Ware County Board of Education, Waycross, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

."--, .' .:
. . j.. "'~': "''''~ '..... r -' \, ...., "

. ,t .'J

"f' -'_,

'",'

->1 ('.

".

, >" :. ,.
," "'',- ,
, -,,,

.:).,' . ... ., ,

,

- ~

'~ -'
~

,
~:>

: <:.:~},

p

I~



"

" ' -:.- ',. ,. ':"'"''

" . .~.

~~; :

r



."

.',"
,"

.. ;" .:r
'.

;:, -, j,

.. .;:'..... ~ "

.~,

" .: ~

.'

. , : ..... ~ .1.. "

"'

.. I \

\
"'

,'. '~:., ~ , '.

. Jr' 1~ ;
.: ....... ; ..

... . "
./ ,"'._" '

. '. , j ~- ~.".' .'
~, '::~." ; < . \ :
"

"" '

.'. . - ~

"

~';, I ~
" '.

- .~ "
),,:,
......
r,
"' ' \f,

,
., ' , '"J' ,\ ...
.... .1'

"r I'r'
, ,,r"

\.
. .} ..
' l.

. , ~:,.'

..I . . .

',' :::-

. " ~'.

."

,;, ;,-

.",', '

"'

. '. : .. ... .~ ~

.."-

....... ,~ ,
-
",
.J'

- ~, t .,,<'.
. . -;'" ...S'Rtuast'seell vi~': H:i~:ton ~, :' ... ';':'', , t ~.~'~'~~,

, .-:." ~~,

I " " . ' } :

JtY

,,'

':,

- ",' f/

," t

"'

"" . , '

1

- ~ ~ . .. '~

~", ' f

...... . " . ,'\.:

. .. . .... '.' ;

_ ;.J-

~

'

" ,I,..:. .. ... . /"

I

_,

:. :
~- "

c'

l . I
l1

"

. ;.J

"',C ; .' j~, _' t.

... ~ r ~ J ' '~. ~

'. J,

.'.

~vdltor

v .',_. ;',1,'" "./ '.'

:'

~- " "

I ... ~', :! '. I

.. it':

,"

' " ..
~,

, ..... , :. ,~-

- ,

--'

'

"
(

~:,

. . ~~

,,'

" '<? ; .. , , '

. - '~1 ~
,_ 'J
'

.-

...... ~

':..

..

. . t?'

i -, .'", 'r

-',

,J', 1

,,r

.....

,,,',,

I'
...~,

..~,. ...~, ... I . ) :

. '~.-

.....

",

",

" '..

\,

, \ .~.

'.'

'.'
, '""
; ... , '.
_' -.1 '. "

:

I

. ,,~
~"" I '0:.' , ,1 '

.", J '.

.... ' .-~

'I
'. ,-".

""

,"

.' i
"
,.. J,'
,

.... ~ - '. ~ ~

,

"'\"

>, ..... .'- \ ~._ ..
"", ,:;...... '..

.\. <.' I ~. }

'.1'., .r"

;,.-','1

,"
,- ,

,.;:.

\".'-

' .. 'J

WARE 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

EXHffiITS

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 ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

9

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

11

ADDmONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

28

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

30

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

32

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

34

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

35

WARE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

EXHIBITS

COMBINING AND INDNIDUAL FUND STATEMENTS

FIDUCIARY FUND TYPES

M

COMBINING BALANCE SHEET

.

36

N

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

37

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

38

2 SCHEDULE OF STATE REVENUE

40

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

43

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

~

5

BY SITE

45

SECTIONll
COl\fPLIANCE 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 COl\fPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COl\fPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

WARE COUNTY BOARD OF EDUCATION - TABLE OF CONfENTS-
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

WARE COUNTY BOARD OF EPUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2001

ASSETS
Cash and Cash Equivalents
Investments
Investments Held by Trustee
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available In Debt Service Fund
Amount to be Provided In Future Years For Payment of Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

412.55984 $ 3.551.61059

$ 3.666,688 65

524,75371

5,513,04672

507.377 77

753,50740

846.38379

52,708.23 34.73509

Total Assets
LIABILITIES AND FUNp EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Capital Lease Agreements General Obligabon Bonds Payable
Total Llabihbes
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Continuation of State Programs For Debt Service For Endowment Corpus For Inventones Food Donated Commodlbes Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Caprtal Outlay Projects Unreserved Designated for Self-Insurance Undeslgnated
Total Fund Equity

$ 4,174,066 42 $ 1,778,264.27 $ 91911,04110

$

537.666.14

50.31231 $

172,18952 $

139.00060

207,26638

585.62838

132.97678

298,96891

126,45697

21,59391

$

795.244 83 $ 912.38859 $

564,42848

$

576.200.70

$

10000

11,38363 2,791,25726
$ 3,378,821.59 $

52.708.23 34,73509
$

1.894,432 30 6.170.80749 1,248.663 48

778.33236 865.87568 $

32,709.35 9,346,61262

Total Llabilltres and Fund Equity

$ 41174,06642 $ 1,778,264 27 $ 9,911,04110

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

EXHIBITA

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

$

5,47673

$ 6,649,90353

4,13607

1,18443

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only>

JUNE 30, 2001

JUNE 30, 2000

$ 3,969,64716 $ 3,700,59075

16,354,39261

15,263,113.99

4,13607

3,850.89

2,108,45339

1,885,082 27

$ 3,811,548.42

52,70823 34,73509
3,811,54842

58,121.29 34,144.91
3,405,031.80

13,108,451 58 535,38658

13,108,45158 535,36656

16,084,96820 675,55578

$ 6,651,08796 $

9,61280 $ 17,455,38658 $ 39,979,459.13 $ 41,090,45988

$ 2,839,539 54
$ $ 2,839,539 54 $

5,433.70 $

$
535,38658 16,920,000 00

3,3n,20568 $ 361,50243 792,89476 132,97678 298,966.91 126,45897 21,59391 5,43370 535,38658
16,920,00000

