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

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TURNER COUNTY BOJ\RD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

9

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

10

ADDmONAL FINANCIAL INFORMATION

COMBINING AND INDNIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

FIDUCIARY FUND TYPES

I

COMBINING BALANCE SHEET

26

J

STATEMENT OF CHANGES IN ASSETS AND LIABil..mES

AGENCY FUND

27

SCHEDULES

1 SCHEDULE OF EXPENDITTJRES OF FEDERAL AWARDS

28

2 SCHEDULE OF STATE REVENUE

30

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

31

TURNER COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDIDONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

32

5

BY SITE

33

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 ID 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. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 303'.34-8400
July 2, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Turner 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 ofthe Turner 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 ofthe Turner County Board ofEducation'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 opinion.
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:

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 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, 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 in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Turner County Board ofEducation as of June 30, 2001, and the results of its operations and the cash flows of its nonexpendable trust fund 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 July 2, 2002, on our consideration ofthe Turner County Board ofEducation'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 Turner County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits G through J) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a
2001ARL-13

required part ofthe general-purpose 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 of this 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,
RWH:gp 2001ARL-13

TURNER COUNTY BOARD OF EDUCATION

TURNER COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
lnventones Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

444,378.83 $

50,976.60 $

256,693.56

172,912.70

285,717 12

7,13415 3,891 64

Total Assets

$

617.291 53 $

347,719 51 $

2561693.56

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue Funds Held for Others General Obligation Bonds Payable
Total Llab1hlles
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Cont1nuat1on of Federal Programs For Debt Service For Endowment Corpus For lnventones Food Donated Commod1t1es Purchased Food For Purpose of Bond Issue Unreserved Undes1gnated
Total Fund Equity

$

5,546.52 $

73,17711

181,993 67

7704

3,657.26

12,990.05

$

5,623.56 $

271,818.09

$

107,449.00

$

3,607.35

7,13415 3,891 64
$

256,693 56

504,218.97

61,268.28

000

$

611667 97 $

75 901 42 $

256,693 56

Total Liabilities and Fund Equity

$

6171291.53 $

347 719 51 $

256,693 56

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

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum On~)

JUNE 301 2001

JUNE 301 2000

$

259,305.28

$ 1,011,354.27 $ 1,357,021.65

$

25,000 00

25,000 00

25,000.00

126,869.90

39,048.86

624,548 58

441,751.64

$

386,175 18

1,113,824.82

7,134 15 3,891 64 386,175.18
1,113,824.82

9,744 17 4,208.05 417,994 95
1,897,005 05

$

386,175 18 $

64,048 86 $

1,5001000.00 $ 3,171,928 64 $ 4,152,725 51

$

30,003.99

$

30,003 99 $

12,588 65

78,723.63

58,022.24

181,993.67

179,884 82

3,734 30

2,184 08

12,990 05

7,514.56

7,514.56

3,367.20

$

1,500,000 00

1,500,000.00

2,315,000 00

$

37 518 55 $

1,500,000.00 $ 1,814,960 20 $ 2,571,046 99

$

386,175 18

$

25,000 00

0 00

$

386,175 18 $

1,530 31 26,530 31

$

107,449 00 $

138,891 00

3,607.35

7,062.69

386,17518

417,994 95

25,000.00

25,000 00

7,134 15 3,891 64 256,693 56

9,744 17 4,208.05 471,614 47

567,017 56

507,163 19

$ 1,356,968 44 $ 1,581,678 52

$

386,175 18 $

64,048.86 $

1,500,000 00 $ 3,171,928.64 $ 4,152,725 51

-3 -

TURNER 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 Administration School Admimstrat1on Business Adm1n1strallon Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operallon Community Services Operallons
Capital Outlay Debt Service
Pnncipal Interest Paying Agent Fees
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 Restated (See Note 1)
Food Inventory - Net Change in Penod Donated Commodrt,es Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 9,322,230 40 $
2,071,267 56 245,565 57
$ 11,639,063 53 $

485,506.32 2,028,145 26
81i731 34
2,595,382 92

$ 7,993,756 12 $ 1,492,693 97

465,106.68 491,964.70 215,545 50 261,611.88 651,646 82
76,155 13 633,036 32 510,739.31
7,99714 103,40909
1,257.25 28,925.50

