Washington County Board of Education, Sandersville, Georgia, report on audit of the fiscal year ended June 30, 2001

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WASHINGTON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDTIURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

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

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

8

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

9

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

11

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVENUES, EXPENDTIURES

AND CHANGES IN FUND BALANCES

27

K

FIDUCIARY FUND TYPES

COMBINING BALANCE SHEET

28

WASHINGTON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDffiONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

30

2 SCHEDULEOFSTATEREVENUE

32

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

3

BY PROGRAM

34

4

BY SITE

35

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133

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

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S W.. Suite 214 Atlanta, Georgia 30334-8400
March 21, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Washington 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 Washington 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 Washington County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General 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 ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm1on.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2001ARL-13

* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects 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 of the Washington County Board of Education as of June 30, 2001, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with accounting principles
. generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated March 21, 2002, on our consideration of the Washington County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Washington County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through K) and the financial schedules (Schedules 1through4), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Pro.fit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
2001ARL-13

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:as 2001ARL-13

WASHINGTON COUNTY BOARD OF EDUCATION

WASHINGTON COUNTY BOARD OF EDUCATION
0
COMBINEQ BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30. 2001

Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available m Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt Capital Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 3,009,205 77 $

619,515. 13 $

49,473.88

2,351,018.77

236,543.00

6,953.52 16,352 19

$

s_ _ 879,363.84

=4..,9. .4..1..3....8.8. ..,,

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuabon of Federal Programs For Debt Service For Endowment Corpus For Inventories Food Donated Commochbes Purchased Food For Purpose of Bond Issue Unreserved Designated for Self-Insurance Undesignated
Total Fund Equity

$ 1,154,331.18 $ 2, 166,820 80

104,442.42 192,036.20
2, 165 86 8,117.49

$ 3,321, 151.98 $

306,761.97

$

150 00

6,953 52 16,352.19

$

80,951 97

1,958,120 59

$ 2,039,072 56 $

549,146.16 $ 572,601.87 $

49473 88 49,473.88

Total Liablllt1es and Fund Equrty

$ 513601224 54 $

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

8791363 84 $

49473 88

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST FUNDS

$

731,576.73 $

6,287.07

43,622.99

22,806.64

1,681.83

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

{Memorandum Onl:i'.l

JUNE 30, 2001

JUNE 30, 2000

$ 4,416,058.58 $ 4,822, 188.61

43,622.99

32,576 69

2,612,050.24

2,616,352.32

$

754,383.37

6,953.52 16,352.19
754,383.37

20,677.18 13,212.22
651,688.54

10,720,616.63 1,548,879 84

10,720,616.63 1,548,879 84

11,433,311.46 1,863,882.29

$

754,383.37 $

51,591 89 $ 13,023,879 84 $ 20,118,917 36 $ 21,453,889.31

$ 1,258,773.60 $ 1,354,885.38

2,358,857.00

2,050,442.43

2,165.86

2,205.25

8,117.49

$ 1,548,879 84

1,548,879.84

1,863,882.29

11,475,000 00

11,475,000 00

12,085,000.00

$ 13,023,879.84 $ 16,651,793.79 $ 17,356,415 35

$

754,383.37

$

42,699.03

0 00

$

754 383.37 $

8,892.86 51,591.89

$

150.00 $

7,973 08

754,383.37

651,688 54

42,699.03

29,052.02

6,953.52 16,352.19

20,677.18 13,212.22 344,634.04

80,951.97 2,565,633 49

83,585.66 2,946,651.22

$ 3.467,123 57 $ 4,097.473.96

$

754,383.37 $

51,591.89 $ 13,023,879 84 $ 20,118,917 36 $ 21,453,889 31

-3-

WASHINGTON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BA!.ANCES
ALL GOVERNMENTAL FUND !YPES AND EXPENDABLE TRUST FUND 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 Community Services Operations
Capital Outlay Debt Service
Principal Interest Paymg 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

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 15,544,596.07 $ 53,514.65
7,600,101.79 300,264.21
$ 23,498,476.72 $

