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

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WHTIECOUNTY BOAkD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

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 FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

8

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

10

F NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

12

ADDmONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

28

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

30

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

32

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

34

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

35

WHITE COUNTY BOARD OF EDUCAnON - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMAnON

EXHIBITS

COMBINING AND INDIVIDUAL FUND STATEMENTS

FIDUCIARY FUND TYPES

M

COMBINING BALANCE SHEET

36

N

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

38

o

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

39

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

40

2 SCHEDULE OF STATE REVENUE

42

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

43

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCAnON PROGRAMS (QBE)

4

BY PROGRAM

44

5

BY SITE

45

SECTIONll
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 wrrn GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE wrrn REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE wrrn
OMB CIRCULAR A-133

WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS
..

SECTION I FINANCIAL

I
j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j
J

RUSSELL W. HINTON
STATE AUDITOR
(4()4) 55&-2 \7 4

DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washinglon Slreel, S w.. Suile 214
Allanla, Georgia 30334-&400
March 20, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe White 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 White County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe White County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
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:

2002ARL-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.
* For fiscal year 2002, the School District changed its method ofaccounting for the final
two payments on one hundred and ninety day employment contracts and the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this information was not readily available. The net effect of the above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and fourteen months of revenue from the State to fund these contracts. Generally accepted accounting principles require that expenditures be recorded when inc~ed, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding Paplgraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe White County Board ofEducation as of June 30,2002, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated March 20, 2003, on our consideration ofthe White County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, 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 ofthe White County Board ofEducation taken as a whole. The accompanying combining and individual fund statements (Exhibits G through 0) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S.
2002ARL-13

Office ofManagement and Budget Circular A-B3, Audits ofStates, Local Governments, and NonProfit Organizations, are presented for purposes ofadditional analysis and are not a required part of the general-purpose financial statements. Such 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.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. ,
Respectfully submitted,

RWH:gp 2002ARL-13
.'

Ru ell W. Hinton State Auditor

..

WHTInCOUNTYBOARDOFEDUCATION

WHITE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUNP TYPES AND ACCOUNT GROUp JUNE 30, 2002

ASSETS
Cash and cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 3,503,448,02 $ 507,006.88 $ 1,898,529.28

6,350,000.00

2,229.887,23

129,908,99

264,264 79

19,019.93 11.926.32

Total Assets

$ 5,733,335,25 $ 667.862,12 $ 8,512,794.07

LIABILITIES ANp FUND EaUITY
LIABILITIES"
Accounts Payable Salaries Payable expired Grant Balances Payable Deferred Revenue Funds Held for Others General Obligation Bonds Payable
Total UablUbes
FUND EgUIJY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Endowment Corpus For Inventones Food Donated CommodrtJes Purchased Food For Purpose of Bond Issue For Sta1e Capital Outlay Pl'Ojects Unreserved Designated for Scholarships Undesignated
Total Fund Equity

