Turner County Board of Education, Ashburn, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002

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TURNER COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPES

I

COMBINING BALANCE SHEET

J

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS- _ 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

Page
2 4 7 8 9 I 0
22 24 26 27
28
30 31

TIJRNER COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL 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 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

lUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa~hmgton Street, S.W Suite 214 Atlanta, Georgia 30334-8400
March 31, 2003

Honorable Sonny Perdue, 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, 2002, 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 of the 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 ofthe Turner County Board ofEducation as of June 30, 2002, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, 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 31, 2003, on our consideration ofthe Turner County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, 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

-

-

-

-.

2002ARL-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 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,
7"...oo w~~ ~ell W. Hinton State Auditor
RWH:as 2002ARL-13

TURNER COUNTY BOARD OF EDUCATION

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

TURNER COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2002

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
lnventones Food Donated Commod1t1es Purchased Food
Amount Available an Debt Service Fund
Amount to be Provided an Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

751,316 85 $

72,814 84 $ 1,440,464 24

74,493 37

264,347 28

9,741.85 5,269 42

Total Assets

$

825,810 22 $

352,173 39 $ ==1=,44=0=,4=64=24=

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 L1ab1ht1es
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Contmuat1on of Federal Programs For Debt Service For Endowment Corpus For Inventories Food Donated Commod11tes Purchased Food For Purpose of Bond Issue Unreserved Undes1gnated
Total Fund Equity

$

5,785 21 $

59,198 24

202,715 41

2,668 37

2,894 65

$

5 785 21 $ _ _2_67~,_47_6_6_7_

$

189,551 00

$

9,741 85

5,269 42

$ 1,440,464 24

630 474 01

69 685 45

0 00

$

820,025 01 $

84 696 72 $ __1""'-'-44-'-'0""-4-'-'64'-'--'2C..4_

Total Liabilities and Fund Equity

$

825,810 22 $

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

352,173 39 $ ==1,.,.,.44=0=,4=64===2=4=>

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Onl~}

JUNE 30, 2002

JUNE 30, 2001

$

761,839.67

$ 3,026,435 60 $ 1,011,354 27

$

25,000 00

25,000 00

25,000.00

127,167.25

32,365.32

498,373 22

624,548 58

$

889,006 92

9,741 85 5,269 42
889,006 92

7,134 15 3,891 64
386,17518

$

57,365 32 $

6,664,820 09 $

$

18,519.40

$

18,51940 $

30,003 99

64,983 45

78,723 63

202,715 41

181,993 67

2,668 37

3,734 30

2,894 65

12,990 05

12,310 99

12,31099

7,514 56

$

3,100,000 00

3,100,000 00

1,500,000 00

$

30,830 39 $

3,100,000 00 $ 3,404,092 27 $ 1,814,96020

$

889,006.92

$

25,000 00

0 00

$

889,006 92 $

1 534 93 26,534 93

$

189,551 00 $

107,449 00

3,607 35

889,006 92

386,175 18

25,000.00

25,000 00

9,741 85 5,269 42 1,440,464 24

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

701,694 39

567,017.56

$ 3,260,727 82 $ 1,356,968 44

$

889,006 92 $

57,365 32 $

3,100,000 00 $ 6,664,820 09 $ 3,171,928 64

-3-

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

TURNER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2002

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Adm1mstratlon School Adm1mstrabon Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food SeMces Operation Community Services Operations
Capital Ou11ay Debt Service
Pnncipal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES !USES)
Proceeds from General Obligation Bonds Par Value
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
Food Inventory- Net Change In Period Donated Commod11ies Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 9,467,165 60 $
2,058,302 25 228,282 12
$ 11,753,749 97 $

560,434.18 2,826,384.24
83,155 60
3,469,974 02

$ 8,020,087 60 $ 2,016,120 23

499,474 03 435,520 78 210,551 41 239,064 43 662,208 95 120,404.77 578,281 08 417,512 92
7,707 92 150,564 13
- 657 17 26,600 23