557,936.59 2,666, 151 .75
223,427.63 $
3,447,515.97 $

1,353.92 1,353.92

$ 15,107,494.94 $
684,637.52 566,051.95 505,875.66 575,767.67 1,744,633.42 157,238.56 2,693,675.71 1,279,364.90
40,105.32
7,000.00
340,193.99 119,807.09

1,451, 103.53
118,893.18 94,691.76
997.65 78,167.54
6,371.82 2,148.30 24,567.01 48,526.66
7,462.70 1,656,417 .87
$

395,502.06

$ 23,821,846. 73 $

$

-323,370.01 $

3,489,348.02 $ -41,832.05 $

395,502.06 -394,148.14

$

25,191.54

$

-36,269.59

$

-11,078.05 $

$

-334,448.06 $

2,373,520.62

13,866.06 $

22,403.53

13,866.06 $

22,403.53

-27,965.99 $ 611,151.55

-371,744.61 421,218.49

-13,723.66 3,139.97

FUND BALANCE JVNE 30

$ 2,039,072.56 $

The notes to the general-purpose financial statements are an Integral part of this statement. -4-

572,601.87 $ .,...--=='"4.C.9'!.o4c;73=.8=8=

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE ~Q. 2001

JUNE 30, 2000

$ 16,102,532.66

2, 719,666.40

$ 1,268,451.41

8,868,553.20

23,454.17

548,499.93 $

$ 1,291,905.58 $ 28,239,252.19 $

$
2,955.75 2,955.75 $

16,102,532.66 $ 2,719,666.40 8,868,553.20
551,455.68
28,242,207.94 $

14,767,816.26 2,736,020.05 8,573, 736.17
543,732.69
26,621,305.17

$ 16,558,598.47 $

803,530.70 660,743.71 506,873.31 653,935.21 1,751,005.24 159,386.86 2,718,242.72 1,327 ,891.56

47,568.02 1,656,417.87
7,000.00 395,502.06

$

610,000.00

578,712.50

498.25

950,193.99 698,519.59
498.25

$ 1,189,210.75 $ 28,895,907.56 $

$

102,694.83 $

-656,655.37 $

3,000.00 $ 16,561,598.47 $ 14,114,019.13

803,530.70 660,743.71 506,873.31 653,935.21 1,751,005.24 159,386.86 2,718,242.72 1,327 ,891.56
47,568.02 1,656,417 .87
7,000.00 395,502.06

975,881.82 894,312.85 565,934.04 558,098.04 1,626,554.48 112,100.84 2,528,987.84 1,266,461.66
1,382.91 38,318.38
1,592,1n .87
7,000.00 319,083.57

950,193.99 698,519.59
498.25

920,928.55 747,063.05
1,240.87

3,000.00 $ 28,898,907.56 $ 26,269,545.90

-44.25 $

-656,699.62 $

351,759.27

$

25,191.54

36,269.59

-36,269.59

$

25,191.54

$

102,694.83 $

-631,463.83 $

651,688.54

4,057,579.20

-13,723.66 3,139.97

$

25,191.54

36,269.59 $

-36,269.59

$

25,191.54 $

3,938.03 -3,938.03
0.00

-44.25 $ 5,880.78

-631,508.08 $ 4,063,459.96

351,759.27 3,710,208.89

-13,723.66 3,139.97

1,500.17 -8.35

$

754,363.37 $ 3,415,531.68 $

5,836.53 $ 3.421,366.21 $ 4,063,459.96 -5-

WASHINGTON COUNTY BOARD OF EDUCATION COMBINED STATEMENT Of REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL !NONGAAP 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

$ 14,990,825 00 $ 15,544,596.07

125,125.00

53,514.65

7, 736,652.00

7,600,101.79

123,000 00

300~21

Total Revenues

$ 22,975,602.00 $ 23,498,476.72

EXPENDITURES

Current Instruction Support Sel'Vlces Pupil Services Improvement of Instructional Services Educational Media Se1V1ces General Administration School Adminlstrabon Business Admmlstrabon Maintenance and Operation of Plant Student Transportabon Services Central Support Services Other Support Services food Services Operabon Community Services Operabons
Debt Service

$ 13,756,558.00 $ 15,107,494.94

993,114.00 905,196.00 625,958.00 499,991.00 2,207,328.40 115,350 00 2,586,417 .00 1.1n.64500
6,700.00 30,665.00

