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 -_:. , ,.\~>- ./.:~:. QF TH~ FI_NANCl,AL STATEMENTS_' .,  
 
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 1 
 
 UNION COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDTI1JRES OF FEDERAL AWARDS 
 
EXHIBITS 
 
GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES AND ACCOUNT GROUP 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDTI1JRES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
4 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDTI1JRES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
7 
 
D 
 
COMBINED STATEMENT OF REVENUES, EXPENSES AND 
 
CHANGES IN FUND BALANCES 
 
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS 
 
8 
 
E 
 
COMBINED STATEMENT OF CASH FLOWS 
 
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS 
 
9 
 
F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
10 
 
ADDIDONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
22 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDTI1JRES 
 
AND CHANGES IN FUND BALANCES 
 
24 
 
CAPITAL PROJECTS FUND 
 
I 
 
COMBINING BALANCE SHEET 
 
26 
 
J 
 
COMBINING STATE:MENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
28 
 
K 
 
FIDUCIARY FUND TYPE 
 
COMBINING BALANCE SHEET 
 
NONEXPENDABLETRUSTFUNDS 
 
30 
 
 UNION COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- 
 
SECTION I 
 
FINANCIAL 
 
ADDmONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
2 SCHEDULE OF STATE REVENUE 
 
3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
ALLOTMENTS AND EXPENDITURES 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 
 
4 
 
BY PROGRAM 
 
5 
 
BY SITE 
 
Page 
31 33 35 36 37 
 
SECTION II 
COMPLIANCE AND INTERNAL CONTROL REPORTS 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 
 
SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 RusSELL W. H1NTON 
STATE AUDITOR 
1404) 656 2174 
 
DEPART1\1ENT OF AUDITS AND ACCOUNTS 
254 Wa!-hmgton Street, S W, Sutic 214 Atlanta, Georgia 30334-8400 
January 23, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Union County Board of Education 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
Ladies and Gentlemen: 
We have audited the accompanying general-purpose financial statements ofthe Union County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Union County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. 
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our op1ruon. 
As described in the notes to the general-purpose financial statements, the Board of Education's financial st~tements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 
 
2002ARL-13 
L 
 
 * The general-purpose financial statements of the Board of Education did not contain a 
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. 
 
* School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. 
* For fiscal year 2002, the School District changed its method of accounting for the final 
two payments on one hundred and ninety day employment contracts and the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002 (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this information was not readily available. The net effect of the above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and fourteen months of revenue from the State to fund these contracts. Generally accepted accounting principles require that expenditures be recorded when incurred, rather than when funds are received or disbursed. 
 
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. 
 
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Union County Board ofEducation as of June 30, 2002, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with accounting principles generally accepted in the United States of America. 
 
In accordance with Government Auditing Standards, we have also issued our report dated January 
 
23, 2003, on our consideration of the Union County Board of Education's internal control over 
 
financial reporting and our tests of its compliance with certain provisions of laws, regulations, 
 
contracts and grants. That report is an integral part of an audit perform~ in accordance with 
 
Government Auditing Standards and should be read in conjunction with this report in considering the 
 
results of our audit. 
 
 
 
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements ofthe Union County Board ofEducation taken as a whole. The accompanying combining statements (Exhibits G through K) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U.S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are 
 
