Thomaston-Upson County Board of Education, Thomaston, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002

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THOMASTON-UPSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACI1JAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

SCHEDULES

1 SCHEDULE OF EXPENDTI1JRES OF FEDERAL AWARDS

22

2 SCHEDULE OF STATE REVENUE

25

ALLOTMENTS AND EXPENDTI1JRES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

3

BY PROGRAM

26

4

BY SITE

27

THOMASTON-UPSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
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 WTI1I REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WTI1I OMB CIRCULAR A-133
SECTIONm 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. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Allanla, GeorgIa 30334-&400
February 5,2003

Honorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members of the Thomaston-Upson 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 Thomaston-Upson 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 Thomaston-Upson County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
Except as discussed in the following paragraph, 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 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 fmancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30,2002, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2002ARL-13

As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
The 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 of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-p~ose financial statements referred to above present fairly, in all material respects, the financial "position ofthe Thomaston-Upson County Board ofEducation as ofJune 30, 2002, and the results of its operations 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 February 5, 2003, on our consideration of the Thomaston-Upson 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 performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Thomaston-Upson County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules I through 4), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-l33,Audits o/States, Local Governments, and NonProfit Organizations, are presented for purposes ofadditional 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 ofthe general-purpose financial statements and in our opinion, except for the effect ofadjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories
2002ARL-13

as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general-pwpose 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,
cJ~
R sell W. Hinton State Auditor
RWH:gp 2002ARL-13

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

THOMASTON-UPSON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2002

ASSETS Cash and Cash Equivalents Accounts Receivable Inventones
Food Donated Commodittes Purchased Food
Amount Available in Debt Service Fund Amount to be ProVided In Future Years
For Payment of Bond Debt
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 4,165,387,24 $

370,752.21 $

308,293,08

3,005,883,51

328,300,85

34,39826 16,33292

$ 7,171,270.75 $

749,784.24 $

3.0..8.,2. .9.3..0. .8. . .

~IABILITIESAND FUND EQUITY
LIABILITIES
Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue General Obhgatlon Bonds Payable
TotalLJabihtles
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Inventones Food Donated Commodities Purchased Food Unreserved Undeslgnated
Total Fund Equity

$

893,647,86 $

2,804,349,62

99,716,48 310,707,42
297.49

$ 3,697,99748 $

410,721,39

$

67,56844

$
3,405,704 83 $ 3,473,273,27 $

34,398,26 16,332.92
288,331,67 $
339,062,85 $

308,293.08 308,293.08

TotalLJabihtles and Fund Equity

$ 7,171,270.75 $

749,784.24 $

30_8~,2_9_3_0.8..

The notes to the general-purpose finanCial statements are an Integral part of this statement -2-

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30, 2001

$

623.03

$ 4.845,055.56 $ 4.305.856.55

14.228.58

3,348,412.94

3,202,961.24

$

14,851.61

1.695.148 39

34,398.26 16,332.92 14,851.61
1,695,148.39

46,117.98 17.19801 10,053.49
1,869,946.51

$

1?10.oo0.00 $ 9,954.199.68 $ 9,452.133.78

.

$

993,364.34 $ 1,235,610.13

3,115,057.04

2,948,086.93

1,884 53

297.49

2,057.00

$

1,710.000.00

1.710.000.00

1,880.000.00

$

1,710,000.00 $ 5,818,718.87 $ 6.067.63859

$

14,851.61

0.00

$

14,85161

$

67,568.44 $

54,830 44

14,851.61

10,05349

34,398.26 16.332.92

46,117.98 17,198.01

4,002,329.58

3,256,295 27

$ 4,135,48081 $ 3,384.495.19

$

14,85161 $

1,710,00000 $ 9,954,199.68 $ 9,452,133.78

-3-

THOMASTON-UPSON COUNTY BOARP OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES ANP CHANGES IN FUND BALANCES
ALLGQVERNMENTALFUNDTYPES YEAR ENDED JUNE 30, 2002

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support ServiceS Pupil Services Improvement of Instructional Services Educabonal Media Services General Administrabon School Admlnistrabon BUSiness Administration Maintenance and Operation of Plant Student Transportation Services Cen!Ja1 Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest PaYIng Agent Fees
Total Expenditures
Excess of Revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In
Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other FinanCing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change In Penod Donated CommodrtJes Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 21,223,604.15 $
70,439.42 7,131,191.70
356.490.12
$ 28,781,725,39 $