224,469 70 42,511 85
103,429.51 31,194 30
28,014 89 41,626 09
286,046 25 770,508 89

$ 11,368,635 42 $

$

385,114 55 $

3,543,921 71 -73 947 69

$

$

-176 757 51

$

-176 757 51 $

$

208,357 04 $

611,667 97

78,757 51
78 757 51
4,809.82 75,901 42
2,607 70 1 377 78

FUND BALANCE JUNE 30

$-

820,025 01 $

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

84,696 72

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 10,027,599.78 $ 9,807,736 72

2,826,384 24

2,028,145 26

$

832,786 52

2,891,088 77

2,861,39118

$

29,939 00

1189374

353 270 46

346,865 84

$

29,939 00 $

844 680 26 $ 16,098,343 25 $ 15,044,139 00

$ 10,036,207 83 $ 9,486,450 09

$

88,801 07

50,977 00

668,364.67

723,943 73 478,032 63 210,551 41 342,493 94 693,403 25 209,205 84 606,295.97 510,116 01
7,707 92 436,610 3B 771,166 06
26,600 23 668,364 67

593,193 89 553,912 67 215,545 50 294,475 57 680,729 04
76,155 13 642,271 45 543,809 13
7,997 14 230,860 22 771,042 69
28,925 50 226,946 63

$

900,000 00

77,869 10

5 00

900,000 00 77,869 10 5 00

815,000 00 98,140 00 546 60

$

808 142 74 $

977 874 10 $ 16,698,573 97 $ 15,266,001 25

$

-778,203 74 $

-133 193 84 $

-600,230 72 $

-221,862 25

$ 1,961,974.42 $ $ 1,961,974 42 $

538,025 58 $ 98,000 00
636,025 58 $

2,500,000 00 176,757.51 $ -176 757 51
2,500,000 00 $

156,392 31 -156,392 31
0 00

$ 1,183,770 68 $ 256,693 56

502,831 74 $ 386,175 18

1,899,769 28 $ 1,330,438 13

-221,862 25 1,555,226 81

2,607.70 1 377.78

-2,610 02 -316 41

$ 1,4401464 24 $

889,006 92 $ 3,234,192 89 $ 1,3301438 13

-5-

TURNER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - CNON-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

$ 9,370,913 00 $ 9,467,165 60

1,662,641 00 48 100 00

2,058,302 25 228 282 12

Total Revenues

$ 11,081,654 00 $ 11 753 749 97

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educabonal Media Services General Adm1mstrallon School Admin1strat1on Business Adm1mstrallon Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations

$ 8,244,965 00 $ 8,020,087 60

341,045 00 487,751 00 203,049 00 223,727 00 736,607 00
96,090 00 691,680 00 482,858 00
7,500 00
31 000 00

499,474 03 435,520 78 210,551 41 239,064 43 662,208 95 120,404 77 578,281 08 417,512 92
7,707 92 150,564 13
657 17 26,600 23

Total Expenditures

$ 11,546,27200 $ 11 368 635 42

Excess of Revenues over (under) Expenditures

$

-464 618 00 $

385 114 55

OTHER FINANCING SOURCES (USES}

Other Sources Other Uses

$

-69 940 00 $ -176 757 51

Total Other Financing Sources (Uses) $

-69 940 00 $ -176 757 51

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

-534,558 00 $

208,357 04

FUND BALANCE JULY 1 2001
AdJustments Food Inventory - Net Change in Penod
Donated Commodities Purchased Food

532,092 24 -77 04

611,667 97

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 100,525 00 $ 560,434 18

2,269,476 00

2,826,384 24

72 700 00

83 155 60

$ 2 442 701 00 $ 3 469 974 02

$ 1,396, 163 00 $ 2,016,120 23

67,499 00

224,469 70 42,511 85

102,215 00

103,429 51 31,194 30

16,404 00

28,014 89 41,626 09

179,510 00 798,685 00

286,046 25 770,508 89

$ 2,560,476 00 $ 3,543,921 71 $ -117 775 00 $ -73 947 69

$

69,940 00 $

78,757 51

$

69 940 00 $

78 757 51

$ -47,835 00 $ 97,130 19 8,659 96

4,809 82 75,901 42
2,607 70 1 377 78

FUND BALANCE JUNE 30 2002

$

-2 542 80 $ ====8=2=0.;;0.25.===01==-

$

57 955 15 $ ====8=4=6=9=6=7=2==

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, 2002

EXHIBIT "D"

