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 TREUTLEN 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 
 
3 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
4 
 
D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
5 
 
ADDffiONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
14 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
16 
 
SCHEDULES 
 
1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
18 
 
2 SCHEDULE OF STATE REVENUE 
 
21 
 
ALLOTMENTS AND EXPENDITURES 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 
 
3 
 
BY PROGRAM 
 
22 
 
4 
 
BY SITE 
 
23 
 
 TREUTLEN 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 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 
March 13, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members ofthe Treutlen 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 Treutlen County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Treutlen 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 in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement 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 in some respects from generally accepted accounting principles. These variances are described as follows: 
 
2002ARL-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 equipment owned by the Board of Education which should be included to conform 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, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002. Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded 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, 2001, were improperly recorded in the year ended June 30, 2002. 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 in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Treutlen County Board of Education as ofJune 30, 2002, and the results ofits 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 13, 2003, on our consideration of the Treutlen County Board of Education's internal control over financial reporting 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 Treutlen County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 4), which includes the Schedule ofExpenditures ofFederal Awards as required byU. S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose 
2002ARL-13 
 
 financial statements. Such information has been subjected to the auditing 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 information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. 
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. 
Respectfully submitted, 
~41.k 
 
RWH:as 2002ARL-13 
 
State Auditor 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
COMBINED BALANCE SHEET 
ALL FUND TYPES 
JUNE 30, 2002 
 
EXHIBIT"A" 
 
ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories 
Food Donated Commod1t1es Purchased Food 
Total Assets 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTALS (Memorandum Onl~l JUNE 30, 2002 JUNE 30, 2001 
 
$ 30,053 10 $ 199,821 44 $ 
 
229,874.54 $ 
 
412,203.70 
 
28,674 38 
 
28,674 38 
 
28,674.38 
 
17,801.66 
 
89,951.64 
 
107,753.30 
 
65,039.74 
 
7,571.42 5,394 58 
 
7,571.42 5,394.58 
 
10,244 21 5 008 74 
 
$ 47 854.76 $ 331,413 46 $ 
 
521 170 77 
 
LIABILITIES AND FUND EQUITY 
 
LIABILITIES 
Accounts Payable Salanes Payable Deferred Revenue 
 
$ 
 
4,34002 $ 
 
25,464 65 $ 
 
112,627.90 
 
28.80 
 
Total Liabilities 
 
$ 
 
4,340 02 $ 138,121.35 $ 
 
FUND EQUITY 
 
Fund Balances Reserved For Bus Replacement Funds For lnventones Food Donated Commodities Purchased Food Unreserved Undes1gnated 
Total Fund Equity 
 
$ 
 
9,032.93 
 
$ 
 
$ 
 
7,571 42 
 
5,394.58 
 
34,481.81 
 
180,326 11 
 
$ 43 514.74 $ 193,292.11 $ 
 
29,804.67 $ 112,627 90 
28.80, 142,461.37 $ 
9,032.93 $ 
7,571.42 5,394.58 214,807 92 236,806 85 $ 
 
24,579 90 112,73911 
14 705 78 152,024 79 
4,314.80 
10,244 21 5,008 74 
349,578.23 369,145.98 
 
Total l.JabihtJes and Fund Equity $ 471854 76 $ 33141346 $ 
 
379,268 22 $===5=21=1=7=0=7=7 
 
The notes to the general-purpose financial statements are an integral part of this statement -2- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE,30, 2002 
 
EXHIBIT "B" 
 
REVENUES 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
TOTALS {Memorandum Onl~) 
YEAR ENDED JUNE 301 2002 JUNE 30, 2001 
 
State Funds Federal Funds Taxes Other Funds 
 
$ 6,194,804.12 $ 304,497 45 $ 
 
1,328,719 99 
 
724,819.60 
 
60,745 58 
 
161,91773 
 
6,499,301.57 $ 1,328,719.99 
724,819.60 222,663 31 
 
6,455,373.26 1,253,235 01 
705,629 61 230,448 78 
 
Total Revenues 
 
$ 6,980,369 30 $ 1,795,135 17 $ 8,775,504 47 $ 8,644,686 66 
 
EXPENDITURES 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Adminlstrabon School Adm1mstrat1on Business Administration Maintenance and Operation of Plant Student Transportabon Services Other Support Services Food SeMces Operabon 
Capital Outlay 
 
