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

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WARE COUNTY BOARD or EDUCATION - TABLE m CONTrN rs -

SECTION I

rrNANCIAL

INDEPENDENT AUDITOR'S COMBINED REPOR1 ON GENERAL-PURPOSE ~ I"IANCIAL Sl ATEMENTS AND SUPPLEMENTARY INFORMATION SCIIEDULE OF EXPENDITURES OF FEDERAL A WARDS

EXHIBITS

GENERAL-PURPOSE FINANCIAL Sl ATEMENTS

COMBINI:.IJ 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 GOVERNMEN r AL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES. EXPENDITURI:.S AND

CHANGES IN FUND BALANCES - BUIJGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE rUNDS

7

D

STATEMENT OF REVENUES. EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NON EXPENDABLE TRUST FUND

R

I:.

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NON EXPENDABLE TRUST FUND

9

I' NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMEN rs

10

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE rUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMEN1 OF REVENUES. EXPENIJITURES

ANIJ CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEE r

28

J

COMBINING STATEMENT or REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

30

IJI:.BT SERVICE FUND

K

COMBINING BALANCE SHEET

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE~

33

WARE COUNTY BOARD OF EDUCATION -1 ABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL ~INANCIAL INFORMATION

I:XHIBITS

COMBINING STATEMENTS

FIDUCIARY fUND TYPES

M

COMBINING BALANCE SHEET

34

N

COMBINING STATEMENT OF CHANGES IN ASSfTS AND LIABILITIES

AGENCY FUNDS

35

SCHEDULES

I SCHFDULE OF EXPENDITURES OF FEDERAL AWARDS

36

2 SCHEDULE OF STATE RfVENUE

38

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

40

ALLOTMENTS AND EXPENDITURES

GENERAL fUND - QUALITY BASIC CDI ,CATlON PROGRAMS (QBE)

4

BY PROGRAM

42

5

BY SITE

43

SECTION"
COMPLIANCE AND INl ERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER fINANCIAL REPORTING BASED ON AN AUDIT Of FINANCIAL STA TEMENTS PERFORMED IN ACCORDANCI:. WITH GOVERNMI!~IT AUDI1ING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCL WITH OMB CIRCULAR A-133

SECTION III AUDII [I:'S RESPONSE TO PRIOR YFAR FII\OINGS AND QlJES nONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

WARE COUNTY BOARD OF EDUCATION
- rABLE m CONTENTS -
SECTION IV FrNDiNGS AND QUESTIONED COST~ SCHFDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RIJ"o,l I I W. 111:-0101\
STAT[ AljI)lIOl-l
1~r,4\r~c.;:;,'1,4

DEPARTMENT OF AUDITS AND ACCOUNTS
2~4 WJ ... hmgtnn '\lrCCI S W SUIlC 214 ALI,lnl,l. Gellrgl.1 111314-X41 HI
June 23. 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Member;, of thc State Board of Educalton
and Supenntendent and Members of the Ware County Hoard of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE rINANCIAL SIATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDU LE OF EXPENDITURES OF FEDERAL AWARDS
Ladles and Gentlemen
We have audited the accompanymg general-purpose finanCial statements ofthe Ware County Board llf Education, as of and for the year ended June 30, 2002, as listed m the table of contents These gencral-purpose finanCial statemcnts are the re~ponslbllity of the Ware County Board of EducatIOn's management Our responSibility I, to express an opmlon on these general-purpose finanCial statement~ ba~ed on our audit
Except as dl~eus,ed m the followmg paragraph, we conducted our audit m accordance With audltmg standards generally accepted in the Umted States of Amenca and the ,iandards applicable to finanCIal audits eontamed m Government Audltmg Standards, Issued by the Comptroller General of the Umted States Those standards requm: that we plan and perform the audit to obtam reasonable a,surance about whether the financial statements arc free of matenal mIsstatement An audit mclude~ exammmg, on a te~t baSIS, evidence supportmg the amounts and disclosures m the financial ~tatements An audit abo mcludes assessmg the accountmg pnnelples used and slgmficant estlmate~ made by management. as well a; evaluatmg the overall financial statement pre~entatlon We believe that our audit proVides a reasonable basi' for our opmlon
We did not observe the takmg of either the Federal donated commodities mventory or purchased foods mventory at June 30, 2002, nor could we ~altsfy ourselves as to the accuracy of the amount, stated a., mventone, through alternative procedures

2002ARL-13

As described In the notes to thc general-purposc financial statemcnts. the Board of Educallon's financial statements have been prepared USing certam accounting pniCtlces and pohcies which. in our OpinIOn, vary In some respects from generally accepted accounting pnnclples These vanances are de~cnbed 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 confonn to generally accepted accounting pnnclples
School actiVity accounts maintained at the indivIdual schools are not Included In the general-purpose financial ~tatements 10 confonn 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. 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual servlce~ completed pnor to June 30. 2002 Also funds received. ~ubsequent to June 30, 2002. from the Georgia Department of EducatIOn for the State'~ share of these unrecorded salane~ and related benefits were not recorded as revenue In the year under review Conversely. the similar expenditures and related revenues for contractual services completed pnor to June 30. 2001, were Improperly recorded In the year ended June 30, 2002 To confonn to generally accepted accountmg pnnclples. revenues should be recorded when available and measurable and expenditures should be recorded when Incurred. rather than when fund~ are received or
dlsbu~d
'I he aggregate effects on the general-purpose financial statements of these varIances or OmISSIOnS have not been detennIned, but are beheved to be matenal
In our OpiniOn, except for the effects of such adjustments, If any, on the Special Revenue Fund, ~ might have been detennIned to be necessary had we been able to satisfY ourselves as to the accuracy of the food service Inventones a~ dlscu~~d In the third paragraph, and except for the cffects on the general-purpose financial statement~ of the matters referred to In the precedmg paragraph. the general-purpose tinanclal statements referred to above present faIrly, In all matenal respects, the financial positIOn of the Ware County Board of EducatIOn as ofJune 30. 2002. and the results of ItS operallons and the cash flows of Its nonexpendable trust fund for the year then ended, In eonfonnlty with accounting pnnclples generally accepted in the Umted States of Amenca,
In accordance with Goverrunent Auditing Standards. we havc also I~sued our report dated June 23. 2003. on our consideration of the Ware County Board of EducatIOn's Internal control over financIal reporting and our tests of ItS comphance With certaIn provisions of laws, reguJatlons, contracts and grants That report IS an mtegral part of an audIt perfonncd In accordance with Government Auditing Standards and shouJd be read In cOnjunctIOn With thIS report In consldenng the results of our audit
2002ARL-13

Our audit was perfonned for the purpose of fonnIng an opinion on the general-purpose financial statements of the Ware County Board of EducatIOn taken as a whole The accompanYing combining ~tatements (Exhibits G through N) and the finanCial schedules (Schedules I through 5). which Includes the Schedule of Expenditures ofFedeml Awards as reqUIred by U S Office of Management and Budget Circular A-I33. Audlls olStates. Local Governments and Non-Profit OrgamzlltlOm. arc presented for purpo~s of additIOnal analysIs and are not a reqUIred part of the general-purpose finanCial statements Such InfOnnalIOn has been subjected to thc auditing procedures applIed In the audit of the general-purpose finanCial statements and In our OpinIOn, except for the cffect of adjustments, If any, on the SpeCial Revenue Fund. as might have been detennIned to be nccessary had we been able to sallsfy ourselves a~ to the accuracy of the food servIce Inventones a~ discusscd In the third paragraph, and except for the effects of the matters referred to In the fourth paragraph. such InfOnnalIOn IS fairly stated, In all matenal respects. In relallon to the general-purpo~ financial statcments taken as a whole

A copy oflhls report ha~ been filed as a pennanent record In the office ofthe State Auditor and made available to the press of the State. as provided for by OffiCIal Code ofGeorgia Annotated SectIOn 506-24

Respectfully ~ubmmed.

~

W.~

R sell W Hinton State Auditor

RWHas 2002ARL-13

WARE COUNTY BOARD OF EDlJCATlON

WARE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL fUNP TYpES AND ACCOUNT GROup JUNE 30 2002

~ Cash .00 Cash EQ1.nYIIhmt!o
Investments
Investment! Held by Trustee
Accounts ReceNabie
Inventonos Food Doneted Commodrues Purcl'\lsed Food
Amount Available In Debt 5eMCe Fund
Amount to be PrcMded In FIJtLa'e Years for Paymen1 of Bond Debt Capltal Lene Agreements
Total Asset!

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1486 996 as $

11896013 $

57956351

2059,32384

53757916

1810141618

595894 69

84358917

858,84988

se 603 55 S1 921 76



4 114211558 $

11608165377 $

19153982957

UABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable SaIane5 Payable Expired Grant ~lal'lC88 Payable Contracts Pa)'8b1e RetIIlnages Payabkt Deferred Revenue Funds Held for Others
Caplllli LeaH Agreements General Obligation Bondi Payable
TotalL&abtbbes
FUND EQUITY
Fund B8iances
R_
for Bus Reptaalment Funds For Debt 5eNa For EIlCio'Mnen1 Corpus For Inventol1e5
Food Donated CommoddJes Pun:::haaed Food
For PLKpose at Bond ruue
For $PLOST ProjeCtS For Stale Capital Outl8y Pfo)ects U.......... DesIgnated for $elflnsurance Undosognoted
Total Fund Eqooy

$

262,88961 $

17493291 $ 126978524

17856026

595738 90

571745

423,599 05

208 066 55

8706 90

$

439,441987

78509618 $

190145084

$

41).4 364 09

$

56 603 55

5192176

$ 896791332

7369 092 58

51954 09 3,246,247 53
$ 3,702,56571 $

71503230

1 281,3n 83

82355781 $ 17838,37873

Total Ll8bIJltJes al'ld fund Equrty

$

n 4114211558 $

1608 853 1

$ 191539829 57

The notes to the genera~ finaJ1Ci8lll1atBments are an Integral pert of thiS 5tatement 2-

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

S

94237143 S

760 16

3529 826 18

223 50

21852

5250 00

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30, 2001

S 312865208 S 398984716

204 228 145 3B

183504 382 61

422350

4138 07

230360246

2108 453 38

S 4472,041613

56 603 55 51 921 76
04 472 41613

5270823 304 735 09
381154842

22 432,583 e7 0405,096 18

22,432,583 e7 405,096 18

13108 45158 S3S 386 58

S 4472 418 13 S

10,233 88 S 27,310,096 16 S 57,083244 87 S 39 979,45913

S 3 3n 20588

s 170760776

381,50243

n228916

7928904 76

5717 045

132,9787e

423 599 05

29896891

208 088 55

126 0458 97

8706 90

21 59391

S

596713

596713

553370

S

405098 16

040509616

535,386 58

2e 905 000 00

26 905 000 00

18920,000 00

S

598713 S 27,310,096 1e S 30,404206016 S 22 572 52172

S 4472,041613 S

300000

000 S 4472,41813 S

1,266 53 04 266 53

S

0404 364 09 S

57820070

4,0472 41613

3811548042

300000

300000

56 603 55 51,92176 8967 G13 32 7 3BQ og2 58

52708 23 304 73509 1894 0432 30 e 170,807 49 1248 663 48

51954 09 5,24391919

1136363 3603047807

S 26,641,164 71 S 17 0406,937 41

S 40472:41613 S

10233 68 S 27,310,oae 1e S 57,083,244 87 S :nl,979,0459 13

3-

WARE COUNTY BOARp OF EDUCATION COMBINEp STATEMENT OF REYENUES EXPENPITURES AND CHANGES IN fUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2002