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

DR.AND MRS. WOODROW GOSS
SCHOLARSHIP FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

0.00 $

0.00 $

0.00

$

168288 $

1,682.88 $

1 608.90

$

-1,682 88 $

-1,682.88 $

-1,608.90

1 687.50

1 687.50

1 687.50

$

4 62 $

4 62 $

78.60

26 530 31

26,530.31

26,451.71

$

26,534 93 $

26,534.93 $ ===2=6=,5=3=0=.3=1

The notes to the general-purpose financial 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. 2002

EXHIBIT"E"

Cash Flows from Operating Activ1t1es. Cash Paid for Scholarships
Cash Flows from Investing Act1v1t1es. 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 GOSS
SCHOLARSHIP FUND

TOTALS {Memorandum Only}
YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$

-1 682 88 $

-1,682 88 $

-1,608.90

$

1,682.88 $

1,682.88 $

1,608.90

$

0.00 $

0 00 $

0 00

$

0.00 $

0.00 $

000

$

0.00 $

0.00 $ = = = = =0 0=0

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, 2002

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 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. 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 generaHy 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 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.

- 10 -

TIJRNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

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 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. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Tenn Debt Account Group.

- 11 -

----------

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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 of these 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 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, sales 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, 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 2002, a substantial number of personnel of the 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 of the compensation paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002. 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.

- 12 -

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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.
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 of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist 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

- 13 -

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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:
(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 ofCommissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on September 4, 2001 (levy date). Taxes were due on December 1, 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 Turner County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes 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 $2,040,463.82.

- 14 -

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The tax millage rate levied for the 2001 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

13.5 mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue during the year amounted to $832,786.52 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

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:

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 transfers are recorded for all interfund transactions other than reimbursements.

- 15 -

TIJRNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate 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 of operating 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, ,
(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 ofthe State of Georgia, and

- 16 -

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2: DEPOSITS

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

CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $4,165,482.03. 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:

Risk Category

Bank Balance

1

$ 961,839.67

2

3,039,523.27

3

164,119.09

Total

$4,165,482.03

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.

- 17 -

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4: RISK MANAGEMENT

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 of God. 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. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years.

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 General Government - Series 2001

3.9%-4.7% 3.685%

$ 600,000.00 2,500,000.00

$ 3.100.000.00

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

- 18 -

TIJRNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5: GENERAL LONG-TERM DEBT

General Obligation
Bonds

Balance July 1, 2001

$ 1,500,000.00

Additions G.O. Bonds

2,500,000.00

Deductions Debt Retired

900,000.00

Balance June 30, 2002

$ 3.100.000.00

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

Fiscal Year Ended June 30

General Obligation
Bonds

2003 2004 2005 2006 2007 2008

$ 706,225.00 548,557.38 546,145.76 548,089.76 549,295.76 544,857.38

Total Principal and Interest

$ 3,443.171.04

Note 6: SHORT-TERM DEBT

The School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred.

Temporary Loan

Beginning Balance

Additions

Payments

Endmg Balance

$_ _-'o=.o:a...::.o $ 1so,100.oo $ 1so,100.oo $_ _ _o~.o~o

- 19 -

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 7: ON-BEHALF PAYMENTS
The School District has recognized revenues and expenditures in the amount of $136,757.30 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 $122,524.30
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 $14,233.00
Note 8: 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 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 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.