1,869,08525 511,384 07 520,847.49 4,32016 6,58487 148,67000
7,50365 675,55578 19,470,00000

5,43370 $ 17,455,38658 $ 22,572,421 72 $ 23,213,751 27

$ 3,811,548 42 $
000 $ 3,811,548 42 $ $ 6,651,08796 $

3,00000
1,17910 4,17910

$

576,200.70 $

584,98000

8,917 52

10000

100.00

3,811,548 42

3,405,031 80

3,000.00

3,00000

52,708.23 34,73509 1,894,432 30 6,170,807 49 1,248,663 48

58,12129 34,144 91 4,205,492 89 4,659,642 45 1,248,663 48

11,36363 3,603,478 07

70,84567 3,617,96860

$ 17,407,03741 $ 17,876,70861

9,61280 $ 17,455,38658 $ 39,979,459 13 $ 41,090,45988

-3-

WARE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
PnnClpal Interest PaYJng Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 29,899,303,05 $
8,333,132.11 1,082,506.82
$ 39,314,941.98 $

1,481,201.75 5,020,018.31
772,477.06
7,273,697,12

$ 27,617,370.23 $
1,451,220.52 787,924.92 989,356.69 296,410.52
2,614,361,68 266,728.74
2,686,651.49 1,721,555.20
412,077.09 484,523.97
1,619.62 81,518.75
140,169.20 43,394.82

3,550,314.04
386,874,55 266,282.81
200,862.07 19,770.94
12,858.64 35,485.14
45,575.91 2,700,922.45

$ 39,594,883.44 $

$

-279,941.46 $

7,218,946.55 54,750.57

$

168,436.32

$

$

168,436.32 $

-15,000.00 -15,000.00

$

-111,505,14 $

3,490,326.73

39,750.57 830,947.99

-5,413.06 590.18

FUND BALANCE JUNE 30

$

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

-4-

3,378,821.59 $ ====8=65==,8=7=5.6=8==

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 31,380,504.80 $ 28,974,261.16

5,020,018.31

4,722,471.79

$ 1,511,165.04 $ 3,473,031.52

13,317,328.67

13,347,674.81

263,532.13

402,835.94

2,521,351.95

2,488,670.10

$ 1,774,697.17 $ 3,875,867.46 $ 52,239,203.73 $ 49,533,077.86

$ 31,167,684.27 $ 28,680,315.32

$ 2,421,156.40

1,838,095.07 1,054,207.73
989,356.69 497,272.59 2,634,132.62 266,728.74 2,699,510.13 1,757,040.34 412,077.09 530,099.88 2,702,542.07 2,502,675.15

2,191,988.97 1,070,220.37
934,043.65 453,872.31 2,558,686.48 237,534.20 2,526,724.35 1,612,553.95 354,541.65 480,730.89 2,644,124.61 3,391,832.56

$ 2,550,000.00 918,185.00 1,165.84

2,690,169.20 961,579.82 1,165.84

2,068,231.76 1,062,765.64
1,344.85

$ 2,421,156.40 $ 3,469,350.84 $ 52,704,337.23 $ 50,269,511.56

$

-646,459.23 $

406,516.62 $ -465,133.50 $ -736,433.70

$ -153,436.32 $ -153,436.32

$

$

168,436.32

-168,436.32

$

0.00 $

29,435.62 7,959.68 -7,959.68
29,435.62

$ -799,895.55 $ 10,146,508.17

406,516.62 $ -465,133.50 $ -706,998.08

3,405,031.80

17,872,814.69

18,577,331.69

-5,413.06 590.18

-5,003.81 7,484.89

$ 9,346,612.62 $ 3,811,548.42 $ 17,402,85831 $ 17,872,814.69

-5-

WARE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2001

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 29,298.013.71 $ 29,899.303,05

8,112,000,00 288,925.00

8.333.132.11 1,082.506,82

Total Revenues EXPENDITURES

$ 37,698.938,71 $ 39,314,941.98

Current Instruction Support Services Pupil SeMceS Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services central Support Services Other Support Services Food Services Operation
Capital OuUay Debt Service

$ 27,271.325,59 $ 27.617.370,23

1,311,567.31 758,260.79 995,791,58 279,303,29
2,569.296.52 270,982.84
2,825.009.58 1.755,762,47
445.353.73 2.360.30
10.000,00

1,451.220.52 787.924.92 989.356.69 296,410.52
2,614,361,68 266.728,74
2,686.651,49 1.721,55520
412,On,09
484.523.97 1,619.62
81.518.75 183,564.02

Total Expenditures Excess of Revenues over (under) Expenditures

$ 38.495,014.00 $ 39.594.883 44 $ -796,075,29 $ -279,941.46

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ 358,600.00 $

168,436.32

Total Other Financing Sources (Uses)