684,637.52 566,051.95 505,875.66 575,767.67 1,744,633.42 157,238.56 2,693,675.71 1,279,364.90
40,105.32

7,000.00

7,000.00 460,001.08

Total Expenditures

$ 22,911,922.40 $ 23,821,846.73

Excess of Revenues over (under) Expenditures

$

63,67960 $ 323,370 01

OTHER FINA~CING Q!.!RCE !USES}

Other Sources Other Uses

$

25,191.54

36,269 59

Total Other Financmg Sources (Uses)

$ 11,078 05

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

63,679.60 $ 334,44806

FUND BALAN~E ~!.!LY 1, 2000

2,035,195.70

2,373,520.62

Food Inventory Net Change In Period Donated Commodities Purchased food

FUND BALANCE JUNE 30, 2QQ1

$ 210981875.30 $ 2.039.072 56

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS!

$ 532,336 00 $ 557,936.59

2,975,092.00

2,666,151.7~

145,80000

223,42763

$ 3,653~8.00 $ 3,447,515 97

$ 1,614,898 00 $ 1,451,103.53

135,522.00 146,226.00
8,072.00 90,904.00
2,461.00 28,173.00 51,950.00

118,893.18 94,691.76
997.65 78,167.54 6,371.82 2,148.30 24,567.01 48,52666

13,950.00 1,560,220.00

7,462.70 1,656,417.87

$ 3,652,376 00 $ 3,489,348.02

$

85200 $ -41,832 05

$ 13,866.06

$ 13,866.06

$

852.00 $ 27,965 99

693,82261

611,151.55

13,723 66 3,139 97

$ 694167461 $ 5721601.87

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

WASHINGTON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENQABLE TRUST FUNDS YEAR ENQED JUNE 30. 2001

EXHIBIT "D"

REVENUES Donations
OPERATING EXPENSES Current Support Services Pupil Services Operating Income
NONOPEM!!NG RE\JENUES Interest Eamed Net Income
F!,!t:iD !;!~LAN~!; JYbY 1
FUND BALANCE JUNE 30

ENDOWMENT FUNDS

VETERANS OF

VIRGINIA

FOREIGN WARS SCHOLARSHIP

SMITH
SCHOLA~SHIP

FUND

FUND

TOTALS (Memorandum Onl:t}
YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$

0.00 $

11,046.30 $

11,046 30 $

0 00

$

450.54 $

958.24 $

1,408.78 $

1,983.76

$

-450.54 $

10,088.06 $

9,637.52 $

-1,983.76

930 56

1 173.30

2,103.86

1 874.71

$

480.02 $

11 ,261.36 $

11,741.38 $

-109.05

16,631.89

17,382.09

34,013.98

34,123.03

$

17111.91 $

28,643 45 $

45.755.36 $=====34...,..,0_1_3..,98..,.

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

WASHINGTON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS
FIQUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30. 2001

EXHIBIT"E"

Cash Flows from Operating Activities Cash Paid for Scholarships Donabons Made to Funds
Net Cash Provided (Used) by Operating Activities
Cash Flows from Investing Act1v1bes. Proceeds from Matunty of Investments Interest Received on Investments Purchase of Investments
Net Cash Provided by Investment Activities
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1

ENDOWMENT FUNDS

VETERANS OF

VIRGINIA

FOREIGN WARS SCHOLARSHIP

- SMITH SCHOLARSHIP

FUND

FUND

TOTALS (Memorandum On~}
YEAR ENDED
JUNE 30, 2001 JUNE 30, 2000

$

-450.54 $

-958.24 $

-1A08.78 $

-1,983.76

11,046.30

11,046.30

$

-450.54 $

10,088 06 $

9,637 52 $

-198376

$

15,923.96 $

16,652.73 $ 32,576.69 $

32,57669

901.08

95824

1,859.32

1,983.76

-15,923 96

-27,699.03

-43,622.99

-32,576.69

$

901.08 $ -10,088.06 $

-9,186 98 $

198376

$

450.54 $

0.00 $

450.54 $

0.00

0.00

0.00

000

0.00

Cash and Cash Equivalents - June 30

$

450.54 $

000 $

450 54 $ ==-"""""==o=.o=o=-

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

WASHINGTON COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Washington 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 of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of 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.