- 20 -

TURNER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

mNE 30, 2002

Note 9: RETIREMENT PLANS

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 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%

$ 847,064.02 $ 966,668.06 $ 971,421.06

- 21 -

TURNER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

88,743.13 $

52,887.44

16,548.55

7,654 19

9,741.85 5,269.42

Total Assets
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 Undes1gnated
Total Fund Equity

$

120,302.95 $ ===6=0=5=41=6=3=

$

6,912.19 $

20,766 65

28,694.04

39,774.98

$

35,606.23 $

60,541 63

$

9,741.85

5,269 42

69,685 45 $

0 00

$

84,696.72 $

0.00

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

$

120,302.95 $ ===6=05=41=6=3=

EXHIBIT "G"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 301 2001

$

141,630.57 $

177,159.91

$

240,144.54

264,347.28

285,717.12

9,741.85 5,269 42

7,134 15 3 891.64

$

240,144.54 $

420,989 12 $ ==4=7=3=,9=02====82=

$

68,815.73 $

68,815 73 $

126,183.31

31,51940

59,198.24

73,177 11

134,246.39

202,715 41

181,993 67

2,668.37

2,668.37

3,657 26

2,894.65

2,894 65

12,990 05

$

240 144 54 $

336,292 40 $

398,001 40

$

3,607.35

$

9,741.85

5,269.42

7,13415 3,891.64

$

0.00

69,685 45

61,268.28

$

0.00 $

84,696.72 $

75,901 42

$

240,144.54 $

420,989 12 $ ==4=7=3=,9=02==82=

-23-

TURNER 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 Adm1mstration 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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

59,358.00 $

501,076.18

643,301.11

76,266.95

$

778,926 06 $

501 076.18

$

396,526.63

56,215.16 4,680.38

$

770,508.89

28,014.89 14,357.08
2,832.17

$

770,508.89 $

502,626 31

$

8,417.17 $

-1,550.13

$

8,417.17 $

72,294 07

2,607.70 1 377.78

1 550.13
0 00 0 00

$

84,696.12 $ ========o=o=o=

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

EXHIBIT"H"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

560,434.18 $

485,506.32

$ 2, 183,083.13

2,826,384.24

2,028,145.26

6,888.65

83,155.60

81 731.34

$ 2,189,971.78 $ 3,469,974.02 $ 2,595,382.92

$ 1,619,593.60 $ 2,016,120 23 $ 1,492,693.97

168,254.54 37,831.47
103,429.51 31,194.30
27,269.01 283,214 08

224,469.70 42,511.85 103,429.51 31,194.30 28,014.89 41,626.09
286,046.25 770,508 89

128,087.21 61,947.97 32,863.69 29,082.22 9,235.13 33,069.82 127,451.13
769 785 44

$ 2,270,786.51 $ 3,543,921.71 $ 2,684,216.58

$

-80,814.73 $

-73,947.69 $

-88,833.66

77,207.38

78 757.51

72,192.31

$

-3,607.35 $

4,809 82 $

-16,641 35

3,607 35

75,901.42

95,469.20

2,607.70 137778

-2,610.02 -316 41

$

0.00 $

84,696.72 $ ====7=5,=90=1.=42=

- 25-

TURNER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30. 2002

EXHIBIT"!"

Investments Accounts Receivable

NONEXPENDABLE TRUST FUND
ENDOWMENT FUND DR. AND MRS
WOODROW GOSS SCHOLARSHIP FUND

AGENCY FUND

TOTALS

JUNE 30. 2002

JUNE 30. 2001

$

25,000 00

$

25,000 00 $

25,000.00

153493 $

30,830.39

32,365 32

39,048 86

Total Assets

$

26,534.93 $

30,830 39 $

57,365 32 $==6=4=0=4=8=8=6

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

$

$

18,519 40 $

12 310 99

$

30,830 39 $

18,51940 $ 1231099
30,830 39 $

30,003 99 7 514 56
37,518 55

25,000 00 1 534.93 $
26 534 93 $

$ 0 00 0 00 $

25,000 00 $ 1 534 93
s 26,534 93

25,000 00 1 530 31
26,530 31

Total L1abiht1es and Fund Equity

$

26 534 93 $

30,830 39 $

57,365 32 $==64-==,04==-8=86=

See notes to the general-purpose financial statements.