$ 358.60000 $

168,436,32

Excess of Revenues and Other FInanCIng Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1 2000
Adjustments Food Inventory - Net Change in Period
Purchased Food

$ -437.475,29 $ -111.505.14

2,957.833.65

3.490,326,73

-4,785,02

FUND BALANCE JUNE 30. 2001

$ 2.515.57334 $ 3.378,821 59

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,309.440 00 $ 1,481,201,75

5.307,413,29

5.020,01831

694.378.00

n2.4n.06

$ 7.311,231.29 $ 7.273.697 12

$ 3,631.098,32 $ 3.550,31404

427.823.n
320,939.00

386,874.55 266.28281

221.680,25 7,100.00

200.862,07
19,nO.94

1,45000 6.740.00

12.858.64 35,485.14

81,087,00 2,499,592 00

45,575.91 2,700,922.45

$ 7.197.510.34 $ 7.218.94655

$ 113.720.95 $

54,750 57

$ -115,800.00 $ $ -115,800.00 $

-15,00000 -15.000.00

$

-2.07905 $

39,750,57

n2.348.26

n2.826.70

67,078,53

590 18

$ 837.347.74 $ 813,167.45

The notes to the general-purpose financial statements are an integral part of this statement. -7-

WARE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2001

EXHIBIT "0"

OPERATING REVENUES None Recorded
OPERATING EXPENSES None Recorded Operating Income
NONOPERATING REVENUES Interest Earned Net Income
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
GILCHRIST FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 3D, 2001

JUNE 3D, 2000

$

0.00 $

0.00 $

0.00

$

0,00 $

0,00 $

0.00

$

0,00 $

0.00 $

0,00

285.18

285,18

166.43

$

285.18 $

285,18 $

166.43

3,893,92

3,893,92

3,727.49

$

4,179.10 $

4,179.10 $ ====35,8=93;:,;.9;:,;2=

J

The notes to the general-purpose financial statements are an integral part of this statement. - 8-

WARE COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2001

EXHIBIT"E"

Cash Flows from Investing Activities: Purchase/Sale of Investments (Net) Interest Received on Investments
Net Increase (Decrease) in Cash Cash and Cash Equivalents July 1
Cash and Cash Equivalents: June 30

ENDOWMENT FUND
GILCHRIST FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 3D, 2001

JUNE 3D, 2000

$

-285.18 $

-285.18 $

-166.43

285.18

285.18

166.43

$

0.00 $

0.00 $

0.00

$

43.03 $

43.03 $

43.03

$

43.03 $

43.03 $ =======4=3.=03:=.

The notes to the general-purpose financial statements are an integral part of this statement. - 9-

WARE COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30,2001

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Ware 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 fmancial 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 a 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.
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
- 11 -

WARE COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLETRUSTFUND Gilchrist 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 for expenditures on behalfof any needy children who reside in the Gilchrist Park Community.
AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
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 fmanced 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.
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.
- 12-

WARE COUNTY BOARD OF EDUCAnON

EXHmIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 200 I

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or"soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore 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 recognize<;! in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30,2001. Also, the State's portion ofthe compensation paid in July and August 2001 w~ received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. 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.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
- 13 -

WARE COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET

The Ware 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 function 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 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.

The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund, To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" ofthis report:

Special Revenue
Fund

FUND BALANCE JULY 1, 2000

$ 830,947.99

Adjustments Inventories - July 1, 2000 Food Donated Commodities

-58,121.29

Fund Balance July 1, 2000 (Budget Basis)

$ 772,826.70

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

39,750,57

Adjustments

590.18

FUND BALANCE JUNE 30, 2001 (Budget Basis)

$ 813,167.45

- 14-

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-tenn 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. 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,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from infonnation available. Receivables
- 15 -

WARE COUNTY BOARD OF EDUCATION

EXHmIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

are recorded when either the asset or revenue recognition criteria has been met. Receiva1?les 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 Ware County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 2,2000 (levy date). Taxes were due on December 20, 2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Ware County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes 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, 2001 for maintenance and operations amounted to $8,200,449.20 and for school bonds amounted to $3,680.68.

The tax millage rate levied for the 2000 tax year (calendar year) for the Ware County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

15.75 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $4,980,515.88 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $14,636,922.92 has been collected or on December 31, 2002, whichever occurs first.

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.

- 16-

WARE COUNTY BOARD OF EDUCAnON

EXHmIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL OBLIGATION BONDS
D
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-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 fmancial 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 ofthis data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
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 bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
- 17-

WARE COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or

municipalities of the State of Georgia,

.

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

(6) Industrial revenue bonds and bonds of development authorities'.created by the laws ofthe State of Georgia, and

(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, 2001, the bank balances were $2,560,048.52. The amounts ofthe total bank balances are classified into three categories of credit risk:

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

The School District's deposits are classified by risk category at June 30, 2001, as follows:

- 18-

WARE COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

I

$ 56,328.52

2

0.00

3

2,503,720.00

Total

$ 2.560.048.52

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $16,354,392.61 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe . Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months.

- 19-

WARE COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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; natural disaster; unemployment compensation and dental claims.