$ 4,906,838.63 $ 908,544.74 $ 5,815,383.37 $ 5,728,749.73 
 
164,448.76 112,182.03 142,727.67 257,032.06 510,929.99 36,851.63 488,852.96 360,365.40 58,091.97 
38,475 17 
 
115,219 63 89,849 43 
39,566.50 4,859.25 8,593.11 
482 05 13,713.67 7,344 84 640,58716 
 
279,668.39 202,031.46 142,727.67 296,598.56 515,789.24 45,444 74 489,335.01 374,079.07 65,436 81 640,587.16 38,475.17 
 
214,874 97 177,304.97 146,420.78 314,016.30 512,629 42 48,671 36 501,581 74 444,489 00 59,847.98 601,729.15 36 427.61 
 
Total Expenditures 
 
$ 7,076,796 27 $ 1,828,760 38 $ 8,905,556.65 $ 8,786,743 01 
 
Excess of Revenues over (under) Expenditures 
 
$ -96,426 97 $ -33,625.21 $ -130,052 18 $ -142,056 35 
 
OTHER FINAt::jClt::IG SOUBC!;S (USES} 
 
Operatmg Transfers In Operating Transfers Out 
 
$ $ -1 612 76 
 
1,612.76 $ 
 
1,612.76 -1 612.76 
 
Total Other Financing Sources (Uses) 
 
$ -1 612 76 $ 
 
1 612 76 $ 
 
0 00 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Finanang Uses 
 
$ -98,039.73 $ -32,012.45 $ 
 
-130,052.18 $ 
 
-142,056.35 
 
FU@ BALANCE JULY 1 
 
141,554.47 
 
227,591.51 
 
369,145.98 
 
514,689.91 
 
Food lnventoiy - Net Change in Penod Donated Commodities Purchased Food 
 
-2,672.79 385.84 
 
-2,672.79 385 84 
 
-3,911.23 423.65 
 
FUND BALAt::jCE JUNE 30 
 
$ 43 514 74 $ 193,29211 $ 
 
236,806 85 $ ====36==9=,1=4=5=98= 
 
The notes to the general-purpose finanaal statements are an integral part of this statement. -3- 
 
 TREUTLEN 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. 2002 
 
EXHIBIT "C" 
 
GENERAL FUND 
 
BUDGET 
 
ACTUAL 
 
REVENUES 
 
State Funds Federal Funds Taxes Other Funds 
 
$ 5,878,922.00 $ 6,194,804 12 
 
729,000 00 45.000 00 
 
724,819 60 60,745 58 
 
Total Revenues 
 
$ 6,652,922.00 $ 6,980,369.30 
 
EXPENDITURES 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation 
Capital OU11ay 
 
$ 4,736,735.62 $ 4,906,838.63 
 
143,647.00 120,835.39 132,915.71 308,464.10 459,415.92 
36,80344 448,489.93 350,530.98 
60,000 00 
 
164,448.76 112,182.03 142,727.67 257,032.06 510,929.99 36,851.63 488,852.96 360,36540 58,091.97 
 
35,000.00 
 
38,47517 
 
Total E.xpendrtures 
 
$ 6,832,838 09 $ 7,076,796.27 
 
Excess of Revenues over (under) Expenditures $ -179,916.09 $ -96,426 97 
 
OTHER FINANCING SOURCES (USES) 
 
Other Sources Other Uses 
 
$ -1,612 76 
 
Total Other Financing Sources (Uses) 
 
$ -1,612 76 
 
Excess of Revenues and Other Financing Sources 
 
over (under) E.xpendrtures and Other Financing 
 
Uses 
 
$ 
 
-179,916.09 $ 
 
FUNQ BALANCE J!,JLY l, 2001 
 
200,000.00 
 
AdJustments Food Inventory - Net Change m Penod 
Donated Commodrt1es Purchased Food 
 