810,861.84 3,184,831.84
528,638,00
4,524,331.68

$ 19,638,446.98 $
933,279,01 312,732,00 595,339.92 713,128.36 1,937,809.65 181,660.03 2,031,130,40 1,209,900,73 228,286.04
17,656.07 963.57

2,081,369.27
188,368.81 111,30344
104,863,88 27,201,75
17,232,73 14,904.29 31,492,00 59,508,88 2,104,606.95

$ 27,800,332.76 $

$

981,392,63 $

4,740,852.00 -216,52032

$

$

-136,29637

$

-136,296,37 $

130,196.37 130,196.37

$

845,096.26 $

2,628,177.01

-86,323,95 437,971.61

-11,71972 -86509

FUND BALANCE JUNE 30

$ 3,473,273 27 $

The notes to the general-purpose finanCial statements are an Integral part of thiS statement

-4-

33;;,;;9.:0--.62.8...5..

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

0.00

$ 22,034,465.99 $ 21,381,140.41

3,255,271.26

3,154,210.97

$

285,960.47

7,417,152.17

6,528,537.81

3,632.95

888,761.07

977,661.60

$

0.00 $

289,593.42 $ 33,595,650 49 $ 32,041,550.79

$

0.00

$ 21,719,816.25 $ 21,422,7n.48

1,121,647.82

975,867.79

424,035.44

434,386.51

595,339.92

555,171.11

817,992.24

711,600.07

1,965,011.40

1,853,931.40

181,660.03

171,722.82

2,048,363.13

2,292,163.13

.

1,224,805.02 259,778.04

1,298,484.29 327,335.48

77,164.95

74,340.98

2,105,570.52

1,976,287.43

287,257.16

$

170,000.00

120,185.00

710.30

170,000.00 120,185.00
710.30

165,000.00 130,085.00
722.30

$

0.00 $

290,895.30 $ 32,832,080.06 $ 32,677,132.95

$

0.00 $

-1,301.88 $

763,57043 $ -635,582.16

$

$

$

0.00 $

308,293.08

6,100.00 $ 6,100.00 $

136,296.37 $ -136,296.37
0.00 $

36,186.46 -36,186 46
0.00

4,798.12 $ 10,053.49

763,570.43 $ 3,384,495.19

-635,582.16 4,008,540.10

-11,719.72 -865.09

13,662.77 -2,12552

$

308,29308 $

14,851.61 $ 4,135,480.81 $ 3,384,495.19

-5-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES ANp CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - INON-GMP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBITC

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 20.592.070.00 $ 21.223.604.15

60,000 00

70.439.42

6,487.867.00

7.131,19170

186,000 00

356,490 12

Total Revenues

$ 27,325,937.00 $ 28,781,72539

EXPENDITURES

Current InstrudJon Support 5eMCes Pupll5eMC8S Improvement of InstrudJonal 5ervlces EducalJonal Medl8 5ervlces General AdmlnlStrallon School Admlnlslrabon BUSiness AdmlOlslralJon Maintenance and Opemon of Plant Student Transportallon 5eMces Central Support 5elVlCes Other Support 5eMces Food 5ervlces OperalJon

$ 19,853.097.00 $ 19,638,446 98

951.534.00 271,96500 621,315.00 684.75500 1,845,03800 188.443 00 2,080.178.00 1,232.701.00 243.456.00
3.50000

933.279.01 312,732.00 595.33992 713,12836 1,937.809 65 181.660.03 2,031.13040 1.209.900 73 228.286.04
17,656.07 96357

TptalEJq)endrtures

$ 27.975,98200 $ 27,800,33276

Excess of Revenues over (under) Expendrtures

$ -650,04500 $

981,39263

OTHER FINANCING SOURCES <USES)

Other Sources Other Uses

$ -40,000.00 $ -136,296 37

Total Other Flnanang Sources (Uses)

$ -40.00000 $ -136,296 37

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

-690,04500 $

845.09626

FUND BALANCE JULy 1 2001

3.287,722 96

2.628,177 01

Adjustments Food Inventory - Net Change In Pened
Donated Commodrbes Purchased Food