The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and earthquake. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

The School District has elected to self-insure for all losses related to flood. The School District has not experienced any losses related to this risk in the past three years.

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims PaId

End of Year Liability

2000 2001

$

1,884.00 $

1.711.46 $

3.595.46 $

0.00

$

0.00 $

6.562.00 $

6.562.00 $

0.00

Additionally, the School District is self-insured with regard to employee and dependent dental claims. The School District accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. This program is funded through a combination ofemployer and employee contributions.

Changes in the dental claims liability during the past two fiscal years are as follows:

- 20-

WARE COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

Begtnning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

2000 2001

$

0.00 $ 405,930.80 $ 405,930.80 $

0.00

$

0.00 $ 467,152.92 $ 467,152.92 $

0.00

The School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of$350,000.00 loss per occurrence, up to the statutory limit.

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

Position Covered

Amount

Superintendent Each Employee

$ 100,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Ware County Board of Education has entered into various lease agreements as lessee for security systems, building energy management systems and equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

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

Purpose

Interest Rates

Amount

General Government - Series 1995 General Government - Series 1998

4.35% - 5.85% 4.00% - 4.30%

$10,790,000.00 6,130,000.00

$16.920.000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows:

- 21 -

WARE COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

Capital Leases

General Obligation
Bonds

Total

Balance July 1,2000

$ 669,461.65 $19,470,000.00 $20,139,461.65

Retroactive Restatement of Prior Year Balances

6,094.13

6,094.13

Balance July 1,2000 Restated

$ 675,555.78 $19,470,000.00 $20,145,555.78

Deductions Debt Retired

140,169.20 2.550,000.00 2,690,169.20

Balance June 30, 2001

$ 535.386.58 $16,920,000.00 $17.455.386.58

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2002 2003 2004 2005 2006 2007 - 2011 2012 - 2015

$ 164,607.40 $ 3,719,337.50 $ 3,883,944.90 164,607.40 4,105,290.00 4,269,897.40 164,607.38 1,701,882.50 1,866,489.88 120,910.27 1,117,652.50 1,238,562.77 1,132,525.00 1,132,525.00 5,846,840.00 5,846,840.00 4,992,832.50 4,992,832.50

Total Principal and Interest $ 614,732.45 $22.616.360.00 $23,231.092.45

Deduct: Imputed Interest

79,345.87

Net Present Value ofFuture Minimum Lease Payments $ 535,386.58

- 22-

WARE COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE30,2001

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $543,506.11 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 $398,089. 10

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$38,164.01

Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$107,253,00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001:

Project

Unearned Executed Contracts

Memorial Drive Elementary Renovations Wacona Elementary Renovations Ware Middle School Renovations

$ 2,617.00 733,938.40 397,370.34

$ 1.133,925,74

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,

- 23-

WARE COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 8: CONTINGENT LIABILITIES
The School District is a defendant in various legal proceedings pertaining to matters incidental to the perfonnance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently detenninable, but is not believed to be material to the general-purpose financial statements.
Note 9: SUBSEOUENT EVENTS
In the subsequent fiscal year, voters authorized the School District to issue general obligation bonds in the amount of $12,900,000.00. The proceeds from these bonds will be used-for capital outlay purposes.
On September 18, 2001, the voters ofWare County voted in favor ofa Special Purpose Local Option Sales Tax referendum for educational purposes. The imposition ofthe tax approved by the voters, as stated on the Official Ballot of Ware County, is as follows:
"Shall a one percent sales and use tax be imposed in the Ware County School District for a period of time not to exceed twenty consecutive calendar quarters and for the raising of not more than $27,500,000 for the purposes of (a) retiring previously incurred general obligation debt of the school district in a maximum amount of $1,985,000; and (b) acquiring, constructing, and equipping the following capital outlay projects at schools and educational facilities throughout the County at a maximum cost of $25,515,000: the making of renovations and improvements at Memorial Stadium; construction of a fine arts center and improvements to other fine arts facilities; acquisition and installation of computers and new technology; construction of classrooms; construction of a JROTC building; the making of interior and exterior improvements to existing educational facilities; the acquisition and installation offurnishings and equipment, including copiers, HVAC, electrical, energy control systems, and other equipment and facilities; the acquisition of buses and renovations and improvements at the bus shop?"
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 of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

- 24-

WARE COUNTY BOARD OF EDUCAnON

EXHmIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 10: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 3,045,506.58 $ 2,908,545.63 $ 2,898,775,55

- 25-

---------------------~---~---- - - - - - - - - - - - - - - - - -
WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2001

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Continuation of State Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general-purpose financial statements. - 26-