128,087.21 61,947 97
32,863.69 29,082.22
9,235.13 33,069.82
127,451.13 769,78544

$ 11 441151 44 $

$

197,912 09 $

2,684,216.58 -88,833.66

$ $ -156,392 31
s -156,392 31 $

$

41,519 78 $

570,14819

72,192.31
72 192 31
-16,641.35 95,469 20
-2,610 02 -316 41

FUND BALANCE JUNE 30

$

61166797 $===7=5==,9=0=1<=42==

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

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 301 2000

$ 9,807,736.72 $ 9,169,821.36

2,028,145.26

1,796,142.04

$

790,123 62

2,861,391.18

2,823,965 92

$

12,025.72

7 543.21

346,865.84

329,149 50

$

12,025.72 $

797,666 83 $ 15,044. 139.00 $ 14,119,078.82

$ 9,486,450 09 $ 8,867,602.73

$

226,946.63

593,193.89 553,912.67 215,545.50 294,475 57 680,729 04 76,15513 642,271.45 543,80913
7,997.14 230,860.22 771,042.69
28,925.50 226,946 63

665,205 87 548,527.60 198,814 78 303,600.18 710,415 44 79,425.56 599,361.60 371,222.26
7,001.12 129,396.89 776,631 84 23,202.79 275,496.55

$

815,000.00

98,140.00

54660

815,000.00 98,140.00 54660

750,000.00 132,077 50
541.60

$

226,946.63 $

913,686 60 $ 15,266,001.25 $ 14,438.524 31

$

-214,920.91 $

-116,019 77 $

-221,862.25 $

-319,445 49

$

84,200 00 $

156,392.31 $

87,055.15

-156,392.31

-87,055 15

$

84,200 00 $

0 00 $

0 00

$

-214,920.91 $

471,614 47

-31,819 77 $ 417,994.95

-221,862 25 $ 1,555,226.81

-319,445.49 1,872,604 96

-2,610 02 -316 41

2,559 52 -492 18

$

256,693 56 $

386175 18 $ 1,330,438 13 $ 1,555,226 81

-5-

. . ' - (.
TURNER COUNTY BOARD OF EDUCAJION 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
Total Revenues

$ 8,801,147 00 $ 9,322,230 40

1,662,641 00 30,000 00

2,071,267 56 245,565 57

$ 10,493,788 00 $ 11,639,063 53

EXPENDITURES

Current lnstrucbon Support SeMces Pupil Services Improvement of lnS1ructJonal Services Educabonal Media Services General Administration School Administration Business Adm1nistrallon Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations

$ 7,821,523 00 $ 7,993,756 12

254,718 00 458,434 00 208,502 00 240,666.00 694,360 00
84,353 00 686,708 00 430,424 00
7,12200
20,000 00

465,106 68 491,964 70 215,545 50 261,611 88 651,646 82
76,155 13 633,036.32 510,739 31
7,997 14 103,409 09
1,257 25 28,925 50

Total Expenditures Excess of Revenues over (under) Expenditures

$ 10,906,810 00 $ 1144115144

$ -413,022 00 $

197,912 09

OTHER FINANCING SOURCES !US!:;Sl
Other Sources Other Uses
Total Other Financing Sources (Uses)

$ -66,978 00 $ -156,392 31 $ -66,978 00 $ -156,392 31

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

$ -480,000 00 $

FUND BALANCE JULY 1 2000 ReS1ated (See Note 1)

492,052 58

AdJustments Food Inventory - Net Change in Penod
Donated Commodities Purchased Food

5,639 59

41,519 78 570,14819

FUND BALANCE JUNE 30 2001

$

s_.... 11692 11

6_11....,66_1_9_1_

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 57,000 00 $ 485,506 32

1,533,488 00

2,028.145.26

76 300 00

81 731 34

$ 1,666,788 00 $ 2,595,382 92

$ 886,718 00 $ 1,492,693 97

500 00 4,154 00

128,087 21 61,947 97

66,452 00

32,863 69 29,082 22

9,235 13 33,069 82

32,842 00 807,216 00

127,451 13 769,785 44

$ 1,797,882 00 $ 2,684,216 58 $ -131,094 00 $ -88,833 66

$ 66,978 00 $ 72,192 31 $ 66,978 00 $ 72,192 31

$ -64, 116 00 $ -16,641 35

94,377 97

95,469 20

14,536 35

-2,610 02 -316 41

$

44,798 32 $

751901 42

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

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

TURNER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2001

EXHIBIT"D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current Scholarships Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Net Income
FUND BALAN!:;E JULY 1
FUND BALANCE JUNE 30