$

581,459.07 $

2,121,597,20

28,021,56

3,770.39

41,531.00 152,160,12
273,73 83,768,00

$ 2,734,848,22 $ 277,732,85

$

19,019.93

11,926.32

$ 6,515,551,98

1,326,191,00

$ 2,998,487.03 $ 2,998,487 03 $

359,183.02 390,'2927 $

671,051.09 8,512,794 07

Total UabflllJes and Fund Equity

$ 5,733,335,25 $ 667,86212 $ 8,512,794.07

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

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

$

4,96411 $

11,482.33

3,163,740.08

23.53314

457,474.27

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30, 2001

$ 5,925,430.62 $ 3,722,611.93

9,537.273.22

3.008.380.26

3,081,535.28

890,404.82

$ 3,626,178.46 15,083,821.54

19,019.93 11.926.32 3.626,178.46
15,083,821.54

16,659.30 13.389.11 3,444,231.45
8,260,76855

$ 3,626,178.46 $

35,015.47 $ 18,710,000.00 $ 37,285,185.37 $ 19,356,445.42

$

622,990.07 $

44,570.51

2,273,757,32

164,505.53

28,295.29

558.85

87.538.39

$

428.91

428.91

497.83

$ 18,710,000.00

18,710,000.00

11,705,000.00

$

428.91 $ 18,710,000.00 $ 21,723,00998 $ 11,915,132.72

$ 3.626,178.46 $

23,500.00

000 $ 3,626.178.46 $

11,086.56 0.00
34,586.56

$

29,040.32

$ 3,626,178.46

3.444.241.35

23,500.00

23,500.00

19,019.93 11,926.32 6,515,551.98 1.326,191.00
11.086.56 4,028,721 14
$ 15,562,17539 $

16,659.30 13,389.11
9,nO.18 3,904,712.44 7,441,31270

$ 3,626,178.46 $

35,01547 $ 18l10,OOO.00 $ 37.285,185 37 $ 19,356,44542

-3-

WHITE COUNTY BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND nPES ANP EXPENDABLE TRUST FUNDS
YEAR ENpED JUNE 30, 2002

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media SeMces General Administration School Administration Business Admlnlstrabon Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food serviceS Operation
Capital Outlay Debt Service
PrinCipal Interest PaYing Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obligation Bonds Par Value
Operabng 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

$ 16,440,884,75 $ 19,398,95
8,800,074,73 562,719,09
$ 25,823,On,52 $

196,543,84 1,833,196,59
705,68982 $
2,735,430,25 $

328,235.84 328,23584

$ 18,408,948,10 $
518,198,99 623,722,57 647,278,93 390,343,54 1,644,820,44 223,371,69 1,839,014,76 1,223,575,86 141,341,35
46,180.85 9,596,47

1,035,912,34 176,124,99 40,012,15 37,952,54 $
1,474,362,86

124,180,24 1,411,030,33

$ 25,716,393,55 $

$

106,683,97 $

2,764,364.88 $ -28,934,63 S

1,535,210,57 -1,206,974,73

$

47,800,00 S

-2,614.98

$

45,185.02 $

$ 2,614,98
2,614.98 $

9,230,000,00 -211,863,25 9,018,136.75

$

151,868,99 $

2,846,618,04

-26,319,65 $ 415,551,08

7,811,162.02 701,632,05

2,360,63 -1,462.79

FUND BALANCE JUNE 30

$ 2,998,487 03 S

390,129.27 $ 8,5121794 07

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

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 16,637,428.59

1,852,595.54

$ 2,863,382.35

11,663,457.08

46,471.51

1,643,116.26 $

$ 2,909,853.86 $ 31,796,59747 $

$ 1,316.52

16,637,428.59 $ 1,852,595.54 11.663,457.08 1,644,432.78

13,032,357.83 1,524,183.94
10,364,635.45 1,339,729.21

1,316.52 $ 31,797,913.99 $ 26,260.906.43

$ 19,444,860.44

694,323.98 663,734.72 647,278.93 428,296.08 $ 1,644,820.44 347,551.93 1,839,014.76 1,223,575.86 141,341.35
46,180.85 1.483,959.33 1,411,030.33

$ 2,225,000.00 664,2n.00 2,703.00

2,225,000.00 664,2n.OO 2,703.00

$ 2,891,980.00 $ 32,907,949.00 $

$

17,873.86 $ -1,111,351.53 $

$ 19,444,860.44 $ 15,280,359.59

1,166.66

694,323.98 663,734.72 647,278.93 429,462.74 1,644,820.44 347,551.93 1,839,014.76 1,223,575.86 141,341.35
46,180.85 1,483.959.33 1,411,030.33

460,635.59 699,263.27 567,151.65 445,366.16 1,312,739.00 212,108.50 1,529,008.87 1,041,476.12
84,879.50 33,937.41 1.237,324.36 811,456.67