REVENUES
State Funds Federal Funds Tax. . Other Funds
Total Revenues
EXPENPITURES
Current InstructlCln Support Sel'VlC6S PUpil ServlC8S Improvement of Instl1JCtlOf1aJ ServK:es
EducaltoneJ Media SeMces
General AdmmlStratlOf"l School AdmInlStr'at1OO BUSiness Admml5tra1101"1 Maintenance and Operation of Plant StuClerrt TransportallOn SeMC8S Cen1ral Support 8ervIces Other Support SeMcea Food Services OperatIOn
-'Caprtal Outlav
Debt ServIce
Interest Payll"lg Agent Fees
Tetal Expenditures
Excess of Revenues over (under) Expendll.ures
OTHER FINANCING SOURCES IUSES)
Accrued Interest on Bonds Sold Premlurm on Bonds Sold
Proceeds from General Obligation Bonds Par Value
Opera ling Transfers In Opera1tng Transfers Out
Total Other Fmanong Sources (Uses)
E.xcess of Revenues and Other Flnanang Sourc:e5 over (under) Expendrtures and Other Fmancmg Uses
see FUND BALANCE JULY 1 IReslatOd - Note 1)
Food Inventory - Ne1 Change In Pened Donated Commodities Purctlased Food
FUND BALANCE JUNE 30
The notes to the generaJ-purpose finanaal statements are an mtegtal part of this statement
- 4-

GENERAL FUND

SPECIAL REVENUE
FUND

S 31 70726475 S 1549915
825377522 , 251 63662
S 41228 175 7~ S

1484 527 17 5154 401 31
69955986
7338488 34

S 28240 539 58 S
1 35747442 833,:145 53
1 025,896 39 35994688
2,618,631 54 28508744
3136 355 85 1,932330 98
36361129 52729449
9472 00
130,290 42 34 316 98

3566:14858
371 88264 27689168
19583736 622813B 450000 23160 82 4336542
9588812 281147015

S 401854,59387 S

S

373,581 87 S

7,451626 15 -11313781

S

S

-.4983775

S

-49183775 S

S

323744 12 S

3378 821 59

4983775 4983775 -6330006
865n568

389532 17186 67

S 370256571 S

82355781

EXHIBIT B~

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

S 33191 791 92 S 31 330504 80

516990046

502001831

S 121828509 S 3726 709 63

1319876994

13317 328 67

11300105

204 998 92

2269 196 45

2536,35195

S 1 331 286 14 S 393170855 S 5382965877 S 52204 203 73

S 31806 888 24 S 31 16768427

S

23278500

544520980

1 729 357 06 111023721 1,025896 39
555 7M 24 268091292
522372 44 315951667 1 97569640
36361129 62318261 281147015 5454 681 80

180309507 1 054 207 73
989356 69 497272 59 263413262 266 728 74 269951013 1 75704034 412077 09 53009988 2702,54207 250267515

S 291500000 804 337 50 470741

304529042 838 654 48 4,70741

2690 16920 961 57982 1 16584

S 5677 994 80 S 372404491 S 57708 259 73 S 5266933723

S -4,346708 66 S

20766364 S 3878600 96 S

-46513350

S

S

148033 70

12490 44107

S 12638 474 77 S

43645'4 S

4364514 14803370

40955893

12900 000 00
4983775 S -4983775

453204 07 S 13091,678 &4 S

153436 32 153436 32
000

S 8291766 '1 S

660,86771 S 9213077 88 S

-46513350

934661262

381154842

1740275831

17 872 714 69

389532 17 186 67

541306 590 18

S 17,63837873 S 4472,41613 S 26,636,91818 S 17,402,758 31

-5-

WARE COUNTY BOARD OF EPUC~ ~INEP STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET ANp ACTUAL - (NON-GAAP BASIS>
GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 2002

EXHIBIT-C~

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds
T"". .
Other Funds
Total Revenues
EXPENDITURES

$ 3102521681 $ 3170726475

1549915

8 "'00 000 00

825377522

"03400 00

1 251 636 62

$ 3982861681 S 412281757'"

CU""", InstructIOn Support ServICeS Pupl ServiceS Improvement of InstrucbOnal ServICeS
EducabOnaJ Media ServICes
General Adrrunlstratlon School Admlnlstra'bOn Business AdmlnlStratlOn Maintenance and Operation of Plant Student Transportation ServICeS central Support servICeS Other Support servICeS
Food SeMces Opera'"'"
Gap,,", Ou1lay Debt5eMce
Total Expendrtures
Excess of Revenues over (under) ExpenctrhnlS

$ 28 220 333 46 $ 2824053966

1 56843258 80885196
1023 482 50 304 742 56
266185367 27313100
2 "94 050 75 1853798 32
38264643

1 357474"'2 833 3-45 53
1025896 39 35994688
261863154 28508744
3136 355 85 193233098
36361129 527,294 49

3$ 000 00

947200 164 607"'0

S 4012632323 S 40854,59387

$ -297706 42 S 37358187

OU1ER FINANCING SOURCES (USES>
Other Sources Other Uses
Total Other FlT\.AnClng SoLJ"CeS (uses)

$ 330 000 00 $
S 33000000 $

...... 9 8 3 7 7 5 -4983775

Excess of Revenues and Other FinanCIng Sources over (under) Expendrtures and Other Flnancng Uses $

3229358 $

323744 12

FUND BALANCE JULy 1 2001

293323380

337882159

AdJUStments Food Inventory Net Change In Pencd
Donated ConvnodrbeS Purchased Food

FUND BALANCE JUNE 30 2002

S 21965527 38 S 3?02.56S 71

SPECIAL REVENUE FUND

BUDGET

ACTUAl

$ 1386 908 00 $ 1 "'84,527 17

5190,046 87

5154 "'01 31

708 521 00

699 559 86

S 728547587 $ 7338 488 34

$ 3478871 91 $ 3566 348 58

507,16128 395 06210

37188264 27689168

20705200 2805967
1 700 00 750000

19583736 62281 38 450000 23160 82 43365042

86 500 00 2 ...9282300

9588812 281147015

$ 7204.729 96 S 70451,62615

$

80,74591 $ 11313781

S $ -14000000
$ -1"'000000 $

4983775 4983775

$ -59,254 09 $ 97917185 -12801302

-83300 06 86577568
389532 1718667

S 791 904 7... S _ ...B,,23=,5:::.57:.;6~1:..

The notes to tile genetlIl-purpose flllSllCial statements l.ue an lIltegraJ 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 2002

EXHIBIT"D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES None Recorded Operahn9 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 30, 2002

JUNE 30, 2001

$

000 $

000 $

000

$

000 $

000 $

000

$

000 $

000 $

000

8743

8743

28518

$

8743 $

8743 $

28518

4,17910

4,17910

3,89392

$

4,266 53 $

4,266 53 $ _ _.....;4,;,1;,;,;79;;",;,;10;.,

The notes to the genera~purposefinallClal stalements 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, 2002

EXHIBIT "E"

Cash Flows from Investing Activities Purchase/Sale ot 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 30, 2002

JUNE 30, 2001

$

-8743 $

-8743 $

-28518

8743

8743

28518

$

000 $

000 $

000

$

4303 S

4303 $

4303

$

4303 S

43 03 $ _~=..;;:43~0~3~

The notes to the general-purpose financaal statements are an Integral part ot this statement -9-

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Ware County Board of Education (School DistrIct) wa~ established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a SuperIntendcnt appointed by the Board The School DistrIct IS organized as a separate legal entity and has the power to levy taxes and ISSUC 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 of ItS operations Fund accounting IS deSIgned to demonstrate legal compliance and to aid financIal managemcnt 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 I~ a finanCial reporting deVice deSigned to provldc accountability for certain assets and liabilities that arc 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 I\. 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 type~
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 comphancc With generally accepted accounting prinCiples applicable to governmental Ufil~, unless otherwIse disclosed In these notes. Funds and the account group prcsented In thiS report are as follow~
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 Dlstnct except those reqUired to be accounted for In another fund These transactIOns rclate to resources obtained and used for services prOVided by a board of education.

- 10-

WARE COUNTY BOARD OF [-DUCA 1'1ON NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNI:. 30. 2002

EXHIRI r "F"

Notc I SUMMARY OF SIGNIFICAN r ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for thc proceeds of specific revenue ,ouree, (othcr than for major capital projects) that are legally restncted to expenditures for ,peclfied purposes Thcsc funds are recclved pnmanly from thc Gcorgla Department of EducatIOn and from the Federal government to accomphsh specific educatIOnal objectives
C ""PITAL PROJECTS FUND - the fund used to account for finanCial resources to be used for thc acqUISitIOn or construction of maJor capital facllitics
DEBT SERVICE FUND - the fund uscd to account for the accumulation ofrc>ourccs for. and the payment of, generallong-tenn pnnclpal. Interest and paYing agent fees
FIDUCIARY FUND TYPES - thc funds uscd to account for asscts held by a government umt In a tru~tee capacity or as an agent for individuals. privatc organizations. other governmcnt umt, and/or other funds The,e funds Include
NONEXPENDABLE TRUST FUND Gilchrist Fund - the fund used to account for an endowment of which the corpus IS to bc Invested and preservcd Intact With the resultant income to be used for expenditures on behalfof any needy children who reSide In the Gllchnst Park Commumty
AGENCY FUNDS - the funds u>ed to account for as.cts held In a fidUCiary capacity for other funds. government~. or indIVIduals
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A finanCial reporting deVice used to account for gcneral obhgatlOn debt outstanding and capital lease obhgatlons
BASIS OF ACCOUNTING
The accounting and finanCial reporting lreatInent applied to a fund IS determined by Its measurement focus All governmental funds are accounted for u,lng a current finanCial resource, measurement loeu, With thiS measurcmcnt focus. only current as>ets and current lIablhtles generally are Includcd on the balance sheet Operating statements of these funds present Increases (I e revcnues and other finanCing sources) and deereascs (I c . expenditures and other finanCing uses) In net current assets Thclr reported fund balance IS conSidered a measure of available spendable resources
Liabilities which are expected to be financed from avallablc ,pendablc resources are reported a,
hablhtIes In the governmental funds Othcr liabilitIes. which are not expected to be financed from available spendable resources. are reported In the General Long-Tenn Dcbt Account Group

- II -

WARE COUNTY BOARDOF EDUCATION

EXHIBIT "F"

