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

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1STATE ,OF GEORGIA,

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DEPARTMENT OF AUDITS AND ACCOUNTS-= -

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TWIGGS COUNTY BOARD OF EDUCATION

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JEFFERSONVILLE, GEORGIA REPORT ON AUDIT

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OF THE FINANCIAL STATEMENTS

FOR THE 'E.iSCAL YEAR ENDED JUNE 30,, 2002/'

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Russell W. Hint' on State Auditor
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TWIGGS COUNTI' BOARD 0~ EDUCATION - TABLE OF CONTEN"l S -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STAl EMENTS

COMBINED STATEMENTS -OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TI'PES AND ACCOUN f GROUP

2

B

COMBINED STATEMENT OF REVENUES. EXPENDITURl,S AND

CHANGES IN FUND BALANCES

ALL GOVER.1\/MENTAL FUND TYPES

4

C

COMBr.,;1:D STATEME!'sT or REVEl'sULS, EXP[NDITURES AND

CHANGES IN FUl'al) BALANCES - BUDGET AND ACTUAL

(NON-GAAi' BA.SIS)

Gl:.NERAL AND SPECIAL Rt:VE;-.;UE FUNDS

7

D NO I ES TO 1 HE GENERAL-PURPOSI:. rrNANCIAL STATEMENTS

8

ADDITIO,AL FIN,\NCIAL INFORMATION

COMBINING STA1 [MEN rs

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF Rl,VENUES. EXPENDITURES

AND CHANG[S IN l'UND BALANCES

22

CAPITAL PROJEC rs FUND

G

COMBINING BALANCI:. Sllt:t:T

24

II

COMAl},T\G s rATEM[NT or Rt:'v ENUES. EXPENDITURES

AND CIIANGfS IN FUND BALANCES

26

SCHEDULES

I SCI IEDULE OF EXPENDITURES OF FEDI:RAL AWARDS

28

2 SCHEDULE OF STATE REVENU[

30

3 SCHEDULE or APPROVED LOCAL OPTION SALES TA,X PROJECTS

JI

ALLOTMEN rs AND EXPENDITURES

GENI:RAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

32

5

BY SITE

33

TWIGGS COUNTY BOARD OF EDUCATION - TABLE OF CON 11:NTS -
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CO:-ITROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL SfATEMENTS PERFORM[D IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE Willi REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER C0\1PLIANCI:. IN ACCORDAl\CI: WITH 0MB CIRCULAR A-133
SEC'nON III 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

SEC110N I FINANCIAL

Rus.,~,u W. H1~ 1m,
STAT[ AU111T0Il
{404) 6!>6-?1/4

DEPARTMENT OF AUDITS AND ACCOUNTS
:254 WJ...,hmgton Street S W ~ullc 214 AtlJnt,1 Cil'l1rg:1J 10114-8400
February 28, 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board ofEducallon
and Supennlendent and Members of the Twiggs County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE Fl\/ANCIAL STATEMENTS Al\1D SUPPLEMENTARY INFORMATIO'J SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen
We have audited the accompanying general-purpose financial statements of the I w1ggs County Board of Educat10n, as of and for the year ended June 30, 2002, as listed 111 the table of contents These general-purpose financial statements are the respon;1b1hty of the Twiggs County Board of Educ.111on's management Our respons1b1hty 1s lo express an op1mon on these general-purpose financial statements based on our audit
We conducted our audit m accordance with aud1tmg standard~ generally acccptc-0 rn the Umted States of Amenca and the standards applicable to financial audits contamed m Go1emment Auditing Standard~, issued by the Comptroller General of the Umted States Those st,mdar<ls require that we plan and perform the audit lo ohtam reasonable as~urance about whether the financial st.i.tements are free ofmatenal misstatement An au1ht mclude; exammmg, on a test basis. endence ~upportmg the amounts and disclosures m the financial statement; An audit .i.lso includes assessing the accounting prmc1plcs used and s1gmficanl estimates made by management, a; well as evalualmg the overall financial statement prescntallon We believe that our audit provides a reason.i.ble basis for our opm10n
As dcscnbed m the notes to the general-purpose financial statements, the Board of Education's financrnl statements have been prepared usmg certain accounting practices and pohc1es which, m our op1mon, vary in some respects from generally accepted accounting pnnc1ples These variance; are descnbed as follows

2002ARL-IJ

* 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 pnnc1ples
* School activity accounts maintained at the ind1v1dual schools arc not included in the
general-purpose financial statements To conform to generally accepted accounting pnnc1ples, 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 salanes and the corresponding employer's cost of related benefits earned for contrdctual services completed pnor to June 30, 2002 Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded salancs and related benefits were not recorded as revenue in the year under review Conver~ely, the s1m1lar expenditures and related revenues for contractual services completed pnor to Junc 30, 200 I, were improperly recorded in the year ended June 30, 2002 To conform to generally accepted ac.:ounting pnnc1ples, revenues should be recorded when avmlahle 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 vananccs or om1ss1ons have not been determined, but are bchcved to be material
In our opinion, except for the effects on the general-purpose financial statements of the mailers referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial pos1t1on of the Twiggs County Board of Education as ofJune 30, 2002, and the results of its operations for the year then ended, in conforrmty with accounting pnnc1ples generally accepted in the United States of America
In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2003, on our cons1derat1on of the Twiggs County Board of Education's internal control over financial reporting and our tests of Its comphancc with certain prov1swns of laws, regulations, contracts and grants That report 1s an intq,>Tal part of an audit performed m accordance with Government Aud1tmg Standards and should be read in con1unctwn with this report in cons1dcnng the results of our audit
Our audit was pcrforn1ed for the purpose of forrnmg an opinion on the general-purpose financial statements of the Twiggs County Board of Education taken as a whole The accompanying combining statements (Exh1b1ts [ through I-1) dnd the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as reqmred by U S Office of Management and Budget Circular A-133, Audas of States, Local Government;, and Non-Profit Orgamzatwns, are presented for purposes ofadd1uonal analysis and are not a reqmred part of the general-purpose financial statements Such information has been subJected to the auditing procedures apphed in the audit of the general-purpose financial statements and in our opinion, except
2002ARL-13

for the effects ofthe matters referred tom the thud paragraph, such mformat1on 1s fairly slated.mall matenal respects, m relation to the general-purpose financial statements taken as a whole
A copy ofth1s report has been filed as a permanent record m the office of the State Auditor and made available to the press of the State, as provided for by Official Code ofGeorgia Annotated Sect10n 506-24
Respectfully subn11tted,
1-(),-41~
Hmton Stale Auditor
RWHas 2002ARL-13

TWIGGS COUN I Y BOARD OF EDUCATION

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

~ Cash and Cash Eqwvalents
Investments
Accounts Receivable
Prepaid Items
lnventones Food Donated Commodities Purdlased Food
Amount Available in Debt Scrv,ce Fund
Amount to be Provided in Future Years For Payment of Bond Debt
Total Assets
LIABILITIES AND FUND EQUITY
LIABIUTIES
Accounts Payable Salaries Payable Deferred Revenue General Obhgabon Bonds Payable
Total llab1hlles
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Debt SeMce For Inventories Food Donated Commochl1es Purdlased Food For Purpose of Bond Issue For State Capital Outlay ProJects Unreserved Undeslgnated
Total Food EqUlly
To1al Uabllllles and Fund Eq..ty

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

s

1 066 245 23 S

146,157 75 S

3 583 484 48

393,042 90

463,862 79

236 169 90

18 505 62 19 625 82

s

145928813 $

s _ ... 648 151 98

3a,8:.:1"'9"'6;c54;,.;38:a:..

s

s s 299 010 10

170 948 15

8 366 52

153 700 83

14 577 45

s

s s 307 376 62

339 226 43

3 110 00 3 110 00

s

102 475 27

s

18 50562

1962582
s

3 727 273 37

0 11

1 049 436 2-4

270 79411

89 270 90

s s s 1.151 911 51

308 925 55

3 816 544 38

s 145928813 s 646 Hi1 98 $ 3 819,654 38

The notes to the general-p1Xpose rmandal statements are an tntegral part of this statement . 2.