2,225,000.00 664,2n.00 2,703.00

1,990,000.00 586,841.25 4,558.00

U66.66 $ 32,909,11566 $ 26,297,105.94

149.86 $ -1,111 ,201.67 $

-36,199.51

$ 9,230,000.00

$

164,063.25

214,478.23

-214,478.23

$

164,063.25 $ 9,230,000.00

$

181,937.11 $ 8,118,648 47 $

3,444,241.35

7,408,042.52

2,36063 -1,462.79

$ 9,230,000.00 214,478.23 $ -214,478.23
$ 9,230,000.00 $

81,555.53 -81,555.53
0.00

149.86 $ 2,121 62

8,118,79833 $ 7,410,164.14

-36,199.51 7,448,361.58

2,360.63 -1,46279

-466.49 -1 ,531.44

$ 3,626,178.46 $ 15,527,58883 $

2,27148 $ 15,529,860.31 $ 7,410,164 14

-5-

WHITE COUNTY BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES EXPENPITURES ANp CHANGES IN FUND BALANCES
BURGET ANP ACTUAL - (NON-GMP BASIS)
GENERAL AND SPECIAL REVENUE FUNpS
YEAR ENDER JUNE 30 2002

EXHIBIT"C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 13,413.71698 $ 16,440.884 75

222.08600

19,39895

8.293,41300

8,800,074,73

355.00000

562,71909

Total Revenues

$ 22.284,21598 $ 25,823,On 52

EXPENDITURES

Current Instruction Support 5eMCeS Puptl5eMCeS Improvement of InstruetJonal Servrces EduCBttonal Media 5ervu:es General Adm,nlstrabon School Admlnl5trabon BUSiness AdmlnlSIratton Maintenance and Operation of Plant Student Transportation 5eMces Central Support 5eMces Other Support ServIces Food 5eMCes Operation

$ 16.379,434,98 $ 18.408.94810

483,60500 783.20000 620.43500 399.03500 1,617.926 00 209,71500 1.831,090,00 1.095,170 00 140,67500
24.125.00

518.19899 623.722 57 647.27893 390.34354 1.644.820 44 223,371,69 1.839,014 76 1,223.57586 141.341,35
46.18085 9.59647

TQt81 Expendrturas

$ 23,584.41098 $ 25,716,39355

Excess of Revenues over (under) Expendrtures

$ -1,300,19500 $ 106,68397

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$

47.80000

-2,61498

Total Other Flnanang Sources (Uses)

$

45,185,02

Excess of Revenues and Other FinanCing Sources over (under) Expend,turas and Other FinanCing Uses $ -1,300.195,00 $

151,86899

FUND BALANCE JULY 1 2001

2,544.10020

2,846,61804

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

FUNR BALANCE JUNE 30 2002

$ 1,243,905 20 $ 2,998,487 03

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 178.226 00 $ 196,54384

1,733,405 00

1.833.196 59

704,49000

705,68982

$ 2,616,121,00 $ 2,735,43025

$ 953,030,00 $ 1,035,912.34

176.33500 36,68883

176.12499 40,01215

39.180 00

37.95254

800,00

1,407.833 00

1,474,36286

$ 2,613,84683 $ 2,764,364 88

$

2,27417 $ -28,934 63

$

2,614.98

$

2,61498

$

2,27417 $ -26.31965

474.83092

415.551 08

-23.427.00

2.36063 -1,46279

$ 453,67809 $ 390,129 27

The notes to the general-purpose tinanCl8I statements Bra an Integral part of thiS stetement -7-

- - - - - - - - - - - - - - - - - - - - - - - -------
WHITE COUNTY BOARD OF.EDUCATION COMBINED STATEMENT OF REVENUES, ExI?ENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONB<PENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 2002

OPERATING REVENUES Donations
OPERATING EXPENSES Current Support Services General Administration Operating Income
NONOPERATING REVENUES Interest Earned "Net Income
FUND BALANCE JULY 1

FIDUCIARY FUND

NONEXPENDABLETRUST

INDA YVONNE

JULIA AND

ALLEN MINORITY

HARWELL WESTMORELAND

SCHOLARSHIP

CITIZENSHIP

$

710.00 $

0.00

$

0.00 $

$

710.00 $

777.Q1

$

1,487.01 $

20,898.64

360.00 -360.00
351.29 -8.71
1,041.85

FUND BALANCE JUNE 30

$

22,385.65 $ ......_ _=1=,0.=33=..1..4. =

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

EXHIBIT"D"

TYPE FUNDS
VERA WESTMORELAND
SCHOLARSHIP

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$

0.00 $

710.00 $ _ _--.:5..;;.61....."'-54-'-.