NOTfS TO THE GENERAL-PURPOSE FINANCIAL STATfMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
All nonexpendablc trust funds are accounted for on a flow of economic resources measurement focus Wah thiS measurement focus, all assets and habIlltles associated with the operation of these funds are Included on the balance sheet Operating statements present Incrcases (e g, revenues) and decreases (e g , expenses) In net total assets
Agcncy funds are purcly custodial in nature and do not involve mca~urement ofresults ofoperations
Governmental funds arc accounted for u~lng the modi lied accrual basiS of accounting under which
Revenues are recogmzed when susceptible to accrual (I,e , when they become both measurable a,ld avaIlable) "Measurable" means the amount of the transaction can be determined and "available" mean~ COllccllble Within the current perIod or soon enough thereafter to be used to pay habihties of the current perIod The School DistrIct conSiders rccelvables collected WIthin SIXty days after yearend to be available Property taxcs, sales taxcs and intercst are conSidered to be susceptible to accrual Nonexchange transactlon~, In which the School DIstrict gIves (or rccelve~) value without directly receiving (or gIVing) equal value In exchange, Includc propcrty taxes, local option sales ta\C~. Intergoverrunental grants and donallons, Rcvenue for property taxes IS recOgnl7ed In the fiscal year for which the taxes are leVIed Revenue from sales taxes IS recogmzed In the fiscal year the resources are received or susceptible to accrual, Revenue from grants and donallons IS recognized in the fiscal ycar In whIch all eltgibiltty requuements have been satisfied
Expenditures are generally recognized when the related fund liabihty IS Incurred,
A departurc from the above defimtions IS the accounting treatment afforded the final two payments on General Fund teachers' and b~ drIvers' contracts. and the resources avaIlable from the Georgia Department of EducatIOn for the State'~ share of these contracts DUrIng fiscal year 2002, a substantial number ofpersonnel of the School DistrIct were employed for a one hundred and mnety day perIod beginning In August 2001 and ending In early June 2002 Personnel contrac~ for thiS employment perIod SpeCI/)' that compensation be paid In twelve equal monlhly paymcnts beginning In September 200 I and ending In August 2002 State grants to fund the State's share of these contracts werc disbursed from the Georgia Department of EducatIOn to thc School Dlslnct In the '>ame twelve months, As of June 30, 2002, compensation under these employment contracts had been earncd, but two of the twelve monthly payments, due for July and August 2002, had not been madc Paymcnt~ for these two months were made and recorded as expenditures by the School DIstrIct sub~equent to June 30, 2002. Also, the State's portion of the compensallon paid In July and August 2002 was received and recorded a, rcvenue In the fiscal year subsequent to June 30, 2002 Conversely, the SImilar expcndltures and related revenue, for contractual seTVlces completed pnor to June 30, 2001, were recorded In the year ended June 30, 2002 Generally accepted accounting prInCiples reqUire that revenues bc recorded when available and measurable and that expenditures be recordcd when Incurred, rather than when funds are received or dlsburscd

- 12-

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUN flNG POLlCH:S
The accrual basis of accounting, as reqUIred by generally accepted accounting principles, IS ullhzcd by nonexpendable trust funds Under thc accrual basIs of accounting, revenues are recordcd when carned and cxpenses are recorded at the lime habl hllcs are Incurred
Agency funds arc accounted for uSing the modIfied accrual basis ofaccounting In n:cognizlng assets and habl hties
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In pnor ycars, the financial actlvilles for the School Dlslnct's Family Connecllon fund were reported as a Special Revenue fund fhls fund had a fund balance of$IOO 00 at June 30. 2001 For fiscal y<:ar 2002, thl~ fund has been reported as an Agency fund The fund balance at July I. 2001. has been rcstat<:d as appropnate
BUDGET
The Ware County Board of EducatIOn's budget IS a complete finanCial plan for the School Distnct'~ fiscal year and IS based upon cstlmates of expendItures together wllh probable funding sources There IS no statutory prohlbillon regarding overexpendlture 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 estabhshed by the Board at the aggregate level The budget for governmental fund~ was prepared on a basl~ other than generally accepted accounting pnnclple~
1 hc budget process beginS when the School DistrIct's admlni~tration prepares a tentallve budget for the Board'~ approval After approval ofthIs tentative budget by the Board, such budget IS advertised at least once In a newspaper of general circulation in the locality At the next regular meeting ofthe Board after advertIsement, the Board receIves comments on the tentallve budget. makes revisions as necessary and adopts a final school budget ThIS final budget IS then submitted, In accordance With proVISIOns of the Quahty BaSIC EducatIOn Act, OCGA Section 20-2-167(c), to the Georgia Dcpartment of l:ducallon fhe Board may Increasc or decrea~e the budget at any time dunng the year All unexpended budget authonty lapses at fi~al year-end
CASH AND CASH EQUIVALENTS
COMPOSITION OF DIoPOSITS Cash and cash eqUlvalent~ consIst of cash on hand, demand deposll~ and ~hort-term Investments WIth onglnal matuntlcs of thrce months or lcss from the date of acqUISItion In authonzed finanCial institutions GeorgIa Law~ OCGA 45-8-14 authonze the School Dlstnctto deposit ItS fund~ In one or more solvent banls or Insured Federal savings and loan associatIOns

- 13 -

WARE COUNTY BOARD OF EDUCAnON

EXHIBIT 'T"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY 01' SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS InVt:stments made by thc School District In nonparticipating interest-earning contracts (such as certificates of depoSit) and repurchase agreements arc reported at cost Participating intcrest-earnlng contracts and money markct Investments with a maturity at purchase of one year or Icss are reported at amortized cost Both participating interest-earning contracts and money market Investments With a matunty at purchase greater than one year are reported at fair value The OffiCial Code of Georgia Annotated Section 36-83-4 authOrizes the School District to Invest lls funds and In M:lectIng among options for Investment or among institutional bids for depo~lts. the highest rate of rcturn shall be the obJective, given eqUivalent conditions of safety and IIqUldny ~unds may be Invested In the follOWing
(I) ObligatIOns Issued by the Statc of Georgia or by other states,
(2) ObligatIOns Issued by thc Untted Slale~ government,
(3) Obligations fully Insured or guarantecd by the Untted State~ governmcnt or a Untted States government agency,
(4) Obligations of any corporatIOn of the Untted States government.
(5) Prime banker's acceptance~,
(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 mformation available Receivables are recorded when either the asset or revcnue recognitIOn criteria has been met. Recelvable~ recorded on the general-purpo~e finanCial statements do not Include any amounts which would neces~natc the need for an allowance for uncollectible recclvables

- 14 -

WARE COUNl Y BOARD OF EDUCATION

EXIIIBIT "1'''

NOnS 10 THE GENERAL-PURPOSE FINANCIAL STATEMENl S

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Ware County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calcndar year) on October 4. 200 I (levy date) Taxe~ werc due on December 20, 2001 (hen dale) Taxes collected wlthm the current fiscal year or wlthm 60 days after year-end on the 2001 tax dIgest are reported as revenue m fiscal year 2002, Thc Ware County Tax Commissioner bills and collects the property taxes for the School DIstnCt, 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 durmg the fi~al year ended June 30, 2002 for maintenance and operatIOns amounted to $8.111,664 37 and for school bonds amounted to $2,664 72

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

School Operations

~mllis

SALES TAXES

SpeCial Purpose Local OptIOn Sales Tax revenue dunng the year amounted to $4,942,330 00 and IS to be uscd for capital outlay for educatIOnal purpo~e~ or debt service ThIS sales tax was authonzed by local referendum and the sales ta'l. must be re-authonzed at least every five years

INVENTORIES

FOOD INVENTORIES Inventones of donated food commodIties used m the preparatIOn of meal~ are reported on the Combmed Balance Sheet at their Federally assigned value, Purchased foods mventones are reported on the Combmed Balance Sheet at cost (first-m, first-out) Donated food commodItIes are recorded as revenues and expenditures at the time commodity Items are received Purchased foods mventones are recorded as expenditures at the tIme of purchase The mventories reported on the balance sheet for donated food commodIties and for purchased foods are equally offset by reservations of fund balance which mdlcates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets

GENERAL OBLIGATION BONDS

The School Dlstnct Issues general obhgatlon bonds to proVide funds for the acqU1~itlOn and construction of maJor capital faclhtles Bond prcmlUms and discounts, as well as Is~uancc costs, are rccognIzed m the finanCIal statements dunng the year bonds arc Issued General obhgallon bonds arc direct obhgatlOn~ and pledge the full faith and credit ofthe government The outstandmg amount of these bonds IS recorded m the General Long-Term Debt Account Group

- 15 -

WARE COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2002

FXHIBI r "F"

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The School District has thc following types ofmterfund transactions
Reimbursements of expendItures/expenses imllally made from a fund that are properly applicable to anothcr fund are recorded as expendItures/expenses m the relmbursmg fund and as reducllon~ of expendllures/expenses m the fund that is reimbursed
Operating transfers are recorded for all mterfund transactIOns other than relmhur~ements
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose finanCIal statements are captIOned "Mcmorandum Only" to mdlcate that they are pre~nted only to facilitate finanCIal analySIS Data m these columns do not present findncml po~illon. re~ults ofoperations or cash flows m confonmty WIth generally acccpted accountmg pnnclplcs Neither are such data comparable to a consolidation Interfund cllmmations havc not been made In the aggregation of thIs data Certam reclassifications have becn madc to the comparative data to confonn to thc current year classIfications
Notc 2 DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS OffiCial Code of Georgia Annotated (OCGA) Section 45-8- I2 provides that thcrc shall not be on deposll at any tm,t: In any dcposltory for a time longer than ten day~ a sum of money whIch ha~ not bccn sccured by surety bond. by guarantee ofmsurance. or by collateral The aggrcgate of the face valuc of such surety bond and the market value of secunties pledged shall be equal to not less than 110 percent of the pubhc funds bemg secured after the deduction ofthe amount ofdepoSIt msurance If a depoSItory elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value ofthe ~ecuntles pledged to secure a pool of public funds shall be not less than 110 percent ofthe daily pool balance OCGA SectIOn 45-8-ll(b) provides an officer holdmg pubhc funds may, in hiS discretion, waive the reqUirement for security in the case ofoperating funds placed m demand depoSit checkmg accounts
Acceptable secunty for depoSits COnsiStS of anyone of or any combmation of the followmg.
(I) Surety bond signed by a surety company duly qualified and authonzed to transact bUSiness wlthm the State of Georgia,
(2) Insurancc on accounts provided by the Federal DepoSit Insurance CorporatIOn,
(3) Bonds. bills, note~. certificates of mdebtedness or other direct obhgatlons of the Umtcd State\ or of the State of Georgia,

- 16 -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

(4) Bonds, bllb, notes, certIficates of mdebtedncss or other oblIgatIOns of the counties or mumclpalItles of the State of Georgia,

(5) Bonds of any publIc authonty created by the laws of the State of Georgia. provldmg that the statute that created the authonty authonzed the u~ of the bonds for thiS purpose,

(6) Industnal revenue bonds and bonds of development authontles created by the laws of the State of GeorgIa, and