87.12

FUND BALANCE JUNE 30. 2002

$ 2,597?6508 $ 31473.273 27

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 568.22300 $ 810.861 84

1,951.635 00

3,184,831 84

528,63800

$ 2,519,85800 $ 4,524,331 68

$ 1,967,03500 $ 2,081,36927

82,263.00 137.90200

188.368.81 111.30344

181,433.00 26,81800

104.86388 27.20175

7.804 00 12.637.00 35.150 00 63,000.00 2,078.460 00

17,23273 14.904.29 31.49200 59.50888 2,104,606.95

$ 4,592,50200 $ 4,740,85200

$ -2,072,644 00 $ -216,52032

$ 130,196.37

$ 130,19637

$ -2,072,644 00 $ -86,32395

433.90778

437.97161

-64506

-11.71972 -86509

$ -1.6391381 28 $ 339106285

The notes to the general-purpose finanCl8I statements are an Integral part of thiS statement -7-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Thomaston-Upson County Board ofEducation (School District) was established under the laws ofthe State ofGeorgia and operates under the guidance ofa 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 ofpurchase. 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.

-8-

THOMASTON-UPSON COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE 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 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.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.
BASIS OF ACCOUNTING
The acco1p1ting 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.
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 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, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

- 9-

THOMASTON-UPSON COUNTY BOARD OF EDUCAnON

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

ruNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. State grants to fund the State's share of these contracts are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
BUDGET
The Thomaston-Upson County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governm!Jntal 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 ofgeneral 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.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables

- 10-

THOMASTON-UPSON COUNTY BOARD OF EDUCAnON

EXHIDIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

recorded on the general-pwpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Upson County Board ofCommissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 5, 2001 (levy date). Taxes were due on December 20,2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Upson 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 $7,099,684.28 and for school bonds amounted to $285,960.47.

Tax millage rates levied for the 2001 tax year (calendar year) for the Thomaston-Upson County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

15.99 mills
~mills

~mills

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. In addition, general obligation bonds have been issued to refund existing general obligation bonds. 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.

- 11 -

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

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHffiIT "0" '

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfimd transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in confonnity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: PEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, orby collateral. The aggregate of the 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 anyone of or any combination of the following:
(l) 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,

- 12-

THOMASTON-UPSON COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL..f'URPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2: DEPOSITS

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,

(6) Industrial revenue bonds and bonds ofdevelopment 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 $5,798,941.75. The amounts ofthe total bank balances are classifieq.into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

The School District's deposits are classified by risk category at June 30, 2002, as follows:

Risk Category

Bank Balance

1

$ 126,698.96

2

5,672,242.79

3

0.00

Total

$ 5.798.941.75

- 13-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHmIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation.

The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions 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 same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occ~ed, and the amount of that loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

2001 2002

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $

1.702.00 $

1.702.00 $

0.00

$

0.00 $

2.715.00 $

2.715.00 $

0.00

The School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $350,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered
Superintendent All Employees

Amount
$ 25,000.00 $ 10,000.00

- 14-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 5: OPERATING LEASES

Thomaston-Upson County Board ofEducation has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2002, amounted to $64,548.00. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

2003 2004 2005

$ 94,468.00 90,648.00 22,280.00

Total

$ 207.396.00

Note 6: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Refunding - Series 1992 4.00% - 6.50% $ 1.710.000.00

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

General Obligation
Bonds

BalanceJuly 1,2001

$ 1,880,000.00

Deductions Debt Retired

170,000.00

Balance June 30, 2002

$ 1,710,000.00

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

- 15 -

----~~-------------------

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 6: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

General Obligation
Bonds

2003 2004 2005 2006 2007 2008 - 2012

$ 54,992.50 279,647.50 268,666.25 267,056.25 255,123.75
1,153,281.25

Total Principal and Interest

$ 2.278.767.50

Note 7: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $396,973.95 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies.
.
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $348,226.95

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 $48,747.00

Note 8: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.

The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements.