- 26-

TURNER COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2002

EXHIBIT "J"

TURNER COUNTY CONNECTIONS

BALANCE JULY 11 2001

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2002

ASSETS Cash and Cash Equivalents Accounts Receivable

$

-30,003 99 $ 59,083.61 $

37,518 55

30,830.39

47,599.02 $ 37,518.55

-18,519.40 30,830 39

Total Assets

$

7 514 56 $ 89,914 00 $

85,117.57 $ ==1=2=,3=1=0.=99=

LIABILITIES Funds Held for Others

$

7 514 56 $ 89,914 00 $

85 117 57 $ ==1=2=3=1=0=9=9

See notes to the general-purpose financial statements. - 27 -

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

TURNER 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 Nutrition Program Food Services School Breakfast Program National School Lunch Program

. 10.553 . 10 555

NIA $ 154.766 10

NIA

438,276.88 $

(2) 736,316 53 (3)

Total Child Nutrition Cluster

$ 593,042.98 $

736,316 53

other Programs Pass-Through From Georgia Department of Education Food and NutntIon Program Food D1stnbut1on Program (1) Pass-Through From Office of School Readiness Food and Nutntion Program Child and Adult Care Food Program

10 550

N/A

10 558

N/A

34,192 36 16 065 77

34,192 36 (2l

Total U S Department of Agriculture
Education, U. S Department of Special Education Cluster Pass-Through From Georgia Department of Education lndrviduals with DIsabllit1es Education Act Part B - Special Education Capacity Building Improvement Grant Capacity Building - Pro1ect Winning Team Flow Through Preschool

- $ 643,301 11 $

770,508 89

84173 84 027 84 027 84173

NIA $

4,532 00 $

N/A

101.085 73

NIA

168,668 42

NIA

2155711

4,532 00 101,020.73 168.653 04
21 637 49

Total Special Education Cluster

$ 295.843 26 $

295,843 26

Other Programs

Direct

Elementary and Secondary Education Act

Title X

Twenty-First Century Community Leaming Centers 84 287

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I

Accountab1hty Grant

84 348

NIA

Grants to Local Educational Agencies

84 010

NIA

Title II

Eisenhower Professional Development

84 281

NIA

Tltlelll

Technology Literacy Challenge Fund Grants

84 318

NIA

Title VI

Class Size Reduction Program

84 340

NIA

Innovative Education Program Strategies

84 298

NIA

Safe and Drug-Free Schools

84 186

NIA

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84 048

NIA

501,71341
99,570 00 695,761 13
4,346 29 68.526 65 102,495 00 20,302 00
7.947 00
45,321.00

508.282.06 (3)
99,570 00 695,761 13
4,346 29 68,526.65 102,495 00 20,302 00
7,947 00
45,321 00

Total U S. Department of Education

$ 1,841,825 74 $

1,848,394 39

- 28 -

TURNER 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

Health and Human Services, U S Department of Direct Rural Health Outreach Pass-Through Georgia Department of Human Resources Block Grants for Preven!Jon and Treatment of Substance Abuse Temporary Assistance for Needy Fam1hes

93 912
93 959 93.558

$ 155,163 34 $

NIA

15,000 00

NIA

126,999 35

159,090 69 (3)
15,000.00 126,999 35

Total U. S. Department of Health and Human Services

$ 297,162 69 $

301,090.04

Labor, U S Department of Pass-Through From Moultne Technical College Employment Services and Job Training Pilots Demonstration and Research

17 249

NIA $

4 070 88 $

4 070 88

Defense, U S. Department of Direct Department of the Army R.O T.C Program

$ 40,023 82 $

117,231 20 (3)

Total Federal Financial Assistance

$ 2,826,384 24 $ ====3i=,04=:c1,;;;;2..,95ii,,4,;,;0_,

NIA = Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distnbut1on Program represents the Federally assigned value of nonmonetary
assistance for donated commodities received and/or consumed l>Y 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 included m 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 (*) m front of the CFDA number.