(7) Bonds, bills, notes, certificates of mdebtedness, or other oblIgations of a sub~ldlary corporatIOn of the United States government, which are fully guaranteed by the Umted States government both as to pnnelpal and mterest or debt oblIgatIOns ISSUed by the Federal Land Oank, 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 Nallonal Mortgage ASSOCIatIOn
CATEGORIZATION or DEPOSITS
At June 30, 2002, the bank balances were $5,334,53426 The amoun~ ofthe total bank balances are claSSified mto three categones of credit nsk

Category I - Cash that IS msured (e g , Federal depository msurance) or collateralIzed With sccunlIcs held by the School Dlstnct or by the School Dlstnct's agent m the School Dlstnct's namc
Category 2 - Cash collateralized With secunlIes held by the pledgmg finanCIal mslItutlOn's trust department or agent m the School Dlstnct'~ name
Category 3 - UncollateralIzed depoSits (ThIs includes any bank balance that IS collateralized With secunties held by the pledgmg finanCIal mstltulIon, or by Its trust department or agent but not m the School Dlstnct'~ namc )

lbe School Dlstnct'~ depoSits are claSSified by nsk category at lune 30, 2002, a~ follows

Risk Category

Bank Balance

I

$ 101.64959

2

4,193,63000

3

1,039,254.67

Total
C1\TEGORIZATION OF INVESTMEN rs
At June 30,2002, the carrymg value of the School Distnct'~ total mvestments was $24,228,14536 whieh IS matenally the same as faIr value ThiS Investment conSisted entirely of fund~ Inve~ted In the Local Government Investment Pool admimstered by the State of Georgia. Offiee ofTreasury and

- 17 -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMEN I S

JUNE 30, 2002

Notc 2 DEPOSI rs AND INVESTMENTS
Fiscal ServIces which are not reqUIred to be categonzed smce the School Dlstnct did not own any specIfic IdentIfiable secuntles m the pool. The mvestment policy of the State of GeorgIll. Ol1icc of Treasury and FIscal Scrvlces for the Local Government Investment Pool (Primary LiqUIdIty Portfolio) does not provIde for mvestment m derivatives or sImilar mvestments A descnptlon ofthe Pnmary Liquidity Portfoho IS as follows,
The Pnmary liquidity Portfoho consIsts of Georgia fund I, which IS a combmatlon local and state government mvestment pool, and Fund 6 Gcorgla Fund lIS a ~table net asset value mvestment pool whIch follow~ Standard and Poor's cnteria for AAAm ratcd money market funds rhc pool IS not reglstcred WIth the SEC as an mvestment company but does operate Georgia Fund I m a manner consistent WIth Rule 2a-7 of the Investment Company Act of 1940 and is conSidered to be a Rule 2a7 hke pool The pool's pnmary objectIves are safety of capital, mvestment mcomc. hquidlty and diversification while mamtammg pnnclpal ($1 00 per share value) Net asset value IS calculated weckly to cnsurc stablhty, The pool dlstnbutc~carnmgs (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 mvestments are rcported at cost which approxImates fair value The pool does not Issue any legally bmdmg guarantees to support the value of the shares PartiCipation m the pool IS volunlar) and depOSits consist of funds Jrom local govcrnments, operating and trust funds of Georgla'~ statc agencies. colleges and universities. and current operatmg funds of the State of Georgia's General fund
Investments m Georgia Fund 1 and Fund 6 are directed toward short-tenn mstruments such as U S Treasury obhgatlOns. secunties Issued or guaranteed as to principal and mterest by the U S Government or any of Its agencies or mstrumentahtles, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund I may not exceed 60 days The weighted average matunty for Georgia Fund I on June 30. 2002, was 0 12 years The average mvestmcnt duration for Fund 6 on June 30. 2002. was 0.75 years.
Note 3 NON-MONETARY TRANSACTIONS
1 hc School Dlstnct receives food commodities from the Untted States Department of Agnculturc
(USDA) for school breakfast and lunch programs These commodities arc recorded at theIr Fedcrally assigned value See Note I - Inventories
The School Dlstnct has received a three year operatmg lease for tcn acres at no w~t from the InternatIOnal Paper Company for the Ware County High School Forestry Program
Note 4 RISK MANAGEMENT
The School DIStrict IS exposed to variOus nsh of loss related to torts, theft of, damage to, and destructIOn of assets, errors or Jmlsslons.Job related Illness or mJunes to employces, acts of God, unemployment compensation and dental chums.

- 18 -

WARE COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTE~ TO THE GENERAL-PURPOSE FINANCIAL STATEMFNTS

JUNE 30. 2002

Notc 4 RISK MANAGEMENT

The School DIstrict has obtamed commercIal insurance for nsk of loss assocIated With torts. assets and error~ or omISSions. The School Dlstnct ha~ neIther slgmficantly reduced coverage for thcsc nsls nor Incurrcd losses (scttlements) whIch cxcceded the School Distnct's msurance coverage m any of thc past three years

Thc School DI~tnct has elected to self-msure for all losses relatcd to flood The School Dlstnct has not expenenced any losses related to thl~ nsk in the past three ycars

The School District IS self-msured with regard to unemployment compensation cllums The School DIstnct accounts for claims wlthm thc General Fund With expcndlture and lIabIlIty bemg reponed when It IS probable that a lo~s has occurred, and the amount ofthat lo~s can be reasonably estImated

Changes In the unemployment compensatIOn claims liabilIty dunng the last two fiscal years are as follows

Begmmng of Year Llablhty

Claims and Changes m Estlmatcs

Claims Paid

End of Year Llablhtv

2001

$

000 $ 6.56200 $ 6,56200 $

000

2002

$

000 $

60500 $

372 00 $

23300

The School DIMct IS ~If-msured WIth rcgard to employee and dependent dental claims The School Dlstnct accounts for claims wlthm the General Fund WIth expenditures and liabilIty bemg reported when It IS probable that a loss has occurred, and the amount of that loss can be rcasonably esllmated ThiS program is funded through a combmallon of employer and employee contnbullons

Changes In the dental claims lIabilIty dunng the past two fiscal years are as follows

Begmnmg of Year Llablhty

Claims and Changes m E,lImate,

Claims Paid

End of Year Llablhtv

2001

$

000 $ 467,15292 $ 467,15292 $

000

2002

$

000 $ 527.29449 $ 527,29449 $

000

The School Dlstnct panlclpates m the Georgia School Boards ASSOCiatIOn Workers' CompensatIOn Fund. a publIc enllty nsk pool orgamzed on July I. 1992, to develop, Implement. and admmlster a program ofworlcrs' compensallon self-msurance for lis memberorganlzallons The School Dlstnct pays an annual premIUm to the Fund for Its general msurance coverage Addillonal Insurance coveragc IS proVIded through an agreemcnt by thc Fund WIth the Uruted States FIdelIty and Guaranty Company to proVIde coverage for potenllallosses sustamed by the Fund m excess of$350,000 00 loss pcr occurrencc. up to the statutory limit

- 19-

WARE COUNl Y BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4 RISK MANAGEMEN I

The School DIstrIct has purchased surety bonds and commercial Insurance to provIde additIOnal insurance coverage as follows

PositIOn Covered

Amount

SuperIntendent Each Employee

$ 100,00000 $ 100,00000

Note 5 GENERAL LONG-TERM DEBT

CAPI IAL LEASES The Ware County Board of Education has entered Into vanous lease agreements as les,ee for securIty systems, bUIlding energy management systems and eqUIpment Thesc lease agreements qualify as eapltalleases for accounting purposes and, thereforc. have been recorded at the present value of the future minimum lease payments as of the date of theIr inception

GENERAL OBLIGAnON DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows'

Purpose

Interest Rates

Amount

General Government - Senes 1995 General Government - Senes 1998 General Government - Senes 2002

435% - 5.85% 400%-4.30% 300%-400%

$10,405,000.00 3,600.000 00 12,900,000 00

$26.905,000.00

The change, In General Long-Term Debt dunng the fiscal year ended June 30, 2002. were a~ follow,

- 20-

WARE COUNTY BOARD OF EDUCATION NO II:.S 10 THE GENERAL-PURPOSE FINANCIAL S I ATEMENTS
JUNE 30, 2002

EXHIBIT "F"

Note 5 GENERAL LONG-TERM DEBT

Capital Leases

General ObligatIOn
Bonds

Total

Balance July I, 200 I

$ 535,38658 $16,920.000 00 $17,455,38658

AdditIOns GO Bond,

12,900,00000 12,900,00000

DeductIons Debt RetIred

130.29042 2,915,00000 3,045.290 42

Balance June 30, 2002

$ 405,096,16 $Mi.905.000,ill) $27.310,096,16

At June 30, 2002, payments due by fiscal year whIch Includes pnnclpal and Interest for thcsc Items are as follow,

FI'>Cal Year Ended June 30

Capnal Leases

General ObligatIon
Bonds

Total Debt

2003 2004 2005 2006 2007 2008 - 2012 2013 - 2015

$ 164,60740 $ 4,567,415 00 $ 4,732,022 40 164,607,38 4,554,007 50 4,718,61488 120,91027 3,988,077 50 4,108,987 77 3.993,75000 3,993,75000 4.012.51250 4.012,512,50 8,815,42500 8,815,425,00 3.774.23500 3.774.23500

Total Pnnelpal and Intere~t $ 450,125,05 $JJ.705422,5Jl $34.155.547,55

Deduet Imputed Interest

45.02889

Net Present Value of Future MInImum Lease Payments $ 4Qi.096,16

Note 6 ON-BEHALF PAYMENTS

The School Distnct has recogmzed revenues and expendIture, In the amount of $522,786 87 for health Insumnce and retirement contnbutlOns paid on the School Dlstnct's behalf by the follOWIng State AgenCIes

- 21 -

WARE COUNTY BOARD OF CDueATION

CXH1I3IT "F"

NOTES TO THE GENERALPURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 6 ON-BEHAU PAYMENTS

Gcorgla Dcpartment of EducatIOn Paid to the Georgia Dcpartment of Commumty Hcalth For Health Insurancc of Non-CertIfied Personnel In thc amount of $420.774.23

Paid to the 1 eachers Retirement System of GeorgIa For Tedchcrs Retirement System (TRSl Employer's Co~t In the amount of $31 ,561 64

Office of Treasury and FIscal Services PaId to the Pubhc School Employecs Retirement System For Pubhc School Employees Retirement (PSERS) Employer's Cost In the amount of $70,45 1.00

Note 7. SIGNIFICANT COMMITMENTS

Thc follOWing IS an analysis of sigmficant outstanding construction or renovation contracts executed by the School DI~tnct as of June 30. 2002

ProJcct

Uneamed Executed Contracts

Memonal Dnve Elementary School RenovatlOn~ Memonal StadIUm Renovations Ware Mlddlc School RenovatIOns

$ 2,10658 2,126,73454 12.54959

$ 2.141390.71

The amounts descnbed In thiS note are not reflected In the general-purpose finanCial statements

Note 8 CONTINGENT LIABILITIES

Amounts recelvcd or receivable principally from the Federal government are subject to audit and review by grantor agencIes This could re~ult In reque~ts for reimbursement to the grantor agency for any cxpendltures whIch are dIsallowed under grant terms. Thc School DIstrict bcheve~ that such dIsallowances. If any, WIll be Immatenal to Its ovemll finanCIal positIOn