- 11 -

WASHINGTON COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND 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:
NONEXPENDABLETRUSTFUNDS Veterans of Foreign Wars Scholarship Fund- the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to the second and third honor graduates each year at Washington County High School.
Virginia Smith Scholarship Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to the valedictorian ofeach graduating class at Washington County High School.
EXPENDABLE TRUST FUND Minority Scholarship Fund - the fund used to account for contributions used to provide scholarship aid to graduating minority students.
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 and expendable trust 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.
- 12 -

WASHINGTON COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
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 of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental and expendable trust 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, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Employment contracts for these employment periods typically 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 are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
The accrual basis of accounting, 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.
BUDGET
The Washington County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The
- 13 -

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

WASHINGTON COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-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 of Georgia 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,

- 14 -

WASHINGTON COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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 information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Washington County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 10, 2000 (levy date). Taxes were due on December 10, 2000. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Washington County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $7,541,265.68 and for school bonds amounted to $1,268,451.41.

Tax millage rates levied for the 2000 tax year (calendar year) for the Washington County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

16.31 mills 2.70 mills

~mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded

- 15 -

WASHINGTON COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements of expenditures/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 financial position, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
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 of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance.

- 16 -

WASHINGTON COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS
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 any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United Stai:l'!s or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment 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 $5,749,294.24. Theamountsofthetotal 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.

- 17 -

WASHINGTON COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS

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:

Risk Category

Bank Balance

1

$ '1,125,733.69

2

4,467 ,200.31

3

156.360.24

Total

$ 5.749.294.24

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 ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The School District has obtained commercial insurance for risk ofloss associated with assets, errors or omissions and job related illness or injuries to employees. 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 torts and natural disaster. The School District has not experienced any losses related to these risks in the past three years.

The School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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 of that loss can be reasonably estimated.

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

- 18 -

WASHINGTON COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

Beginning of Year Liabihty

Claims and Changes m Estimates

Claims Paid

End of Year Liability

2000 2001

$

4,953.00 $

1,016.00 $

5,969.00 $

0.00

$

0.00 $

1,617.69 $

1,617.69 $

0.00

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

Position Covered

Amount

Superintendent Bookkeeper All other Employees

$ 100,000.00 $ 475,000.00 $ 25,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Washington County Board of Education entered into an agreement with the Georgia School Boards Association (GSBA), Incorporated for the lease-purchase of new administrative office facilities for the Board of Education. Under the terms of the lease agreement, the School District will make quarterly payments through January 15, 2006. The lease includes an annual renewable clause.

The Washington County Board ofEducation has entered into various lease agreements as lessee for office and instructional 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 1994 General Government - Refunding - Series 1998

4.9%-6.30% 3.6%-4.75%

$ 2,310,000.00 9.165,000.00

$1 L475.000.00

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

- 19 -

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

WASHINGTON COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

Balance July I, 2000 Add1t1ons
Deductions Debt Retired
Balance June 30, 2001

Camtal Leases

GSBA

Other

General Obhgat1on
Bonds

Total

$ 1,734,387.00 $ 129,495.29 $12,085,000.00 $13,948,882.29

25,191.54

25,191.54

258.105 18 $ I 476 281 82 $

82,088 81

610,000.00

250,123.92

12 528.02 $11 415 000,00 $13 023 872.84

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
2002 2003 2004 2005 2006 2007 - 2011 2012 - 2014
Total Pnnc1pal and Interest
Deduct: Imputed Interest
Net Present Value of Future Mm1mum Lease Payments

~im1tal Ley's

GSBA

Other

General Obhgatton
Bonds

Total Debt

$ 362,811.52 $ 362,811.52 362,811.52 362,811.52 272,210.20

66,511.44 $ 925,905.00 $ 1,355,227.96 19,617.75 1,210,390.00 1,592,819.27
1,210,980.00 1,573,791.52 1,208,565.00 1,571,376.52 1,208,002.50 1,480,212 70 6,030,402.50 6,030,402.50 3,~43,27~.00 3,543,275 00

$ 1,723,456.28 $ 86,129.19 $15 33Z,52g 00 $11,l~Z,IOHZ

247,174 46

13,531 17

$ 1476 281 82 $ 12 ~2!!.02

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1998, the School District defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for a portion of the future debt service payments on the old bonds. Accordingly, the trust,account assets and the liability for the defeased bonds are not included in the School District's general-purpose financial statements. At June 30, 2001, $8,015,000.00 of bonds are outstanding and are considered defeased.