EXHIBIT "A"

DEBT SERVICE
FUND

$

2 070 413 64

98 569 75

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30 2001

$ 6 866 301 30 $ 1911,60189

992 414 39

1 191 645 34

637 685 30

3,702 50

$ 2 073 651 34 4 451 348 66

1850562 19 625 82 207365134
4 451.348 66

1394519 15,164 00 1 552 616 ,49
1 172 363 51

$

2,168,983 59 :S e,s2s,ix,o oo s ,,. s21 01a oa s 6 299 513 27

$

95 332 25

_______ s

s

95 332 25 $

$
6 525.000 00 6,525.000 00 $

568 400 50 $ 162 067 35
14 577 45 6,525.000 00
7 270.045 30 S

430 950 39 148 926 92
14 76843 2 725 000 00
3 319 645 74

$

2 073 651 34

0 00

$

2 073 651 34

$

102475 27 $

42 673 27

2 073 651 34

1 552 616 49

18,505 62 19 625 82 3 727 273 37
0 11

1394519 1516400

1 409 501 25

1 355 468 58

$ 7 351 032 78 $ 2,979,867 53

$

2 168 983 59 $ 6 525 000 00 $ 14 621 078 08 $ e 2ss s1J 21

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TWIGGS 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
Sl4lport SeMces
Pupil Services
Improvement of lnstrudlonal Servk:es Educabonal Media Services General Admlnlstrat1on School Admm1stratlon Business AdmlnistraUon
Maintenance and Operabon of Plant Student Transportatloo Sefvlces Central Support Sel'VIC8S Other Support Serv1c:es Food Services Operation Enterpnse Operal.Jons Communrty Services OperaUons Capllal Outlay
Debt SeMce
Pnnapal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expendrt11es
OTHER FINANCING SOURCES !USES)
Proceeds from General Obllgaoon Bonds Par Value
Operating Transfers In Operating Transfers Out
Total Other F1nanong Sources (Uses)
Excess of Revenues and Other Flnancmg Sources over (lXlder) Expendlbxes and Other Flnancmg Uses
FUND BALANCE JULY 1
Food Inventory - Net Change 111 Penod Donated Commod1bes Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 7 083 579 92 s
3 951 510 70 133 398 32
$ 1116848894 $

562,287 70 2 059,028 17
254 027 17
2 875.343 04

$ 7,218 402 01 $ 1 138,565 44

213,849 10 243 916 02 262 537 57
284 nooo
787,678 60
179 757 56 1 045 287 75
674 051 69 25 950 96 14 500 00 344 53

n,41994 220 133 04
21319278
860 03 9 516 29
196 672 26 804 586 42
48155 28 88 500 00

$ 10 951 045 79 $

$

s 217 443 15

2.797 601 48 77 741 56

$

-30 839 41

s

-30 839 41

s

186 603 74 s

77,741 56

965 307 77

222 161 74

4 560 43 4,461 82

FUND BALANCE JUNE 30
The notes to the general-purpose finanaal statements are an Integral part of this statement . 4.

$ 115191151 s_--'30=8~9~2~5~55::..

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

{Memorandum Onl:i!

YEAR ENDED

JUNE 30. 2002

JUNE 30 2001

$

236 169 90

$ 7 882 037 52 $ 7 932 07818

2,059,028 17

1 527 994 17

$
29 594 73

620 079 95 48 01844

4 571,590 65 465.038 66

4,516 674 34 436 291 43

$

265 764 63 $

668.098 39 s 14 9TT 695 00 $ 14 413 03812

$

134 000 34

420 640 85 $

s

55464119 $

$

-289 076 56 s

$ 6 356,967 45 $ 7 978,994 81

291 269 04 464 049 06 262 537 57 497,962 78 787 678 60 313,757 90 1,046147 78 683 567 98
25,950 96 211 172 28 804 930 95 48,155 28
88 500 00 420 640 65

269 561 31 269 912 60 245 427 67 460 832 93 810 094 93 303 925 44 1 045 288 21 711 361 23
23 936 16 179 264 06 819,729 96
21 827 88 55,556 34 685 291 06

35 000 00 11202975
33 79

35 000 00 11202975
33 79

7000000 107 685 00

147 063 54 $
521 034 85 s

14 450 552 00 $ 527 143 00 $

14 058.669 59 354 368 53

$ 3,835,000 00 30,839 41
$ 386583941

s 3 835 000 00 $ 1 030 000 00
30 83941 -30 839 41
s 3 835 000 00 $ 1 030 000 00

$ 3 576 762 65 $

s 521 034 85 $ 4,362,143 00

1,384 368 53

239,781 53

1 552 616 49

2 979 867 53

1 591 237 90

4 560 43 4 461 82

2 227 94 2 03316

$ 3 816 544 38 $ 207365134 $ 7,351.032 78 $ 2 979 867 53

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TWIGGS COUNTY BOARO OF EDUCATION
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - INON-GAAP BASIS!
GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 2002

EXHIBIT"C"

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current lnstrudk>n Support Serv1ces Pupil Services Improvement of Instructional Services Educabonal Medi& services General Adm1mstratlon School Aclmmlstrabon Business Adm1111strabon Mar.ntenanc:e and Operabon of Plant Student Transportation Serv1ce.s
Central Support Services Other Support Services FoOO Serw::es Operation Enterpnse Operabons Community Services Operations Caprtal Outlay Debi Service
Total Expenditures
Excess of Revenues over (t.nder) Expenchtures
OTH~R EINANCING USES
Other Uses
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BA~NC~ JULY 1 2001
AdJustments Food Inventory - Net Change In Penod
Donated Commod1tJes Pu.rdlased Food

GENERAL FUND

BUDGET

ACTUAL

$ 6,894,562 00 $ 7,083 579 92

4,031 731 00 276 499 00

3 951 510 70 133 398 32

$ 11 202 792 00 $ 1116848894

$ 7,192 772 00 $ 7.218 402 01

228 511 00 242 619 00 257 089 00 300 444 00 954 221 00 185 073 00 1,053,673 00 653,263 00
26000 00 14 500 00
3 230 00 57,61500
6,000 00

21384910 243,916 02 262,537 57 284 770 00 787 678 60 179 757 56 1,045,287 75 674,051 69
25 950 96 14,500 00
344 53

86 000 00

$ 11 261 010 00 $ 10951 04579

$

-58 218 00 s 217 443 15

-124 500 00

-30 839 41

$ -182 718 00 $ 849,578 00 -5 482 00

186 603 74 965 307 77

FUND BALANCE JUNE 30 2002

$

66137800 $ 1151 911 51

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s $ 573,744 00

562,287 70

2 131,335 00 2 059 028 17

109 972 00

254 027 17

s $ 2,815,051 00 2 875 343 04

s 1 057 876 00 s 1,138 565 44

96 493 00 277 220 00

77 419 94 220,133 04

227 364 00

213,192 78

1 000 00 20,200 00
201,663 00 878,852 00
88,500 00 20,000 00

860 03 9 516 29
196 672 26 804 586 42
48 155 28 88 500 00

s 2 869 168 00 $ 2 797 601 48
$ -54 117 00 $ 77 741 56

$ -54 117 00 $ 77 741 56

220 188 00

222 161 74

-669 00

4 560 43 4 461 82

S 165 402 00 $ 308 925 55

The notes lo the general-purpose finarlcial statements are en Integral part of this statement -7-