- 16-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 9: SUBSEQUENT EVENTS

On March 19,2002, the voters of Upson County voted in favor ofa Special Purpose Local Option
Sales Tax referendum for educational purposes. The imposition ofthe tax approved, as stated on the Official Ballot of Upson County, is as follows:

"Shall a special one percent sales and use tax be imposed in Upson County for a period not to exceed five (5) years, beginning July 1, 2002, and for the purpose of raising not more than $7,998,800 of net proceeds by said tax, to be used to finance (i) renovating, refurbishing, retrofitting and modifying existing classrooms, instructional, athletic and support space and grounds at existing school district facilities, including schools, athletic facilities, the Worthy Building, the Central Office and other support facilities, and including renovating the Atwater Building for use as a Pre-K facility; and purchasing and acquiring furnishings, equipment and fixtures, including computer, security and surveillance equipment, for such new and existing school district facilities; and purchasing new school buses and video cameras for new and existing buses, with an estimated cost of $5,720,000 to be financed from funds raised by this tax; and (ii) payment of up to a total amount of $2,278,800 on bonded indebtness, including payments ofprincipal, interest, call or redemption premiums and related costs, on ThomastonUpson County School District's Series 1992 General Obligation Bonds?"

Note 10: :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 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 ofTrustees 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%

$ 1,698,864.92 $ 2,012,858.64 $ 1,922,362.92

- 17 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION COMBINIf\JG 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

LOTIERY PROGRAMS

$

406,996,07 $

72,640.26

82.08

34,398.26 16,332.92

Total Assets

$

457,727.25 $ =====72=,7=22;:"i:::34::O:::s

LIABILITIES AND FUND EQUITY
L1ABILITIE~
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund EqUity
Total liabilities and Fund Equity

$

21,914.58 $

17,044.50

96,749.82

55,677.84

$

118,664.40 $

72,722.34

$

34,398.26

16,332.92'

288,331.67 $

0.00

$

339,062.85 $

0.00

$

457,727.25 $ ==-==7..2.:l:::,7=:2;;,;2.:=34,;."

See notes to the general-purpose financial statements. -18-

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

479,636.33 $

556,024.33

$

328.218.77

328.300.85

268,325.77

34,398.26 16,332.92

46.117.98 17,198.01

$

328,218.77 $

858,668.36 $ _===-8=87=,6=:;6=6',;;,;09...

:

$

108.884.12 $

108,884.12 $

66,954.58

60,757.40

99,716.48

100,889.07

158,279.76

310,707.42

277.909.30

1,884.53

297.49

297.49

2,057.00

$

328,218.77 $

519,605.51 $

449,694.48

$

34,398.26 $

46,117.98

16,332.92

17,198.01

$

...--:O~.O:::.:O=-

288,331.67

374,655.62

$

0.00 $

339.062.85 $ _ _4.:.::3:.:..7.&.::,9",-71..:..:..6.:::;.1~

$

328,218.77 $

858,668.36 $ .....==::8=8=7!li.6=66=.0=:.9..

- 19-

---~= ------ --
THOMASTON-UPSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, 8<PENDITURES AND CHANGES IN FUND BALANCES
SPEC~LREVENUEFUND
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 School Administration Mairitenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements.
- 20-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

150,670.00 $

1,334,663.69

527,638.00

$ 2,012,971.69 $

600,194.52 600,194.52

$

522,910.66

118,611.79 424,48

22,426.77 17,232,73 9,612.29

$ 2,099,295.64

$ 2,099,295.64 $

$

-86.323.95 $

4,121.27 695,339.99 -95,145.47

$

-86,323.95 $

437,971.61

-11,719.72 -865.09

95,145.47
0,00 0.00

$

339,062.85 $ ==-===--===0.:;;;;00==

EXHIBIT"F"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 3D, 2001

$

59,997.32 $

810,861.84 $

738,839.83

1,850,168.15

3,184,831.84

3,086,695.66

1,000.00

528,638.00

558,392.48

$ 1,911,16547 $ 4,524,331.68 $ 4,383,927.97

$ 1,558,458.61 $ 2,081,369.27 $ 1,931,627.53

69,757.02 110,878.96
104,863.88 4,774.98
5,292.00 31,492.00 59,508.88
1,190.04

188,368.81 111,303.44
104,863.88 27,201.75 17,232.73 14,904.29 31,492.00 59,508.88 2,104,606.95

92,269.46 127,751.54 90,884.25 20,085.79
16,206.64 14,599.31 74,934.00 56,709.76 1,976,287.43

$ 1,946,216.37 $ 4,740,852.00 $ 4,401 ,355.71

$

-35,050.90 $ -216,520.32 $

-17,427.74

35,050.90

130,196.37

25,186.46

$

0.00 $

-86,323.95 $

7,758.72

0.00

437,971.61

418,675.64

-11,719.72 -865.09

13,662.77 -2,125.52

$

0.00 $

339,062.85 $ ~=4,;;;3iC7=,9=71=..6.1=

21 -

THOMASTON-UPSON COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ~NDEP JUNE 30, 2002