Thc School Dlstnctls a defendant In vanous legal proceedings pertaining to matters incldcntal to the performance ofroutine School Dlstnct operatIOns The ultImate dIspoSItiOn of these procecdlngs IS not presently determinable, but IS not beheved to be matenal to the general-purpose finanCial
~tatements

22 -

WARE COUNTY BOARD OF EDUCATION

[XIIIBIl'T'

NOTES TO TilE GENERAL-PURI'OSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 9 RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

1 RS PLAN DESCRJPllON Substantially all teachers, admInistrative and clencal pcrsonnel employcd by local school dlstnct, arc covered by the Teachers Rctlrement Systcm of Georgia (TRS), which IS a cost-shanng multi pic employer defined benefit pensIOn plan TRS provides ~ervlce retirement, disabIlity retlrcment and ~UrvIVOrs benefits for ItS members In accordance with State statute The Teachers Rctlremcnt Systcm of Georgia Is,ues a separate stand alone financial audit report and a copy can be obtaIncd from the Georgia Department of Audits and Account>

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the School Dlstnct who are covered by TRS arc requIred by State ~tatute to contnbute 5% of their gross earnIngs to TRS The School Dlstnct makes monthly employer contnbutlons to I RS at rates adopted by the TRS Board of Trustees In accordance with State statute and as advised by their Independent actuary The reqUired employer contribution rate IS 9,24% and employer contnbutlon, for the current fiscal year and the precedIng two fiscal years are as follows

Fiscal Year

Percentage Contributed

ReqUired ContnbutlOn

2002 2001 2000

100% 100% 100%

$ 2,603.273 54 $ 3,045,506 5R $ 2,90tl,545 63

- 23 -

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

ASSETS
Cash and Cash EQUivalents
Investments
Accounts Receivable
Inventones Food Donated Commodltles Purchased Food
Total Asse1s
LIABILITIES AND FUNP EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Defemed Revenue
Total LiabilitieS
FUND EQUITY
Fund Balances Reserved For Inventones Food Donated Commodltles Purchased Food Unreserved Undeslgnated Total Fund EqUity
Total LrabllrtlBs and Fund Equity

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

245,52784 $

7964497

537,57916

110,803 67

72 454 76

5660355 51,921 76

$

1 002 435 9B $, _ _.:.:15~2~,099:.:.:73;:.

S

37,10066 $

32917 46

14177771

119,18227

$

17887837 $

152,099 73

$

56,60355

51,92176

715,032 30 $

$

823,55761 $

000 000

$

1002,435 9B $ _ _..:1.::5~2,~0:::99:::.:.7;.3

See notes to the general-purpose financial statements

- 24-

EXHIBIT"G"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

000 $

325,17281 $

47405728

537,57916

52475371

$

660330 74

843,58917

748,25740

56,60355 51 ,921 76

52,708 23 34,73509

$

660,33074 $

000 $ 1 814,866 45 $ 1 834,511 71

$

206 212 68

104 914 79

334,n892

571745

8,706 90

$

660 330 74

$

206,21268 $

56 347 44

174,93291

172 18952

595,73890

58562838

5,717 45

13297678

8706 90

21 59391

$

991,308 84 $

968,736 03

$

o00 $

$

000 $

$

660,33074 $

$
-"!.O-"OO,,-000 $

56,60355 $ 51,921 76

52,70823 34,73509

715,03230

n8 332 36

823 557 61 $ _--,86=5""7..!-7,,,-5.,,68,,--

000 $ 1,814,866 45 $ 1,834 51171

- 25-

WARE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002

REVENUES
State Funds Federal Funds O1her Funds
Total Revenues
EXPENDITURES
Current Instrucbon Support ServiceS Pupil SeMCeS Improvement of Instructional SeMces General Adm,nlstratlOn School Administration BUSiness Admtnlstrabon MaIn1enance and OperatIon of Plant Student Transportation Services Other Support ServIces Food Services Operabon
Total Expenddures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and O1her FinanCIng Sources over (under) Expendfures
FUND BALANCE JULY 1 (Restated)
Food Inventory - Net Change ,n Pened Donated Commedmes Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements
- 26-

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

201,872 00 $ 1,282,655 17

1,846,738 23

699,55966

S 2,748,17009 $ 1,282,655 17

$ 1,062,51876

135,46978 3,51300

62,28138 4,500 00 23,160 82 17,14350

$ 2,811,47015

$ 2,81147015 $ 1,308,587 24

$

-63,300 06 $

-25,93207

$

-63,300 06 $

66577568

3,895 32 17,18667

25,93207
000 000

$

823557 61 $ _ _~~O:;"OO==

EXHIBIT "H"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 3307,66308 $
s 3,307,663 08 $

$ --'0::..;00::.::....
000 $

1,484,527 17 $ 5,154,401 31
699,55986
7,338,48834 $

1,431,201 75 5,020,01831
772,477 06
7,223,69712

$ 2,503,82982
236,41286 273,191 37 $ 195,83736

26,221 92 95,68812

$ 3331 381 45 $

$

-23,71837 $

$ 18731
18731 $ -18731 $

3,566,348 58 $
371,88264 276,89168 195,83736
62,281 38 4,50000
23,160 82 43,36542 95,888 12 2,811,47015
7,451,62615 $
-113,13781 $

3,550,31404
351,87455 266,28281 200,86207
19,77094
12,85864 35,48514 45,57591 2,700,922 45
7,183,946 55
39,75057

23,71837

$

000 $

000

$

000 S

18731

49,83775

000 $ 000

-63,300 06 $ 865,77568

39,750 57 830,64799

3,89532 17,186 67

-541306 590 18

000 $

823,55761 $ ~~8;;;6;;;,5,;,;,7;,;75;;.;6~8;.

- 27-

WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retamages Payable
Total liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Pl"Ojects Unreserved Undes,gnated Total Fund Equrty
Totaillabillbes and Fund EqUity

REGULAR

BOND PROCEEDS

$

32,709 35 $

110,651 57

10,758,71259

$

32,70935 $ 10,869,364 16

$ 1 269,78524 423,599 05 208,066 55
$ 1,901 ,450 84

$ 8,967,91332

$

32,709 35

000

$

32,709 35 $ 8,967,91332

$

32,709 35 $ 10,869,364 16

See notes to the general-purpose finanCIal statements - 28-

EXHIBIT "I"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$ 1,24866348

$ 1,392,024 40 $ 4,162,78822

$ 7,342,70359

18,101,41618

5,513,046 72

858,84988

858,84988

846,38379

s 1,248,66348 $ 8,201,55347 $ 20,352,29046 $ 10,522,21873

$

812,460 89 $

812,460 89 $

611,17763

1,269,785 24

139,000 60

423,599 05

298,968 91

208 066 55

126,458 97

$

812,46089 $ 2,713,911 73 $ 1,175,606 11

$ 8967,91332 $ 1,894,432 30

$ 7,389,09258

7,389,09258

6,170,807 49

1,248,663 48

$ 1,248,663 48

000

1,281,372 83

32,709 35

$ 124866348 $ 7,389,092 58 $ 17,638,37873 $ 9,346,61262

$ 1,248,66348 $ 8,201 55347 $ 20,352,290 46 $ 10,522,21873

- 29-

WARE COUNTY BOARp OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUNP YEAR ENDED JUNE 30, 2002

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services BUSiness Administration
Capital Outlay ProfeSSIOnal and Technical Services Rents Supplies BUildIng and BUildIng Improvements EqUipment
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES (USES)
Premiums on Bonds Sold Proceeds from General Obllgatton Bonds
Par Value Operabng Transfers Out
Total Other FinanCIng Sources (Uses)
Excess of Revenues end Other FmanClng Sources over (under) Expendrtures and Other Financing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

S

000 $

113,001 05

S

000 $

113,001 05

$

000 $

232,78500

648,400 20 4,34337
827,134 89 2,456,208 69 1,509,12265

$

000 $ 5,677,994 80

$

000 $ -5,564,99375

$

148,03370

12,490,44107

$ 12,638,47477

$

000 $ 7,073.481 02

32,709 35

1,894,432 30

$

32,709 35 $ 8,96791332

See notes to the general-purpose finanCIal statements - 30-

EXHIBIT"J"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 1218,28509 $ 1,218,28509 $ 1,511,16504

$

---"-0",00,--

113,001 05

263,53213

$

000 $ 1,218,28509 $ 1,331,28614 $ 1,774,69717

$

000 $

000 $

232,78500

648,40020 4,34337
827,134 89 2,456,208 69 $ 1,509,122 65

2,38518581 35,97059

$

000 $

000 $ 5,677 994 80 $ 2,421,156 40

$

000 $ 1,218,28509 $ -4,346 708 66 $

-646,45923

$

148,033 70

12,490,441 07 $

$ 12,638,47477 $

-153,436 32 -153,436 32

$

000 $ 1,218,28509 $ 8,291 766 11 $

-799,89555

1,248,663 48

6,170,807 49

9,346,61262

10,146,508 17

s 1,248,663 48 $ 7,389,09258 $ 17 638,378 73 $ 9,346 612 62

- 31 -

WARE COUNTY BOARD OF EpUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND
JUNE 30 2002

EXHIBIT "K"

ASSETS Cash and Cash EqUIValents Investmenls Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30 2002

JUNE 30 2001

$ 4060104 60 $ 4,060104 60 $ 1 121 91275

$ 3117,51465

41231153

3,52982618

664990353

21852

21852

1,16443

Total Assets

$ 3,117,73317 $ 447241613 $ 7,59014930 S 777300071

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Ovel1lraft

S 311773317

FUND EQUITY

Fund Balances Reserved For Debt Service Unreserved UndeslQnated

$

$

000

Tolal Fund Equrty

$

000 $

$ 3117,733 17 $ 3,961 ,452 29

4472,41613 $ 4,47241613 $ 3,811 548 42

000

000

000

4,47241613 $ 4,472 41613 S 381154842

Tolal Llab111beo and Fund EqUity $ 3117,73317 $ 4472,41613 $ 7590,14930 $ 7,773,00071

See noles to the general-purpose finanCial statements

- 32-

WARE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30 2002

EXHIBIT "L"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30 2002

JUNE 30 2001

REVENUES

Taxes Other Funds

$

2664 72 $ 372404491 $ 3.726709 63 $ 3473031 52

144 291 10

60 707 82

204 998 92

40283594

Total Revenues

$

14695582 $ 3784 752 73 $ 3,931 708 55 $ 3875,86746

EXPENDITURES

Debl 8elVtee PnnClpal Interest PaYIng Agent Fees

$

38500000 S 2530 000 00 $ 2.915.000 00 $ 2550 000 00

600,02500

204 312 50

804 337 50

91818500

73741

397000

470741

1,16584

TalaI Expenditures

$

98576241 $ 2738 28250 $ 3,72404491 $ 3469,35084

Excess of Ravenlie' over (under) Expenditures $ -838806 59 $ 1 046 470 23 $ 20786364 $