DR AND MRS. WOODROW GOSS
SCHOLARSHIP FUND

TOTALS

!Memorandum Onl~}

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

000 $

000 $

000

$

1,608 90 $

1,608.90 $

178254

$

-1,608 90 $

-1,608.90 $

-1,782.54

1,687.50

1,687 50

1,687 50

$

7860 $

78.60 $

-95 04

26 451 71

26 451 71

26,546 75

$

26,530.31 $

26,530 31 $===26.,.,4=5=1=7=1

The notes to the general-purpose financ,al statements are an integral part of this statement
-8-

TURNER COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2001

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Paid for Scholarships
Cash Flows from Investing Activities: Interest Received on Investments
Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

DR. AND MRS. WOODROW GQSS
SCHOLARSHIP FUND

TOTALS

{Memorandum Onl~}

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

-1,608.90 $

-1,608.90 $

-1,782.54

$

1,608.90 $

1,608.90 $

332.88

$

0.00 $

000 $

-1,449.66

$

0.00 $

0.00 $

1,449.66

$

0.00 $

o.oo $==----o=.o=o

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

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Turner County Board ofEducation (School District) was established under the laws ofthe 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 and an account group to report on its financial position and the results ofits 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. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
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 and the account group 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.

- 10-

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally 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.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND-the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLETRUSTFUND Dr. and Mrs. Woodrow Goss Scholarship Fund - the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to graduating seniors of the Turner County School System.
AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.
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. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.

- 11 -

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
Governmental funds are accounted for using the modified accrual basis ofaccounting 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 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 2001, a substantial number ofpersonnel ofthe 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 District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and 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 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.

- 12 -

TIJRNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In prior years, the Family Connections activities for the Turner County Connections Program were reported as a part of the general fund. This fund had a fund balance of$3,367.20 at June 30, 2000. For fiscal year 2001, this fund has been reported as an agency fund. The fund balance at July 1, 2000, has been restated as appropriate.
BUDGET
The Turner County Board ofEducation'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 of the 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.

- 13 -

11.JRNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) 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 ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(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 Turner County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on September 19, 2000 (levy date). Taxes were due on December 20, 2000 (lien
- 14 -

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Turner 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 $2,054,545.99.

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

School Operations

1.1..5..Q mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $790,123.62 and was recorded in the Debt Service Fund. The State will terminate collection ofthis tax once an additional $1,361,364.93 has been collected oron June 30, 2002, whichever occurs first.

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.

GENERAL OBLIGATION BONDS

The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The School District has the following types of interfund transactions:

- 15 -

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

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfen are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
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 ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe 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. Ifa 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.
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,

- 16 -

,_
TURNER COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "F"

Note 2: DEPOSITS

(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 Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $1,976,420.01. 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

$ 459,305.28

2

1,468,409.81

3

48,704.92

Total

$ 1,976,420.01

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

- 17 -

TURNER COUN1Y BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

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

2000 2001

Beginning
of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $

4,408.00 $

4,408.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

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

Position Covered

Amount

Superintendent Each Principal

$ 10,000.00 $ 6,000.00

Note 5: GENERAL LONG-TERM DEBT

GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Series 1997

3.90%-4.70% $ 1,500,000.00

- 18 -

,_,
TURNER COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT "F"

Note 5: GENERAL LONG-TERM DEBT

The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows:

General Obligation
Bonds

Balance July 1, 2000

$2,315,000.00

Deductions Debt Retired

815.000.00

Balance June 30, 2001

$ 1,500,000.00

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

General Obligation
Bonds

2002 2003

$ 959,700.00 614.100.00

Total Principal and Interest

$ 1,573,800.00

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $150,366.28 for health insurance and retirement contributions paid on the School District's behalfby 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 $129,988.28