TWIGGS COUNlY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENfRAI ,-PURPOSE FINANCIAL SI A l'EMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Twiggs County Board ofEducat10n (School D1stnct) was cstabhshcd under the laws ofthe State of Georgia and operates under the gmdance of a school board elected by the voters and a Supenntendent appomted by the Board The School D1stnct 1s organized as a separate legal entity and has the power to levy taxes and issue bonds Its budget 1s not subject to approval by any other entity Accordmgly, the School D1stnct 1s a pnmary government and consists of all the orgamzal!ons that compose its legal entity
FUND ACCOUNTING
The School D1stnct uses funds and an account group to report on n, financial pos1t1on and the results
of its operations Fund accountmg 1s designed to demonstrate legal comphance and to did financial management by segregatmg transact10ns related to ccrtam governmental funchons or act1v11Ies A fund 1s a separate accountmg entity with a self-balancmg set of accounts An account group 1s a financial reportmg device designed to provide accountab1hty for certam assets and hab1ht1cs that are not recorded m the funds because they do not directly affect expendable ava1 !able financial resources
General Fixed Assets are recorded as expenditures m the vanous funds at the time of purchase A General Fixed Assets Account Group 1s not presently mamtamed by the School D1stnct To conform to generally accepted accountmg pnnc1ples, a General Fixed Assets Account Group should be mamtamed for reportmg the cost of assets acquired by governmental fund types
Although "school ac11v1ty accounts" are mamtamed at the md1v1dual schools, neither the assets, hab1hlles and fund eqmty, nor the revenues, c,pend1tures and changes m fund balances of these accounts are reflected m these financial statements To conform to generally accepted accountmg pnnc1ples, these accounts should be recorded m the general-purpose financial statements
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School D1stnct, m comphancc with generally accepted accountmg pnnc1plcs apphcablc to governmental urnts, unless otherwise disclosed m these notes Funds and the account group presented m this report arc as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct~ educational activ1ties Governmental Fund Types mcludc
GENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those reqmred to be accounted form another fund These transactions relate to resources obtamed and used for services provided by a board of education

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nvIGGS COUNTY BOARD OF EDUCATION

CXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for ma1or capital projects) that are legally restncted to cxpend!lures for specified purposes These funds arc received pnmanly from the Georgia Department of Educalion and from the Federal government to accomplish specific cducalional obJect1ves
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqms1t1on or construclion of maJor capital fac1ht1es
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term pnnc1pal, mterest and paymg agent fees
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reportmg device used to account for general obligation debt outstandmg
BASIS OF ACCOUNTING
The accountmg and financial reportmg treatment applied to a fund 1s detcrrmned by its measurement focus All governmental funds are accounted for usmg a current financial resources measurement focus With this measurement focus, only current assets and current liab1lit1es generally are included on the balance sheet Operatmg statements ofthese funds present mcrcascs (1 e , revenues and other financmg sources) and decreases (1 e, expenditures and other financmg uses) m net current assets Their reported fund balance 1s considered a measure of available spendable resources
Liabilities which are expected to be financed from available spendable resources arc reported as hab1lilles m the governmental funds Other hab1 lit1es, which are not expected to be financed from available spendable resources, are reported m the General Long-Term Debt Account Group
Governmental funds are accounted for usmg the modified accrual basis of accountmg under which
Revenues are recogmzcd when suscepl!blc to accrual (1 e, when they become both mea~urahle and available) "Measurable" means the amount of the transaclion can be determined and "available" means collccl!ble w1thm the current penod or soon enough thereafter to be used to pay hab1lihes of the current penod The School D1stnct considers receivables collected w1thm sixty days after yearend to be available Property taxes, sales taxes and mterest are considered to be ~uscept1ble to accrual Noncxchange transacllons, m which the School D1stnct gives (or receives) value without directly rece1vmg (or g1vmg) equal value m exchange, mclude property taxes, local opt10n sales taxes, mtergovemmental grants and donallons Revenue for property taxes 1s reeogmzed m the fiscal year for which the taxes are levied Revenue from sales taxes 1s recogmzed m the fiscal year the resources are received or susceptible to accrual Revenue from grants and donallons 1s recognized m the fiscal year m which all eligibility reqmrements have been salisfied

- 9-

TWIGGS COUNTY BOARD Of EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNfFlCANT ACCOUNTING POLICIES
Expenditures arc generally recognized when the related fund hab1hty 1s incurred
A departure from the above definillons 1s the accounting treatment afforded the final two payments on General Fund teachers" and bus dnvers' contracts, and the resources available from the Georgia Department of Educat10n for the State"s share of these contracts During fiscal year 2002, a substanl!al number of personnel ofthe School D1stnct were employed for a one hundred and ninety day penod beginning in August 2001 and ending m early June 2002 Personnel contracts for this employment penod specify that compensation be paid m twelve equal monthly payments begmning m September 2001 and endmg m August 2002. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School D1stnct m the same twelve months As of June 30, 2002, 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 D1stnct subsequent to June 30, 2002 Also, the State's portion of the compensation paid m July and August 2002 was received and recorded as revenue m the fiscal year subsequent to June 30, 2002 Conversely, the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30, 2001, were recorded in the year ended June 30, 2002 Generally accepted accounting pnnc1ples reqmre that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed
BUDGET
The Twiggs County Board of Education's budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s based upon estimates of expendllures together with probable funding sources There 1s no statutory proh1b1hon regarding overexpendllurc of the budget al any level The budget for all governmental funds 1s prepared by fund, function and obJect The legal level of budget control was established by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accounting prmc1ples
The budget process begins when the School D1stnct's administration prepares a tcntallvc budget for the Board's approval Aller approval ofth1~ tentallve budget by the Board, such budget 1s advertised at least once ma newspaper of general circulation in the locality At the next regular meeting of the Board after advertisement, the Board receives comments on the tentallve budget, makes rev1s10ns as necessary and adopts a final school budget This final budget 1s then submitted, in accordance with prov1s1ons of the Quality Baste Education Act, OCGA Section 20-2-I 67(c), to the Georgia Department of Educa!lon The Board may increase or decrease the budget at any time dunng the year All unexpended budget authority lapses at fiscaJ year-end

TIVIGGS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE HNANCIAI STATEMENTS

WNI, 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term mvestments with ongmal matunlles of three months or less from the date of acqu1s11ion m authonzed financial ms11tut1ons Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds m one or more solvent banks or insured Federal savmgs and loan assoc1at1ons

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, Slate or other grants for expendnures made but not reimbursed and other receivables disclosed from information available Receivables are recorded when eilher the asset or revenue recogmtlon cntena has been met Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollecl!ble receivables

PROPERTY TAXES

The Twiggs County Board of Comm1ss10ners fixed the property tax levy for the 200 I tai. digest year (calendar year) on October 26, 2001 (levy date) Ta.xes were due on January 18, 2002 (hen date) Taxes collected within the current fiscal year or within 60 days after year-end on the 200 I tax digest arc reported as revenue in fiscal year 2002 The Twiggs County Tax Comm1ss1oner b1lb and collects the property taxes for the School D1stnct, withholds 2 5% of taxes collected as a fee for tax collect1on and remits the balance of taxes collected to the School D1stnct Property tax revenues dunng the fiscal year ended June 30, 2002 for maintenance and opcralions amounted to $3,919,594 19

The tax millage rate levied for the 2001 lax year (calendar year) for the 1 w1ggs County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value)

School Operations SALES TAXES

~ mIII s

Special Purpose Local Option Sales Tax revenue dunng the year amounted to $620,079 95 and 1s to be used for capital outlay for educational purposes or debt service This sales tax wa, authonzcd by locdl referendum and the sales tax must be re-authonzed at least every five years