2002ARL-13 
 
 presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. 
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. 
Respectfully submitted, 
~~~~:i;. 
 
RWH:as 2002ARL-13 
 
State Auditor 
 
 UNION COUNfY BOARD OF EDUCATION 
 
 UNION COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP 
JUNE 30 2002 
 
~ Cash and Cash Equrvalents Investments Accounts Receivable lnventonas 
Food Donated Commodruas Purchased Food 
Amount Available m Debt Service Fund Amount to be Pl'OVlded m Future Years 
For Payment of Bond Debt 
Total Assets 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 2,780,553 21 $ 
 
358,963 08 $ 3,611,964.73 
 
89,299 25 
 
1,654,164 30 
 
375.079 40 
 
371,480 64 
 
15,407 09 9,555 99 
 
s 4 524 016 76 $ 
 
7591005 56 $ 31983A45 37 
 
LIABILITIES Ar:jD Fut:m EQUITY 
LIABILITIES 
Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue General Obltgabon Bonds Payable 
Total Llabdllles 
FUND EQUITY 
Fund Balances Reserved For Bus Replacement Funds For Debt SeMCe For Endowment Corpus For Expired Grant Balancas/Quasboned Costs For Inventories Food Donated Commodrtles Purchased Food For Purpose of Bond Issue For State Capital Outlay P1'0jects Unreserved Designated for Self-Insurance Undeslgnated 
Total Fund Equity 
Total l.Jab1hbas and Fund Equity 
 
s 
 
429,263.00 s 
 
1,440,109.21 
 
74,629.09 $ 95,417.54 
259,056.09 
 
$ 1,869,372 21 $ 429,102 72 $ 
 
15,069 35 15 069 35 
 
s 
 
96,07900 
 
s 
57,87518 2,500,690 37 
s 2,654,644 55 s 
 
15,407.09 9,555 99 
$ 
 
3,589,169 02 379,20700 
 
304,939 76 
s 329,902 84 
 
000 3,968,376 02 
 
$ 415241016 76 $ 
 
s 7591005 56 
 
3 983 445 37 
 
The notes to the general-purpose finanaal atatementa are an mtegrel part of this statemenl -2- 
 
 EXHIBIT"A" 
 
DEBT SERVICE 
FUND 
 
FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUNDS 
 
ACCOUNT GROUP 
GENERAL LONG-TERM 
DEBT 
 
TOTALS 
 
(Memorandum Onl~l 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
s 2,325,048 95 $ 
 
542 11 
 
$ 
 
s 9,077,072 08 
 
7,718,121 99 
 
37,560 50 
 
126,859.75 
 
731,993 86 
 
649,25418 
 
3,049,978 52 
 
1,119,487.19 
 
s 2,974,303 13 
7,350,696 87 
 
15,407.09 9,555 99 
2,974,303 13 
7,350,696 87 
 
21,652 14 11,201 08 3,564,120 48 
2,960,879 52 
 
$ 219741303 13 $ 
 
381102 61 $ 1013251000 00 $ 2216031873 43 $ 1611271456 26 
 
s 
 
s 518,961.44 
 
1,535,526 75 
 
$ 10,325,000.00 
 
259,056.09 10,325,000 00 
 
s s 10,325,000 00 
 
12,638,544 28 $ 
 
499,457.80 102,272.26 156,879 85 253,022.84 6,525,000.00 
7,536,632 75 
 
$ 2,974,303 13 
s 
 
33,57542 
 
000 $ 2,974,303 13 $ 
 
4 527 19 38 102 61 
 
s 
 
s 96,07900 
 
96,972 00 
 
2,974,303.13 
 
3,564,120 48 
 
33,57542 
 
33,311.15 
 
30,932.16 
 
15,407 09 9,555.99 
3,589,169 02 379,20700 
 
21,652 14 11,201 08 231,763 36 
 
57,87518 2,810,157 32 
 
48,950.48 4,551,920 68 
 
s 
 
9,965,329 15 $ 
 
8,590,823 51 
 
$ 219741303 13 $ 
 
3810261 $ 1013251000 00 $ 2216031873 43 $ 1611271456.26 
 
-3- 
 
 UNION 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 lnstrucbon Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Admin1strat1on School AdmImstralion Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations 
Capital Outlay Debt Service 
Principal Interest 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER EINANCING SOURCES (!,!SES) 
Acaued Interest on Bonds Sold Proceeds from General Obligation Bonds 
Par Value Discount on Bonds Sold Operating Transfers In Operating Transfers Out 
Total Other Finanang Sources (Uses) 
Excess of Revenues and Other F1nanang Sources over (under) Expenditures and Other Finanang Uses 
FUND BALANCE JULY 1 
Food Inventory - Net Change In Penod Donated Commodities Purchased Food 
Residual Equity Transfer 
FUND BALANCE JUNE 30 
The notes to the general-purpose finanaal statements are an integral part of this statement -4- 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
$ 11,787,518 70 $ 45,686 30 
5,220,796.02 375,110.21 
s $ 17,429,111.23 
 
233,595 18 2,161,828 60 
606,904 90 
3,002,328.68 
 
$ 12,733,323.96 $ 
317,13304 401,063.74 456,538.54 676,137.96 989,842.64 
88,522 79 1,344,300.05 
785,300.21 93,216.60 
25,46049 36,n989 63,764.19 
 
1,299,220.34 219,143 04 318,853 47 39,247 98 
22,208.93 
78616 1,059,195.57 
 
$ 18,011,38410 $ 
 
$ 
 
-582,272 87 $ 
 
2,958,655 49 43 67319 
 
$ 
 
904,479.22 $ 
 
2,955.86 
 
$ 
 
904,479.22 $ 
 
2,955 86 
 
$ 
 
322,206 35 $ 
 
2,332,438.20 
 
46,629.05 291,163.93 
 
-6,245.05 -1,645.09 
 
$ 2,6541644 55 $ 
 
329,902 84 
 
 EXHIBIT"B" 
 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTALS 
 
(Memorandum Only) 
 
YEAR ENDED 
 
JUNE 30, 2002 
 
JUNE 301 2001 
 
$ 
 
594,618 52 
 
$ 12,615,732 40 $ 12,565,005 40 
 
2,207,514 90 
 
2,220,553.60 
 
$ 2,345,540 80 
 
7,566,336.82 
 
6,655,085.61 
 
573.23 
 
72 142 54 
 
1,054,730.88 
 
1,639,897.74 
 
$ 
 
595,191.75 $ 2,417,683.34 $ 23,444,315.00 $ 23,080,542 35 
 
$ 
 
40,500.00 
 
4,623,621.10 $ 
$ 4,664,12110 $ $ -4,068,929.35 $ 
 
$ 14,032,544.30 $ 12,517,660.39 
 
536,276.08 719,917.21 456,538.54 715,385.94 989,842.64 129,022.79 1,366,508.98 785,300.21 
93,216 60 786.16 
1,084,656.06 36,TT9.89 
4,687,385.29 
 
547,654 98 500,436.70 350,345.93 639,979.61 1,107,202.19 
n,688.12 1,395,517 42 
724,182.10 73,TT0.17 39446 
1,133,768.53 35,62638 
7,811,661.69 
 
1,600,000.00 235,362 50 
 
1,600,000.00 235,362.50 
 
1, 155,000.00 289,885.00 
 
1,835,362.50 $ 27,469,523.19 $ 28,360,n3.67 
 
582,320 84 $ -4,025,208.19 $ -5,280,231.32 
 
$ 
 
12,638.16 $ 
 
12,638.16 
 
$ 5,400,000.00 -5,422.15 
277,341.27 
 
-1,184,TT6 35 
 
5,400,000.00 -5,422.15 
1,184,776.35 $ -1,184,776.35 
 
1,000,445.96 -1,000,445.96 
 
$ 5,671,91912 $ -1 ,172,138.19 $ 5,407,216 01 $ 
 
0.00 
 
$ 1,602,989.77 $ 
 
-589,817.35 $ 1,382,007.82 $ -5,280,231.32 
 
2,365,386.25 
 
3,564,120.48 
 
8,553,108 86 
 
14,250,39H6 
 
-6,245.05 -1,645.09 
 
7,275.81 4,67566 -429,003. 75 
 
$ 319681376 02 $ 219741303.13 $ 919271226 54 $ 815531108 86 
 
-5- 
 
 UNION COUNTY BOARD 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" 
 
GENERAL FUND 
 
BUDGET 
 
ACTUAL 
 
REVENUES 
State Funds Federal Funds Taxes Other Funds 
 
$ 10,062,938 61 $ 11,787,518 70 
 
220,000 00 
 
45,686 30 
 