406,51662

OTHER FINANCING SOURCES (USES)

Accrued Interest on Bonds Sold
Proceeds of Bonds Par Value
Operatmg Transfers In Operatmg Transfers Out

$

43,64514 $

4364514

$

838 806 59

409,558 93 -838,806 59

409 558 93 838 806 59 $ -838 806 59

676706 23 -676706 23

Total Other Flnanong Sources (Uses) $

838 806 59 $ -385,60252 $ 453204 07 $

000

Excess of Revenues and Other FinanCIng Sources

over (under) Expenditures and Other Fnancmg

Uses

$

000 $

660,86771 $ 660 667 71 $

406 516 62

FUND BALANCE JULY 1

000

3811 ,548 42

3,811 54842

3405.031 80

FUND BALANCE JUNE 30

$_~~~O~O~O:.. $ 4472:41613 $ 4.47241613 $ 3811 54842

See noles to the general-purpose financial statements

- 33-

WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 3Q 2QQ2

EXHIBIT "M"

Cash and Cash EQUlvalento Investments Held by Trustee Accounts ReceIvable
Tatal Assets

NONEXPENDABLE TRUST FUND ENDOWMENT FUND GILCHRIST FUND

AGENCY FUNDS

TOTALS

JUNE 30, 2002

JUNE 3Q 2001

s

43 Q3 S

717 13 S

76Q 16 S

326 73

4,22350

422350

4 136 Q7

5250 QQ

5250 QQ

5,250 00

S

426653 S

5,96713 S

lQ23366 S

~9~7~12~8~Q~

LIABILITIES AND FUND EQUITY

LIABILITIES

Funds Helcl for Others

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

UndeSlQnated

Total Fund EqUity

S

Total LaablUbes aro Fund Equity

$

S

596713 S

598713 S

5533 7Q

300000 1,266 53 $
42ti8 53 S

S QOO QOO $

3,OOQ 00 S 1 2ti8 53 42ti8 53 $

3,000 QQ 1,1791Q 4,1791Q

4,266 53 $

596713 S

lQ23366 S _ _-,9!,;7W'~2l::8Q~

See notes to the general-purpose financial statements

34

WARE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE AGENCY FUNDS YEAR ENDED JUNE 3Q 2002

EXHIBIT "N"

FAMILY CONNECTION ASSETS
Cash and Cash Equtvalents Accounts Receivable
Total Assets
LIABILITIES Cash Overdraft Funds Held for Others
TotalLJablhhes
SPECIAL NEEDS FUND ASSETS
Cash and Cash EqUivalents
LIABILITIES Funds He'd fOT Others
TOTALS AGENCY FUNDS ASSETS
Cash and Cash EqUIValents Accounts ReceIVable
Talai Assets
LIABILITIES Funds Held for Others

BALANCE JULY 1 2001

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30 2002

S

50,000 00 S

50,00000

S

5250 00

5250 00

525000 S

5250 00

s

5,25000 S

5525000 S

55 250 00 $ _ _....::5.:;2;::50::.,:::00::.,

s

515000

$

5150 00

10000 S

50,000 00 S _ _-,5",0-,0",00,-0",0,-

100 00

S

525000 S

50 000 00 S

50 000 00 S _ _....::5~2o:5O::.,:::00::.,

543370 S

1661950 S

16 186 07 S _ _-,,5,~86~7:..:.:'3:.

S

543370 S

'66'950 S

16 186 07 S _ _...;::5.::86:;:.7~'.:.:3:..

S

28370 $

6661950 S

6618607 $

717 13

5250 00

000

000

5250 00

s

553370 $

6661950 S

66'8607 S _ _..::.5.::96:;:.7~'.:.:3:.

$

553370 $

6661950 S

66 186 07 S _ _..::.5.::96:;:.7~1.:.:3:.

See notes to the general-purpose finanCIal statements

35 -

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF EXpENOUURES OF FEDERAL AWARDS
YEAR ENpED JUNE 30 2002

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASS THROUGH
ENTITY ID
NUMBER

FEDERAL REveNUE IN PERIOD

EXPENDITURES IN PERIOD

Agncutture U S Departmen1 of Chlk1 Nutnllon Cluster Pass-ThroLIQh From Georgia Department of EducabOn Food and Nutnllon Program Food ServICeS $chCx)I Breakfast Program Nabonal SChool Lunch Program

10553 '0555

NlA

$

417 415 53

(2)

NIA

1 277 17955 $

2,65932700 (3)

Total Child NutnllOn Clu~er

$ 1694 595 08 $

265932700

Other Programs PassThrough From GeorgIa Department of Eoucauon Food and Nulnoon Program Food ServICeS FOOd Dlslnbuhon Program (1)

10550

NlA

152,'4315

15214315

Total U S Department of Agnculture

$ , 846,73823 $

2,81'47015

Corporation fOf Naoonal and Community ServICeS PassThrough From Georgia Dopartmen1 of Edueat.on Leam and Serve Arrw!lnc::a School and Community Based Programs Pass Throuqh From Okefenokee Regional EducatIOnal ServICe AgencY Leam and Serve AmerIca SChool and Community Based Programs

".004 ".004

NIA

5

NIA

141413 $ 499 '5

298271 (3) (4)

Total COrporabon for NatIOnal and Commurvty ServICe

$

1,91328 5

298271

Educaoon U S Department of Special EducabOn Cluster Pau.ThrOugh From GeorgIa Department of' Educaf10n IndIVIduals WIth DrsabtlltJes EducatIOn Act Part 8 Speoal Educabon FlOW Through Preschool CapaCIty BUIk1lng Improvement Grant

84 027 804 17'3
84'73

NlA

5

634,506 41 $

NlA

10'3222 4B

N'A

18,250 42

834 508 4' 10'32224B 16250 42

Total Speasl Edueatlon Cluster

$

75597931 S

75597931

Other Programs

PassTtvouQh From Coastal Plains RegIOf\Sl Edueatronal Service

Agency

dIbIa Souttlem Pme Migrant EducatIOn Agency

Elementary and Secon.dary EdueatJon Ad

Title I

Migrant EdueatJon

84 011

NIA

4271960

4271960

Pass-Through From Geofgaa Department of Education

Elementary and Secondary EdlIcaoon Act

T.ue I

Grants to Local Edue:atJonal Agenoes

B4 010

NIA

Title II

Eisenhower Profe5S'Onal Development

84 28'

N'A

TrtIe III

Technoiogy Literacy Challenge Fund Gran13

84 318

NIA

Title VI

Innovative EducabOn Program Str'at'egIes

84 298

NlA

ClaM SIze ReductJ:Jn Goals 2000

84"'0

NlA

State and Local Education SystemIC Improvement Grants

64 276

NIA

1 82363913 3232763
~1 46599 384 :!18 00
1480738

182363913 3232763 196 B9 (3)
5' 46599 <06 030 $2 (3)
1480738

36 -

WARE COUNTY BOARD OF EDUCATION SCttEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE ~1~

FUNDING AGENCY PROGRAMtGRANT

CFDA NUMBER

PASSTHROUGH
ENTm ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education U S DepaJ"l:l'T"ref"l\ of Other Programs Pa~ThroughFrom Georgia Qepartmenl of Educabon Vocabonal Education - BaSIC Grants to Stales High Scnool Program BaSIC Grant Pass-Through From Okefenokee ReglOl1al Educaoonal service Agency safe and Drug-Free SChools

84 048 84 188

NfA

$

9859200 $

NlA

23281 13

9872143 (3) 23281 13

Total U S Department or Education
Defense U S Department of Direct Depa.rrment of the Army ROT C Program

S 322713017 S _-"3".2",4!!.8-,,,,88,-,,-O',-

S

49291 43 $ _ _....::4"8.",2,,-8',-4,,,3,-

Labor U S Department 01
Pass-Through From Southeast Georgaa ReglQllSl DevelOpment Center
Workf~ Investment Act Youth AcbvltJes

17259

NfA

$

29,82735 S

28838 30 (3)

Transportation U S Department of Pass Through From Governor's Office of Hlghw3V Safety State and Community Hrghway Safety

20600

NlA $ _ _-,,'5,-000=-,00,,-

(4)

Total Fedef'll FinanCIal Assaslance
= N/A Not AvaIlable

S 5 169 900 46 S _-,6,"I'~4~2.:::8"''',-6~0::.

Noles to me 5cttedyle of Exoengltures 01 Federal AwardS

(1) The amounts. shown for the Food OlstnbutlOn Program repfesents the Federally a5slgned ....alue 01 nonmonetary aSSlSlance for donated commodities received and/or consumed by lhe system dunng the current fiscal year
(2) Expenditures for the School Breakfast Program were not mamtalned separately and are Il"duded In the 2002 NatlooaJ School Lllnch Program
(3) Expendrtures fOt thiS program Ifldude Slale and/or Other Funds Expendl.lures are not malntamed by fund source
(4) ExpencIllUres on thiS program were not mainlallle'd by fund source

Major Programs are ldentrfled by an astonsk ()In front 01 the CFDA number

The School Dtslnct did not proVIde Federal ASSistance to any Subrecaplent

The accompanying sdledule of expenditures of Federal awards Includes the Federal grant BctNlty of the Ware County Board of EdUCallon and 15 presented on the modified accrual basis of accountmg whICh IS me baSIS of accounting used In the presentatron of the general-purpose fH\!Iooal statements

See notes to the general-pUrpose finanaal statements - 37

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF STATIE REVENUE YEAR ENDED JUNE 30. 2002

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs Georgia Department of
G~~sEm~~Fuoos Local Asslstance Grant
EducabOn Georg.. Deportment 01 Quality BaSIC EducabOl1 DIrect Instructional Cost Kindergarten Program Kindergarten Program - Early Intervenbon Program Pnmary Grades (1-3) Program Pnmary Grad... Early Intervenllon (13) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early InterventiOn (45) Program Middle Grades (6-8) Program Mldcle School (6-8) Program HlQh School General Educa1JOn (ll-121 Program VocabOnaI laboratory (9-12) Program Students with Dlsablllties Category I Category II Category III Category IV CategOlY V "'!led S.-,t - Category VI Remedial Education Program Altemabve Edueatlon Program EnglISh Speakers 01 Other Languages (ESOL) 20 Days Addfbonal InstnJctlon Melha center Program Staff and Professk)nal Development Indirect Cost Categoncal Grants Pupil TransportabOO Regular Bus Replacement SparsIty Nuqjng Serw:es PrInopal Supplements
VocationalSupenn~
Mkjterm AdjUstment HoId-Harmiass Educabon Equalwlbon Funding Grant Food Serw:es Vocational EducatIOn
Other State Programs Health Insurance Men1O<1ng Program Mentor Teachers Preschool Hand_ped Program Spec&81 Education Low lnaclence Grant Statewlde 4-8 Mer School Program Statew>de K 3 Reading PrognIm Teachers'RetJremen1
LOlIOfy Programs AssostMl Technology Computers en the CIa5sroom Post Secondary OplJons

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TQTAL

$

25,00000

35,00000

$

2500000

35,000 00

1,28583100 48874500
3,222 555 00 1,039,23300 1734 860 00
485309 00
31850600 309192200 2,59095400
92071500
66 360 00 84864200 213570300 54908700
2484600 1,581,44300
101,15200 253,87800
34 69000 173,606 00 60238800 11810200 3,94947500

79278500 198 425 00 2000000 132744 00 26,95500
3528500 17 055 00 377366900
$ 20251502
420,77423 1 57377 3,21300
8282700 55,35200 56 495 00 9386809 31,58164
6,236 00

201 872 00
14,936 00 227454 76

1 28583100 48874500
322255500 1 03923300 1 734 860 00
485,309 00
31850600 3091 92200 259095400
92071500
6636000 84864200 213570300 54908700
2494600 1 581 44300
10115200 25367600
34 590 00 17360600 60238800 11810200 394947500
79278500 198,42500 2000000 132744 00 26,95500
3526500 17 055 00 377366900 201,872 00 20251502
42077423 157377 3,21300
82 827 00 5535200 56 495 00 9386809 31,58164
14,936 00 227454 76
6236 00

38

WARE COUN"TY BOARD OF EpUCATION
SCHEDULE OF STATE RE\lENUE
YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCYIFUNDING
GRANTS OffICe of School Readmess Pre-KJndergarten Program
Office of Treasury and Fiscal ServICeS PublIC SChool Employees Retirement
CONTRACT
Public Health Georgia Department of Pass-Through From SOutheast l-iealth Umt Youth Development Wrap Around Program

GOVERNMENTAL FUND TYPES

SPECW.