- 11 -

TWIGGS COUNTY BOARD or EDUCATION

DiliIBI I "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES lnventones of donated food commod11les used m the preparation of meals are reported on the Combmcd Balance Sheet at their Federally assigned value Purchased foods mventones are reported on the Combmed Balance Sheet at cost (first-m, first-out) Donated food commod1t1es are recorded as revenues and expenditures at the lime commodity items arc received Purchased foods mventones are recorded as expenditures at the lime of purchase The mvcntoncs reported on the balance sheet for donated food commod1t1es and for purchased foods are equally offset by reservatwns of fund balance which md1cates that these amounts do not conslitute "available spendable resources" even though they are a component of net current assets
COMPENSATED ABSENCES
Compensated absences represent obhgalions of the School D1stnct relatmg to employees' nghts to receive compensalion for future absences based upon service already rendered This obhgatwn relates only to vestmg accumulatmg leave m which payment 1s probable and can be reasonably estimated No hab1hty has been recorded m the md1v1dual funds for the current portwn of this obhgatwn as this amount 1s deemed 1mmatenal to the general-purpose financial statements
Add1twnally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded m the General Long-Term Debt Account Group as this hab1hty 1s also deemed to be 1mmatenal to the fa1r presentation of these financial statements
GENERAL OBLIGATION BONDS
The School D1stnct issues general obhgallon bonds to provide funds for the acqu1s1t1on and construction ofmaJor capital fac1ht1es Bond prermums and discounts, as well as issuance costs. are recognized m the financial statements dunng the year bonds are issued General obhgallon bonds arc d1rect obhgat1ons and pledge the full faith and credit ofthe government The outstandmg amount of these bonds 1s recorded m the General Long-Term Debt Account Group
INTERFUND TRANSACTIONS
The School D1stnct has the followmg types of mtcrfund transactwns
Reimbursements of expenditures 1mllally made from a fund that are properly apphcablc to another fund are recorded as expenditures m the re1mbursmg fund and as reductwns of expenditures m the fund that 1s reimbursed
Operating transfers are recorded for all mterfund transactions and reimbursements

- 12 -

TWIGGS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general-purpose financial statements are caplloncd "Memorandum Only" to md1cate that they arc presented only to facilitate financial analysis Data m these columns do not present financial pos11Ion or results of operat10ns m conforrmty with generally accepted accountmg pnnc1ples Nellher arc such data comparable to a consohdallon lnterfund ehmmat1ons have not been made m the aggrega!Ion ofth1s data
Note 2 DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Secllon 45-8-12 provides that there shall not be on deposit at any time many depository for a time longer than ten days a sum of money which has not been secured by surety bond. by guarantee ofmsurancc, or by collateral The aggregate of the face value of such surety bond and the market value of secunt1es pledged shall be equal to not less than 110 percent ofthe pubhe funds bemg secured after the deducl!on ofthe amount ofdeposit msurance If a depository elects the pooled method (OCGA 45-8-13 I) the aggregate of the market value ofthe sccunllcs pledged to secure a pool of public funds shall be not less than 110 percent ofthe daily pool balance OCGA Sec!lon 45-8-11 (b) provides an officer hold mg public funds may, m his d1scret1on, waive the requuement for secunty m the case of operatmg funds placed m demand deposit chcckmg accounts
Acceptable secunty for deposits consists of any one of or any combmat10n of the followmg
(I) Surety bond signed by a surety company duly qualified and authon;,ed to transact busmess w1thm the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposll Insurance Corporation.
(3) Bonds, bills, notes, certificates of indebtedness or other duect obligations of the Umted States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of mdebtedness or other obligations of the counlles or mumc1paht1es of the State of Georgia,
(5) Bonds of any public authonty created by the laws of the State of Georgia, prov1dmg that the statute that created the authonty authonzed the use of the bonds for this purpose,
(6) Industnal revenue bonds and bonds of development authonues created by the laws of the State of Georgia, and

- 13 -

TWIGGS COUNTY BOARD or EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FrNANCIAL STATEMENTS

JUNE 30. 2002

Note 2 DEPOSITS

(7) Bonds. bills, notes, certificates of mdcbtedness. or other obhgatlons of a subsidiary corporation of the Umted States government. which are fully guaranteed by the Umted States government both as to pnnc1pal and interest or debt obhgat1ons issued by the Federal Land Bank. the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatlves, the Farm Credit Banks, the Federal Home Loan Mortgage Assoc1at10n. and the Federal National Mortgage Associat10n

CATEGORIZATION OF DEPOSITS At June 30. 2002. the bank balances were $7,509,362 69 The amounts ofthe total bank balances are classified mto three categones of credit nsk

Category I - Cash that 1s msured (cg. Federal depository msurance) or collaterahzcd with securities held by the School D1stnct or by the School D1stnct"s agent m the School D1stnct"s name
Category 2 - Cash collaterahzed with secuntles held by the plcdgmg financial mst1tut1on"s trust department or agent m the School D1stnct"s name
Category 3 - Uncollaterahzed deposlts (This mcludcs any bank balance that 1s collaterahzcd with securities held by the pledgmg financial mstltutlon. or by its trust department or agent but not m the School Distnct"s name )

The School D1stnct"s deposits are classified by nsk category at June 30, 2002, as follows

Risk Category

Bank Balance

1

$ 306.15061

2

0 00

3

7,203,212 08

Total

$ 7.509.3_62Ji2

Note 3 NON-MONETARY TRANSACTIONS

The School District receives food commod1t1es from the Umted States Department or Agriculture (USDA) for school breakfast and lunch programs These commodities are recorded at their Federally assigned value See Note 1 - Inventories

Note 4 RISK MANAGEMENT

The School D1stnct 1s exposed to various nsks of loss related to torts, theft of, damage to, and destruction of assets, errors or onuss1ons, Job related illness or mJunes to employees, acts of God and unemployment compensation

- 14 -

TWIGGS COUNTY BOARD OF EDUCA1ION

EXIIIl3IT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STAl EMFNTS

JUNE 30, 2002

Note 4 RISK MANAGEMENT

The School D1stnct has obtamed commercial msurance for nsk of loss associated with torts. assets and errors or om1ss10ns. The School D1stnct has neither s1g111ficantly reduced coverage for these nsks nor mcurred losses (settlements) which exceeded the School D1stnct's msurance coverage m any of the past three years

The School D1stnct has elected to self-msure for all losses related to acts of God The School D1stnct has not expenenced any losses related to this nsk m the past three years

The School D1stnct 1s self-msured with regard to unemployment compensallon claims The School D1stnct accounts for claims wllhm the General Fund with expenditure and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount of that loss can be reasonably eshmated

Changes m the unemployment compensallon claims hab1hty dunng the last two fiscal years are as follows

Begmnmg of Year Liab1hty

Claims and Change; m Esllmates

Claims Paid

End of Year
Liah1lity

2001 2002

$

0 00 $

0 00 $

0 00 $

0 00

$

s 0 00 $ 10 453 72 $ 10 453 72

0 00

The School D1stnct par11c1pates m the Georgia Education Workers' Compensation Trust, a pubhc cnllty nsk pool organized on December I, 1991, to develop, implement and admm1ster a program of workers' compensat10n self-msurance for its member organ1zat1ons The School D1stnct pays an annual premium to the Trust for its general insurance coverage Add11Ional msurancc coverage 1s provided through an agreement by the Trust with the Umted States F1dehty and Guaranty Company to provide coverage for potenllal losses sustamed by the Trust m excess of S350,000 00 loss per occurrence, up to $2,000,000 00

The School D1stnct has purchased surety bonds to provide add111onal msurance coverage as follows

Pos1t1on Covered
Supenntendent Fmancc D1rector Bookkeepers Pnnc1pals Each Assistant Pnnc1pal

Amount
$ 500,000 00 $ 500,000 00 $ 10,000 00 - $ 30,000 00 $ 10,000 00- $ 50,000 00
s 30,000 00

- I5 -

TWIGGS COUN1 Y BOARD OF CDUCATION

EXHIBIT "D"

NOTES ro THE G[NERAL-PURl'OSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5 OPERATING LEASES

Twiggs County Board of Education has entered mto vanous leases as lessee for copters These leases are considered for accountmg purposes to be operatmg leases Lease expenditures for the year ended June 30, 2002. amounted to $79,068 00 Future m1mmum lease payments for these leases arc as follow~

Year l:ndmg

Amount

2003 2004 2005 2006 2007

$ 79,068 00 70.010 00 46,818 00 15,636.00 3 924 00

Total

$ 2)5 456 00

Note 6 GENERAL LONG-TERM DEBT

GENERAL OBLIGATION DEBT OUTSTANDING General Obhgat1on Bonds currently outstandmg are as follows

Purpooe

Interest Rates

General Government - Twiggs County Recrcat10n Bond, - 1996
General Government - Twiggs County Recreation Bonds - 2001
General Government - QZAB - Scnes - 2002