177.00 
 
-98,039.73 141,554 47 
 
FUND BALANCE JUNE 30. 2002 
 
$ 20,260 91 $ 43 514 74 
 
SPECIAL REVENUE FUND 
 
BUDGET 
 
ACTUAL 
 
$ 278,669 80 $ 304,497 45 
 
1,245,190 31 
 
1,328,719.99 
 
131,600 00 
 
16191773 
 
$ 1,655,460 11 $ 1,795,13517 
 
$ 824,184.78 $ 
208,669.09 18,150.00 
40,785 90 640.00 
2,590.32 
13,557 02 8,283.00 733,482 34 
 
908,544.74 
115,219.63 89,849 43 
39,566.50 4,859 25 8,593 11 
482.05 13,713.67 7,344 84 640,58716 
 
$ 1,850,342.45 $ 1,828,760.38 $ -194,882 34 $ -33,625 21 
 
$ 
 
1,612 76 
 
$ 
 
1 612 76 
 
$ -194,882 34 $ 239,533.49 -1,380.99 
 
-32,012 45 227,591.51 
-2,672 79 385.84 
 
$ 43.270 16 $ 193,292.11 
 
The notes to the general-purpose financial statements are an integral part of this statement -4- 
 
 t 
TREUTLEN COUNrY BOARD OF EDUCATION 
 
EXHIBIT 11D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The Treutlen 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 tecorded in the general-purpose financial statements. 
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School 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 that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific educational objectives. 
-5- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
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 ofthese 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. Property taxes and interest are considered to be 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, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements 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 2002, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. 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, 2002, compensation 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 District subsequent to June 30, 2002. Also, the State's portion ofthe compensation paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002. 
 
-6- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO TI-IE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were recorded in the year ended June 30, 2002. Generally accepted accounting principles require 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 Treutlen 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 ofthe 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 ofcash 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. 
INVESTMENTS 
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofretum shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: 
-7- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
(1) Obligations issued by the State of Georgia or by other states, 
 
(2) Obligations issued by the United States government, 
 
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, 
 
(4) Obligations of any corporation of the United States government, 
 
(5) Prime banker's acceptances, 
 
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, 
 
(7) Repurchase agreements, and 
 
(8) Obligations of other political subdivisions of the State of Georgia. 
 
RECEIVABLES 
 
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from 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. 
 
PROPERTY TAXES 
 
The Treutlen County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 11, 2001 (levy date). Taxes were due on December 31, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Treutlen 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, 2002 for maintenance and operations amounted to $715,519.32. 
 
The tax millage rate levied for the 2001 tax year (calendar year) for the Treutlen County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
2....1.6. mills 
 
-8- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
INVENTORIES 
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods 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. 
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 indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations 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 ofinsurance, 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 ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 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 ofoperating funds placed in demand deposit checking accounts. 
-9- 
 
 TREUTLEN COUNfY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 2: DEPOSITS 
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) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
(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 Federai National Mortgage Association. 
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $972,600.90. 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, 2002, as follows: 
 
- 10 - 
 
 TREUTLEN COUNTY BOARD OF ED.UCATION 
 
EXHIBIT "D" 
 
NOTES TO TI-IE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30,.2002 
 
Note 2: DEPOSITS 
 
Risk Category 
 
Ban1c Balance 
 
1 
 
$ 100,000.00 
 
2 
 
872,600.90 
 
3 
 
0.00 
 
Total 
 
$ 972,600.90 
 
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 1 - 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; acts of God and unemployment compensation. 
 
The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries 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 acts ofGod. 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 General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
2001 2002 
 
Begmnmg of Year L1ab1hty 
 
Claims and Changes m Estimates 
 
Claims Paid 
 
End of Year L1abihty 
 
$ 
 
0.00 $ 
 
1,296.00 $ 
 
1,296.00 $ 
 
0.00 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
- 11 - 
 
 - - - - - - - - - - - - - - - - - - - ---- --- -- ------- - - 
 
TREUTLEN COUNfY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 4: RISK MANAGEMENT 
 
The School District has purchased surety bonds to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent Food Service Director Each Principal 
 
$ 50,000.00 $ 15,000.00 $ 15,000.00 
 
Note 5: OPERATING LEASES 
 
Treutlen County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2002, amounted to $28,650.76. Future minimum lease payments for these leases are as follows: 
 
Year Ending 
 
Amount 
 
2003 2004 2005 2006 
 
$ 28,421.76 1,917.40 1,688.40 140.70 
 
Total 
 
$ 32,168.26 
 
Note 6: ON-BEHALF PAYMENTS 
 
The School District has recognized revenues and expenditures in the amount of $103,991.22 for health insurance and retirement contributions paid on the School District's behalf by the following 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 $91,893.22 
 
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 $12,098.00 
 
- 12 - 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2002 
 
Note 7: 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. 
 