$

600.00 $

960.00 $ _ _....;:3=0=0.=00~

$

-600.00 $

-250.00 $

261.54

288.22

1,416.52

1,247.73

$

.. -311.78 $

1,166.52 $

1,509.27

9,208.07

31,148.56

29,639.29

$

8,896.29 $

32,315.08 $c::::=:o-=:31=,1.4.8...5..6...

-9-

WHITE COUNl,Y BOARD OF EDUCATION
COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND lYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 2002

Cash Flows from Operating Activities: Cash Received from Donations Cash Paid for Scholarships
Net Cash Provided (Used) by Operating Activities
Cash Flows from Investing Activities: Interest Received on Investments Investments Realized
Net Cash Provided by Investment Activities
Net Increase (Decrease) in Cash
Cash and Cash Equivalents July 1

FIDUCIARY FUND

NONEXPENDABLE TRUST

INDA YVONNE

JULIA AND

ALLEN

HARWELL

MINORITY

WESTMORELAND

SCHOLARSHIP

CITIZENSHIP

$

710.00

$

-360.00

$

710.00 $

-360.00

$

777.01 $

351.29 8.71

$

777.01 $

$

1,487.01 $

6,398.64

360.00 0.00 0.00

Cash and Cash Equivalents June 30

$

7,885.65 $ ==-===-===0=:,0;;,;0...

The notes to the general-purpose financial statements are an integral part of this statement. - 10-

EXHIBIT"E"

TYPE FUNDS
VERA WESTMORELAND
SCHOLARSHIP

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$

710.00 $

561.54

$

-600.00

-960.00

-300.00

$

-600.00 $

-250.00 $

261.54

$

288.22 $

1,416.52 $

1,247.73

8.71

$

288.22 $

1,425.23 $

1,247.73

$

-311.78 $

1,175.23 $

1,509.27

: 1,208.07

7,606.71

6,097.44

$

896.29 $

8,781.94 $ o=:::=-=7Z!:,6:cii06=:.=71=

- 11 -

WHITE COUNTY BOARD OF EDUCATION

EXHmIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The White County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
.'
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these fmancial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

- 12-

WHITE COUNTY BOARD OF EDUCATION

EXHmIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND 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:
NONEXPENDABLE TRUST FUNDS Inda Yvonne Allen Minority Scholanhip 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 minority graduating seniors of the White County High School.
Julia and Harwell Westmoreland Citizenship 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 an award to a male and female student s.elected by the senior class each year.
Vera Westmoreland Scholanhip Fund - the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid each year to a deserving senior who has been accepted to college.
EXPENDABLE TRUST FUNDS Libby Alexander Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarship aid to a deserving student.
Lion's Club Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarship aid to a graduating senior who has been accepted by a post secondary institution.
AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.

- 13-

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

WHITE COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is detennined 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.
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 ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
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. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
- 14-

WHITE COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
For fiscal year 2002, the School District changed its method of accounting for the final two payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. This change is in accordance with generally accepted accounting principles. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this infonnation was not readily available.
The net effect ofthe above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and the related revenue due from the State to fund these contracts. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The White County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

- 15 -

WHITE COUNfY BOARD OF EDUCATION

EXHmIT "F"

NOTES TO 1HE GENERAVPURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-tenn investments with original maturities of three months or less from the date of acquisition in authorized fmancial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective; given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables
- 16-

WHITE COUNTY BOARD OF EDUCAnON

EXHIBIT "Fit

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 White County Board ofCommissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 31, 2001 (levy date). Taxes were due on December 31, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $8,727,057.11 and for school bonds amounted to $281,296.95.