610%
495% 000%

Amount
$ 1.695.000 00 995.000 00
3,835,000 00

$ 6,525,000.00

The changes m General Long-Term Debt dunng the fiscal year ended June 30, 2002. were as follow~

Twiggs County

General

Rccreat10n

Obhgat1on

Authority Bond~

Bonds

Iota)

Balance July I. 2001

$2,725,000 00 $

000 $ 2,725,000 00

Add11tons GO l3ondo

3.835,000 00 3.835,000 00

Deduct10n, Debt Retired
Balance June 30. 2002

35,000 00

35,000 00

$ 2.690 000.0.Q $ 3.835.000.00 $ 6.525_,_QillLllli

- 16 -

TWIGGS COUNTY BOARD OF EDUCATION

EXIIIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIALS I A l"EMENTS

JUNE 30. 2002

Note 6 GENERAL LONG-TERM DEBT

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
2003 2004 2005 2006 2007 2008 - 2012 2013-2017 2018 - 2019
Total Pnnc1pal and Interest

Twiggs County Recreation
Authonly Bonds

General Obhgat10n
Bonds

Total Debt

s s s 200,733 75

527,494 48

728,228 23

264,671 25

527,494 48

792,165 73

262,716 25

527,494 48

790,210 73

265,332 50

527,494 48

792,826 98

262,520 00

527,494 48

790,014 48

1,313,297 50

1,313,297 50

1,299,392 50

1,299,392 50

173,291 25

173,291 25

s s S 4,Q,i) ,25~,QQ 2,6J7,4Z2 4Q 6,<i12.~iz.~12

Note 7 ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount ofS\49,355 81 for health insurance and retirement contnbut1ons paid on the School D1stnct's behalf by the folluwmg State Agencies

Georgia Department of Edueauon Paid to the Georgia Department ofCommumty Health For Health Insurance of Non-Certified Personnel In the amount of$117,687 81

Office of Treasury and Fiscal Services Paid to the Pubhc School Employees Retirement System For Pubhc School Employees Retirement (PSERS) Employer's Cost In the amount of S31,668 00

Note 8 CONTINGENT LIABILITIES

Amounts received or receivable pnnc1pally from the Federal government arc subJCCt to audit ,md review by grantor agencies This could result in requests for reimbursement lo the grantor agency for any expenditures which arc disallowed under grant terms The School D1stnct believes that such d1sallowanccs, 1f any, will be 1mmatenal lo its overall financial pos1t10n

- 17 -

TWIGGS COUNTY BOARD OF EDUCATION

EXHIBl'I "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 9 ACCUMULATED EMPLOYEES' LEAVE
The School D1stnct's adm1mstrallve staff and certam other full-time employees earn one and onequarter days per month of annual leave Annual leave may be accumulated up to a maximum of 45 days and an amount based on unused leave, up to the maximum accumulation, 1~ paid to employees at their current rate of pay upon relirement or termmat10n of employment See Note I Compensated Absences
Note IO TWIGGS COUNTY RECREATION AUTHORITY
The Twiggs County Recreation Authonty was created by House Bill 1897 dunng the 1996 sess10n of the Georgia General Assembly The purpose of the Authonty 1s to acquire, construct, own and convey real property and personal property for the benefit of the citizens of Twiggs County The members ofthe Authority consist of the Chairperson of the Twiggs County Board of Education, the Supenntendent of the Twiggs County Board of Educat10n, the Chairperson of the Board of Comm1ss10ners ofTwiggs County, one nongovernmental citizen member appointed by the Twiggs County Board of Education and one nongovernmental citizen member appointed by the Board of Comm1ss1oners of Twiggs County
The Twiggs County Recreahon Authority 1s a component unit of the Twiggs County Board of Education and as such the Authority's financial activity has been blended with the Twiggs County Board of Educahon's general-purpose financial statements
Note 11 RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, adm1mstrat1ve and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-sharing multiple employer defined benefit pension plan TRS provides service retirement, d1sab1hty retirement and survivors benefits for Its members in accordance with State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the School District who arc covered by TRS are rcqmred by Stale st..tlule lo contnbute 5% of their gross carnmgs to TRS The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of rrustees m accordance with State statute and as advised by then independent actuary The rcqmrcd employer contnbut1on rate 1s 9 24% and employer contnbuhons for the current fiscal year and the preceding two fiscal years are as follows

- 18 -

TWIGGS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GFNERAL-PURPOSE HNANCIAT STATEMENl S

JUNE 30. 2002

Note I I RETIREMENT PLANS
Fiscal Year
2002 2001 2000

Percentage Contnbuted
100% 100% 100%

Required Contnbut1on
$ 661,979 68 $ 779,240 38 $ 779,764 14

- 19 -

TWIGGS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30. 2002

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

297,801 89 $

55,843 06

32,689 15

24,703 00

18,505 62 19 625 82

Total Assets

$

368 622 48 S ===8~0;,;54=6=06;;;,.

LIABILITIES AND FUND EQUITY
LIABIUTIES
Cash Overdraft Accounts Payable Salanes Payable Deferred Revenue
Total L1ab1ht1es
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commod1t1es Purchased Food Unreserved Undes1gnated
Total Fund Equity
Total L1ab1ht1es and Fund Equity

$

25,351 67 s

37,433 30

34,345 26

43,112 76

$

59 696 93 $

80 546 06

$

18,505 62

19,625 82

270 794 11 $

000

$

308 925 55 s

0 00

$

s 368 1622 48 ==_0_osc5..,4=6=06==

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

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

353,644 95 $

322,789 13

406,470 64

463 862 79

213,363 40

18,505 62 19 625 82

13,945 19 15 164 00

$

406 470 64 $

855 639 18 $_...,:5;:a6~5~,2~61~7g2aa,

$

207,487 20 $

207,487 20 $

52,836 19

108,163 18

170,948 15

130,226 41

76,242 81

153,700 83

145,268 95

14 577 45

14 577 45

14 768 43

$

406 470 64 $

546 713 63 $

343 099 98

$

$ _ _ _ _0~00~

$

0 00 $

18,505 62 $ 19,625 82

13,945 19 15,164 00

270 794 11

193 052 55

308 925 55 $ _ __,2:e2e,2,_,_.1"'61!...7!...4'-

$

406 470 64 $

855 639 18 $ ~...,,;56=5.:;;,2;;;,61;,.7:,:2...

- 21 -

TWIGGS 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 Admm1strat1on Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expendrtures
FUND BALANCE JULY 1
Food Inventory - Net Change 1n Penod Donated Commod1t1es Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

57,11800 $

411,75681

649,210 92

224 197 17

$

930 526 09 $

411,75681

$

322,148 26

68,943 24

2,923 32

16,13500

719 32

$

42 83

887 67

804,586 42 48,155 28

$

852,784 53 $

41175681

s

s 77,741 56

0 00

222,161 74

0 00

4,560 43 4 461 82

$ 308,925 55 s~~~=-'o"=o""o"'=

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

EXHIBIT "P'

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30 2001

$

93,412 89 $

562,287 70 $

486,089 47

1,409,817 25

2,059,028 17

1,527,994 17

29 830 00

254 027 17

146.414 45

s

153306014 $

2 875 343 04 $

2 160 498 09

$

816,417 18 $ 1, 138,565 44 $

802,200 72

8,476 70 217,209 72 197,057 78
140 71 8,585 79 196,672 26
88,500 00

77,419 94 220,133 04 213,192 78
86003 9,516 29 196,672 26 804,586 42 48,155 28 88,500 00

66,560 16 82,14582 164,670 79
73442 3,779 71 160,206 06 816.427 17
50,000 00 13 125 00

$ 1 533 060 14 $ 2 797 601 48 $ 2,159,849 85

$

0 00 $

77,741 56 $

648 24

000

222,161 74

217,252 40

4,560 43 4 461 82

2,227 94 2 033 16

$

000 $

308,925 55 $ =-=,;2;;;;2;:;,2.:,1;;;,61;..7;,,;:4;..