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

Agnculture, U, S. Department of Child NulntJon Cluster Pass-Through From Georgia Department of Education Food and Nutntion Program Food services School Breakfast Program National School Lunch Program

10553 10.555

Total Child Nutritlon Cluster

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food DIstribution Program (1)

10.550

Total U, S, Department of Agriculture

Education, U. S, Department of Special Educabon Cluster Pass-Through From Georgia Department of Education IndIViduals with Disabilities Educabon Ad Part B - Special EducatIOn Capacity Building Improvement Flow Through Preschool

." 84,173
" 84.027
84.173

Total Special Education Cluster

Other Programs Pass-Through From Georgia Department of Education Elementary and secondary Education Ad TItle I Grants to Local Educational Agencies Title II Eisenhower Professional Development Trtlelll Technology Literacy Challenge Fund Grants TItle VI Class Size RedudJon Innovative Education Program Strategl8s Goals 2000 State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools Vocational Education - Basic Grants to States High School Program Basic Grant

. 84.010 84,281 84,318 84.340 84,298
84 276 84.186
84048

Total U S Department of Education

Defense, U S Department of Dlred Department of the Navy R.O.T.C Program

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

N1A

$ 315,680.04

(2)

NlA

914,596.58 $

1,994,908 57 (3)

$ 1,230,276.62 $

1,994,908.57

N1A

104,387,07

104,38707

$ 1,334,663 69 $

2,099,295,64

N1A

$

8,400.00 $

N1A

505,386.48

N1A

10,707,65

$ 524,49413 $

8,400.00 505,38648
10,70765
524,494,13

NJA

913,58575

913,585.75

N1A

33,71900

33,891,01 (3)

N1A

100,88719

119,044.23 (3)

N1A

174,765.25

174,765,25

N1A

14,472,64

14,472.64

N1A

779.19

NJA

20,709.00

1,35000 (3) 35,934.35 (3)

N1A

66,75600

68,571,22 (3)

$ 1,850,168.15 $

1,886,108 58

$ 70,43942

(4)

Total Federal Flnanaal AsSistance
N1A = Not Available

- 22-

$ 3,255,271.26 $

3,985,404 22

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2002

SCHEDULE "1"

Notes to the Schedule of Expend"ures of Federal Awards
(1) The amounts shown for the Food DIstribution Program represents the Federally assigned value of nonmonetary assistance for donated commodltJes received and/or consumed by the system during the current fiscal year
(2) Expenditures for the School Breakfast Program were not maintained separately and are Included In the 2002 Nabonal School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on thIS program were not maintained by fund source.
Major Programs are lcIentified by an asterisk (0) In front of the CFDA number.
The School District did not provide Federal Assistance to any Subreciplent.
The accompanying schedule of expenditures of Federal awards Indudes the Federal grant activity of the Thomaston-Upson County Board of Education and is presented on the modified accrual baSIS of accounting which is the basis of accounting used in the presentation of the general-purpose finandal statements.

..

See notes to the general-purpose finanaal statements

- 23-

THOMASTON-UPSON COUNTY BOARP OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDEp JUNE 30, 2002

SCHEDULE "2"

AGENCYlfUNplNG

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

GRANTS Education, Georgia Department of Quahty BaSIC Educallon Dlract InstruclJonal Cost Kindergarten Program Kindergarten Program - Early Intervenllon Program Pnmary Grades (1-3) Program Pnmary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades (4-5) Program Early IntervenlJon Program Middle School (6-8) Program High School General EducalJon (9-12) Program VocalJonal Laboratory (9-12) Program Students WIlh Dl88blhlles category I Gifted Student - Category VI Remedial Educabon Program Alternative Educallon Program Media Centar Program Staff and Professional Development T_nty Day AddJlJonallnstruelJon Indllect Cost Categorical Grants . Pupil Transpoltallon Regular Bus Replacement Sparsrty Nursing Services PnhClpal Supplements VocabonalSupennsors Mld-term Adjustment Hold-Harmless Deferred Summer Salaries (Pnor Year) Deferred Summer Salanes (Current Year) Educabon Equalizallon Funding Grant FoodSeMces VocabonalEducallon Other State Programs Health Insurance Mentor Teachers Praschool Handicapped Program Extended Day- Agncultura Extended Day-Technology/Career Extended Year-Agncultura Short Term AG Technology/career High Schools That Work Post Secondary Opllons Lottery Programs Computers In the Classroom