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

School Operations School Bonds

14.470 mills .452 mills

14.922 mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue during the year amounted to $2,582,085.40 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

- 17 -

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

WHITE COUNTY BOARD OF EOVCAnON

EXHlBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Tenn Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbunements ofexpenditures/expenses initially made from a fund that are properly applicable
to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfen 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 confonnity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:

- 18 -

WHITE COUNTY BOARD OF EDUCAnON

EXHIDIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS AND INVESTMENTS
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $13,084,138,17. The amounts ofthe total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e,g" Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)
The School District's deposits are classified by risk category at June 30, 2002, as follows:

- 19-

----- - -

WHITE COUNfY BOARD OF EDUCAnON

EXHmIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

1

$ 7,720,746.29

2

5,363,391.88

3

0.00

Total

$13,084,138.17

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $3,163,740.08 which is materially the same as fair value.

Type of Investment
Investments not Subject to Categorization: Local Government Investment Pools Mutual Funds " Money Market Account
Total Investments

Carrying Amount

Fair Value

$ 3,073,149.15 $ 3,073,149.15

90,590.93

90,590.93

$ 3,163,740.08 $ 3,163,740.08

The carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

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

- 20-

WHITE COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2: DEPOSITS AND INVESTMENTS

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2002, was 0.12 years. The average investment duration for Fund 6 on June 30, 2002, was 0.75 years.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation.
.'
The School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage.

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

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

Beginning of Year Liability

Claims and Changes in Estimates

ClaIms Paid

End ofYear LIabilIty

2001 2002

$

0.00 $

2.832.00 $

2.832.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

- 21 -

WHITE COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4: RISK MANAGEMENT

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

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

Position Covered

Amount

Superintendent Employee Blanket Bond

$ 50,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1993 General Government - Series 1997 General Government - Series 2001

3.10% - 5.55% 3.80% - 4.30% 4.05%

$ 5,560,000.00 3,920,000.00 9,230,000.00

$18.710.000.00

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

General Obligation
Bonds

Balance July 1,2001

$11,705,000.00

Additions G.O. Bonds

9,230,000.00

Deductions Debt Retired
Balance June 30,2002

2,225,000.00 $18.710,000.00

- 22-

WHITE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5: GENERAL LONG-TERM DEBT

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

Fiscal Year Ended June 30

General Obligation
Bonds

2003 2004 2005 2006 2007 2008 - 2012 2013 - 2017

$ 3,270,123.75 4,516,315.00 2,697,092.50 2,697,016.25 2,702,417.50 5,188,860.00 1,262,293.75

Total Principal and Interest

$22.334,118.75

Note 6: ON-BEHALF PAYMENTS
,
The School District has recognized revenues and expenditures in the amount of$337,120.83 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $286,964.80

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System Employer's Cost In the amount of $22,047.03

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$28,109.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2002, together with funding available:

- 23-

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

WHITE COUNfY BOARD OF EDUCAnON

EXHmIT "F"

NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 7: SIGNIFICANT COMMITMENTS

Project

Unearned Executed Contracts

Funding Available From State

White County Intermediate School Additions Mount Yonah Elementary School

$ 15,195.00 82,906.35 $ 2,665,813.00

$ 98,101.35 $ 2,665,813.00

The amounts described in this note are not reflected in the general-purpose financial statements.

Note 8: CONTINGENT LIABILITIES

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

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

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

- 24-

WHITE COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 9: RETIREMENT PLANS
Fiscal Year
2002 2001 2000

Percentage Contributed
100% 100% 100%

Required Contribution
$ 1,304,223.76 $ 1,429,726.47 $ 1,278,955.59

"

- 25-

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

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

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

446,092.93 $

82,117.00

19,019.93 11.926.32

$

477,039.18 $ -===-==822:.1...1.=7.=00=

$

16,906.05

70.003.86

$

82,117.00

$

86,909.91 $

82,117.00

$

19,019.93

11,926.32

359.183.02 $

0.00

$

390,129.27 $

0.00

$

477,039.18 $ ====8::;;2.,.1..=17=.=00=

EXHIBIT"G"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

954.16 $

529,164.09 $

456,878.10

$

129,908.99

129,908.99

84,085.38

19,019.93 11,926.32

16,659.30 13,389.11

$

129,908.99 $

954.16 $

690,019.33 $ --=:-:;;5.71.C!:,O..1.",;,;1.8.9.c=.