The School Distnct did not provide Federal Assistance to any Subrecip1ent

The accompanying schedule of expenditures of Federal awards includes the Federal grant act1V1ly of the Turner County Board of Education and Is presented on the modified acaual basis of accounting which Is the basis of accounting used in the presentabon of the general-purpose financlal statements

See notes lo the general-purpose financial statements.

- 29

TURNER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Educabon, 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 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 Supplemental Speech Gifted Student - Category VI Remedial Education Program Alternative Education Program 20 Days Addlbonal lnstrucbon Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocabonal Supervisors Mid-term Adjustment Hold-Harmless Educabon Equalization Funding Grant Food Services Vocabonal Education Other State Programs 4-8 Statewide After School Program Health Insurance K-3 Statewide Reading Program Preschool Handicapped Program Lottery Programs Ass1stlve Technology Computers in the Classroom Governor's Emergency Funds (1)
Juvenile Justice, Georgia Department of Youth Development Model
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Rebrernent

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 297,283 00 219,021 00 741,000 00 620,293 00 370,193 00 433,305 00 57,320 00
1,058,145 00 797,740 00 462,862 00
6,018 00 447,797 00 367,270 00
7,289 00 281,053 00
40,397 00 86,924 00 55,851 00 181,731 00 34,468 00 1,278,495 00

$

297,283 00

219,021 00

741,000 00

620,293 00

370,193 00

433,305 00

57,320 00

1,058,145 00

797,740 00

462,862 00

6,018 00 447,797 00 367,270 00
7,289 00 281,053 00
40,397 00 86,924 00 55,851 00 181,731 00 34,468 00 1,278,495 00

255,177 00 82,10200 20,000 00 53,380 00 7,800 00 16,397 00 41,56900
768,582 00 $
107,882 00
20,179 60 122,524 30
24,904 77 47,045 00
5,000 00

59,358 00
5,957 00 55,579 19

255,177 00 82,102 00 20,000 00 53,380 00 7,800 00 16,397 00 41,569 00
768,582 00 59,358 00
107,882 00
20,179 60 122,524 30
24,904 77 47,045 00
5,957 00 55,579 19
5,000 00

35,934 93

35,934 93

439,539 99

439,539 99

14 233 00

14 233 00

$

9 467
1

1165

eo

$

560 434 18 $ 1010271599 78

(1) The purpose of the funds are to convert the central office accounting system as required by the Department of Education

See notes to the general-purpose financial statements

- 30-

TURNER COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2002

SCHEDULE "3"

PROJECT
Providing funds to pay the cost of acqurnng any necessary real or personal property and equipment, acqurnng technology and computer equipment, and adding to, renovating, reparnng, improving and equIppIng eXlsting educational bu1ld1ngs, properties and facrlitres of the School D1stnct, induding, but not lrm1ted to Turner County M1ddle/HIgh School, Turner County K-5 Elementary School and Ashburn Elementary School and paying expenses rncrdent thereto
Acqurnng, constructing, and equipping a new JROTC Facrlrty, renovating and/or adding to existing schools In the School Dlstnct, including, without hmItatIon, Band and Choral Room add1trons, acquinng any necessary real or personal property and equipment, including without lrmitat1on, Mure school sites and school buses, and adding to, renovating, repainng, improving and equIpping existing educational buildings, properties and facilities of the School District, induding, without 1rmItatIon, athletic, transportation, maintenance and plant seMce facilities and technology upgrades to all School DIstnct facrlrtres, and paying expenses 1ncrdent thereto
EXlstrng Debt

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED COSTS(2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEAR (3) (4)