The School District is a defendant in a legal proceeding pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthis proceeding is not presently determinable, but is not believed to be material to the general-purpose financial statements. 
 
Note 8: 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 ofthe School District 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 contributions to TRS at rates adopted by the TRS Boacd ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2002 2001 2000 
 
100% 100% 100% 
 
$ 453,176.73 $ 533,594.37 $ 486,582.77 
 
- 13 - 
 
 TREUTLEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002 
 
ASSETS 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
170,444 74 $ 
 
30,655.06 
 
28,674.38 
 
9,324.09 
 
269.78 
 
7,571 42 5,394.58 
 
Total Assets 
 
$ 
 
221,409.21 $ ===3=0=,9=2..,4...8.=4 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Deferred Revenue 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated 
Total Fund Equity 
Total Liabilities and Fund Equity 
See notes to the general-purpose financial statements. 
- 14 - 
 
$ 
 
1,748.28 $ 
 
6,098.96 
 
26,368.82 
 
24,797.08 
 
28.80 
 
$ 
 
28117.10 $ 
 
30,924 84 
 
$ 
 
7,571.42 
 
5,394.58 
 
180,326 11 $ 
 
$ 
 
193,292.11 $ 
 
0.00 0.00 
 
$ 
 
221,409.21 $ ===3=0-,9=2=4-=84= 
 
 EXHIBIT"E" 
 
FEDERAL 
PROGRAMS 
 
TOTALS 
 
JUNE 30, 2002 
 
JUNE 301 2001 
 
$ 
 
201,099.80 $ 
 
283,528.08 
 
28,674.38 
 
28,674.38 
 
$ 
 
80,357.77 
 
89,951.64 
 
49,296.36 
 
7,571.42 5,394.58 
 
10,244.21 5,008 74 
 
$ 
 
80,357.77 $ 
 
332,691.82 $ =-===37=6=7=-5-=1=7==-7 
 
$ 
 
1,278.36 $ 
 
1,278.36 
 
17,617.41 
 
25,464.65 $ 
 
21,715.37 
 
61,462.00 
 
112,627.90 
 
112,739.11 
 
28.80 
 
14 705.78 
 
$ 
 
80 357.77 $ 
 
139,399.71 $ 
 
149,160.26 
 
$ 
 
$ _ _ _ _"""0=.o-"--0 
 
$ 
 
000 $ 
 
7,571.42 $ 5,394.58 
 
10,244.21 5,008.74 
 
180,326.11 
 
212,338.56 
 
193,292.11 $ _ _=22;;;.;.7,.5;.;:9;..;.1.:.=;.5..;..1 
 
$ 
 
80 357.77 $ 
 
332,691.82 $ ===37:::i6=7'=5=1.=7=7 
 
- 15 - 
 
 TREUTLEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002 
 
REVENUES 
State Funds Federal Funds Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation 
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 m Penod Donated Commodities Purchased Food 
FUND BALANCE JUNE 30 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
42,600.00 $ 
 
261,897.45 
 
404,056.98 
 
161,917.73 
 
$ 
 
608,574 71 $ 
 
261,897 45 
 
$ 
 
226,816.92 
 
22,906.04 519.12 
2,402.21 178 00 
8,593.11 482.05 
 
$ 
 
640,58716 
 
$ 
 
640,587.16 $ 
 
261 897.45 
 
$ 
 
-32,012.45 $ 
 
0.00 
 
$ 
 
-32,012.45 $ 
 
227,591.51 
 
-2,672.79 385.84 
 
0.00 0.00 
 
$ 
 
193,292.11 $ ==-====-~0;,;;;.0~0 
 
See notes to the general-purpose financial statements. - 16 - 
 
 EXHIBIT"F" 
 