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

321,025.12 $

144,398.70

524,753.71

102,790.51

52,708.23 34,735.09

$ 1,036,012.66 $ ==1=4;;;.4~,3~98~.,;,,;70~

$

30,415.37 $

30,840.95

139,821.61

113,557.75

$

170,236.98 $

144,398.70

$

52,708.23

34,735.09

778.332.36 $

0.00

$

865,775.68 $

0.00

$ 1,036,012.66 $ ==1=4;;;.4~,3~98~.,;,,;70~

EXHIBIT "G"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

3,483.46 $

468,907.28 $

933,925.30

524,753.71

$

645,466.89

5,250.00

753,507.40

543,829.13

52,708.23 34,735.09

58,121.29 34,144.91

$

645,466.89 $

8,733.46 $ 1,834,611.71 $ 1,570,020.63

$

56,347.44

102,299.74 $

332,249.02

132,976.78

21,593.91

$

645,466.89 $

$ 8,633.46
8,633.46 $

56,347.44 $ 172,189.52 585,628.38 132,976.78 21,593.91
968,736.03 $

60,825.11 157,841.39 516,097.49
4,308.65
739,072.64

$

8,917.52

$

100.00 $

100.00

100.00

52,708.23 34,735.09

58,121.29 34,144.91

$

0.00

0.00

778,332.36

729,664.27

$

0.00 $

100.00 $

865,875.68 $

830,947.99

$

645,466.89 $

8,733.46 $ 1,834,611.71 $ 1,570,020.63 - 27-

WARE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (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 Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements,
- 28-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

196,208,00 $ 1,093,026.75

1,810,905.48

742.477.06

$ 2,749,590.54 $ 1,093,026.75

$

915,907.94

127,117.34

18,226,16 11,375.31 20.400,00

$ 2,700,922.45

$ 2,700,922.45 $ 1,093,026,75

$

48,668.09 $

0.00

$

48,668,09 $

0.00

821,930.47

0.00

-5,413.06 590.18

$

865,775.68 $ ====0=',;;,;00=

EXHIBIT"H"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ $ 3,209,112.83
30,000.00
$ 3,239,112.83 $

191,967.00 $ 191,967.00 $

1,481,201.75 $ 5,020,018.31
772,477.06
7,273,697.12 $

1,512,600.55 4,719,958.97
742,275.27
6,974,834.79

$ 2,509,223.27 $
224,757.21 249,498.64 200,862.07
1,544.78 1,483.33 15,085.14 45,575.91

$ 3,248,030.35 $

$

-8,917.52 $

125,182.83 $ 35,000.00 16,784.17
176,967.00 $ 15,000.00 $

3,550,314.04 $
386,874.55 266,282.81 200,862.07
19,770.94 12,858.64 35,485.14 45,575.91 2,700,922.45
7,218,946.55 $
54,750.57 $

3,391,611.37
373,990.36 177,919.47 162,357.88
17,256.73 45,481.87 32,735.34 55,590.08 2,625,955.86
6,882.898.96
91.935.83

$

7,040.32

$

-15,000.00 $

-15,000.00

-15.000.00

$

-15,000.00 $

-15,000.00 $

-7,959.68

$

-8,917.52 $

8,917.52

0.00 $ 100.00

39,750.57 $ 830,947.99

83.976.15 744,490.76

-5,413.06 590.18

-5,003.81 7,484.89

$

0.00 $

100.00 $

865,875.68 $ ====8;;;;;3:=0!i;,9=47=.9~9;..

- 29-

WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 3D. 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity
TotalUabilities and Fund Equity

REGULAR

$

32,709.35

BOND PROCEEDS

$ 3,070,038.41

$

32,709.35 $' 3,070,038.41

$

611,177.63

139,000.60

298,968.91

126,458.97

$ 1,175,606.11

$ 1,894,432.30

$

32,709.35

0.00

$

32,709.35 $ 1,894,432.30

$

32,709.35 $ 3,070,038.41

See notes to the general-purpose financial statements. - 30-

EXHIBIT "I"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

1,248,663.48 $ 2,881,415.39 $ 4,162,788.22 $ 3,213,588.39

2,443,008.31

5,513,046.72

6,819,209.79

846,383.79

846,383.79

791,116.05

$

1,248,663.48 $ 6,170,807.49 $ 10,522,218.73 $ 10,823,914.23

$

611,177.63 $

139,000.60

298,968.91

126,458.97

$ 1,175,606.11 $

504,226.71 17,924.48 6,584.87
148,670.00
677,406.06

$ 1,894,432.30 $ 4,205,492.89

$ 6,170,807.49

6,170,807.49

4,659,642.45

$

1,248,663.48

1,248,663.48

1,248,663.48

0.00

0.00

32,709.35

32,709.35

$

1,248,663.48 $ 6,170,807.49 $ 9,346,612.62 $ 10,146,508.17

$

1,248,663.48 $ 6,170,807.49 $ 10,522,218.73 $ 10,823,914.23

- 31 -

-----------------------------
WARE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001

FUND BALANCE JUNE 30

$

32,709.35 $ 1,894.432,30

See notes to the general-purpose financial statements. - 32-

EXHIBIT"J"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 1,511.165.04 $ 1,511,165.04 $ 1,947,064.98

$

o~.O=.:O:...

263,532.13

353,521.06

$

0.00 $ 1,511,165.04 $ 1l74,697.17 $ 2,300,586.04

$

1,284.10

$

0.00 $

0.00 $ 2,385,185.81

2,758,742.60

35,970.59

530,561.19

$

0.00 $

0.00 $ 2,421.156.40 $ 3,290,587.89

$

0.00 $ 1,511,165.04 $

-646,459.23 $

-990,001.85

-153,436.32

$

0.00 $ 1,511,165.04 $

-799,895.55 $

-990,001.85

1,248,663.48

4,659,642.45

10,146,508.17

11,136,510.02

$

1,248,663.48 $ 6,170,807.49 $ 9,346,612.62 $ 10,146,508.17

- 33

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 2001

EXHIBIT"K"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$ 1,121,912.75 $ 1,121,912.75

$ 3,960,267.86

2,689,635.67

6,649,903.53 $ 5,272,780.68

1,184.43

1,184.43

1,336.37

$ 3,961,452.29 $ 3,811,548.42 $ 7,773,000.71 $ 5,274,117.05

Total liabilities and Fund Equity

$ 3,961.452.29 $ 3,811,548.42 $ 7,773,000.71 $ 5,274,117.05

See notes to the general-purpose financial statements.