GENERAL

RE\lENUE

FUND

FUND

TOTAL

s 104026441 S 1,04026441

s

704S1 00

70,4S1 00

7 SOC 00 S 31707264 7S S

7 SOO 00

See notes to the general-purpose finanaal statements 39

WARE COUNTY BOARO OF EOUCATION SCHEDULE OF APPROVED LOCAL 0PT10N SAlES TAX PROJECTS
YEAR ENDED JUNE 30 2002

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS (3) (4)

PROJECT STATUS

Retlnng prBVlOUSty ancurred General ObhgabOn Debt of the SChool D,stnet

S 15,10000000 $ 15,10000000 S 98576241 $ 2727,29789 OnilO'ng

Acqulnng construetlng and equlppmg the following Capital Outlay projects
ackhng to remodeling renovabng
rmprovlng and eqUipping exlSbng educauenaJ buldngs properties and fadl_ of the SChool DISlnCl, acqUlnng any necessary personal property and eqwpmenl, including computers and related technology copterS energy management HVAC, lighting and S1rT'1llar equipment relocating or e~-...m(hng, remodeling and renovabn;: Lllt exlSbnQ transportabon and bus garage and remodehng and renovation necessary 10 convert Center Junior High School mto School District admlmstrabve offices and purchast:ng achooI buses

15900 000 00 15 900 000 00

1662181 11

9831 234 53 Ongoong

Rebnng the SChool DISlncrs General Obhgahon Bonds Series 1995 debt

1 9B5 000 00

1,985,000 00

0ng01Oll

Acqwnng constructing and eqUlppmg the foI1OW11lll Caprtal Outlay projects renovatIOns and Improvements at Memonal StadiLm acqutSIIJon constructJon, renovabOn and eqUipping of fine arts facJlmes rncIudJng the
construcuon of a new perlomJtng ana
center and choral lab at Ware County H'Ilh School, reoovatIons at tho Waycross Middle School audltonum, renovabons to the Ware County Middle SChool audrtonum and enlargements and renovationS to the band room at Ware County High School SIte Improvements including pun::hase of eqUipment, prOVIding fencing demolitIOn paving construction of SIdewalks and covered areas at vanous schools, construetuJn of soccer fields and Improvements to the softball football ftek:ls tennis courts, phy&Ical education andl
or any other athlebc field provIding hghbng bleadlera fenc1ng and eqwprnent al Ware County High SChool Improvements to the softball baseball field soccer field, football tIeId physJcal educahon and/or
any other athlebc field fenCing pav1ng reworking Ole bus Ioadmg area and providIng IIghbng and bleachers at WByCr065 Middle SChool, Improvements
to the softball, baseball, soccer fooIbajl, phy&JcaJ education and/or any other athletlc fIekJ fencmg pavtng and provlling l'Ilhtlng and bleachers at Ware County
MId<Ie School, providing IIghbng and
mstalhng bleachers at the softball and

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECIS
YEAR ENDED JUNE 30 2002

SCHEDULE -:r

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

baseball fields at Ware County Magnet

SChool constructIOn of classrooms at

Ruskin MemonalOnve Waresboro and

Wacona Elementary Schools, construet1on

of a JROTC bUlldmg at Ware County

HIgh School, acqUIsition of furnIShings

and equipment at Ware MKldle Waycross

Middle Memonal Dnve Wacona Waresboro

and Ware Magnet Schools

making extenor Improvements mdudUlg

paInting and repalrs 10 all schools

acqUlsrnon of new technology copiers

matertals and equipment purd1ase

and Installatlon of HVAC eIectncaI and

energy controls a1 Waresboro Wacona

MemonaI Dnve Elementary SChools Ware

County and Waycross Middle Schools

Ware Magnet and Ware County HIgh School

acqulslbon of new school buses and

renovations and lRlpfovements 10 the bus

shop and payment of conbngenaes, surveys,

geotechnICal seMceS ardlItecturat and

engl.neenng fees testmg selVlC8S and fees

together With capitalized Interest and legal

admltllstrabve costs related 10 ISSuance

of the bonds

S 25,515000 00 S 25,515,00000 S 401978369

AMOUNT EXPENDED
IN PRIOR YEARS (3) (4)

PROJECT STATUS
Ongoing

S 58500000 00 S 58 SOD 000 00 S 6,667,72721 S 12558 532 42

(1) The SChool DISIrlct's angmal cost esbmate as speafied In the resolution caUmg for the lmpostbon of the Local Option Sales Tax

(2) The School DlstI1cfs current estimate of total cost for the pro,ects Includes all cost from prQ1ed: ancepbon to completion

(3) The voters of Ware County approved the Imposlbon of 8 1% sales tax to fund the above projects and retire aSSOCIated debt Amounts expended fQr these projects may Include salos tax proceeds, stale, local propel1y taxes and/or other funds over the hfe of the Protects

(4) In addlbon 10 the expenditures shown above the School DlStnet has Incurred Itrterest to provide advance funding for the above projects as fonows

Current Year

s 204 312 SO

see notes to the general-purpose finanaal statements

- 41 -

- - - - - - - - - - - - ---
WARE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM 'QBEI
ALLOTMENTS AND EXpENDITURES - BY PROGRAM YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EOUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

DIrect ImlrudMlnal Programs

KIndergarten Program

$

KIndergarten Program-Early InterventIOn Program

Prw18ry Grades (1-3) Program

PI ''1ary Grades-Early Intervenllon (1-3) Program

Upper Elementary Grades (4-5) Program

Upper Elementary Glades-Early Intervention (4-5)

Program

Middle Grades (6-8) Program

Middle School (6-8) Program

Htgh School General Educatlon (9-12) Program

Vocational Laboratory (9-12) Program

Students WIth DtsabllltJes

category I

category II

Category III

category IV

category V

GIfted Student Cate90fY VI

Remedial Education Program

Attemabve EducatIOn Program

Engbsh Speakers of Other Languages (ESOL)

1403185 00 $ 53335200
3,51666800 1 134,08000 1 888,58700

1661 51604 $ 41970345
3961 764 53 827,461 82
2175,76275

32904 83 $ 2358 75
13013504 6,64307
n,77689

1 694 420 87 422 062 20
4091 89957 834 104 89
225353964

534,211 00 34757500 3374,11200 282742300 1,004 746 00 3955561 00
1 725777 00 110,384 00 276,82800 3774700

338,92642 27445707 3,875,263 66 372198226 1,20411122
1013848 856,_48 2548 210 69 222,09703
40 799 66 1 435058 87
129,354 50 401 396
25791 00

1 07933 1663202 151 43540 22566434 7328575
22 81 19677
8,966 12 85175
111 24963 80170
46321

340 005 75 291 08909 4026699 06 3947,646 60 1 2n 396 97
10161 29 876141 92 2557 17681 222 948 78
40 799 66 1 546 308 50
130,156 20 401,396
26,254 21

TOTAL DiRECT INSTRUCTIONAL PROGRAMS

$

22,670238 00 $ 24,130 260 37 $ 85994808 $ 24 990,208 45

Macha Genter Program Staff and ProfesSIOnal Development

65736600 12888000

863851 41 5354462

13953585 7533538

100338726 12888000

TOTALQBEFORMULAFUNDS

$

23456 482 00 S 25047656 40 $ 1 07481931 $ 2612247571

(1) Comprised of State Foods phJs Local FIVe Mill Share

See notes 10 the general-purpose finanCIal statements

- 42-

WARE COUNTY BOARD OF EDUCATION GENERAL FUND - OUALITY BASIC EDUCATION PROGRAM (OBEl
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002

SCHEDULE "5"

Ware Magnet School Ware County High School Wllhams Heights Elementary School Waycross Middle School Center Elementary School Ware County Middle School Ruskin Elementary School Memonal Drive Elementary School Waresboro Elementary School Wacona Elementary School Daffodil Center ALPHA Center Alternative School Central Office (MernatlVe Educabon Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE OBE PROGRAM COSTS

$

1,424,11600 $ 1,665,12358

5,149,26700

5,873,785 65

1,618,14700

1,834,32509

2,202,223 00

2,449,884 18

1,846,832 00

1,910,384 26

2,644,205 00

2,868,815 83

1,769,25200

1,832,75520

1,719,93900

1,746 472 46

1,671,72100

1,733,405 55

2,347,706 00

2,408,05089

84,04265

451,26012

276,82800

131,90299

$

22,670,236 00 $ 24,990,20845

See notes to the general-purpose financial statements - 43-

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

-tL~~111 W.""l10N
srMt: AUDITon
_fA 1 F'5 ~1 _

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W ........hlOglnn ~trccl \ W SUI!C 211
Atl"nt". Georgi,' ,tl,34-H41Kl
June 23, 2003