- 23 -

TWIGGS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2002

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable
Total L1ab1ht1es FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Proiects Unreserved Undes1gnated Total Fund Equity
Total L1ab1hties and Fund Equity

REGULAR

BOND PROCEEDS

$

0 00 $ 3,727,273 37

$ _ _;..;0;....0:;:0;.... $ 3 727 273 37

$ 3,727,273 37

s _____,o"'o'"'o'-

0 00

$ _ ___,0c,:0,.,0:... S 3,727,273 37

$ ==~0~0,;;;0~ $ 31727 273 37

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

EXHIBIT"G"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

1WIGGS COUNTY RECREATIONAL AUTHORITY

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

89,270 90 $ 3,816,544 27 $

242,241 46

$

236,169 90

236 169 90

$

236 169 90 $

8927090 $ 405271417 $===24=2=2=4=1-4=6=

s

233,059 79

3 110 00

$ ---=2'-"36=16""9'-7'-'9'--

$

233,059 79

3 110 00 $ =-~2~4~5~9~9~3-

$

236 169 79 $ =--'2'-'-4-"5'--'9'-'9'--'3'-

s

0 11

$ 3 727,273 37 0 11

0 00 $ =-=89=27~0'-9~0~

89 270 90 $ -~2=3=9~7=81~5~3~

$

0 11 $

89 270 90 $ 3,816,544 38 $ _ _2~3=9~.7=81_5~3~

$

236 169 90 $

89,270 90 $ 4 052 714 17 $ =~2=4=2=,2=41=4"=6'=

- 25 -

TWIGGS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2002

REVENUES
State Funds Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Admm1stration
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over {under) Expenditures
OTHER FINANCING SOURCES /USES}
Proceeds from General Obligation Bonds Par Value
Operating Transfers In
Total Other Fmancmg Sources {Uses)
Excess of Revenues and Other Financing Sources over {under) Expenditures and Other F1nanc1ng Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

a oo $

26,273 71

$

000 $

26 273 71

$

134,000 34

$

7,238 50

12,061 03

11 539 88

$

30 839 41 $

134 000 34

$

-30 839 41 $

-107 726 63

$ 3,835,000 00

$

30 839 41

$

30 839 41 $ 3,835.000 00

$

000 $ 3,727,273 37

a oo

a oo

$

O OD $ 3 727 273 37

See notes to the general-purpose financial statements - 26 -

EXHIBIT"H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TWIGGS COUNTY RECREATIONAL
AUTHORITY

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

236,169 90

$

- - - - - - $ _ _~3=3=21~0=2~

$

236169 90 $

3 321 02 $

236,169 90

s_ _ 29 594 13

---'-1"'0-'-'15"'2"'4'--

265 764 63 $ -----'-7"'0-"18,:_2:,:4,_

$

134,000 34 $

26,285 26

$

2,080 00

$

236,169 79

138,778 96

12 972 69

9,318 50 387,009 78
24 512 57

501,488 03

$

236,169 79 $

153 831 65 $

554 841 19 $

527 773 29

$

0 11 $

-150 510 63 $

s -289 076 56

-520 755 05

$ 3,835,000 00 $ 1,030,000 00 3083941
$ 386583941 $ 1,030,000 00

$

0 11 S

-150,510 63 $ 3,576,762 85 $

509,244 95

0 00

239 781 53

239,781 53

-269 463 42

$

0 11 $

89 270 90 $ 3 816 544 38 $ -="'2"'3.a.9.1.8_1_5:;,;;3_

- 27 -

TWIGGS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT
Agnculture U S Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nulnllon Program
Food Services
School Breaklasl Program National School Lunch Program
Total Child Nutntion Cluster
Other Programs Pass-Through From Georgia Department of Educa!Mlfl Food and Nutnllon Program Food D1stnbut1on Program (1)
Total U S Department of Agncu11ure
Education, U S Department of Special Educat,on Clusler Pass-Through From Georgia Department of Educallon lnd1vtduals with D1sab1hhes Educahon Act Part B - Special Educat1on Flow Through Preschool Capacity Bu1ld1ng Improvement
Total Special Educahon Cluster
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Accountability Grants Even Start Grants to Local Educational Agencies Title II Eisenhower Profession.al Development T1tleVI Innovative Educallon Program Strr:1tcg1cs Class Size Reduction Vocational Educa11on - Basic Grants lo States High School Program Bas1c Grant
Total U S Dopartment of Education
Jusllce, U S Department of Pass-Through From Children and Youth Coordinating Council S T A R Program
Heallh and Human Services U S Department of Pass-Through From Children and Youth Coord1nat1ng Council Abstinence Educahon Block Granl

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555

NIA

s 178,540 10

NIA

434 294 34 $

$ 612,834 44 $

(2) 816 408 05 (3)
816,408 05

10 550

NIA

36 376 48

$ 649 210 92 $

36 376 48 852,784 53

84 027 84173 84 027

NIA

s 189,397 00 $

NIA

9,735 00

NIA

3 220 00

s $ 202,352 00

189,397 00 9,735 00 3 220 00
202 352 00

84 348 84 213 84 010
84 281
84 298 84 340
84 048

NIA

65 834 00

65,834 00

NIA

265,514 00

269 514 00 (3)

NIA

606,490 00

606,490 00

NIA

24 778 09

24 778 09

NIA

16,563 00

16,563 00

NIA

91,221 00

91,221 00

NIA

3618100

36 181 00

s 1 308,933 09 $

1 312,933 09

16 540

NIA

s $ 37,291 75

37 291 75

93 235

NIA s 63 592 41 s

63 592 41

Total Federal FmallClal Assistance NIA = Not AvaHable

- 28-

s 2 059 028 11 s___2_2..6.6..6..0..1.._18_

TWIGGS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2002

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distnbullon Program represents the Federally assigned value of nonmonetary assIstanco for donated commodlbcs received and/or consumed by tho system dunng the current fiscal year
(2) Expenditures for 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 matnta1ned by fund source
Ma,or Programs are Identified by an asterisk () In front of tho CFDA number
The School Drstnct did not provide Federal Assistance to any Subreap1ent
The accompanying schedule of expenditures of Federal awards includes the Federal grant aclJvity of the Twiggs County Board of Education and Is presented on the mochficd accrual basis of account.mg which Is the basis of accounllng used m the presentation of the general-purpose financial statements

Soo notes to tho general-purpose financial statements

- 29 -

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

SCHEDULE 7'

AGENCY/FUNDING
GRANTS Educat10n Georgia Department of Quality BaSK: Education Direct lnstruc:l1onal Cost Kindergarten Program Kindergarten Early lntervenbon Pnmary Grades (1-3) Program Pnmary Grades Early lntervenlioo Upper Elementary Grades (4-5) Program Upper Elementary Grades Early lntervenbon Middle School (6-8) Program High School Grades (9-12) Program VocatLOnal Lab (9-12) Program Students with Disabllrt1es Category I Grfted Student - Category VI Remechal Educabon Program, Allemabve EducabOn Program Media Center Programs Staff Development Programs Twenty Daya Add1t10nal lnstructton Indirect Cost Pupil TransportatJon Regular Bus Replacement Nursmg ServlC8S Pnndpal Supplements Vocahonal SupeMSOrs SparsrtyGrant Educational Equahz.at1on Funding Grant Food 5eMces VOC81t0na1 Educauon Other State Programs Student Achl8V8ment Health lnsu-ance Mentor Teacher Program Preschool Handicapped Program Lottery Programs AsSISbve Technology
Human Resources Georgia Department of FamLly ConnectJons
Georgia State F1nanc1ng and Investment Comrmss1on Reimbursement on ConS1ructton Pro,ects
Office of School Readiness Pre--Kl:ndergarten Program
Office of Treasury and Fiscal Services Public School Empk)yees Ret1rement
CONTRACTS Educat10n Georgia Department of Mlddle School Afler School Program K-3 Slalew,de Reading Program -1-8 Statewide After School Program
See notes to the general-purpose financial statement&