- 34-

WARE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30, 2001

EXHIBIT"L"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

REVENUES

Taxes Other Funds
Total Revenues
EXPENDITURES

$

3,68068 $ 3,469,350.84 $ 3,473,031,52 $ 2,988,288.56

266,643.93

136,192.01

402,835.94

293,202,29

$ 270,32461 $ 3,605,542 85 $ 3,875,867 46 $ 3,281,490.85

Debt Service Pnncipal Interest Paying Agent Fees
Total Expenditures

$ 330,000,00 $ 2,220,000,00 $ 2,550,000 00 $ 1,930,000.00

615,865.00

302,320.00

918,185.00

1,009,855.00

1,165.84

1.165.84

1,344 85

$ 947,03084 $ 2,522,320.00 $ 3,469,350 84 $ 2,941,199.85

Excess of Revenues over (under) Expenditures

$ -676,70623 $ 1,083,222.85 $ 406,516.62 $ 340,291.00

OTHER FINANCING SOURCES (USES)

Operating Transfers In OperatIng Transfers Out

$ 676,706,23 $

$ 676,706.23 $ 685,47414

-676,706.23

-676,706.23

-685,474.14

Total Other Financing Sources (Uses)

$ 676,706.23 $ -676,706.23 $

000 $

000

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

000 $ 406,516.62 $ 406,51662 $ 340,291.00

FUND BALANCE JULY 1

000

3,405,031 80

3,405,031.80

3,064,740.80

FUND BALANCE JUNE 30

$

,;;;,O.;o;,OO~ $ 3,811,548.42 $ 3,811,54842 $ 3,405,031.80

See notes to the general-purpose financial statements.

- 35-

WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2001

EXHIBIT"M"

Cash and Cash Equivalents Investments Held by Trustee

NONEXPENDABLE TRUST FUND ENDOWMENT FUND GILCHRIST FUND

AGENCY FUND

TOTALS JUNE 30, 2001 JUNE 30, 2000

$

43,03 $

5,433.70 $

5,476,73 $

7,546,68

4,136.07

4,136,07

3,850.89

Total Assets

$

4,179.10 $

5,433.70 $

9,612,80 $ ..-==-.;1,,;,1;,3=97=.5=7=

LIABILITIES AND FUND EQUITY

LIABILITIES

Funds Held for Others

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

Undesignated

Total Fund Equity

$

Total Liabllitles and Fund Equity

$

$

5,433,70 $

5,43370 $

7,503,65

3,000,00 1,179,10 $ 4,179.10 $

$ 000 0.00 $

3,000,00 $ 1,179,10 4,179.10 $

3,000.00 893,92
3,893,92

5,433.70 $

9,612,80 $ .......""",;1.;.1;;,3,;;,:97:.;;.5.7_

See notes to the general-purpose financial statements,

- 36-

WARE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2001

EXHIBIT"N"

SPECIAL NEEDS FUND ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JULY 1, 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30. 2001

$ 7,503.65 $ 16.420.45 $ 18.490.40 $

5.433.70

$ 7,503.65 $ 16.420.45 $ 18.490.40 $===5=.4=3=3..7..0=

See notes to the general-purpose financial statements. - 37-

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program

. 10.553 . 10.555

N/A $ 436,039.41

(2)

NlA

1,226,526.48 $ 2,552,582.86 (3)

Total Child Nutrition Cluster

$ 1,662,565.89 $ 2,552.582.86

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Services

Food Distribution Program (1)

10.550

N/A

148,339.59

148,339.59

Total U. S. Department of Agriculture

$ 1,810,905.48 $ 2.700,922.45

Corporation for National and Community Services Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs

94.004

N/A $ 17.765.87 $

17,765.87

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

84.027 84.173 84.173

N/A $ 687,476.73 $

N/A

96,018.24

NlA

17,190.01

717,476.73 (3) 96.018.24 17,190.01

Total SpeCIal Education Cluster

$ 800,684.98 $

830,684.98

Other Programs Pass-Through From Berrien County Board of Education d/b/a Southem Pine Migrant Education Agency Elementary and Secondary Education Ad Title I Migrant Education Pass-Through From Georgia Department of Education Elementary and Secondary Education Ad Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduetlon Goals 2000 State and Local Education Systemic Improvement Grants

84.011
84.010 84.281 84.318 84.298 84.340
84.276

N/A

72,559.06

NlA

1,619,061.79

NlA

35,660.52

NlA

125.000.00

NlA

44,185.65

NlA

229.126.00

NlA

132,233.57

72,559.06
1,619,061.79 35,833.32 125.000.00 44,185.65 229,126.00
140,978.29

- 38-

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Educabon, U. S. Department of Other Programs Pass-Through From Georgia Department of Education VocabOnal Educabon - Basic Grants to States High School Program Basic Grant Pass-Through From Okefenokee Regional Educational Service Agency Safe and Drug-Free Schools
Total U. S. Department of Education
Defense. U. S. Department of Direct Department of the Anny R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.048 84.186

N1A $ 73,231.39 $

73,231.39

N/A

17.748.49

17.748.49

$ 3,149,491.45 $ 3.188,408.97

$ 41.855.51 $ _ _...;4.:.11.;:.:85;.:;5.:.;:.5..;..1

Total Federal Financial Assistance

$ 5.020.018.31 $ 5.948.952.80

N1A = Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities 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 induded in the 2001 National School Lunch Program.
(3) Expenditures for this program indude State. and/or Other Funds. expenditures are not maintained by fund source.