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 $20,378.00

- 19 -

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

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements.
Note 8: SUBSEQUENT EVENTS
On November 6, 200 l, the voters ofTurner County voted in favor ofa Special Purpose Local Option Sales Tax referendum for educational pwposes. The imposition ofthe tax approved by the voters, as stated in part on the Official Ballot of Turner County, is as follows:
"Shall a one percent sales and use tax for educational purposes continue to be imposed, levied and collected in Turner County School District for a period oftime not to exceed five years (20 calendar quarters), beginning immediately upon the expiration ofthe one percent sales and use tax for educational purposes which was approved by a majority ofthe voters ofTurner County in March, 1997, and for the raising ofnot more than $4,450,000 for the purpose of providing funds to pay the costs of (i) the retirement of $450,000 in principal amount of the School District's series 1997 general obligation bonds on March I, 2002, at a maximum cost of $475,000; and (ii) the acquisition, construction and equipping of a new JROTC facility, renovations and/or additions to existing schools in the School District, including, without limitation band and choral room additions, acquiring any necessary real or personal property and equipment, including, without limitation, future school sites and school buses, and adding to, renovating, repairing, improving and equipping existing educational buildings, properties and facilities of the School District, including, without limitation, athletic, transportation, maintenance and plant services facilities and technology upgrades to all School District facilities, and paying expenses incident thereto at a cost of approximately $4,450,000?
If the continuation of the imposition of the tax is approved by the voters, such vote shall also constitute approval ofthe issuance ofgeneral obligation debt ofTurner County School District in the aggregate principal amount of $2,500,000 for the above purpose."
Note 9: 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
- 20-

"I
.
TURNER COUNTY BOARD OF EDUCATION
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
nJNE 30, 2001

EXHIBIT "F"

Note 9: RETIREMENT PLANS

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 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%

$ 966,668.06 $ 971,421.06 $ 969,408.36

- 21 -

TURNER COUNTY BOARD OF EDUCAl"ION COMBINING BALANCE ,SHEET , SPE9IAL REVENUE FUND JUNE 30. 2001

ASSETS
Cash and Cash Equivalents
Accounts Receivable
lnventones Fo'od Donated Commodrttes Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

98,914.49 $

78,245.42

7,441.89

7,134.15 31891.64

Total Assets

$

117,382.17 $ =======7==8=,2==4=5.==42=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

8,202.62 $

39,962.91

36,885.48

38,282.51

$

45108810 $

78,245.42

$

7,134.15

3,891.64

61,268.28 $

0.00

$

72,294.07 $

0.00

Total Liabil1t1es and Fund Equity See notes to the general-purpose financial statements.
- 22 -

$

117,382.17 $ ===7==8=,2==45==42=

EXHIBIT"G"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 301 2000

$

177,159.91 $

162,117.74

$

278,275.23

285,717.12

211,588.80

7,134.15 3,891.64

9,744.17 4,208.05

$

278,275.23 $

473,902 82 $==3=8=7=,6=58=.7=6=

$

126,183.31 $

126,183.31 $

57,965.16

25,011.58

73,177.11

52,155.50

106,825.68

181,993.67

179,884.82

3,657.26

3,657.26

2,184.08

12,990.05

12,990.05

$

274,667.88 $

3981001.40 $

292,189.56

$

3,607.35 $

3,607.35 $

7,062.69

7,134.15 3,891.64

9,744.17 4,208.05

0.00

61,268.28

74,454.29

$

3,607.35 $

75,901 42 $

95,469.20

$

278,275.23 $

473,902.82 $ ==3=8=7,=6=58=.7=6=

- 23 -

TURNER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPEC~LREVENUEFUND
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 General Administration School 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 in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements.
- 24 -

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

57,520.00 $

427,986.32

620,955.55

78,123.88

$

756,599.43 $

427,986.32

$

336,100.14

48,472 93 1,971.47 3,617.15

$

769,785.44

9,235.13 32,315.20
2,227.29

$

769,785.44 $

433,939.31

$

-13,186.01 $

-5,952.99

$

-13,186.01 $

88,406.51

-2,610.02 -316.41

5,952.99
0.00 0.00

$

72,294.07 $ ===-==o=.o=o=

EXHIBIT"H"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

485,506.32 $

484,804.00

$ 1,407,189.71

2,028,145.26

1,796,142.04

3 607 46

81,731.34

75,328.90

$ 1,410,797.17 $ 2,595,382.92 $ 2,356,274.94

$ 1,156,593.83 $ 1,492,693.97 $ 1,405,256.76

79,614.28 59,976.50 29,246.54 29,082.22
754.62 125,223.84

128,087.21 61,947.97 32,863.69 29,082.22
9,235.13 33,069.82 127,451.13 769,785.44