FEDERAL PROGRAMS 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2002 
 
JUNE 301 2001 
 
$ 
 
$ 
 
924,663.01 
 
924,663.01 $ $ _ _...;;..;;;..;.i..;;...;;; 
 
304,497.45 $ 1,328,719.99 
161 917.73 
1?95,135.17 $ 
 
306,259.30 1,253,235.01 
177,878 24 
1,737,372.55 
 
$ 
 
681,727.82 $ 
 
908,544.74 $ 
 
947,898.73 
 
92,313.59 89,330.31 37,164.29 
4,681.25 
13,713.67 7,344.84 
 
115,219.63 89,849.43 39,566.50 
4,859.25 8,593.11 
482.05 13,713.67 7,344.84 640,587.16 
 
74,444.68 55,535.18 33,194 38 
9,227.44 916.32 
16,219.58 7,138.06 601,72915 
 
$ 
 
926,275.77 $ 1,828,760.38 $ 1,746,303.52 
 
$ 
 
-1,612.76 $ 
 
-33,625.21 $ 
 
-8,930.97 
 
1 612.76 
 
1,612.76 
 
$ 
 
0.00 $ 
 
-32,012.45 $ 
 
-8,930.97 
 
0.00 
 
227,591.51 
 
240,010.06 
 
-2,672.79 385.84 
 
-3,911.23 423.65 
 
$ 
 
0.00 $ 
 
193,292.11 $ ===22.,.7=,5=9=1=5=1 
 
- 17 - 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30 2002 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Agnculture, U S Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutntlon Program Food Services School Breakfast Program Natlonal School Lunch Program 
Total Child Nutntlon Cluster 
 
10 553 10 555 
 
NIA s 
NIA 
$ 
 
90,213 20 
281,733 00 s 
s 371,946.20 
 
(2) 608,476 38 (3) 
608,476 38 
 
Other Programs Pass-Through From Georgia Department of Education Food and Nutnbon Program Food D1stnbut1on Program (1) 
Total U S Department of Agnculture 
 
. 10 550 
 
NIA 
s 
 
32110 78 404 056 98 $ 
 
32,110 78 640,587 16 
 
Education, U S Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with D1sab1httes Education Act Part B - Speoal Educabon Capacity Building Improvement Flow Through Preschool 
 
84 027 84 027 84173 
 
N/A $ NIA N/A 
 
2,730 00 $ 117,748 74 
9 916 00 
 
2,730 00 117,748 74 
11 528 76 (3) 
 
Total Special Education Cluster 
 
$ 
 
130,394 74 $ 
 
132,007 50 
 
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Trtlel Accountab1hty Grant Grants to Local Educatlonal Agencies Title II Eisenhower Professional Development TrUe Ill Technology Literacy Challenge Fund Grants TrtleVI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Vocational Education - Basic Grants to States High School Program Basse Grant 
Total U S Department of Educabon 
 
. 84 348 84 010 84 281 84 318 84 298 84 340 
84 276 
84 048 
 
NIA 
 
43,534 31 
 
43,534 31 
 
NIA 
 
356,667 48 
 
356,667 48 
 
NIA 
 
3,266 20 
 
3,266 20 
 
NIA 
 
125,000 00 
 
125,000.00 
 
NIA 
 
7,725 63 
 
7,725 63 
 
NIA 
 
54,146 93 
 
54,146 93 
 
NIA 
 
14,705 78 
 
14,705 78 
 
NIA 
$ 
 
27 107 00 
762 548 07 s 
 
27 107 00 764 160 83 
 
Health and Human Service, U S Department of Direct Rural Health Outreach Program 
 
93 912 
 
$ 
 
162 114 94 $ 
 
162114 94 
 
Total Federal Finanaal Assistance NIA= Not Available 
 
- 18 - 
 
$ 1,328,719 99 $ 1,566,862 93 
 
 TREUTLEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30 2002 
 
SCHEDULE "1" 
 