Major Programs are identified by an asterisk (*) in front of the CFDA number.

The School District did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards indudes the Federal grant actiVity of the Ware County Board of Education and is presented on the modified aeaual basis of accounting which is the basis of accounting used In the presentation of the general-purpose financial statements.

See notes to the general-purpose financial statements.

- 39-

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Govemor's Emergency Funds (1)
Educabon, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervenbon (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted StUdent - Category VI Remedial Education Program Alternative Educabon Program ' English Speakers of Other Languages (ESOL) Media Center Program Staff and ProfeSSional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocabonal Supel'lllsors Migrant Education Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services VocabonalEducabon Other State Programs At-Risk Summer School Program Health Insurance Mentoring Program Mentor Teachers Preschool Handicapped Program Remedial Summer School Special Educabon Low Incidence Grant Teachers'Retirement Lottery Programs Computers in the Classroom

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

25,000,00

$

25,000,00

1,240,089,00 396,992,00
3,209,480,00 1,174,675,00 1,887,451,00
289,720,00 3,042,175,00 2,573,014.00
838,441,00
78,776,00 990,636,00 2,036,850,00 450,302,00 25,014.00 1,423,166,00 247,012,00 243,803.00 25,963,00 599,252,00 168,048.00 3,867,883,00

736,206,00 198,655.00 134,728,00 27,289.00 31,148.00
3,077.00 308,101,00 2,758,153,00
$ 72,21400

196,208.00

7,509,33 398,089,10
5,426.23 3,912,00 81,667.00 8,646.38 29,638.00 38,164,01

131,807.00

1,240,089,00 396,992.00
3,209,480,00 1,174,675,00 1,887,451,00
289,720,00 3,042,175,00 2,573,014,00
838,441,00
78,776,00 990,636,00 2,036,850,00 450,302,00 25,014,00 1,423,166,00 247,012,00 243,803,00 25,963,00 599,252,00 168,048.00 3,867,883.00
736,206,00 198,655.00 134,728,00 27,289,00 31,148,00
3,077.00 308,101,00 2,758,153.00 196,208,00
72,214,00
7,509,33 398,089,10
5,426,23 3,912.00 81,667.00 8,646.38 29,638,00 38,164,01
131,807.00

- 40-

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Human Resources, Georgia Department of Family Connection
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 50,000,00 $

50,000.00

961,219.75

961,219.75

$

107,253,00

107,253.00

115,685.00

141,967.00

115,685.00 141,967.00

$ 29,899,303.05 $ 1,481,201.75 $ 31,380,504.80

(1) The purpose of the funds is to provide funds for repairs to the Memorial Stadium at Ware County High School.

See notes to the general-purpose financial statements.

- 41 -

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2001

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)(4)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

Retiring previously incurred general obligation debt of the School District

$ 15,100,000.00 $ 15,100,000.00 $ 947,030.84 $ 1,780,267.05 Ongoing

Acquiring, constructing and equipping the following capital outlay proJects: adding to, remodeling, renovating, Improving and equipping existing educational buildings, properties and facilities of the School DIStnct, acquiring any necessary personal property and equipment, including computers and related technology, copiers, energy management, HVAC, lighting and similar equipment, relocating or expanding, remodeling and renovating the existing transportation and bus garage and remodeling and renovation necessary to convert Center Junior High School into school distnct administrative offices and purchasing school buses

15,900,000.00 15,900,000.00 2,574,592.72 7,256,641.81 Ongoing

$ 31,000,000.00 $ 31,000,000.00 $ 3,521,623.56 $ 9,036,908.86

(1) The School District's onginal cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.

(2) The School District's current estimate of total cost for each project. Includes all cost from project inception to completion.

(3) The voters of Ware County approved the imposition of a 1% sales tax to fund the above projects and retire
associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

(4) In addition to the expenditures shown above, the School District has incurred interest to prOVide advance funding for the above projects as follows:

Current Year

$ 302,320.00

See notes to the general-purpose financial statements.