138,014.05 22,504.83 54,881.28 23,175.55
4,134.75 1,956.25 41,915.22 775,748.05

$ 1,480,491.83 $ 2,684,216.58 $ 2,467,586 74

$

-69,694.66 $

-88,833.66 $

-111,311.80

66,239.32

72,192.31

66,692.15

$

-3,455.34 $

-16,641.35 $

-44,619.65

7,062.69

95,469.20

138,021.51

-2,610.02 -316.41

2,559.52 -492.18

$

3,607.35 $

75,901 42 $

95,469.20

- 25 -

TURNER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30. 2001

EXHIBIT "I"

~ Investments Accounts Receivable

NONEXPENDABLE TRUST FUND
ENDOWMENT FUND DR ANDMRS
WOODROW GOSS SCHOLARSHIP FUND

AGENCY FUND

TOTALS JUNE 30, 2001 JUNE 30, 2000

$

25,000.00

$

25,000 00 $

25,000.00

1,530 31 $

37,518.55

39,048.86

17,407 56

Total Assets

$

26,530 31 $

37,518 55 $

64,048 86 $ -===-=4=2.,.,4=0-7..,56=

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Funds Held for Others

Total Liabilities

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

Undes1gnated

Total Fund Equity

$

Total Liabilities and Fund Equity

$

$

30,003 99 $

30,003.99 $

12,588.65

7,514.56

7,514 56

3,367 20

$

37,518.55 $

37,518 55 $

15,955 85

25,000 00 1,530.31 $
26,530.31 $

$ 000 000 $

25,000 00 $ 1,530 31
26,530.31 $

25,000.00 1,451 71 26,451 71

26,530 31 $

37,518 55 $

64,048 86 $ ~~4..2=-,4_0_7_5...,6

See notes to the general-purpose finanaal statements

- 26-

I ' ;"
TURNER COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2001

EXHIBIT"J"

TURNER COUNTY CONNECTIONS ASSETS
Cash and Cash Equivalents Accounts Receivable
LIABILITIES Funds Held for Others

BALANCE JULY 1, 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2001

$ -12,588 65 $ 55,776.45 $

15,955.85

37,518 55

73,191 79 $ 15,955 85

-30,003.99 37,518.55

$

3,367 20 $ 93,295.00 $

89,141.64 $ ==-=-1_,5_1_4.,56,_

$

3,367 20 $ 93,295.00 $

89,147 64 $ _ _ _7.,.,5;;.;1,..4:i56=

See notes to the general-purpose financial statements

- 27 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agnculture, U S Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutntion Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutnbon Program Food Dlstrtbut1on Program (1) Pass-Through From Office of School Readiness Food and Nutntion Program Child and Adult Care Food Program
Total U S Department of Agnculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education lnd1v1duals with D1sabiht1es Education Act Part B - Special Education Capacity Building Improvement Flow Through Preschool
Total Speaal Education Cluster
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Trtle Ill Technology Literacy Challenge Fund Grants Title VI Class Size Reduellon Program Innovative Education Program Strategies Safe and Drug-Free Schools Vocational Education - Basic Grants to States High School Program Basic Grant
Total U. S. Department of Educalton
Health and Human Services. U S. Department of Direct Rural Health Outreach Pass-Through Georgia Department of Human Resources Block Grants for Prevention and Treatment of Substance Abuse Temporary Assistance for Needy Families
Total U S Department of Health and Human Services

CFDA NUMBER
. 10 553 . 10.555
10 550 10.558
84173 84.027 84.173
84.010 84.281 84.318 84.340 84 298 84.186 84 048
93 912A 93.959 93.558

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NIA $ 140,942.92

NIA

426,836.31 $

$ 567,779.23 $

(2) 732,764.77 (3)
732,764.77

NIA

37,020 67

NIA

16,15565

$ 620,955.55 $

37,020 67
!2l 769,785.44

NIA $ 4,338.00 $

NIA

144,204 46

NIA

16,856 98

$ 165,399.44 $

4,368.34 (3) 144,204 46
16,856.98
165,429.78

NIA

631,781 30

631,781.30

NIA

15,808.63

22,871.32 (3)