4,369,624 39 
 
5,220,796 02 
 
140,000 00 
 
37511021 
 
Total Revenues 
EXP!;NDIJURES 
Current Instruction Support Services Pupil Services Improvement of lnstrucllonal Services Educational Media Services General Administration School Adm1n1strabon Business Adm1mstration Maintenance and Operation of Plant Student Transportation Servtces Central Support Servtces Other Support Services Food Servtces Operation Enterpnse Operations 
Capital Outlay 
Total Expenditures 
 
$ 14,792,563 00 $ 11i429111123 
 
$ 10,814,235 01 $ 12,733,323.96 
 
343,614 90 362,633.32 396,449 78 595,861 05 977,860 45 124,764 51 1,613,423 17 892,151.40 
99,440.53 
 
317,133.04 401,063 74 456,538.54 676,137 86 989,642.64 
88,522 79 1,344,300 05 
785,300 21 83,216.60 
 
23,895 79 13,669 00 304,364 57 
 
25,460 49 36,778 89 63 764 19 
 
s $ 16,562,583 48 
 
18,011,384 10 
 
Excess of Revenues over (under) Expenditures 
 
$ -1,770,020 48 $ -582,272 87 
 
OTHER FINANCING SOURCES {USES) 
Other Sources Other Uses 
Total Other Financing Sources (Uses) 
 
$ 
s -350?50 00 
$ -350,750 00 $ 
 
804,478 22 804,479 22 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY l 2001 
AdJustments Food Inventory - Net Change in Penod 
Donated Commodities Purchased Food 
 
$ -2, 120,770 48 $ 
 
322,206.35 
 
2,385,869.20 
 
2,332,438 20 
 
-156,878 85 
 
FUND BALANCE JUNE 30 2002 
 
$ 118 216 87 S 216541644 55 
 
SPECIAL REVENUE FUND 
 
BUDGET 
 
ACTUAL 
 
$ 660,512 88 $ 233,595 18 
 
2,131,632 00 
 
2,161,82860 
 
422 460 00 
 
606,904 90 
 
$ 3,214,604 88 $ 3,002,328 68 
 
$ 1,429,749 65 $ 1,299,220 34 
 
235,11800 368,365 41 
 
219,143 04 318,853 47 
 
55,206 00 
 
39,247 98 
 
374,10582 
 
22,208 93 
 
6,300 00 1,064,470 00 
26,800 00 
 
786 16 1,059,195 57 
 
$ 3,560,114 88 $ 2,858,655 49 
 
$ -345,510 00 $ 
 
43 673 19 
 
s $ 350,000 00 
 
2,955 86 
 
s 350,000 00 $ 
 
2,955 86 
 
$ 
 
4,490 00 $ 
 
46,629 OS 
 
348,102 93 
 
291,163 93 
 
6,414 32 
 
-6,245 05 -1 645 09 
 
$ 3601007 25 $ 3291802 84 
 
The notes to the general-purpose financial statements are an integral part of this statement -7- 
 
 UNION CGUN):Y BOARD OF,EDUCATION COMBINED STATEMENT OF.REVENGJES.-EXPENSE-S AND CHANGES IN FUND BALANCES 
FIDUCIARY l;UNDNE ~-NONEXPEN0ABLE1]Rl:JST FUNDS - YEAR ENDED JUNE'30. 2002 
 
EXHIBIT"D" 
 
oeERATIN~ REVENUES Donations 
OPERATING EXPENSES Current Scholarships Operating Income (Loss) 
NONOPERATING REVENUES Interest Earned Net Income 
FUND BALANCE JULY 1 
FUND BALANCE JUNE 3Q 
 
UNION COUNTY SCHOOLS 
SCHOLARSHIP FUND 
 
TONIA PARKER TANNER 
SCHOLARSHIP FUND 
 
TOTALS {Memorandum Onl~l 
YEAR ENDED JUNE 30, 2002 JUNE 301 2001 
 
$ 
 
30000 $ 
 
6000 $ 
 
360.00 $ 
 
185.00 
 
$ 
 
1,433.92 $ 
 
$ 
 
-1,133.92 $ 
 
300.00 $ -240.00 $ 
 
1,733 92 $ -1,373.92 $ 
 
180000 -1,615.00 
 
1,326.39 
 
$ 
 
192.47 $ 
 
30,on.~0 
 
43549 195.49 $ 7,636.67 
 
1,761.88 387.96 $ 
37,714.65 
 
2 414 05 799.05 
36,915 60 
 
$ 
 
30,27045 $ 
 
7,832.16 $ 
 
38,102 61 $ 
 
37i714.65 
 
The notes to the general-purpose financial statements are an integral part of ttus statement -8- 
 
 UNION COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS 
YEAR ENDED JUNE 30, 2002 
 
EXHIBIT"E" 
 
Cash Flows from Operating Act1v1lles Cash Received from Donations Cash Paid for Scholarships 
Net Cash Provided (Used) by Operating Acttvities 
Cash Flows from Investing Activities Interest Recerved on Investments Cash Paid for Purchase of Investments 
Net Cash Provided by Investment Ad1v1bes 
Net Increase (Decrease) in Cash 
Cash and Cash Equivalents - July 1 
 
UNION COUNTY SCHOOLS 
SCHOLARSHIP FUND 
 
TONIA PARKER TANNER 
SCHOLARSHIP FUND 
 
TOTALS 
 
!Memorandum On~} 
 
YEAR ENDED 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 
 
300.00 $ 
 
-1,433.92 
 
60.00 $ -300 00 
 
360.00 $ -1,733 92 
 
185.00 -1,800 00 
 
$ 
 
-1,133 92 $ 
 
-240.00 $ 
 
-1,373.92 $ 
 
-1 615 00 
 
$ 
 
1,326.39 $ 
 
-81.28 
 
435.49 $ -197.70 
 
1,761.88 $ -278.98 
 
2,414.05 -916.32 
 
$ 
 
1 245.11 $ 
 
$ 
 
111.19 $ 
 
37073 
 
237.79 $ -2.21 $ 6240 
 
1,482.90 $ 108.98 $ 433.13 
 
1 497.73 -117.27 55040 
 
Cash and Cash Equivalents - June 30 
 
$ 
 
481.92 $ 
 
6019 $ 
 
542.11 $ =--===4-33..,1=3= 
 
The notes to the general-purpose financial statements are an llllegral part of this statement. -9- 
 
 UNION COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The Union County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. 
FUND ACCOUNTING 
The School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. 
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. 
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educational activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
 
- 10- 
 
 UNION COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. 
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. 
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. 
FIDUCIARY FUND TYPE - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include: 
NONEXPENDABLETRUSTFUNDS Union County Schools Scbolanhip Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to graduating seniors of the Union County School System. 
Tonia Parker Tanner Scbolanbip Fund - the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to _graduating seniors of the Union County School System. 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. 
 
- 11 - 
 
 UNION COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. 
Governmental funds are accounted for using the modified accrual basis ofaccounting under which: 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. 
Expenditures are generally recognized when the related fund liability is incurred. 
For fiscal year 2002, the School District changed its method of accounting for the final two payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. This change is in accordance with generally accepted accounting principles. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this information was not readily available. 
The net effect ofthe above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and the related revenue due from the State to fund these contracts. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. 
The accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. 
 
- 12 - 
 
 UNION COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
ruNE 30. 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BUDGET 
The Union County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. 
INVESTMENTS 
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: 
(1) Obligations issued by the State of Georgia or by other states, 
(2) Obligations issued by the United States government, 
- 13 - 
 
 UNION COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, 
 
(4) Obligations of any corporation of the United States government, 
 
(5) Prime banker's acceptances, 
 
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, 
 
(7) Repurchase agreements, and 
 
(8) Obligations of other political subdivisions of the State of Georgia. 
 
RECEIVABLES 
 
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
 
PROPERTY TAXES 
 
The Union County Board ofCommissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on December 19, 2001 (levy date). Taxes were due on February 28, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Union County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $5,164,149.11. 
 
The tax millage rate levied for the 2001 tax year (calendar year) for the Union County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
Umills 
 
SALES TAXES 
 
Special Purpose Local Option Sales Tax revenue during the year amounted to $2,345,540.80 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. 
 
- 14 - 
 
 UNION COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
INVENTORIES 
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. 
GENERAL OBLIGATION BONDS 
The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. 
INTERFUND TRANSACTIONS 
The School District has the following types of interfund transactions: 
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
MEMORANDUM ONLY -TOTAL COLUMNS 
Total columns on the general-pwpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
 
- 15 - 
 
 ---------------------- ------- 
 
UNION COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2002 
 
Note 2: DEPOSITS AND INVESTMENTS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety b_ond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of any one of or any combination of the following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, 
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $10,323,939.60. The amounts ofthe total bank balances are classified into three categories of credit risk: 
 
- 16 - 
 
 UNION COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2002 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) 
 
The School District's deposits are classified by risk category at June 30, 2002, as follows: 
 
Risk Category 
 
Bank Balance 
 
1 
 
$ 6,275,549.83 
 
2 
 
4,048,389.77 
 
3 
 
0.00 
 
Total 
 
$10.323.939.60 
 
CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: 
 
Category 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. 
Category 2 - Uninsured or UI1.registered, with securities held by the counterparty's trust department or agent in the School District's name. 
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name. 
 
At June 30, 2002, the carrying value ofthe School District's total investment was $89,299.25 which is materially the same as fair value. The investment is classified as to risk categories as follows: 
 
Type of Investment 
 
Carrying Amount 
 
Fair Value 
 
Investments Not Subject to Categorization Money Market Funds 
Note 3: NON-MONETARY TRANSACTIONS 
 
$ 89,299.25 $ 89,299.25 
 
The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
 
- 17 - 
 
 - - - - - - - - - - - - - - - - - - ----- -- 
 
UNION COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 4: RISK MANAGEMENT 
 
The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. 
 
The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions.job related illness or injuries to employees and acts ofGod. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. 
 
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the last two fiscal years. 
 
The School District has purchased surety bonds to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent Principals School Food Nutrition Program Director 
 
$ 
$10,000.00 - $ 
$ 
 
25,000.00 50,000.00 20,000.00 
 
Note 5: GENERAL LONG-TERM DEBT 
 
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: 
 
Purpose 
 
Interest Rates 
 
Amount 
 
General Government - Series 1998 General Government - Series 2002 
 
3.7%-4.15% $ 4,925,000.00 
 
2.5%- 3.25% 
 
5,400,000.00 
 
$ 10.325,000,00 
The changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows: 
 
- 18 - 
 
 UNION COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 5: GENERAL LONG-TERM DEBT 
 
General Obligation 
Bonds 
 
Balance July 1, 2001 
 
$ 6,525,000.00 
 
Additions G.O. Bonds 
 
5,400,000.00 
 
Deductions Debt Retired 
 
1.600.000.00 
 
Balance June 30, 2002 
 
$10.325.000.00 
 
At June 30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
 
General Obligation 
Bonds 
 
2003 2004 2005 2006 2007 
 
$2,355,151.04 3,091,543.75 1,978,825.00 1,992,112.50 1.671. 731.25 
 
Total Principal and Interest 
 
$11,089,363.54 
 
Note 6: ON-BEHALF PAYMENTS 
 
The School District has recognized revenues and expenditures in the amount of $282,255.58 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. 
 
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $241,824.27 
 
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the Amount of$14,101.31 
 
- 19 - 
 
 ------------------ -------------- - - - 
 
UNION COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 6: ON-BEHALF PAYMENTS 
 
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $26,330.00 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2002, together with funding available: 
 
Project 
 
Unearned Executed Contracts 
 
Funding Available From State 
 
New High School SA/01S-744-066 03/02S-744-024 
 
$ 921,126.31 1,135,981.60 0.00 
 
$ 
 
0.00 
 
1,413,683.48 
 
440.925.00 
 
$ 2,057,107.91 $ l,854,'2Q~.48 
 
The amounts described in this note are not reflected in the general-purpose financial statements. 
 
Note 8: CONTINGENT LIABILITIES 