- 43-

WARE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM <gBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2001

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program HIgh School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOl)

AllOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

1,360,595.00 $ 1,626,671 15 $

44,644.26 $ 1,671,315.41

435,570.00

480,045.04

480,045.04

3,521,360.00

3,453,304.47

130,092.17

3,583,396.64

1.288,824.00

1.169,89366

10588

1,169,999.54

2,070,863.00

2,204,303.89

69,622.26

2,273,926 15

317,87300

289,799.29

17,05764

306,856.93

3,337,798.00

3,819,896.75

79,865.35

3,899.762.10

2,823,046.00

3,425,498.64

228,141.37

3,653,640.01

919,916.00

1,187,948.82

57,73078

1,245,679.60

3,929,61900

1,561,462.00 271.015.00 267,494.00 28,48600

107,667.85 867,31475 2,468,72381 269,974.89
18,51473 1,248,604.32
228,650.11 477,718.94

5,407.29 18,450.15
9,123.29 2,883.95
50,90261

113,075.14 885,764.90 2,477,847.10 272,858.84
18.51473 1,299,506.93
228,65011 477,71894

TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

$

22,133,921.00 $ 23,344,531.11 $ 714,027.00 $ 24,058,558 11

657,484.00 184,376.00

837,637.63 75,624.27

122,932.80 112,663.73

960,57043 188,28800

TOTAL aBE FORMULA FUNDS

$

22,975,781.00 $ 24,257,79301 $ 949,62353 $ 25,207,416.54

(1) Comprised of State Funds plus local Five Mill Share.

See notes to the general-purpose finanCial statements

- 44-

WARE COUNTY BOARD OF EDUCATION GENERAL FUND - gUALITY BASIC EDUCATION PROGRAM (gBEl
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

Ware Magnet School Ware County High School Williams Heights Elementary School Waycross Middle School Center Elementary School Ware County Middle School Ruskin Elementary School Memorial Drive Elementary School Waresboro Elementary School Wacona Elementary School Daffodil Center ALPHA Center Altemative School Central Office (Altemative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,499,079.00 $

1,603,419.65

4,948,006.00

5,529,671.49

1,617,404,00

1,673,762,83

2,235,592.00

2,339,334.67

1,692,274.00

1,771,553.32

2,590,226.00

2,805,059,23

1,621,599.00

1,724,180.94

1,623,291,00

1,677,923,23

1,704,055.00

1,748,101.39

2,334,901,00

2,441,260.45

91,154,71

515,459.82

267,494,00

137,676.38

$

22,133,921,00 $ 24,058,558.11

See notes to the general-purpose financial statements. -45-

SECTIONn COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL \\'. HINTON STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS w.. 254 Wa~hmgton Slreet. S. SUite 214
Atlanta. Georgia 30334-8400
April 1, 2002

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Ware 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 fmancial statements ofWare County Board ofEducation as ofand for the year ended June 30, 2001, and have issued our report thereon dated April 1, 2002. 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 30,2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance
As part ofobtaining reasonable assurance about whether Ware County Board ofEducation'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 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.
200 1YB-40

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Ware 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 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 Ware 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-7481-01-0 I.
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, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe Ware County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 2001YB-40

Ru sell W. Hinton State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Slreet. S W.. SUite 214 Atlanta. GeorgIa 30334-8400
April 1, 2002

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members of the Ware County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Ware County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Ware County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Ware County Board of Education's management. Our responsibility is to express an opinion on Ware County Board of Education's compliance based on our audit.
We conducted our audit of compliance 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 Ware 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 Ware County Board of Education's compliance with those requirements.
200ISA-IO

In our opinion, the Ware 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, 2001.
Internal Control Over Compliance
The management ofWare County Board ofEducation 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 co~sideredWare 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 OMB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course 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 Ware County Bo~d ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 2001SA-1O

Rus ell W. Hinton State Auditor

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

WARE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7481-99-01 FS-7481-00-01 FS-7481-00-02

Further Action Not Warranted Further Action Not Warranted Unresolved - Se~ Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Finding Control Number: FS-7481-00-02

The Ware County Board of Education does not maintain a system-wide General Fixed Assets Account Group. The School District is aware of new regulations that require the recording of a General Fixed Assets Account Group on the Financial Statements by June 15, 2002. The School District has begun the process ofimplementing procedures to record and maintain a General Fixed Assets Account Group within the formal accounting records in order to meet requirements set by GASB 34.

SECTION IV FINDINGS AND QUESTIONED COSTS

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements

.

The auditor's opinion on the Ware 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 Ware 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 Ware 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 Ware 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 Ware County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .51O(a) ofOMB Circular A-133 The Ware County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB 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 Ware County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.

- 1-

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF FJ!'IDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
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-7481-01-01 The Ware County Board of Education did not establish a 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 of all additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
- 2-

SECTION I FINANCIAL

"T. RUSSELL

HIfl.TON

STATE AUDITOR

(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa~hlOgton Street. S. W.. SUIte 214 Atlanta. GeorgIa 30334-8400
April 1, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Ware 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 Ware County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Ware County Board ofEducation'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 financial 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, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2001ARL-13

As described in the notes t~ 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 fmancial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended
June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather fl:1an 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 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-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Ware County Board ofEducation as ofJune .30,2001, and the results ofits operations and the cash flows ofits nonexpendable trust fund for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated April 1, 2002, on our consideration ofthe Ware County Board ofEducation'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.
2001ARL-13

Our audit was perfonned for the purpose of fonning an opinion on the general-purpose financial statements ofthe Ware County Board ofEducation taken as a whole. The accompanying combining and individual fund statements (Exhibits G through N) and the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and NonProfit Organizations, are presented for purposes ofadditional analysis and are not a required part of the general-purpose financial statements. Such infonnation 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 detennined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth paragraph, such infonnation 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 pennanent 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,

RWH:gp 2001ARL-13

Ru ell W. Hinton State Auditor

WARE COUNTY BOARD OF EDUCATION