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 28831100 68 989 00
789 675 00 253 599 00 334 145 00 378,086 00 723 256 00 578 036 00 366 634 00
657 301 00 31 867 00 28,911 00 62 943 00 135 532 00 26 090 00 41,970 00
1,092,144 00
397 228 00 11093700 48,419 00
6 627 00 16 285 00 20 ODO 00 156 261 00
s 5711800
99 298 44
110 784 00 11768781
306 00 18,619 87
46 303 00

s 288 311 00
68 989 00 789 675 00 253,599 00 334 145 00 378 086 00 723 256 00 578 036 00 366 634 00
657 301 00 31 867 00 2891100 62 943 00 135,532 00 26 090 00 4197000
1 092 144 00
397 228 00 11093700 48 419 00
6 627 00 16 285 00 20 000 00 156 261 00 5711800 99 298 44
11078400 11768781
306 00 1861987
46 303 00

9341289

9341289

S 236 169 90

236 169 90

365 453 81

365 453 81

31 668 00

3166800

37 500 00 36 000 00 18 469 80

37 500 00 3G 000 00 18 469 80

S 7 083 579 92 $ 562 287 70 S 236 169 90 S 7 882 037 52

30-

D:YJGGS COUNTY BOARD OE EDUCATION
SCHEDULE OE APPROVED LOCAL OPTION SALES TAY,. PROJECTS YEAR ENPEP JUNE 30 2002

SCHEDULE '3"

PROJECT
Payment of general obl:gatton payments under intergovernmental contract with Twiggs County Recreational Aulhonly coming due January 1, 1996 end thereafter

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT
YEAR f3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

s s S 3 337 325 00 S 3 337 325 00

147 063 54

696 757 76 Ongomg

{1) The School Distnct s ong1nal cost estimate es specified m the resolution caIhrig for the 1mpos1!1on of the Local Option Sales Tei<
(2) The School Districts current estimate of total cost for each project Includes all co,t from prOject IoceptIon to complebon
(3) The voters of Twiggs County approved the 1mposI!10n of e 1% sales tax to fund the above project Amounts expended for this proJect may lndude sales tax proceeds state, local property taxes and/or other funds over the life of the pro,ect

See notes to the general-purpose finaooal statemonls 31

TWIGGS COUNTY BOARD OF EDUCATION GENERAL FUND -QUALITY BASIC EDUCATION PROGRAM (QBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION
Direct lnstructlonal Programs Kindergarten Program Kindergarten Program-Early lntervenbon Program Pnmary Grades (1-3) Program Primary Grades-Earty lnterventlon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Mlddle School (6-8) Program High Sdlool General Education (9-12) Program VocaUonal Laboratory (9-12) Program Students with Dlsab11iltes Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Attemative 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 347 911 00 $ 396,91413

901742 s

405 931 55

83 250 00

51 089 37

24 00

5111337

952 920 00 1,029,643 88

17,283 18

1 046 927 06

306,025 00

541 684 94

1 387 38

543,072 32

401,964 00

436 228 98

16 366 19

452 595 17

457,502 00 872,769 00 697,529 00 442,426 00 793 179 00
38 454 00 34 888 00 75,955 00

292 330 47 1,076,236 35
982,84116 367,900 18
11262224 372,338 94
67 221 13 11581889
56 992 89 12520341

1,10569 33 683 96 60 005 85 18,152 84
89 938 48 85 357 89 87,310 83
20 00 899 10 3 459 61

293,436 16 1,10992031 1,042,847 01
386,053 02
202 560 72 457 696 83 15453196 115,838 89
57 891 99 128 663 02

s

s s s 5,504 772 00 6,025 066 96

424,012 42

6 449 079 38

163,549 00 31 485 00

225 765 09 4 109 46

33 051 30 29 164 09

258 816 39 33 273 55

TOTAL QBE FORMULA FUNDS

5 699 806 00 S 6 254,941 51 $ 486 227 81 $ 6,741 169 32

(1) Compr1sed of State Funds plus Local Five Mill Share

See notes to the general-purpose finanaal statements

- 32 -

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

SCHEDULE "5"

filif
Twiggs County Middle School Dry Branch Elementary School Twiggs County High School Jeffersonville Elementary School Danville Elementary School Twiggs County Alternative School Central Office (Alternative Education Program)
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,092,656 00 $

1,217,984 31

1,209,227 00

1,300,291 50

1,355,347 00

1,771,301 02

1,118,172 00

1,058,565 67

653,415 00

765,628 17

85,154 14

75,955 00

250,154 57

$

5 504,772 00 $ ==='6"",4'=4=9"',0"'7""9:a3aaa8

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

SECTION TI COMPLIANCE AND INTERNAL CONTROL REPOR IS

{l',SI 11 W HINIO" Sr.Arr A11fl1rnn {10416~6-.-'114

DEPARTMENT OF AUDITS AND ACCOUNTS
25 l \\1,1,hmgton 'itrccl, ~ W 'lu1tc 21-l AtlJntJ, (,corg1.1 \01\ l-X,-HIO
February 28, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supcnntcndcnt and Members of the Twiggs County Board of Education
REPORT O~ COMPLIANCE Al'.D ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDI1 OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen
We have audited the financial statements of Twiggs County Board of Education as of and for the year ended June 30, 2002, and have issued our report thereon dated February 28, 2003 This report wa, qualified for vanou~ departures from generally accepted accounting prmc1plcs. as identified m the auditor's report on the general-purpose financial statements We conducted our audit m accordance with aud1tmg standards generally accepted m the Umted States of Amenca and the ,tandards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Umtcd States
Compliance
As part of obtd1mng reasonable assurance about whether Twiggs County Board of Education's financial statements are free of matcnal misstatement, we performed tests of its compliance with certain prov1s1ons oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts However, providing an opm1on on eomphJnce with those pro\'1s1ons was not an obJecuve of our audit, and accordmgly, we do not expre,s such an opm1on The results of our tests disclosed no mstances ofnoncomphance thJt arc rcquITed to he reported under Go\'ernment Auditing Standards
Internal Control Over Financial Rcportmg
In planning and performmg our audit, we considered Twiggs County Board of Education's internal control over financial reporting m order to dctcrmme our auditing procedures for the purpose of expressmg our op1mon on the financial statements and not to provide assurance on the internal
2002YB-41

control over financial reportmg However, we noted a ccrtam matter mvolvmg the mternal control over financial rcportmg and its operalton that we consider to be a reportable cond1t1on Reportable cond11tons mvolvc matters commg to our attention relatmg to s1gmficant defic1enc1es m the design or operation of the mtcrnal control over financial reportmg that, m ourJudgment, could adversely affect Twiggs County Board ofEducallon's ab1hty to record, process, summanze and report financial data consistent with assertions of management m the financial statements The reportable condition 1s described m the accompanymg Schedule of Fmdmgs and Questioned Costs as item FS-7431-02-02
A matcnal weakness 1s a cond1t1on m which the design or operation of one or more of the mtcmal control components docs not reduce to a relatively low level the nsk that misstatements m amounts that would be matenal m relation to the financial statements bemg audited may occur and not be detected w1thm a ttmcly pcnod by employees m the normal course of perform mg their assigned functions Our consideration of the mtcmal control over financial rcportmg would not necessanly disclose all matters m the mternal control that might be reportable conditions and, accordmgly, would not neccssanly disclose all reportable conditions that are also considered to be material weaknesses However, we consider item FS-7431-02-02 to be a matenal weakness
This report 1s mtended solely for the mformalton and use of the management, members of the Twiggs County Board ofEduealton, Federal awardmg agencies and pass-through entities and 1s not mtendcd to be and should not be used by anyone other than these specified parties

RWH !,'P 2002YB-41

Hmton State Auditor

' '
~,

'

'

,,~

'
f.t

.