 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. 
 
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements. 
 
Note 9: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and 
 
-20- 
 
 UNION COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO TI-IE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2002 
 
Note 9: RETIREMENT PLANS 
 
survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2002 2001 2000 
 
100% 100% 100% 
 
$1,050,688.64 $ 1,199,244.43 $1,123,534.19 
 
- 21 - 
 
 UNION COUNTY BOARD OF EDUCATION COMBINING BALANCE.SHEET SPECIAL REVENUE FUND JUNE 30. 2002 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
344,701.64 
 
935.65 $ 
 
12,660.60 
 
15,407.09 9.555.99 
 
Total Assets 
 
$ 
 
370.600.37 $ ====1=2=6..,60==60== 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Deferred Revenue 
Total Liabilities 
FUND EOUIJY 
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated 
Total Fund Equity 
Total Liabilities and Fund Equity 
 
$ 
 
$ 
 
16,098.21 
 
24,599.32 
 
7,158.95 5,501.65 
 
$ 
 
40.697.53 $ 
 
12.660.60 
 
$ 
 
15,407.09 
 
9,555.99 
 
304.939.76 $ 
 
0.00 
 
$ 
 
329.902.84 $ 
 
0.00 
 
$ 
 
3701600.37 $-===--1i=2:!:i166..,0,_.=60= 
 
See notes to the general-purpose financial statements. 
-22- 
 
 EXHIBIT"G" 
 
FEDERAL 
PROGRAMS 
 
OTHER 
PROGRAMS 
 
TOTALS 
 
JUNE 301 2002 
 
JUNE 30, 2001 
 
$ 
 
220,821.48 $ 
 
565,523.12 $ 
 
482,822.47 
 
$ 
 
331,755.70 
 
29,727.45 
 
375,079.40 
 
345,872.17 
 
15,407.09 9,555.99 
 
21,652.14 11,201.08 
 
$ 
 
331,755.70 $ 
 
250,548.93 $ 
 
9651565.60 $ ==s=6-=1=,54==7=.s..6.-= 
 
$ 
 
199,401.09 
 
$ 
 
206,560.04 $ 
 
191,771.44 
 
53,029.23 
 
74,629.09 
 
23,317.39 
 
70,818.22 
 
95,417.54 
 
102,272.26 
 
8,507.16 $ 
 
250,548.93 
 
259,056.09 
 
253,022.84 
 
$ 
 
331,755.70 $ 
 
250,548.93 $ 
 
635,662.76 $ 
 
570,383.93 
 
$ 
 
15,407.09 $ 
 
21,652.14 
 
9,555.99 
 
11,201.08 
 
$ 
 
0.00 $ _ _ _ _0==00._ 
 
304,939.76 
 
258,310.71 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
329,902.84 $ _ _.;2=9~1'-',1.;;.63=.9=3._ 
 
$ 
 
331,755.70 $ 
 
250,548.93 $ 
 
965,sss.so $ _==-=s.6.1..=5.4..7_.s-=6= 
 
-23- 
 
 UNION 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 Educational Media Services General Administration Maintenance and Operation of Plant Other Support Services Food Services Operation 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES 
Operating Transfers In 
Excess of Revenues and Other Financing Sources over (under) Expenditures 
FUND BALANCE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
FUND BALANCE JUNE 30 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
85,520.82 $ 
 
599,885.74 
 
420,418.06 
 
$ 1,105,824.62 $ 
 
67,695.35 67,695.35 
 
$ 
 
67,702.10 
 
$ 1,059,195.57 
 
$ 1,059,195.57 $ 
 
$ 
 
46,629.05 $ 
 
67,702.10 -6.75 
 
$ 
 
46,629.05 $ 
 
291,163.93 
 
-6,245.05 -1,645.09 
 
6.75 
0.00 0.00 
 
$ 329,902.84 s===--=o==-oo... 
 
See notes to the general-purpose financial statements. -24- 
 
 EXHIBIT "H" 
 
FEDERAL 'PROGRAMS 
 
OTHER PROGRAMS 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30 2002 1 
 
JUNE 30, 2001 
 
$ 
 
80,379.01 
 
1,561,942.86 
 
$ 
 
$ 1,642,321.87 $ 
 
$ 186,486.84 186,486.84 $ 
 
233,595.18 $ 2,161,828.60 
606,904.90 
3,002,328.68 $ 
 
262,009.00 2,218,237.42 
566,262.50 
3,046,508.92 
 
$ 1,061,340.13 $ 
219,143.04 313,345.18 
39,247.98 11,408.49 
786.16 
 
$ 1.645,270.98 $ 
 
$ 
 
-2,949.11 $ 
 
170,178.11 $ 5,508.29 10,800.44 
186,486.84 $ 0.00 $ 
 
1,299,220.34 $ 
219,143.04 318,853.47 
39,247.98 22,208.93 
786.16 1,059,195.57 
2,958,655.49 $ 
43,673.19 $ 
 
1,413,948.83 
198,944.91 328,320.30 
42,439.75 20,226.42 
394.46 
1,104,027.70. 
3.108.302.37 
-61,793.45 
 
2,949.11 
 
$ 
 
0.00 $ 
 
0.00 
 
2,955.86 
 
445.96 
 
0.00 $ 0.00 
 
46,629.05 $ 291,163.93 
 
-61,347.49 340,559.95 
 
-6,245.05 -1.645.09 
 
7,275.81 4,675.66 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
329,902.84 $-===-2-=9=-1=1...,63_.9_3= 
 
-25- 
 
 - - - - - - - - - - - - - - - - - - - - - --- - - ---- - --- - ----- - - 
UNION COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002 
 
ASSETS Cash and Cash Equivalents Investments Accounts Receivable 
Total Assets 
LIABILITIES AND FUND EQUITY LIABILITIES 
Cash Overdraft Accounts Payable 
Total Liabilities FUND EQUITY 
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity 
Total Liabilities and Fund Equity 
 
REGULAR 
 
BOND PROCEEDS 
 
$ 
 
0.00 $ 3,604,238.37 
 
$ 
 
0.00 $ 3,604,238.37 
 
$ 
 
15,069.35 
 
$ 
 
15,069.35 
 
$ 3,589,169.02 
 
$ 
 
0.00 
 
0.00 
 
$ 
 
0.00 $ 3,589,169.02 
 
$ 
 
0.00 $ 3,604,238.37 
 
See notes to the general-purpose financial statements. -26- 
 
 EXHIBIT"!" 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
$ 
 
7,726.36 $ 
 
371,480.64 
 
LOTTERY PROJECT 
 
TOTALS 
 
JUNE 30, 2002 
 
JUNE 301 2001 
 
0.00 $ 3,611,964.73 $ 2, 133,622.89 
 
607,247.50 
 
371,480.64 
 
$ 
 
379,207.00 $=-===0==00= $ 3,983,445.37 $ 2,740,870.39 
 
$ $ _ __;1;.;;;;5.i.;:,0""69=~35~ 
 
375,484.14 
 
$ 
 
15,069.35 $ _ _3_7_5.._,484_._14_ 
 
$ 
 
379,207.00 
 
$ 3,589,169.02 $ 379,207.00 
 
231,763.36 
 
0.00 $ ______0._00_ 
 
0.00 
 
2,133,622.89 
 
$ 
 
379,207.00 $ _ _ _ _0==00~ $ 3,968,376.02 $ 2,365,386.25 
 
$ 
 
379,207.00 $-====0==00- $ 3,983,445.37 $ 2,740,870.39 
 
- 27 - 
 
 ----------------- ---- - - - - -------------- --------- 
UNION 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 Administration 
Capital Outlay Salaries Employee Benefits Dues and Fees 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 Discount on Bonds Sold 
Operating Transfers In Operating Transfers Out 
Total Other Financing Sources {Uses) 
Excess of Revenues and Other Financing Sources over {under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
FUND BALANCE JUNE 30 
 
REGULAR 
 
BOND PROCEEDS 
 
$ 
 
0.00 $ 
 
573.23 
 
$ 
 
0.00 $ 
 
573.23 
 
$ 
 
$ 
 
55,502.40 
 
7,495.32 
 
74,171.98 3,286,087.69 
112,090.42 
 
$ 3,535,347.81 $ 
 
$ -3,535,347.81 $ 
 
40,500.00 
10.00 27,784.41 338,157.63 127,702.73 534,154.77 -533,581.54 
 
$ 5,400,000.00 -5,422.15 
$ 1,401,724.92 -1,503,590.65 
$ 1,401,724.92 $ 3,890,987.20 
 
$ -2, 133,622.89 $ 2,133,622.89 
 