Honomble Sonny Perdue, Governor Members of the Geneml Assembly Members of the State Board of FducatlOn
and Supenntcndent and Members of the Ware County Board of Educalton
Rl:.POR I ON COMPLIANCE AND ON IN rl:.RNAL CON rROL OVER FrNANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STA I EMEN rs PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDlTrNG STANDARDS
Ladles and Gentlemen
We have audtted the financial statcmcnt!< of Ware County Board of EducatIOn a, of and for the year cnded Junc 30. 2002. and have Issued our report thereon dated June 23. 2003 ThIs report wa~ qualified for a scope lImltalton and for vanous departurcs from gcncmlly acceptcd accounting principles. as Identified In the auditor's rcport on the geneml-purpo>e financial ,tatement, Except a~ dlscus,ed m the followmg pamgmph. we conductcd our audit m accordance with audltmg ,tandard, gencmllyaccepted m thc United States of Amenca and the standards applicable to linanclal audits contamed In Government Audltmg Standards. I~~ued by the Comptroller Geneml of the United States
Wc did not observe the takmg 01 eIther the Fedeml donated commodlltes mvcntory or the purchased lood, Inventory at June 30. 2002. nor could we sall,fy ourselve, as to the accumcy of the amount> slated a~ m\'cntone~ through alternatlvc procedure~
Compllancc
A~ part of obtammg rea'iOnable assunmce about whether Ware County Board ofEducallon's finanCIal ~tatement~ are free of matenal mIsstatement. we performed tests of Its compliance with certam proVISIOn, of law" regulatIOns. contract, and grants. noncompliance With whIch could havc a dlfCCt and matenal effect on the determmatlOn of financial statement amounts However. provldmg an opinIOn on compliance with those pro\'l,ions was not an obJectl\e of our audit, and accordmgly. wc do not express such an opmlOn I he results ofour tests dIsclosed no mstanccs ofnoncompliance that arc reqUIred to be reported undcr Govcrnment AudIting Standard~
2002YB-41

Internal Control Over fmanclal Reportmg
In planmng and performmg our audit. wc consldercd Ware County Board of Education's mternal control over financial rcportmg m order to determme our audltmg procedure~ for the purpoSC of e'(pre~smg our opmlon on the financial statemcnts and not to provide assurancc on the mternal control over financIal reportmg However, we noted a certam mattcr mvolvmg thc mternal control over financial reportmg and Its operation that we consider to be a reportable condition Rcportable conditIOns mvolve matters commg to our attention relatmg to slgmficant defiCiencies m thc dcslgn or operation of the mternal control over financial reportmg that, m ourJudgmenL could adversely affect Warc County Board of EducatIOn's abilIty to record, proces~, summanze and rcport financIal data con~lstent with assertions of management m the financial statements The reportable condition IS dcscnbed m the accompanymg Schedule ofFmdmgs and Qucstloned Costs as item FS-748 1-02-0 I
A matenal weakness IS a condition in which the deSIgn or operatIOn of one or more of the mternal control components does not reduce to a relatively low Icvcl the nsk that misstatements m amounts that would be matenal m relatIOn to the financial statements bemg audited may occur and not be dctccted \\Ithm a timely penod by employees m the normal course of performmg thclr assigned functions Our consideratIon of the mternal control over financIal rcportmg would not neces~anly dl~lose all matters m the mternal control that might be reportable conditIOns and, accordmgly, would not neccssanly dlselose all reportable conditIOns that are also considered to be matenal weaknc\ses However, wc consIder Itcm FS-748 1-02-01 to be a material wcakness
This report IS mtcndcd solely for the mformatlon and use of the managemcnt, members ofthc Ware County Board of EducatIOn, Federal awardmg agcncles and pass-through entltlcs and IS not mtcnded to be and should not be used by anyonc othcr than these specIficd partie~
Respectfully submitted,
~~~

RWH as 2002YB-41

R sell W Hmton State Auditor

R\I"'~F11 W. UIN ION
... JATl:: AUDlTOH
r11')4\ rSri 217"

DEPARTMENT OF AUDITS AND ACCOUNTS
::!" t WJ'ahJn!!lOn ~lreCI. ~ W '-tulle 214 AII.lnIJ. GeorglJ JOlJ4-H4(Hl
June 23. 2003

Honorable Sonn) Perdue. Govcrnor Members of the Gcncral A~sembly Mcmber, of thc Statc Board ofTducatlon
and Supenntendent and Mcmbers of the Ware County Board of EducatIOn
REPOR I ON COMPLIANCE wn II REOUIREMENTS APPLICABLE TO EACH MAJOR
PROGRAM AND ON INTERNAL CONTROl. OVER COMPLIANCE IN ACCORDANCL WITII OM13 CIRCULAR A-I33
Ladlc, and Gentlemen
ComplIance
We have audited the compliance of Warc County Board of Education 'WIth the type, of compllancc requlremcnts descnbed m thc US Of)h" of Managemenl and Budgel (OMB) Circular ..1-133 ('ompltance Supplemenl that are applIcable to each of Its malor Federal programs for the year ended June 30. 2002 Ware County Board of Education's mll:Jor federal program~ arc Identlficd m the Summary of Auditor's Results Section of the accompanymg Schedule of Fmdmgs and QucstlOncd Cosls Compliance With the reqUIrements of laws. regulations. contracts and grants applIcable to each 01 Its major Federal programs IS the rcsponslbliity of Ware County Hoard of ~.ducatlon's management Our re,ponslbillty I~ to express an opmlon on Ware County Board of Education's .amplmnce bascd on our audit
We conducted our audit of complIance m accordance With audltmg standards gcnerally accepted m the United Statcs of Amenca. the standard~ applIcable to finanCial audits contamed m Government Audltmg Standards. I~~ucd by the Comptrollcr General of the Umted State~. and OMB Circular A133. Auda, of Siaies. Local GO\'ernmenl\. and Non-Prtifil OrganlZallOf/\ Ibose standards and OMB Circular A-I33 reqUIre that we plan and pcrfonn the audit to obtain reasonable assurance about whether noncompliance With thc types ofcomplIance reqUIrements rclerrcd to abovc that could have a direct and matenal cffcct on a major Federal program occurred An audit mcludes cxammmg. on a test ha~.,. eVldcncc ab<lUt thc Ware County Board of FducatlOn's compliance With those requlrcments and perfonnmg such othcr procedurc, as wc consldcrcd neccssary m thc clrcum~lances Wc belIeve that our audIt proVIdes a reasonable basl~ for our 0plmon Our audit doe~ not proVide a legal dctennmatlon on Ware County Board of Educatlon\ compliance 'Wlth tho,c reqUlremcnts
2002SA-lO

In our opmlOn, the Ware County Board of Educallon complied. m all matenal respccts, with the reqUirement~ referred to above that are applIcable to each of lis major Federal programs for the year cnded June 30. 2002
Internal Control Over Compliance
The management of Ware County Board ofEducallon IS re~ponslble for cstabllshing and mamtammg effeellve mternal control over compliance With reqUirements of laws. regulallons, contracts and grants applicable to Federal progmrns In plannmg and performmg our audit. we considered Ware County Board of Eduea\lon's mternal control over complIance With reqUirements that could have a direct and matenal effect on a major Federal program m order to determme our audltmg procedures for the purpose of expressmg our opmlon on compliance and to tcst and report on mternal control over compliance m accordance wllh OMB Circular A-133
Our consideration of the mternal control over compliance would not necessarily discloM: all matters m the mternal control that might be matenal wcaknesscs A matenal weakness IS a condillon In which the design or operation ofone or more ofthe Intcrnal control components does not reduce to a relatively low level of nsk that noncompliance wllh applicable reqUirements of laws. regulallons. contracts and grants that would be matenal m relation to a major Federal program bemg audited may occur and not be detected Within a IImely penod by employees m the normal cour~e ofperformmg their assigned functlOn~ We noted no matters mvolvmg the mtcrnal control ovcrcompllance and ItS operation that we consider to be matenal weaknesscs
Thl~ report IS Intendcd solely for the mformallon and use of the management. member; of the Ware County Board ofEducallon. Federal awardmg agenclcs and pass-through entilles and IS not mtcnded to be and should not be used by anyone other than thcse specified parties

RWH as 2002SA-IO

Ru sell W Hmton State Auditor

SECTION III 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. 2002

PRIOR YEAR FINANCIAL S I A fEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-748 1-00-02 FS-7481-01-01

Further ActIOn Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS failure to Mamtam General Fixed Assel~ Account Group Reportable ConditIOn - Material Weakness hndmg Control Number FS-7481-01-01

The Ware County Board of Education does not mamtain a system-wide General Fixed Assets Account Group The School Dlstnet IS aware of new regulations that reqUire the recordmg of a General Fixed Assets Account Group on the Fmanclal Statements by June 30,2003 The School Dlstnct has begun the process of Implementmg procedures to record and mamtam a General Fixed Asset~ Account Group \\1thm the formal accountmg records m order to meet reqUirements set by GASB 34

SECTION IV FINDINGS AND QUESTIONED COSTS

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF fINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
SUMMARY OF AUDITOR'S RESULTS
Type of Rcport Issued on the fmanclal Statements The auditor's opmlOn on the Ware County Board of Education's financial statements was qualified for a scope limitation and for vanous dcpartures from genemlly accepted accountmg pnnclplcs
2 Reportable Conditions m Internal Control Dlscloscd by the Audit of the Fmanclal Statements The audit rcport for the Ware County Board of education disclosed a financial statcment reportable condition related to the followmg control category
General FIxed Asset~
The reportable conditIOn descnbed above IS consldcred to be a matcnal wcakne~s
3 Noncompliance Matcnal to the Fmancial Statements Inc audit of the Warc County Board of Education disclosed no mstances of noncompliance that were deemcd to be matenal to the financial statements
4 Reportable ConditIOns in Internal Control Over Mawr Programs The audit report for the Ware County Board of Education did not disclose any reportablc conditIOns m mternal control over major programs
5 1 yoe of Report Issued on Compllancc for Malor Programs The auditor's opmion on the Ware County Board of Education's report on compliance With requlrcments applicable to major programs Wlll> unqualified
6 Audit Fmdmgs ReqUIred to be Reported by Section 5IO(a) ofOMB Circular A-I33 The Ware County Board of Education's audit did not disclose audit findings requIred to he reported by section .5IO(a) ofOMB CIrcular A-I33
7 Malor Programs Federal awards audited a. major programs are as follows 10553 Food and NutntlOn Program - Food Services - School Breakfast Program 10555 Food and NutntlOn Program -I'ood Servlccs - National School Lunch Program 84 340 Elementary and Secondary Education Act - Title VI - Class Size Reduction
8 Tvpc "A" Progr.un Dollar Thre~hold Thc dollar threshold for type "A" programs was $300.000 00
9 Low RI~k Audllee The Warc County Board of Education qualified as a low nsk audltee as defined by Secl10n 530 ofOMB CIrcular A-I33
-I-

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS GENERAL FIXED ASSETS Fallure to MaintaIn General Fixed Assets Account Group Reportable Condition - Matenal Weal..ness Repeated From Pnor Year Findmg Control Number. FS-748I-02-0I The Ware County Board of Education dtd not establIsh a General Fixed Assets Account Group wlthm the formal accountmg records as required by generally accepted aceountmg pnnclples This condition re~ulb m the general-purpose financial statements of the School Dlstnct bemg Incomplete and not m accordance with generally accepted accountmg pnnclples Appropnate actIOn should be talen by the School DISlnct to establIsh accountmg controls and procedure~ to provide for mamtenance of a General Fixed Assets Account Group The~ subsidiary records should mclude an Invenlory of land, bUlldmgs and eqUIpment owned by the School District and should mclude, but may not be lImited to, date acqUIred, acquisItion cost, estimated replacement cost, location and descnptlon Detailed records should be maintaIned of all addItIons and deletions to the General Fixed Assets Account Group III FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported
-2-