.

$

22,157.21

23,670.79 $

82,156.26

273.73

1,651.00

$

129,908.99 $

$ 954.16
954.16 $

22,157.21 41,531.00 $ 152,160.12
273.73 83,768.00
299,890.06 $

32,615.97 122,285.99
558.85
155,460.81

$

0.00 $

$

0.00 $

$

129,908.99 $

$

29,040.32

$
0.00 0.00 $

19,019.93 11,926.32
359,183.02
390,129.27 $

16,659.30 13,389.11
356,462.35
415,551.08

954.16 $

690,019.33 $ =-==-=5=:7=,:1!:=:,O=11=.8~9...

- 27-

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instrudional Services General Administration Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

98,072,00 $

672,862.87

705,689.82

$ 1,476,624.69 $

92,226,00 92,226.00

$

92,250.14

$ 1,473,904.02

$ 1,473,904,02 $

$

2,720.67 $

92,250.14 -24.14

$

$

$

2,720.67 $

386,510.76

2,360.63 -1,462.79

24.14 24.14
0,00 0.00

$

390,129.27 $ -==-==0...=00=

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

EXHIBIT"H"

FEDERAL
PROGRAMS

OTHER
PROGRAMS

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$ $ 1,160,333.72
$ 1,160,333.72 $

6,245.84 $ 6,245.84 $

196,543.84 $ 1,833,196.59
705,689.82
2,735,430.25 $

192,260.00 1,523,207.04
579,032.45
2,294,499.49

$

943,662.20

176,124.99 33,766.31 $ 37,952.54
458.84

$ 1,191 ,964.88 $

$

-31,631.16 $

$ 6,245.84
6,245.84 $ 0.00 $

1,035,912.34 $
176,124.99 40,012.15 37,952.54 1,474,362.86
2,764,364.88 $
-28,934.63 $

832,492.47
114,052.76 41,139.59 27,044.99 1,236,799.61
2,251 ,529.42
42,970.07

$

2,590.84

$

2,590.84

$

-29,040.32 $

29,040.32

$

2,614.98 $

6,699.85

-1 ,555.68

$

2,614.98 $

5,144.17

0.00 $ 0.00

-26,319.65 $ 415,551.08

48,114.24 369,434.77

2.360.63 -1,462.79

-466.49 -1,531.44

$

0.00 $

0.00 $

390,129.27 $ ......=4,;,;1.5.5,5=51=..0.8;;",

29 -

--------- -- - -
WHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 3D. 2002

ASSETS Cash and Cash EqUivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft FUND EQlJITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projeds Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

BOND PROCEEDS

$

671,051.09

$ 6,350,000.00

$

671,051.09 $ 6,614,264.79

$

98,712.81

$ 6.515,551.98

$

671.051.09

0.00

$

671,051.09 $ 6,515.551.98

$

671,051.09 $ 6,614,264.79

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

EXHIBIT "I"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

1,326,191.00 $ 1,997,242.09 $

701,632.05

6,350,000.00

264,264.79

$

1,326.191.00 $ 8,611,506.88 $ 0:::::===-=7=01:=.:,.63.=2.=:05=.

$

98,712.81

..