3,357,405.66 231,763.36 
 
$ 
 
0.00 $ 3,589,169.02 
 
See notes to the general-purpose financial statements. -28- 
 
 EXHIBIT "J" 
 
GEORGIA STATE FINANCING AND 
INVESTMENT 
COMMISSION 
 
LOTTERY PROJECT 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 301 2002 
 
JUNE 30, 2001 
 
$ 
 
503,890.52 $ 
 
$ 
 
503,890.52 $ 
 
90,728.00 $ 
 
594,618.52 $ 
 
----"5-'--73=.2=3'- 
 
90,728.00 $ 
 
595,191.75 $ 
 
826,552.00 266,915.11 
1,093,467.11 
 
$ 
 
$ 
 
503,890.52 
 
$ 
 
503,890.52 $ 
 
$ 
 
0.00 $ 
 
$ 
 
40,500.00 $ 
 
2,252.63 
 
13,915.00 68,360.50 
8,452.50 
 
55,502.40 7,495.32 10.00 
115,871.39 4, 196,496.34 
248,245.65 
 
209,430.66 7,304,948.20 
140,726.23 
 
90,728.00 $ 4,664,121.10 $ 7,657,357.72 
 
0.00 $ -4,068,929.35 $ -6,563,890.61 
 
$ 
 
379,207.00 
 
$ 
 
379,207.00 
 
$ 
 
379,207.00 $ 
 
0.00 
 
$ 5,400,000.00 -5,422.15 
1,780,931.92 $ -1,503,590.65 
$ 5,671,919.12 $ 
 
1,000,000.00 1,000,000.00 
 
0.00 $ 0.00 
 
n 1,602,989. $ -5,563,890.61 
 
2,365,386.25 
 
7,929,276.86 
 
$ 
 
3791201.00 $=:z===-=o==oo..., $ 3,968,376.02 $ 2.365,386.25 
 
-29- 
 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - ---- ---- - - - 
 
UNION COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET 
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS JUNE 30, 2002 
 
EXHIBIT"K" 
 
ASSETS Cash and Cash Equivalents Investments 
 
UNION COUNTY SCHOOLS 
SCHOLARSHIP FUND 
 
TONIA PARKER TANNER 
SCHOLARSHIP FUND 
 
TOTALS JUNE 301 2002 JUNE 301 2001 
 
$ 
 
481.92 $ 
 
60.19 $ 
 
542.11 $ 
 
433.13 
 
29,788.53 
 
7 771.97 
 
37,560.50 
 
37,281.52 
 
Total Assets 
 
$ 
 
30,270.45 $ 
 
7,832.16 $ 
 
38,102.61 $_""""'3=7=,7=14,..6...5= 
 
FUND EQUITY 
Fund Balances Reserved For Endowment Corpus $ Unreserved Undesignated 
 
27,475 47 $ 2,794.98 
 
6,099.95 $ 1 732.21 
 
33,575.42 $ 4,527.19 
 
33,311.15 4,403.50 
 
Total Fund Equity $ 
 
30,270.45 $ 
 
7,832.16 $ 
 
38,102.61 $-===-3-=7=1,=14=.6..5_ 
 
See notes to the general-purpose financial statements. - 30- 
 
 UNION COUNTY BOARD OF EDUCATION 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30 2002 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Agnculture, U S Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutnt1on Program Food Services School Breakfast Program Nallonal School Lunch Program 
 
. 10 553 . 10 555 
 
NIA 
 
$ 136,874 09 
 
(2) 
 
NIA 
 
405 437 88 $ 
 
1,001,621 80 (3) 
 
Total Child Nutnt1on Cluster 
 
$ 542,311 97 $ 
 
1,001,621 80 
 
Other Programs Pass-Through From Georgia Department of Educallon Food and Nutnt1on Program Food D1stnbullon Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds 
 
10550 
 
NIA 
 
10665 
 
NIA 
 
57,573 77 45 686 30 
 
57,573 77 (4) 
 
Total U S Department of Agnculture 
 
$ 645 572 04 $ 
 
1,059,195 57 
 
Education, U S Department of Speaal Educallon Cluster Pass-Through From Georgia Department of Educallon Individuals with D1sablht1es Educallon Act Part B - Speaal Education Capacity Building Grant Flow Through Preschool 
 
84173 84027 84173 
 
NIA $ 
 
21305 $ 
 
NIA 
 
186,207 40 
 
NIA 
 
15 919 46 
 
213.05 186,460 81 (3) 
1591946 
 
Total Special Education Cluster 
 
$ 202,339.91 $ 
 
202,593 32 
 
Other Programs Pass-Through From Georgia Department of Educallon Elementary and Secondary Education Act Tlllel Grants to Local Educational Agencies Trtlell Eisenhower Professional Development Trtlelll Technology Lrteracy Challenge Fund Grants TrtleVI Class Size ReducbOn lnnovallve Educallon Programs Vocational Educallon - Basic Grants to States High School Program Basic Grant 
 
84 010 
 
NIA 
 
84 281 
 
NIA 
 
84 318 
 
NIA 
 
84 340 
 
NIA 
 
84298 
 
NIA 
 
84048 
 
NIA 
 
451,991.23 13,546 23 
506,698.07 73,801 04 15,997.90 
45 487 00 
 
451,991 23 16,241 05 (3) 
506,698 07 73,801 92 (3) 15,997.90 
45 487 00 
 
Total U S Department of Education 
 
$ 1,309,861 38 $ 
 
1,312,810 49 
 
Health and Human SeMces, U S Department of Pass-Through From Georgia Department of Human Resources Family Connection Pass-Through From Ninth D1stnct Opportunrty, Incorporated Pro,ect Head Start 
 
93.959 93600 
 
NIA 
 
$ 46,570.25 $ 
 
NIA 
 
205,511 23 
 
126,949.26 (3) 205,511 23 
 
Total U S Department of Health and Human Services 
 
$ 252,081 48 $ 
 
332,46049 
 
Total Federal Financial Assistance 
NIA = Not Available 
 
- 31 - 
 
$ 21207,514 90 $ 
 
2i704i4ss 55 
 
 ---- ---------- - 
 
UNION COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES bE FEDERAL AWARDS 
YEAR ENDED JUNE 30 2002 
 
SCHEDULE "1" 
 
Notes to the Schedule of Expenditures of Federal Awards 
(1) The amounts shown for the Food D1stnbut1on Program represents the Federally assigned value of nonmonetary assistance for donated commod1bes received and/or consumed by the system dunng the current fiscal year 
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2002 National School Lunch Program 
(3) Expenditures for this program include State, and/or Other Funds Expenditures are not maintained by fund source 
(4) Funds earned on this program do not require reporting of expenditures 
Maier Programs are Identified by an astensk () in front of the CFDA number 
The School D1stnd did not proVlde Federal Assistance to any Subreopient 
The accompanying schedule of expenditures of Federal awards includes the Federal grant actMty of the Union County Board of Education and 1s presented on the modified accrual basis of acoount1ng which 1s the basis of acoounting used in the presentabon of the general-purpose financaal statements 
 
See notes to the general-purpose finanaal statements 
 
 32- 
 
 UNION COUNTY BOARD Of EDUCATION 
SCHEDULE OF STATE RE\/ENUE 
YEAR ENDED JUNE 30 2002 
 
SCHEDULE "2" 
 
AGENCY/FUNDING 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
GRANTS 
 
,Education, Georgia Department of 
 
Quality Basic Education 
 
Direct lnstructJonal Cost 
 
Kindergarten Program 
 
$ 
 
Kindergarten Program - Early lntervenbon Program 
 
Pnmary Grades (1-3) Program 
 
Pnmary Grades - Early Intervention (1-3) Program 
 
Upper Elementary Grades (4-5) Program 
 
Upper Elementary Grades Early Intervention (4-5) Program 
 
Middle Grades (6-8) Program 
 
Middle School (6-8) Program 
 
High School General Educabon (9-12) Program 
 
