBS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7381-98-01 FS-7381-99-01 FS-7381-00-01

Previously Reported Corrective Action Implemented Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7381-00-01

The Toombs County Board of Education does not have adequate staff available to create subsidiary records reflecting a General Fixed Assets Account Group. Records are not available to determine when all land, buildings and equipment owned by the Board of Education were obtained and their acquisition cost. The School District chooses to accept this material weakness until staff availability and finances allow an undertaking of this magnitude or until the time comes where we are required to maintain General Fixed Assets.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-7381-00-01

Previously Reported Corrective Action Implemented

SECTION IV FINDINGS AND QUESTIONED COSTS

TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Toombs County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Toombs County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Fmancial Statements The audit of the Toombs County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Toombs County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Toombs County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51 0(a) of 0MB Circular A-133 The Toombs County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Toombs County Board of Education qualified as a low risk auditee based on a waiver granted by the U.S. Department of Education.
- 1-

TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7381-01-01 The Toombs County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting pnnciples. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. ID FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-