Notes to the Schedule of Expenditures of Federal Awards 
(1) The amounts shown for the Food D1stnbut1on Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system dunng the current fiscal year 
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2002 National School Lunch Program 
(3) Expenditures for this program include State, and/or Other Funds Expenditures are not maintained by fund source 
Ma1or Programs are identified by an astensk (*) in front of the CFDA number 
The School D1stnct did not proV1de Federal Assistance to any Subrecip1ent 
The accompanying schedule of expenditures of Federal awards includes the Federal grant actlVlty of the Treutlen County Board of Educabon and Is presented on the modified accrual basis of accounting which Is the basis of accounbng used in the presentation of the general-purpose financial statements 
 
See notes to the general-purpose financial statements 
 
- 19 - 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
SCHEDULE OF STATE REVENUE 
YEAR ENDED JUNE 30 2002 
 
SCHEDULE "2" 
 
AGENCY/FUN DJ NG 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
GRANTS 
 
Education, Georgia Department of 
 
Quality Basic Education 
 
Direct Instructional Cost 
 
Kindergarten Program 
 
$ 
 
Kindergarten Program - Early Intervention Program 
 
Pnmary Grades (1-3) Program 
 
Pnmary Grades - Early Intervention (1-3) Program 
 
Upper Elementary Grades (4-5) Program 
 
Upper Elementary Grades - Early Intervention (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 
 
Gifted Student - Category VI 
 
Remedial Education Program 
 
Alternative Education Program 
 
20 Days Additional Instruction 
 
Media Center Program 
 
Staff and Professional Development 
 
Indirect Cost 
 
Categoncal Grants 
 
Pupil Transportation 
 
Regular 
 
Bus Replacement 
 
Nursing SeMces 
 
Pnncipal Supplements 
 
Vocational Supervisors 
 
M1d-tenn AdJustment Hold-Hannless 
 
Education Equalization Funding Grant 
 
Food Services 
 
Vocational Education 
 
Other State Programs 
 
AltematIve Program 
 
Health Insurance 
 
Mentor Teachers 
 
Preschool Handicapped Program 
 
Statewide After School (4-8) Program 
 
Statewide Reading (K-3) Program 
 
Lottery Programs 
 
Ass1stive Technology 
 
Computers in the Classroom 
 
266,453 00 102,527 00 599,430 00 163,088 00 321,092 00 167,222 00 775,449 00 462,928 00 229,214 00 
6,19400 45,504 00 341,469 00 66,691 00 100,210 00 37,572 00 54,954 00 35,462 00 114,277 00 20,906 00 874,348 00 
203,362 00 55,561 00 40,411 00 4,687 00 8,648 00 76,456 00 
638,141 00 $ 
200,071 18 
27,889 00 91,893 22 
1,377 00 21,876.00 12,526 91 14,816 81 
 
$ 
42,600 00 4,822 25 
29,244 78 
 
Office of School Readiness Pre-Kindergarten Program 
 
227,830 42 
 
Office of Treasury and Fiscal Services Public School Employees Retirement 
 
1209800 
 
TOTAL 
266,453 00 102,527 00 599,430 00 163,088 00 321,092 00 167,222 00 775,449 00 462,928 00 229,214 00 
6,194 00 45,504 00 341,469 00 66,691 00 100,210 00 37,572 00 54,954 00 35,462 00 114,277 00 20,906 00 874,348 00 
203,362 00 55,561 00 40,411 00 4,687 00 8,648 00 76,456 00 
638,141 00 42,600 00 
200,071 18 
27,889 00 91,893 22 
1,377 00 21,876 00 12,526 91 14,816 81 
4,822 25 29,244 78 
227,830 42 
12,098 00 
 
$ 61194.804 12 $ 
 
304,497 45 $ 6,499,301 57 
 
See notes to the general-purpose financial statements 
 
 21  
 
 ---------------------------- --------- 
TREUTLEN COUNTY BOARD OF EDUCATION GENERAL FUND- OUAtlTY BASIC EDUCATION PROGRAM (QBE) 
ALLOTMENTS AND EXP.ENDII\JRES - BY PROGRAM 
YEAR ENDED JUNE 30. 2002 
 
SCHEDULE "3" 
 
DESCRIPTION 
Direct lnstrucllonal Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program 
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 
 