Vocational Laboratory (9-12) Program 
 
Students wrth D1sab1hbes 
 
Category! 
 
Category II 
 
category Ill 
category rv 
 
categoryv 
 
Gifted Student - Category VI 
 
Altemabve Educabon Program 
 
Media Center Program 
 
Staff and Professional Development 
 
Indirect Cost 
 
categoncal Grants 
 
Nursing Services 
 
Pnnt1pal Supplements 
 
Pupil Transportabon 
 
Regular 
 
Bus Replacement 
 
Sparsity - Alternative Programs 
 
Sparsity - Regular 
 
Twenty Days Addlbonal Instruction 
 
VocabonalSupervtsors 
 
Deferred Summer Salanes (Current Year) 
 
Educabon Equahzabon Funding Grant 
 
Food SeMces 
 
VocabonalEducabon 
 
Other State Programs 
 
After School Program (4-8) 
 
Apprenbcesh1p Program 
 
Health Insurance 
 
Medicaid Reimbursement 
 
Post Secondary Options - Spring 
 
Preschool Handicapped Program 
 
Special Educabon Low lnadence Grant 
 
Teachers' Retirement 
 
Lottery Programs 
 
Applied Technology labs 
 
Computers m the Classroom 
 
Exceptiorial Growth-Caprtal Outlay 
 
531,690 00 35,604 00 
1,365,088 00 110,332 00 680,896 00 82,438.00 58,230 00 
1,250,378 00 1,001,944 00 
487,400 00 
44,745 00 162,961 00 1,041,74200 183,999 00 30,257 00 21,339 00 102,602 00 212,824 00 39,241 00 1,385 ,902 00 
64,799 00 10,401 00 
397,202 00 110,495 00 
35,889 00 285,282.00 
86,362 00 21,114 00 1,270,319 00 140,786 00 
$ 40,924 BO 
21,817.20 50,000 00 241,824.27 13,136.26 
7,919 00 36,668 00 52,879 56 14,101 31 
 
n,75400 
6,695.35 61,00000 
$ 
 
$ 
 
531,690 00 
 
35,604 00 
 
1,365,088 00 
 
110,332 00 
 
680,896 00 
 
82,438 00 
 
58,230 00 
 
1,250,378 00 
 
1,001,944 00 
 
487,400 00 
 
44,745 00 162,961 00 1,041,742 00 183,999 00 
30,257 00 21,339 00 102,602 00 212,824 00 39,241 00 1,385,902 00 
 
64,799 00 10,401.00 
 
397,202 00 110,495 00 35,889 00 285,282 00 66,36200 
21,114 00 1,270,319 00 
140,786 00 n,15400 40,924 BO 
 
21,817 20 50,000 00 241,824 27 13,136 26 
7,919 00 36,668 00 52,679 58 14,101 31 
 
90,728 00 
 
6,695 35 61,000.00 90,728.00 
 
Office of Treasury and Fiscal Services Public School Employees Retirement 
 
26,330 00 
 
26,330 00 
 
CONTRACTS Educabon, Georgia Department of After School Sriack Programs Georgia's Reading Challenge 
 
35,038 15 
 
7,766 82 
 
7,766.82 35,038 15 
 
Georgia State Financing and Investment Comm1SS10n State Capital Outlay 
 
503,890.52 
 
503,890.52 
 
-33- 
 
 ------------------------ ---- - ------- - 
UNION COUNTY-BOARD OF EDUCAJIQN SCHEDULE OF SJATEREVENUE VEAR ENDED JUNE 30 2002 
 
SCHEDULE"2" 
 
AGENCY/FUNDING 
CONTRACTS Human Resources, Georgia Department of Family Connection 
Northeast Georgia Comer Connection Consortium Through North Georgia Technical College School to Work Grant Tech Prep Grant 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
S 80,379 01 
 
s 
 
13,294 13 
 
1 125 00 
 
s 
 
80,379 01 
 
13,294 13 1 125 00 
 
$ 11787,51870 $ 233159518 $ 594,81852 $ 121615,73240 
 
See notes to the general-purpose financial statements 
 
-34- 
 
 UNION COUNTY BOARD OF EDUCATION 
SCHEDULE Of APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30 2002 
 
SCHEDULE "3" 
 
PROJECT 
The acquIsIbon, construc!Jon, furnishing and equipping of a new high school, Including the acquIsmon of land therefor, 
and to construct, renovate, make addrtlons to, 
furnish and equip the Woody Gap School 
 
ORIGINAL ESTIMATED 
COST (1) 
 
CURRENT ESTIMATED COSTS(2) 
 
AMOUNT EXPENDED IN CURRENT YEAR(3) 
 
AMOUNT EXPENDED IN PRIOR YEARS(3) 
 
PROJECT STATUS 
 
$ 10,100,000 oo $ 14,494,000 oo $ 4,090,184 25 S 10,402,897 46 Ongoing 
 
The acqu1slbon, construction and equIppIng of one new middle school, acqu1Slbon of the land for the new middle school Acqulsrtlon, construction and equipping an addrtlon to the new high school AcquIsrtlon, construction and equipping a new vocabonal building at the high school Adding to, renovabng, repamng, Improving and equIppmg existing school bU1ldIngs Paying any general obhgabon bond debt of the School D1stnct In con1unct1on with the ImposrtJon of such sales and use tax 
 
15,500,000 00 1s,5001000 oo 
 
768,799 35 -----=-0~00~ Ong~ng 
 
$ 2612001000 00 $ 29,994,000 00 $ 4,858,983 60 $ 10,402,897 46 
 
(1) The School District's ongInal cost esbmate as specified In the resolubon calling for the Imposition of the Local Option Sales Tax 
(2) The School District's current estimate of total cost for the pro,ects Includes all cost from project inception to completion 
(3) The voter& of Union County approved the Imposition of a 1% sales tax to fund the above plOj8Cts and rebre associated debt Amounts expended for these Proiects may Include sales tax proceeds, state, local property 
taxes and/or other funds over the life of the PIO!ecls 
 
See notes to the general-purpose financial statements 
 
- 35- 
 
 UNION COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM {QBE\ 
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2002 
 
SCHEDULE 4 
 
DESCRIPTION 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF 
EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
Direct Instructional Programs 
 
Kindergarten Program 
 
$ 
 
Kindergarten Program-Early Intervention Program 
 
Pnmary Grades (1-3) Program 
 
Pnmary Grades-Early Intervention (1-3) Program 
 
Upper Elementary Grades (4-5) Program 
 
Upper Elementary Grades-Early Intervention (4-5) 
 
Program 
 
Middle Grades (6-8) Program 
 
Middle School (6-8) Program 
 
High School General Educatlon (9-12) Program 
 
Vocational Laboratory (9-12) Program 
 
Students with Olsablhties 
 
category I 
 
Category II 
 
Category Ill 
 
Category IV 
 
CategoryV 
 
Gifted Student  Category VI 
 
Remedial Education Program 
 
Alternative Education Program 
 
667,973.00 $ 44,981 00 
1,714,987 00 138,612 00 851,508.00 
 
840,34613 $ 58,74846 
1,910,548 82 141,229.84 
1,216,156.36 
 
107,483 00 73,155 00 
1,570,875.00 1,258,762.00 
612,330.00 1,838,881.00 
 
208,163.83 127,022.99 2,101,507.69 1,950,023.63 659,955.75 
47119 218,648.38 1,610,167 65 128,905.33 
 
26,809 00 128,901.00 
 
77,386.57 20,066.62 151,645.34 
 
14,121.23 $ 1,957.86 
44,305.73 1,870.87 
34,191.55 
 
854,467.36 60,706.32 
1,954,854 55 143,100.71 
1,250,347.91 
 
1,315.85 3,147.05 61,043.93 83,881.82 42,258 46 
 