Note 7: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $223,275.59 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

-20-

WASHINGTON COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 7: ON-BEHALF PAYMENTS

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $181,983.59

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $41,292.00

Note 8: CONTINGENT LIABILITIES

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

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirem~t 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.

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%

$ 1,711,239.32 $ 1,607,574.63 $ 1,604,988.00

- 21 -

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

594,459.40 $

38,353.57

8,159.07

6,953.52 16,352.19

Total Assets

$

625,924.18 $=.....,=3=8=,3=53==57...,

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 Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general-purpose financial statements.
- 22-

$

13,473.32 $

14,161.10

39,998.99

24,192.47

$

53,472.31 $

38,353.57

$

6,953.52

16,352.19

549,146.16 $

$

572,451.87 $

0.00 0.00

$

625,924. 18 $ ===3=8===,3=5=3..5...7-.

EXHIBIT"G"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

632,812.97 $

691,324.78

$

228,383.93

236,543.00

295,206.07

6,953.52 16,352.19

20,677.18 13,212.22

$

228,383.93 $

892,661.68 $ 1,020,420.25

$

13,297.84 $

13,297.84

76,808.00

104,442.42 $

212,529.69

127,844.74

192,036.20

194,533.76

2,165.86

2,165.86

2,205.25

8 117.49

8117.49

$

228.233.93 $

320.059.81 $

409.268.70

$

150.00 $

150.00 $

7,973.08

6,953.52 16,352.19

20,677.18 13,212.22

0.00

549.146.16

569.289.07

$

150.00 $

572.601.87 $

611.151.55

$

228.383.93 $

892.661.68 $ 1.020,420.25

- 23 -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -
WASHINGTON 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 Educational Media Services General Administration School Administration Business 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
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements.
-24-

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

127,622.00 $

1,285,375.33

223,277.63

$ 1,636,274.96 $

356, 149. 16 356, 149.16

$

313,322.37

37,668.67 1,868.62

$ 1,656,417.87

$ 1,656,417.87 $

$

-20,142.91 $

2,148.30 1, 141.20
356,149.16 0.00

$

-20,142.91 $

0.00

603,178.47

0.00

-13,723.66 3,139.97

$

572,451.87 $ ==---==0==00==

EXHIBITWH"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

74,165.43 $

557,936.59 $

496,832.43

1,380,776.42

2,666,151.75

2,717,968.58

150.00

223.427.63

217,284.58

$ 1.455.091.85 $ 3.447.515.97 $ 3.432.085.59

$ 1,137,781.16 $ 1,451,103.53 $ 1,508,469.47

81,224.51 92,823.14
997.65 78,167.54 6,371.82
24,567.01 47,385.46
7,462.70

118,893.18 94,691.76
997.65 78,167.54 6,371.82
2,148.30 24,567.01 48,526.66
7,462.70 1,656,417.87

80,631.83 73,198.45 21,386.76 74,096.46
2,149.02 23,978.47 35,545.99
2,668.89 1,592.177.87

$ 1,476.780.99 $ 3,489.348.02 $ 3,414.303.21

$

-21,689.14 $

-41,832.05 $

17,782.38

13.866.06

13.866.06

3.938.03

$

-7,823.08 $

-27,965.99 $

21,720.41

'