NIA

112,631.32

112,631.32

NIA

82,23900

82,23900

NIA

21,375.00

21,375.00

NIA

7,798.00

7,798 00

NIA

40,106 00

40,106 00

$ 1,077,138.69 $ 1,084,231 72

$ 114,690.58 $

114,690.69 (3)

NIA

15,000.00

NIA

157,000 00

$ 286,690 58 $

15,036.08 (3) 157,000.00
286,726 77

- 28-

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

SCHEDULE "1

FUNDING AGENCY PROGRAM/GRANT
Defense, U S. Department of Direct Department of the Army RO T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$ 43,36044 $

109,533.34 (3)

Total Federal Fmanaal Assistance
NIA = Not Available

s 2,02a.14s.2e s=-==2.;..2.s.o._.2_1_1_2_1

Notes to the Schedule of Expendrtures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commod1t1es received and/or consumed by the system dunng 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 mduded m the 2001 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds Expenditures are not maintained by fund source.

Major Programs are 1dent1fied by an asterisk (*) in front of the CFDA number.

The School D1stnct did not provide Federal Assistance to any Subreapient.

The accompanying schedule of expenditures of Federal awards Includes the Federal grant activity of the Turner County Board of Education and IS presented on the modified accrual basis of accounting which IS the basis of accounting used In the presentation of the general-purpose financial statements.

See notes to the general-purpose finanaal statements.

- 29 -

---------------------------- --------- --
TURNER COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Dired lnstrud1onal Cost 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 Middle Grades (6-8) 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 Gifted Student - Category VI Remedial Education Program Altemat1ve Education Program Media Center Program Staff and Professional Development Indirect Cost Categoncal Grants Pupil Transportation Regular Bus Replacement Nursing Services Pnncipal Supplements Vocational Supervisors Education Equahzat1on Funding Grant Food SeMces Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Innovative Programs Nallonal Teacher Certification Preschool Handicapped Program Remedial Summer School Lottery Programs Computers in the Classroom
Juvenile Jusllce, Georgia Department of Youth Development Model
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of After School Programs Georgia's Reading Challenge Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

377,335.00

172,819 00

1,054,278.00

258,545 00

560,818 00

53,537.00

1,075,097.00

818,094.00

482,603.00

26,550.00 424,404 00 327,975.00 368,552.00 123,668.00
91,284 00 187,334.00 49,144.00 1,339,551.00

-247,226.00 70,640.00 55,473.00 8,024.00 16,698.00
607,167.00 $
108,328 00
4,955 43 129,988.28
5,000 00 6,477 00 31,609.00 3,17931

4,853.38

20,378 00

$
57,520 00 39,954 00 388,032.32

48,959 00 129,363.00 32,324 00

TOTAL
377,335 00 172,819.00 1,054,278 00 258,545.00 560,818.00 53,537.00 1,075,097.00 818,094.00 482,603.00
26,550.00 424,404.00 327,975 00 368,552 00 123,668.00
91,284.00 187,334 00 49,144.00 1,339,551 00
247,226 00 70,640 00 55,473 00 8,024 00 16,698 00
607,167 00 57,520.00 108,328.00
4,95543 129,988 28
5,000.00 6,477.00 31,609.00 3,179.31
39,954 00
4,853.38
388,032.32
20,378 00
48,959 00 129,363.00
32,324.00

See notes to the general-purpose finanaal statements

$ 9,322.230 40 $

485.506 32 $ 9,807.736 72

- 30-

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

SCHEDULE "3"

PROJECT
Retinng the remaining $390,000 00 in outstanding pnnapal amount of the School DIstnct's series 1988 general obhgabon school bonds on the earliest possible redemption date, at a maximum cost of $410,690.00
Providing funds to pay the cost of acquinng any necessary real or personal property and equipment, acquinng technology and computer equipment and adding to, renovating, repairing, Improving and equipping existing educational buildings, properties and facilrties of the School District, induding, but not hmited to Turner County M1ddle/H1gh School, Turner County K-5 Elementary School and Ashburn Elementary School and paying expenses Incident thereto

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)(4)

AMOUNT EXPENDED
IN PRIOR YEARS (3) (4)