209,479.68 130,170.04 2,162,551.62 2,033,905 45 702,214 21 
 
4,426 07 80,096.31 
8,819.52 264 00 318.&4 
1 04418 
 
471.19 223,074.45 1,690,263.96 137,724.85 
264.00 77,705.41 20,066 62 152,689 52 
 
TOTAL DIRECT INSTRUCTIONAL PROGRAMS 
 
$ 
 
9,035,257.00 $ 11,420,994.58 $ 383,063.27 $ 11,804,057.85 
 
Media Center Program Staff and Professional Development 
 
267,376.00 49,301 00 
 
402,733.19 9,929.94 
 
46,611.68 43,249.37 
 
449,344.87 53,179 31 
 
TOTAL QBE FORMULA FUNDS 
 
$ 
 
9,351,934.00 $ 11,833,657 71 $ 472,924.32 $ 12,306,582.03 
 
(1) Compnsed of State Funds plus Local Five MIii Share. 
 
See notes to the general-purpose financial statements. 
 
 36- 
 
 UNION COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) 
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002 
 
SCHEDULE "5" 
 
SITE Union County Middle School Union County Primary School Union County High School Woody Gap High/Elementary 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 
 
$ 
 
2,098,099.00 $ 
 
2,684,471.60 
 
4,068,513.00 
 
5,103,541.56 
 
2,362,656.00 
 
3,011,502.92 
 
377,088.00 
 
877,276.45 
 
128,901.00 
 
127,265.32 
 
$ 
 
9,035,257.00 $ 11,804,057.85 
 
See notes to the general-purpose financial statements. - 37- 
 
 SECTION II COMPLIANCE AND INTERNAL CONIROL REPORTS 
 
 RUSSELL W. HINTON 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street. S.W. Suite 214 Atlanta, Georgia 30334-8400 
January 23, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Union County Board of Education 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the financial statements ofUnion County Board ofEducation as of and for the year ended June 30, 2002, and have issued our report thereon dated January 23, 2003. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditors report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 
Compliance 
As part of obtaining reasonable assurance about whether Union County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. 
Internal Control Over Financial Reporting 
In planning and performing our audit, we considered Union County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 
2002YB-41 
 
 control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Union County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7441-02-01. 
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7441-02-01 to be a material weakness. 
This report is intended solely for the information and use ofthe management, members ofthe Union County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
submitt-0 Respectfully ~-  
 
RWH:as 2002YB-41 
 
State Auditor 
 
 RUSSELL W. HINTON 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W Sunc 214 Atlanta, Georgia 30334-8400 
January 23, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Union County Board of Education 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance ofUnion County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. Union County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Union County Board of Education's management. Our responsibility is to express an opinion on Union County Board of Education's compliance based on our audit. 
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Union County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Union County Board of Education's compliance with those requirements. 
2002SA-10 
 
 In our opinion, the Union County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2002. 
Internal Control Over Compliance 
The management of Union County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Union County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. 
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. 
This report is intended solely for the information and use ofthe management, members ofthe Union County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully s u b m i t t ~ ~ 
 
RWH:as 2002SA-10 
 
State Auditor 
 
 SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 UNION COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-7441-98-02 FS-7441-00-01 FS-7441-01-01 
 
Previously Reported Corrective Action Plan Implemented Further Action Not Warranted Unresolved - See Corrective Action/Responses 
 
CORRECTIVE ACTION/RESPONSES 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7441-01-01 
 
The Union County Board of Education contracted with American Appraisal Associates. The service provided a capital assets report that is in compliance with GAAP. Our intent is to input the information in to FASGOV software program in order to be in compliance by June 30, 2003, and to resolve this finding. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 UNION COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2002 
I SUMMARY OF AUDITOR'S RESULTS 
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Union County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. 
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Union County Board of Education disclosed a financial statement reportable condition related to the following control category. 
General Fixed Assets 
The reportable condition described above is considered to be a material weakness. 
3. Noncompliance Material to the Financial Statements The audit ofthe Union County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. 
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Union County Board of Education did not disclose any reportable conditions in internal control over major programs. 
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Union County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. 
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Union County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. 
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 
9. Low Risk Auditee The Union County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. 
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UNION COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2002 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7441-02-01 The Union County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. 
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