7,973.08

611,151.55

587,939.32

-13,723.66 3.139.97

1,500.17 -8.35

$

150.00 $

572.601.87 $ ......c=i6=1.1..!Cl1=51=.5=5=

- 25 -

WASHINGTON COUNJY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2001

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

REGULAR

BOND PROCEEDS

TOTALS JUNE 30, 2001 JUNE 30, 2000

$ 49,473.88 $

0.00 $

49,473 88 $ 365,058.33

267,015 43

$ 49,473 88 $

000 $

49,473.88 $ 632,073.76

LIABILITIES AND FUND EQUITY
LIABILmEs
Cash Overdraft Accounts Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue Unreserved Undes1gnated
Total Fund Equity

$ 49,473.88 $ $ 49,473 88 $

$ 190,430.98
20,424.29
$ 210,855.27

$

0 00 $ _ _4_9~4_73_...8....8_

000 $

49,473.88 $

344,634 04 76 58445
421,218 49

Total Liabilities and Fund Equity

$ 49,473.88 $

0.00 $

4947388 $ 632,073 76

See notes to the general-purpose financial statements.

-26-

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

EXHIBIT "J"

REVENUES

REGULAR

BOND PROCEEDS

TOTALS YEAR ENDED JUNE 301 2001 JUNE 301 2000

Other Funds

$

0.00 $ 1,353.92 $

1,353.92 $

83,347.80

EXPENDITURES

Capital Outlay Burlding and Building Improvements Equipment

$

0.00 $ 393,192.38 $ 393,192.38 $ 308,620.07

2,309.68

2,309.68

10,463.50

Total Expenditures

$

0.00 $ 395,502.06 $ 395,502.06 $ 319,083 57

Excess of Revenues over (under) Expenditures

$

0.00 $ -394, 148.14 $ -394,148.14 $ -235,735.n

OTHER FINANCING SO!,!RQ!;S (U:2!;S}

Operabng Transfers In Operating Transfers Out

$ 49,514.10 $

49,514.10 $

$ -27,110.57

-27 110.57

7,164.00 -7,164.00

Total Other Financing Sources (Uses)

$ -27, 110.57 $ 49,514.10 $

22,403.53 $

0.00

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

-27, 110.57 $ -344,634.04 $ -371,744.61 $ -235,735.77

FUND BALANCE J!.!LY 1

76,584.45 344,634.04

421,218.49

656,954.26

FUND BALANCE J!,!NE 30

$

49,473.88 $

0.00 $

49,473.88 $ 421,218.49

See notes to the general-purpose flnanclal statements.

- 27-

WASHINGTON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30. 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

NONEXPENDABLE TRUST FUNDS

ENDOWMENT FUNDS

VETERANS OF

VIRGINIA

FOREIGN WARS

SMITH

SCHOLARSHIP

SCHOLARSHIP

FUND

FUND

$

450.54

15,923.96 $

27,699.03

737.41

944.42

Total Assets
FUND EQUITY Fund Balances
Reserved For Endowment Corpus
Unreserved Undesignated
Total Fund Equity

$

========= 17 111.91 $

28,643.45

$

15,000.00 $

27,699.03

2111.91

944.42

. $

=======-== 17 111.91 $

28,643.45

See notes to the general-purpose financial statements. -28-

EXHIBIT "K"

EXPENDABLE TRUST FUND
MINORITY SCHOLARSHIP
FUND

TOTALS

JUNE 30 .. 2001

JUNE 30, 2000

$

5,836.53 $

6,287.07 $

5,880.78

43,622.99

32,576.69

1,681.83

1,437.29

$

5,836.53 $

51,591.89 $ ===3=9=,8=94==76=

$
$ _ _--"'5""",8"""3.;:;..;6....;;..5_3_

42,699.03 $ 8,892.86

29,052.02 10,842.74

$

5,836.53 $

51,591.89 $===3=9=,8=94==76=

- 29 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agnculture, U S Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Educallon Food and Nutnllon Program Food D1stnbullon Program (1)
Total U S. Department of Agnculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Flow Through Preschool
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Er:lucatlon Elementary and Secondary EducatJon Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI lnnovabve EducatJon Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools and Commumlles Vocational Education - Basic Grants to States High School Program Basic Grant
Total U S. Department of Education
Health and Human Services, U. S. Department of Pass-Through From Georgia Child Care Council Child Care and Development Block Grant

CFDA NUMBER
10.553 10 555
10.550
84.173 84.027 84173
84 010 84.281 84.298 84.340 84.276 84 186 84.048
93 575

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

N/A $ 312,847.71

(2)