PROJECT STATUS

$ 3,865,000 00 $ 3,865,000 00 $ 256,466 41 $ 3,196,608 24 Ongoing

3,975,000 00 475,00000

3,975,000 00 475,000 00

551,676 33

0 00 Ongoing

474 675 00 _ _ _.:::.0..::c0~0 Completed

s a,315,ooo oo s 8I315.ooo oo s 1,2a2,a11 74 s 31196,soa 24

(1) The School Distnct's original cost estimate as specrfied in the resolution calhng for the ImposIt1on of the Local Option Sales Tax
(2) The School D1stnct's current estimate of total cost for each proJect lndudes all cost from proJect inception to completion (3) The voters of Turner County approved the 1mpositron of a 1% sales tax to fund the above proiects
Amounts expended for these projects may indude sales tax proceeds, state, local property taxes and/or other funds over the hfe of the proJects (4) In add1tron to the expenditures shown above, the School D1stnct has incurred interest to provide advance funding for the above projects as follows

PnorYears Current Year

$ 534,970 00 77 869 10

Total

$ 612,839.10

See notes to the general-purpose financral statements

- 31 -

TURNER COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM {QBE\
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2002

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs 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 Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1htIes 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

$

s 326,164 00 $ 361,382 56

11,618 07 $

373,000 63

240,314 00

198,528 30

292 33

198,820 63

813,037.00

700,701 74

48,986 48

749,688 22

680,596 00

708,824 95

409 27

709,234 22

406,182 00

409,881 47

23,042 61

432,924 08

475,429.00 62,892.00
1,161,014 00 875,293.00 507,860.00 908,906.00
308,377.00 44,324 00 95 375 00

354,173 65 53,364 52
1,226,757.26 994,992 18 641,091 32
305,273 51 474,532 42
54,444 74 352,865 99 177,208 57
98,235 73

175 35 330.93 37,962 15 64,276 95 38,003 18
5,343 32 6,358 29
640 81 3,156 25
713 02

354,349.00 53,715 45
1,264,719 41 1,059,269 13
679,094.50
310,616 83 480,890 71
55,085 55 356,022.24 177,208 57
98 948 75

$

6,905,783 00 $ 7,112,278 91 $ 241,309 01 $ 7,353,587 92

199,398 00 37,819 00

164,297.75 13,051.56

39,491 90 24,807 59

203,789 65 37,85915

TOTAL QBE FORMULA FUNDS

$

7,143,000 00 $ 7,2891628 22 $ 305,608 50 $ 7,595,236 72

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

See notes to the general-purpose financial statements

- 32 -

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

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

$

1,564,935 00 $ 1,584,089.36

3,432,166.00

3,282, 170 15

85,361.00

198,426 74

1,727,946.00

2,205,870 42

95,375.00

14.56

83.016.69

$

6,905,783.00 $ ==7=,3=5=3'=58=7=.9=2=

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

1USSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S. W Su11c 214 Atlanta, Georgia 30334-8400
March 31, 2003

Honorable Sonny Perdue, 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, 2002, and have issued our report thereon dated March 31, 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 Turner County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, 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 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 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
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 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-7421-02-01.
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-7421-02-0 I 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:as 2002YB-41

1tISSELL W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W Sulle 214 Atlanta, Georgia 30334-8400
March 31, 2003

Honorable Sonny Perdue, 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 of Education 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 of its major Federal programs for the year ended June 30, 2002. Turner County Board of Education'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 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 of America; 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.
2002SA-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 of its major Federal programs for the year ended June 30, 2002.
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 of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use 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:as 2002SA-10

State Auditor

SECTION ill 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, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7421-00-01 FS-7421-01-01

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-7421-01-01

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. However, with GASB 34, fixed assets will be recorded for fiscal year 2003.

SECTION IV FINDINGS AND QUESTIONED COSTS

TURNER 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 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 .51 O(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 84.287 Elementary and Secondary Education Act - Title X - Twenty-First Century Community Leaming Centers
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 ofEducation qu~lified as a low risk_auditee as defined by Section .530 of 0MB Circular A-133.
- 1-

TURNER 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-7421-02-01 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 statement of the 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. IIT FEDERAL AW ARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2 -