S 1,074,117 00 186,71800
3,125,065.00 299,613,00
1,531,61000 217,354 00
2,611,281.00 2,054,370.00
790,63600
2,150,511,00 232,65700 158,33900 201,14700 458,087.00 83,41500 140,831,00
2,750,07600

$ 1.074.11700 186,71800
3,125,065 00 299,61300
1,531,61000 217,354 00
2,611,281 00 2,054,370.00
790,63600
2,150,51100 232,65700 158,33900 201,14700 458,087.00 83.41500 140,831 00
2,750,07600

698,14500 180,40300 20,00000 107,883.00
19,82600 32,121,00 124,08300 -2,687,55529 2,624,080.00 1,469,972.00
$ 150,67000 30,00000
348,22695 3,06000
50,144 00 10,430 43 16,854 00
7,57000 58192
6,00000 1,48500
131,77108

698,14500 180,40300 20,00000 107,88300
19,82600 32,121 00 124,08300 -2,687,55529 2,624,080 00 1,469,97200 150,67000 30,00000
348,22695 3,06000
50,144 00 10,43043 16,854 00
7,57000 58192
6,00000 1,48500
131,77108

Office of School Readiness Pre-Kindergarten Program

468,42344

468,42344

Office of Treasury and Fiscal SeMceS Public School Employees Rellrament

48,74700

48,74700

CONTRACTS EducelJon, Georgia Department of K-3 Statewide Reading Program 4-6 Statewide Reading Program

45,72014

59,99732

59,99732 45,72014

See notes to the general-purpose finanCIal statements

$ 21,223,604 15 S 810,861 84 S 22,034,465 99 - 25-

THOMASTON-UPSON COUN:rY BOARD.OF EDUCATION GENERAL FUNID :.,aUAl!ITY BASIC EDUI\TION PROGRAM (aBEl
ALLOTMENTS. AND EXPENIDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2002

SCHEDULE "3"

DESCRIPTION

AUOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Ktndergarten Program

$

Kindergarten Program-Early Intervention Program

Pnmary Grades (1-3) Program

Pnmary Grades-Early IntervenlJon (1-3) Program

Upper Elementary Grades (4-5) Program

Upper Elementary Grades-Early IntervenIJon (4-5) .Program

Middle School (6-8) Program

High SChool General Education (g:.12) Program

Vocational Laboratory (9-12) Program

Students with D1sablhlJes

Category I

Category II

Category III

Category IV

Category V

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

1,206,707.00 $ 209,766.00
3,510,826.00 336,597.00
1,718,926.00

1,498,370 48 $ 283,483.55
3,315,682.74 449,797.17
1',850,475 09

13,714.98 $ 2,622.61 81,175.94 4,005.n 43,605.40

1,512,085.46 286,10616
3,396,858.68 453,802.94
1,894,080.49

245,931.00 2,933,621.00 2,307,964.00
888,233.00 2,415,975.00
261,377,00 1n,884.00 225,9n.00

206,795.84 3,179,666.06 3,225,665.47
930,364.28
10,902.83 445,430.16 1,515.283.52
38,225.14 1,482.31
1n,594.87 119,316.84 241,531.86

3,004.10 69,93811 109,144 13 91,105.93
354 68 5,806.57 29,757.93 4,288.22
462.55 5,267.45
3,442.90

209,79994 3,249,804.17 3,334,809.60 1,021,470.21
11,257.51 451,236.73 1,545,041.45 42,513.36
1,944.86 182,862.32 119,316.84 244,97476

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$ 16,439,784.00 $ 17,490,268.21 $ 467,697.27 $ 17,957,965.48

Media Center Program Staff and Professional Development

514,63300 93,712.00

467,813.66 67,414.37

109,938.n 39,381.56

577,752.63 106,795.93

TOTAL aBE FORMULA FUNDS

$ 17,048,129.00 $ 18.025,496 44 $ 617,017.60 $ 18,642,514.04

(1) Comprlsed of State Funds plus Local FIV8 Mill Share.