NIA

869,323.26 $ 1,553,213 51 (3)

$ 1, 182, 170.97 $ 1,553,213.51

NIA

103,204 36

103,204.36

$ 1,285,375 33 $ 1,656,417.87

NIA

$

2,810.40 $

NIA

237,822.76

NIA

15,47544

$ 256, 108 60 $

2,810 40 238,785 72 (3)
15,475.44
257,071.56

N/A

832,991 43

832,99143

NIA

21,282 95

31,119.98 (3)

NIA

28,418 29

28,418.29

NIA

124,879.29

125,142.04 (3)

NIA

7,560 57

15,643.26 (3)

NIA

36,288.08

36,288.08 (3)

NIA

73.247 21

75,940.55 (3)

$ 1,380,776 42 $ 1,402,615.19

NIA $

14,000 00

(4)

- 30-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Defense, U S. Department of Direct Department of the Air Force R 0 T.C Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$

39,514 65

(4)

Total Federal Financial Assistance

$ 2,719,666 40 $ -=='""""3,=05=9-,0-3=3=-.06=

NIA= 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 included In the 2001 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

Major Programs are 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 Includes the Federal grant activity of the Washington County Board of Education and is presented on the modified acaual baSJs 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

31

WASHINGTON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE"2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost 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 School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with D1sabll1tles Category I Category II Category Ill Category IV Supplemental Speech Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Pnncipal Supplements Vocational Supervisors Deferred Summer Salaries (Prior Year) Deferred Summer Salanes (Current Year) Education Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Mentor Teachers Preschool Handicapped Program Remedial Summer School Statewide Local Education Improvement Technology Career Lottery Programs Computers in the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Flscal Services Public School Employees Rellrement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 449,221.00 319,131.00
1,935,966.00 740,726.00
1.220.964.00 1.916,929.00 1.689,871.00
641,893.00
16,635.00 431,741.00 582,361.00 156,717.00
673.00 152,094.00 171,270.00 155,286.00 338,274.00
91,677.00 2,157,554.00

$

449.221.00

319,131.00

1,935,966.00

740,726.00

1.220,964.00

1,916,929.00

1,689,871.00

641,893.00

16,635.00 431,741.00 582,361.00 156,717.00
673.00 152,094.00 171,270.00 155,286.00 338,274.00 91,5n.oo 2,157,554.00

582,270.00 177,655.00 91,224.00 15,926.00 26,010.00 -1,888,392.00 2,088,362.86 865,898.00
$ 5,736.20

127,622.00

7,981.94 181.983.59
5,379.00 49,432.00
8,966.11 28.252.00
1,711.37

83,099.00

582,270.00 1n,6ss.oo 91,224.00
15,926.00 26,010.00 1,888,392.00 2,088,362.86 865,898.00 127,622.00
5,736.20
7,981.94 181,983.59
5,379.00 49,432.00
8,966.11 28,252.00
1,711.37
83,099.00

273,050.16

273,050.16

41,292.00

41,292.00

- 32-

WASHINGTON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE "2"

AGENCY/FUNDING
CONTRACTS Educabon, Georgia Deparbnent of Elder Middle School Georgia's Reading Challenge Reading First Program
Human Resources, Georgia Deparbnent of Family Connection

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

50,000.00

$

35,925.00

$

50,460.43

23z705.00

50,000.00 35,925.00 50,460.43
231705.00

$ 15,544,596.07 $ 557,936.59 $ 16,1021532.66

See notes to the general-purpose financial statements.