PROJECT STATUS

s 410,690 00 $ 414,234 20

$ 414,234 20 Completed

3,865,000 00 3,865,000 00 $ 226,946 63

2,969,661.61 Ongoing

$ 4,275,690 00 $ 4,279,234.20 $ 226,946.63 $ 3,383,895.81

(1) The School District's onglnal cost estimate as specified In the resolution calhng for the ImposIbon of the Local Option Sales Tax
(2) The School DIstnct's airrent estimate of total cost for each proJect. lndudes all cost from proJect inception to completion (3) The voters of Turner County approved the 1mposltlon of a 1% sales tax to fund the above proJects
Amounts expended for these proJeds may indude sales tax proceeds, state, local property taxes and/or other funds over the llfe of the projacts (4) In addrt1on to the expendrtures shown above, the School District has incurred interest to provide advance funding for the above proJects as follows

PnorYears Current Year

$ 436,830.00 98,140 00

Total

$ 534,970.00

See notes to the general-purpose financial statements.

- 31 -

---------
TURNER 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 Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students wrth Dlsabilrtles 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

$

415,850 00 $ 384,865 69 $ 12,418 56 $

397,284.25

190,459.00

158,513 47

158,513.47

1,161,890.00 1,166,212.05

42,104 83

1,208,316.88

284,935.00

357,371.96

357,371.96

618,062.00

592,264.06

24,103.23

616,367.29

59,002.00

36,259.59

21,294.20

57,553.79

1,184,834.00 1,245,175.12

8,091 28

1,253,266 40

901,598 00 1,008,098.79

48,071.72

1,056,170.51

531,863.00

626,638.37

49,042 44

675,680.81

858,434.00

372,703.72

5,785 05

378,488 77

465,768 99

10,121.96

475,890.95

49,530.20

425.55

49,955.75

406,170 00

316,570 86

2,154 19

318,725.05

136,291.00

174,54719

174,547.19

100,602.00

165,318.25

313.52

165,631.77

$

6,849,990.00 $ 7,119,838.31 $ 223,926.53 $ 7,343,764.84

206,456.00 54,161.00

144,912.20 16,777 23

62,673.02 38,359 33

207,585.22 55,136 56

TOTAL QBE FORMULA FUNDS

$

7,110,607.00 $ 7,281,52774 $ 324,958.88 $ 7,606,48662

(1) Compnsed of State Funds plus Local Five Mill Share.

See notes to the general-purpose finanaal statements

- 32 -

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

SCHEDULE "5"

SITE Turner County Middle School Turner County Elementary School Turner County Specialty School Turner County High School Central Office (Alternative Education Program) Other Auxiliary Facility
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,572,833.00 $

1,568,488.51

3,377,384.00

3,263,155.16

78,112.00

267,493.81

1,721,059.00

2,180,386.49

100,602.00

641240.87

$

6,849,990.00 $ =-====7=,34=3=,7=64==.84=

See notes to the general-purpose financial statements - 33 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

W. RussELL

HtNTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S W., Suite 214 Atlanta, Georgia 30~34-8400
July 2, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Turner 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 ofTurner County Board ofEducation as ofand for the year ended June 30, 2001, and have issued our report thereon dated July 2, 2002. 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 Turner 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 offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour 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 Turner County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2001YB-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 corning to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Turner 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 ofFindings and Questioned Costs as item FS-7421-01-01.
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-7421-01-01 to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe Turner 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,
RWH:gp 2001YB-41

RUSSELL W. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 2, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Turner 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 ofTurner County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Turner County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule ofFindings 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 Turner County Board of Education's management. Our responsibility is to express an opinion on Turner County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance 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 Turner 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 Turner County Board of Education's compliance with those requirements.
2001SA-10

In our opinion, the Turner County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Turner 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 Turner 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 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 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 ofthe management, members ofthe Turner 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,
'=:) _el_l W.. HQ inton9 . ~ ~ ~ State Auditor
RWH:gp 2001SA-10

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

TURNER 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-7421-99-02 FS-7421-00-01

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-7421-00-01

Due to budgetary constraints and being a small system the School District is unable to hire the additional staff for the recording of general fixed assets.

SECTION IV FINDINGS AND QUESTIONED COSTS

TURNER 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 Turner 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 Turner 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 Financial Statements The audit ofthe Turner County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Turner County Board of Education 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 Turner County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Turner County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB 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 Turner County Board of Education qualified as a low risk auditee based on a waiver granted by the U.S. Department of Education.
- 1-

TURNER 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-7421-01-01 The Turner 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 of a 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. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-