111,,1 I I \\'. lh~ I()~
5 fATf AlJ[)ITOfl
(40,1);,r,f:, '1,4

DEPARTMENT OF Auorrs AND ACCOUNTS
2,,;;4 \\1.1~hrngton Stri.:ct. !-, \V ~u11t: 21..t Atl,mtJ (,corg1.1 3U]14-84(Ml
February 28, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendcnt and Members of the Twiggs County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAIOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen
Compliance
We have audited the compliance of Twiggs County Board of Education with the types ofcompliance requirements descnbed m the US Offic c oj Managemelll and Budget (0MB) Circular ,J-133 Comphance Supplement that arc applicable to each of1ts maJor Federal programs for the year ended June 30, 2002 Twiggs County Board of Education's maJor Federal prob>Tams arc 1dent1ficd m the Summary of Auditor's Results Section of the accompan)1ng Schedule ofFmdmgs and Questioned Costs Compliance with the requirements of laws, regulallons, contracts and !c,>Tants applicable to each of its maJor Federal programs 1s the rcspons1b1lity of Twiggs County Board of Education's management Our respons1b1lity 1s to express an opm10n on Twiggs County Board of Education'; compliance based on our audit
We conducted our audit of compliance m accordance with aud1tmg standards generally accepted m the Umted States of Amcnc.i, the standards applicable to financial audits contained m Government Aud1tmg Standards, issued by the Comptroller General of the Umted States, and 0\18 C1rculJr Al 33, Aud/ls of State;, I.owl Government;, and No11-Pro/it Orga111=at10ns rho;c standards and 0MB C1rcular A-133 require that we plan and perform the audit to obtam reasonable a;surancc about whether noncompliance with the types ofcompliance requ1rcments referred to above thdt could have a direct and matenal effect on a maJor Federal pro!c,'f<lITl occurred An audit mcludes exan11mng, on a test basis, evidence about the Twiggs County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary m the c1rcum,tance, We believe that our audit provides a reasonable basis for our op1mon Our audit does not provided legal determmallon on Twiggs County Board of Education's compliance with those requ1rements
2002SA-10

In our op1mon, the Twiggs County Board of Education comphed, in all matcnal respects, with the requirements referred to above that are apphcable to each of1ts maJor Federal programs for the year ended June 30, 2002
Internal Control Over Comphance
The management of Twiggs County Board of Educat10n 1s responsible for cstablishing and maintaining effective internal control over compliance with reqmrcmcnts of laws, rcgulat10ns, contracts and grants apphcable to Federal programs In planning and performing our audit, we considered Twiggs County Board of Education's internal control over compliance with requirements that could have a direct and matenal 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 cons1derallon ofthe internal control over compliance would not ncccssanly disclose all matters in the internal control that might be matenal weaknesses A matenal weakness 1s a condition in which the design or operallon of one or more of the internal control components docs not reduce to a relatively low level of nsk that noncompliance with applicable rcqmrcmcnts of laws, rcgulat10ns, contracts and grants that would be matenal in relation to a maJor Federal program being audited may occur and not be detected within a timely penod by employees in the normal course of performing their assigned funcllons We noted no matters involving the internal control over compliance and its operation that we consider to be matenal weaknesses
This report 1s intended solely for the informat10n and use of the management, members of the Twiggs County Board ofEducallon, Federal awarding agencies and pass-through entitles and 1s not intended to be and should not be used by anyone other than these specified parties
Respectfully submitted,

RWH as 2002SA-10

Hinton State Auditor

SECTION Ill AUDITEt'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESl IONU) COS IS

TWIGGS 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 STATVS

FS-7431-00-01 FS-7431-01-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group FmdmgControl Number FS-7431-00-01

As a result of GASB 34, we mtend to have General Fr"<ed Assets added to our financ1al statements by June 30, 2003

SLCTION IV FINl)INGS AND QUESTIONED COS IS

TWIGGS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
SUMMARY OF AUDITOR'S RESULTS
Type of Report Issued on the Fmancial Statements The auditor's op1mon on the 1 w1ggs County Board of Education's financial statements was qualified for vanous departures from generally accepted accounlmg pnnc1plcs
2 Reportable Comht1ons m Internal Control Disclosed bv the Audit of the Fmancial Statement~ The audit report for the Twiggs County Board of Education disclosed a financial statement reportable cond1t10n related to the followmg control category
General Fixed Assets
The reportable cond11Ion descnbed above 1s considered to be a matenal weakness
3 Noncompliance Matenal to the Financial Statements The audit ofthe Twiggs County Board ofEducation disclosed no mstance ofnoncomphance deemed matenal to the financial statements
4 Reportable Cond1t1ons m Internal Control Over Ma1or Programs The audit report for the Twiggs County Board ofEducat10n did not disclose any reportable cond1t1ons m mternal control over maJor programs
5 Type of Report Issued on Compliance for Ma,or Programs The auditor's opm1on on the Twiggs County Board of Education's report on compliance with reqmrements app!Jcable to maJor programs was unqualified
6 Audit Findings Required 10 be Reported by Section 510(a) ofOMB Circular A-133 The Twiggs County Board ofEducat10n's audit did not disclose audit findings required to be reported by section 510(a} ofOMB Circular A-133
7 Ma1or Programs Federal awards audited a~ maJor programs are as follows 10 553 Food and Nutnl!on Program - Food Services - School Breakfast Program IO 555 Food and Nutnl!on Program - Food Service~ - Nal!onal School Lunch Program
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs wa~ $300 000 00
9 Low Risk Au<l1tee The Twiggs County Board of Education qualified as a low nsk auditcc as defined by Secllon 530 ofOMB Circular A-133
- 1-

I WIGGS COUN I Y BOARD OF EDUCATTON SCI-U:DULE OF FINDINGS AND OUI.:Sf!ONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT flNDINGS AND QUESTIONED COSTS
CASH AND CASH [QUIVALENfS Uncollateral1 .ed Deposits Nonmatenal Noncompliance Fmdmg Control Number FS-7431-02-01
A~ of June 30.2002, the School D1,tnct failed to have Its bank balances fully collaterahzcd as requm:d by the Official Code of Georgia Annotatt:d Section 45-8-12, which states, m part, as follows
"I he collectmg ot1icer or officers hold mg pubhc funds may not have on dcpo,lt at any one time m any depository for a time longer than ten days a sum of money belongmg to the pubhc body when such depository ha, not given bond to the public body a~ set forth m th1~ code ~ect1on. The aggregate of the face value of such ;urety bond and the market value of ,ecun!Jes pledged shall he equal to not Jes, than 110 percent ofthe pubhc funds bcmg secured after the deduct10n of the amount of deposit msurance"
Thi; noncompliance occurred because of management's failure to adequately momtor the collaterah.mtlon of balances at md1v1dual bank~ The School District should implement adequate procedures to momtor the collaterah.mllon of bank balances to ensure compliance at all times \\1th State laws governmg deposits and mve~tments
Management'~ Response
Accord mg to bank records, all balances were adequately collatcrahzed w11hm the month of July 2002 Subsequently, large balance~ other than operatmg funds were moved to Georgia Fund I m October 2002
GENERAL FIXED ,\.SSETS Failure to Mamtam General frxed A~sets Account Group Reportable Cond111on - Material Weakne~s Repeated from Pnor Year Fmdmg Control Number FS-7431-02-02
1he l\v1ggs County Board of Lduca110n failed to mamtam a system-wide General Fixed Assets Account Group w1thm the formal accounting record, a, required by generally accepted accounting principles Thi, cond11Ion was a result of management's dec1s10n not to mamtam the account group and re,ulh in the general-purpo,e financial statements of the School D1,tncl bemg mcomplcte and not in accordance with generally accepted accounting pnnc1ples Appropriate acllon should be taken by the School D1stnct to estabh;h accounting controls and procedures to provide for mamtcnancc of a General Fixed Assets Account Group These subs1d1ary record, should mcludc an inventory of

TWIGGS COUNTY BOARD OF EDUCATION SCIIEDULI:: OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
11 FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Mamtam General Fixed A~~ets Account Group Reportable Cond1t10n Malena! Weakness Repeated from Pnor Year Fmdmg Control Number FS-7431-02-02 land, hmldmgs and eqmpment owned by the School D1stnct and should mclude, but may not be hm1ted to, date acqmrcd, acqms11Ion cost, estimated replacement cost, location, and descnptlon Detailed records should be maintained of all add1t1ons and deletions to the General Fixed Assets Account Group Management's Response As a result ofGASB 34, we mtend to have General Fixed Assets added to our financial statements by June 30, 2003 lil FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported
"3"