- 33 -

WASHINGTON COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM CQBEl
ALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30. 2001

SCHEDULE "3"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kmdergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (13) Program

Primary Grades-Early lnterven!Jon (13) Program

Upper Elementary Grades (4-5) Program

Middle Grades (6-8) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Voca!Jonal Laboratory (9-12) Program

Students with D1sab1llties

Category I

Category II

Category Ill

Gifted Student Category VI

Remedial Education Program

Alternative Educa!Jon Program

520,584 00 $ 369,828.00 2,243,515.00 858,398.00 1,414,927 00
2,221,453.00 1,958,325.00
743,864 00 1,376,873 00
176,255.00 198,478.00 179,955.00

663,622.75 $ 214,010.33 2,260,215.06 662,622 90 1,580,584.68
-0.55 2,343,472.45 2,480,448.38
668,225.33
98.88 336,317.28 844,031.21 205,267.94 364,129.80 187,638.01

16,931.13 $
62,219 50
32,133.19 34.37
60,440.50 65,921 74 83,585 55

680,553.88 214,010.33 2,322,434.56 662,622 90 1,612,717.87
33.82 2,403,912.95 2,546,370 12
751,810.88

1,904.18 6000
17,209 89 4,629.73 1,971 52 16,790.92

2,003.06 336,377 28 861,241.10 209,897.67 366,101.32 204,428.93

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

12,262,455 00 $ 12,810,684.45 $ 363,832.22 $ 13,174,516.67

Media Center Program Staff and Professional Development

392,013.00 106,240.00

482,730 71 58,959.29

77,906.80 47 680 71

560,637.51 106,640.00

TOTAL QBE FORMULA FUNDS

$

12,760,708 00 $ 13,352,374 45 $ 489,419 73 $ 13,841,794 18

(1) Compnsed of State Funds plus Local Five Mill Share.

See notes to the general-purpose financial statements

34.

WASHINGTON COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2001

SCHEDULE "4"

T J Elder Middle School Crawford Primary School Washington County High School Elder Primary School Sandersville Elementary School Tennille Elementary School Central Office (Alternative Education Program) Other Auxiliary Facility
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,700,202.00 $

2,746,858.74

1, 118,663.00

1,099,315.47

3,058,430.00

3,829,383.60

2,084,068.00

2,121,617.61

1,979,350.00

2,062,922.31

1,141,787.00

1,294,962.48

179,955.00

19,456.46

$

12,262,455.00 $ 13,174,516.67

See notes to the general-purpose financial statements. - 35-

SECTIONil COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. Hl!l;TON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S W., Suite 214 Atlanta, Georgia 30334-8400
March 21, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Washington County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofWashington County Board ofEducation as ofand for the year ended June 30, 2001, and have issued our report thereon dated March 21, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part ofobtaining reasonable assurance about whether Washington 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 offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reoorting
In planning and performing our audit, we considered Washington 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
2001YB-41

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Washington County Board ofEducation's ability to record, process, summarize and report financial' data consistent witb assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7501-0101.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7501-01-01 to be a material weakness.
This report is intended solely for the information and use of the management, members of the Washington 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,
~~~:4~;i-;;

RWH:as 2001YB-41

State Auditor

RussEu. W. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa!>hmgton Street. S W, Suite 214 Atlanta, Georgia 30334-8400
March 21, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Washington County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Washington County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Washington County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofWashington County Board of Education's management. Our responsibility is to express an opinion on Washington County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 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 Washington County Board ofEducation's compliance with those

2001SA-10

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 Washington County Board of Education's compliance with those requirements.
In our opinion, the Washington County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Washington County Board of Education is responsible for establishing and maintaining effective internal control. over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Washington County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose 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 of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the Washington 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,
---"'~w~k ...... ell W. Hinton State Auditor
RWH:as 2001SA-10

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

WASHINGTON 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-7501-99-01 FS-7501-99-02 FS-7501-00-01 FS-7501-00-02

Previously Reported Corrective Action Implemented Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - No Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7501-00-02

Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the School District has decided not to pursue the recording of general fixed assets on the financial statements.

SECTION IV FINDINGS AND QUESTIONED COSTS

WASHINGTON 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 Washington County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Washington 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 of the Washington County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Washington 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 Washington County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51 O(a) of OMB Circular A-133 The Washington County Board ofEducation'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: 10.550 Food and Nutrition Program - Food Distribution Program 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 Washington County Board ofEducation did not qualify as a low risk auditee as defined by Section .530 of OMB Circular A-133.
- 1-

WASHINGTON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS 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-7501-01-01 The Washington County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. Subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost; location, and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. Management's Response: Due to current staffing and budgetary constraints, we have not pursued the recording offixed assets on the financial statements. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-