$ 
 
282,444 00 $ 302,158 64 $ 
 
7,464 02 $ 
 
309,622.66 
 
108,680.00 
 
96,633.89 
 
132.13 
 
96,766.02 
 
635,404.00 
 
623,994.93 
 
9,778 16 
 
633,773.09 
 
172,876.00 
 
157,177.60 
 
157,177.60 
 
340,362.00 
 
411,99130 
 
8,054.99 
 
420,046.29 
 
177,258.00 821,987.00 490,710 00 242,970.00 487,457.00 
106,224.00 39,827.00 58,252 00 
 
136,741.99 840,281.45 737,935.71 235,157.49 
98,109.95 321,613 26 
19,166.69 124,155 04 
1,786 80 
 
32,637.39 67,175.13 12,758.66 
1,000.00 81,624 01 
5,040 00 2,449 90 
58,488 00 
 
136,741.99 872,918.84 805,11084 247,916.15 
99,109 95 403,237 27 
24,206.69 126,604 94 
1,786.80 58,488.00 
 
s 
 
3,964,451.00 $ 4,106,904.74 $ 286,602 39 $ 4,393,507.13 
 
121,135 00 22,161 00 
 
117,634 75 3,865 79 
 
22,984 77 38,685 57 
 
140.619 52 42.551 36 
 
TOTAL QBE FORMULA FUNDS 
 
$ 
 
4,107,747.00 $ 4,228,405.28 $ 348,272.73 $ 4,576,678.01 
 
(1) Compnsed of State Funds plus Local Five Mill St-rare 
 
See notes to the general-purpose financial statements 
 
- 22- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) 
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002 
 
SCHEDULE "4" 
 
Treutlen Elementary School Treutlen Middle/High School 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 
 
$ 
 
1,980,115.00 $ 
 
2,068,608.50 
 
1,926,084.00 
 
2,266,410.63 
 
58,252.00 
 
58,488.00 
 
$ 
 
3,964,451.00 $ ==4=,3=93::::i,_50=7=.1=3 
 
See notes to the general-purpose financial statements. - 23- 
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, SW. Sune 214 Atlanta, Georgia 30334-8400 
March 13, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Treutlen 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 Treutlen County Board of Education as of and for the year ended June 30, 2002, and have issued our report thereon dated March 13, 2003. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 
Compliance 
As part of obtaining reasonable assurance about whether Treutlen County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. 
Internal Control Over Financial Reporting 
In planning and performing our audit, we considered Treutlen County Board ofEducation'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 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 Treutlen County Board ofEducation'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 ofFindings and Questioned Costs as item FS-7401-02-0 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 functions. 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, we consider item FS-7401-02-01 to be a material weakness. 
This report is intended solely for the information and use of the management, members of the Treutlen County Board ofEducation, 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, 
p...,!)Q ~.4k 
R sell W. Hinton 
RWH:as 2002YB-41 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 
March 13, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Treutlen County Board of Education 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance of Treutlen 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, 2002. Treutlen 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 Treutlen County Board of Education's management. Our responsibility is to express an opinion on Treutlen County Board of Education's compliance based on our audit. 
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. 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 Treutlen 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 Treutlen County Board ofEducation's compliance with those requirements. 
2002SA-10 
 
 In our opinion, the Treutlen 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, 2002. 
Internal Control Over Compliance 
The management of Treutlen 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 Treutlen County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. 
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one 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 in the normal course ofperforming 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 Treutlen County Board ofEducation, 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, 
l.b~__::k. 
Rus ell W. Hinton Stat Auditor 
RWH:as 2002SA-10 
 
 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 TREUTLEN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-7401-00-01 FS-7401-01-01 
 
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-7401-01-01 
 
Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the School District has decided not to pursue the recording ofGeneral Fixed Assets on the financial statements. When additional funds are available additional staff will be employed to correct this finding. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 TREUTLEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30. 2002 
I SUMMARY OF AUDITOR'S RESULTS 
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Treutlen County Board ofEducation'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 Treutlen County Board ofEducation 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 Financial Statements The audit of the Treutlen 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 Treutlen 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 Treutlen 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 Treutlen County Board of Education'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: 10.550 Food and Nutrition Program - Food Distribution Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 
9. Low Risk Auditee The Treutlen County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. 
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 TREUTLEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30. 2002 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7401-02-01 The Treutlen 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 principles. 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 ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. 
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