GA Ae,oo :11- I :ol!o T97 ;/bOl~Oa.;;1. ' ' 'I r \ '' ,~ , ' \ ' C ., , ,, I ', ' . , , ' , 1STATE ,OF GEORGIA, . ' DEPARTMENT OF AUDITS AND ACCOUNTS-= - ,, .' ' I ' l ' ',, ' ' . . ! I ."' ., , 'r ' , I , , ' I -. I ';., .- , ', ' 1 l , \ I ,, TWIGGS COUNTY BOARD OF EDUCATION , I \ \ ', , , JEFFERSONVILLE, GEORGIA REPORT ON AUDIT -, OF THE FINANCIAL STATEMENTS FOR THE 'E.iSCAL YEAR ENDED JUNE 30,, 2002/' ' ' ', Russell W. Hint' on State Auditor ,, ( J ' ' I - 'I I l ,', ' I I \ l 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,mdarTal 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 1 1 . 3. 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 - 5- 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 - 8- 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,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