See notes to the general-purpose financial statements.

- 26-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION GENERAL FUND - aUALITY-BASIC EDUCATION PROGRAM (aBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 3D, 2002

SCHEDULE "4"

Upson-Lee High School Upson-Lee South Primary School Upson-Lee North Elementary School Upson-Lee South Elementary School Upson-Lee Middle School Upson-Lee Alternative School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.
..

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

$

4,072,126,00 $

4,928,235,34

2,897,445.00

3,076,835.87

2,871,656,00

3,072,nO,07

2,666,670.00

2,741,496.n

3,705,910.00

3,948,312.01

190,315,42

225,9n.OO

$

16,439,784.00 $ 17,957,965.48

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

SECTIOND COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. HINTON
STATE AUDITOR (4041656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS w., 254 Wa~hlOgton Street. S Suite 214
Atlanta, GeorgIa 30334-8400
February 5,2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Thomaston-Upson 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 iudited the financial statements ofThomaston-Upson County Board ofEducation as ofand for the year ended June 30, 2002, and have issued our report thereon dated February 5, 2003. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. Except as discussed in the following paragraph, 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.
We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2002, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether Thomaston-Upson 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 of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
2002YB-41

Internal Control Over Financial Reporting
In planning and perfonning our audit, we considered Thomaston-Upson County Board ofEducation's internal control over financial reporting in order to detennine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 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 Thomaston-Upson County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS7451-02-01.
A material weakness is a condition in which the design or operation of one or more ofthe 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 nonnal course of perfonning their assigned functions. Our consideration ofthe 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-7451-02-01 to be a material weakness.
This repOrt is intended solely for the infonnation and use of the management, members of the Thomaston-Upson County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~~~ ell W. Hinton Auditor
RWH:gp 2002YB-41

RUSSELL W. HINTON
STATE AUDITOR (404\ 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washmgton Street, S.w.. Suite 214 Atlanta. Georgia 30334-8400
February 5, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Thomaston-Upson County Board ofEducation
REPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33
Ladies and Gentlemen:
Compliahce
We have audited the compliance ofThomaston-Upson County Board ofEducation with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. Thomaston-Upson County Board ofEducation's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofThomaston-Upson County Board ofEducation's management. Our responsibility is to express an opinion on Thomaston-Upson 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 ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB 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 Thomaston-Upson County Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the

2002SA-IO

circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal detennination on Thomaston-Upson County Board of Education's ,compliance with those requirements.
In our opinion, the Thomaston-Upson County Board ofEducation 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 Thomaston-Upson County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements oflaws, regulations, contracts and grants applicable to Federal programs. In planning and perfonning our audit, we considered Thomaston-Upson County Board of Education'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 ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-l33.
, Our consideration ofthe internal control over'compliance would not necessarily disclose all matters
in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts ~d grants that would be material in relation to a major Federal program being audited may occur ana not be detected within a timely period by employees in the normal course ofperfonning 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 of the management, members of the Thomaston-Upson County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
lJ~~
RWH:gp 2002SA-10

SECTIONID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

THOMASTON-UPSON COUNTY BOARD OF EDUCAnON AUDITIiE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-745 1-00-01 FS-745 1-01-01

Further Action Not Warranted Unresolved - See Corrective ActionlResponses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7451-01-01

Due to current staffing limitations and budgeting considerations prohibiting hiring of additional administrative staff, at this time the Board cannot pursue the recording of general fixed assets on the financial statements.

SECTION IV
.'
FINDINGS AND QUESTIONED COSTS

THOMASTON-UPSON 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 Thomaston-Upson County Board of Education's financial statements was qualified for a scope limitation and 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 Thomaston-Upson County Board ofEducation 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 of the Thomaston-Upson County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Thomaston-Upson County Board ofEducation 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 Thomaston-Upson County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51 OCa) of OMB Circular A-B3 The Thomaston-Upson County Board of Education's audit did not disclose audit findings required to be reported by section .5lO(a) ofOMB Circular A-B3.
7. Major Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.027 Individuals with Disabilities Education Act - Part B - Special EducationFlow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84.173 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
- 1-

THOMASTON-UPSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS 9. Low Risk Auditee
The Thomaston-Upson County Board ofEducation qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133.
n FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets AccoUnt Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7451-02-01 The Thomaston-Upson County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fonnal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls ~d procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported.
- 2-