$ 6,515,551.98

$

1,326,191.00

1,326,191.00

0.00

671,051.09 $

$

1,326,191.00 $ 8,512,794.07 $

7:.,:0:.:,1~,6;::32::..0:::.:5~
7:.,:0:.:,1L:,6;::32::..0:::.:5~

$

1,326,191.00 $ 8,611,506.88 $ -===-==::::::7;.:0:.;,1l:::,6=:32=:.0..5=

- 31 -

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

FUND BALANCE JUNE 30

$

671,051.09 $ 6,515,551.98

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

EXHIBITRJR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

...;:O;.;.;.OO~ $

328,235.84 $

44;...;..L.,;,1....;.49=..:.=.;69~

$

0.00 $

124,180.24

1,411,030.33 $

659,990.27 135,000.00

$

0.00 $ 1,535,210.57 $

794,990.27

$

0.00 $ -1,206,974.73 $

-750,840.58

.

$ 9,230,000.00

$

1,326,191.00

1,326,191.00

-1,538,054.25 $

$

1,326,191.00 $ 9,018,136.75 $

-73,300.00 -73,300.00

$

1,326,191.00 $ 7,811,162.02 $

-824,140.58

0.00

701,632.05

1,525,n2.63

$

1,326,191.00 $ 8,512,794.07 $======7..0..1...,6..=32=..0.5...

- 33-

WHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET PEBT SERVICE FUNp JUNE 30, 2002

EXHIBIT "K"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$ 1,222,083.70

$ 1,222,083,70 $ 1,222,965.25

$ 3,163,740.08

3,163,74008

2,984,83841

8,079,79

449,39448

457,474,27

453,557.28

$ 1,230,163,49 $ 3,613,134.56 $ 4,843,298.05 $ 4,661,360.94

LIABILITIES AND FUND EqUITY
LIABILITIES
Cash Overdraft
FUND EQUITY
Fund Balances Reserved For Debt Service UnreserVed Undesignated
Total Fund EqUIty

$ 1,217,119.59 $ 1,217,119.59 $ 1,217,119,59

$ 1,230,163,49 $ 0,00
$ 1,230,163,49 $

2,396,014.97 $ 3,626,178,46 $ 3,444,241.35

0.00

0.00

0.00

2,396,014.97 $ 3,626,178,46 $ 3,444,241.35

Totall/abilities and Fund EqLMty

$ 1,230,16349 $ 3,613,134.56 $ 4,843,29805 $ 4,661,360.94

See notes to the general-purpose finanCIal statements.

34-

WHITE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERYJCE 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

S 281,296.95 S 2,582,085.40 $ 2,863,382.35 $ 2,743,553.83

133.99

46,337.52

46,471.51

104,681 94

Total Revenues

$ 281,430 94 $ 2,628,422.92 $ 2,909,853.86 $ 2,848,235.n

EXPENDITURES

Debt5eNice Pnncipal Interest Paying Agent Fees

$ 2,225,000.00 S 2,225,000.00 $ 1,990,000.00

664,2n.OO

664,2n.00

586,841.25

$

2,703.00

2,703.00

4,558.00

Total Expenditures

$

2,703.00 $ 2,889,2n.00 $ 2,891,980.00 $ 2,581,399.25

Excess of Revenues over (under) Expenditures

$ 278,727.94 $ -260,854 08 $

17,873.86 $ 266,83652

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operabng Transfers Out

$ $ -282,000.00

446,063.25 $ 446,063.25 $ 258,OQ1.99

-282,000.00

-258,001.99

T9tal Other Financing Sources (Uses)

$ -282,00000 $ 446,06325 $ 164,06325 $

0.00

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

-3.2n.06 $

185,209.17 $ 181,937.11 $ 266,836.52

FUND BALANCE JULY 1

1,233,435.55

2,210,805.80

3,444,241.35

3,1n,404.83

FUND BALANCE JUNE 30

S 1,230,163.49 $ 2,396,01497 $ 3,626,17846 $ 3,444,241.35

see notes to the general-purpose financial statements

- 35-

WHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30. 2002

ASSETS Cash and Cash Equivalents Investments
Total Assets

NONEXPENDABLE TRUST FUNDS

ENDOWMENT FUNDS

INDA YVONNE ALLEN

JULIA AND HARWELL

VERA

MINORITY

WESTMORELAND WESTMORELAND

SCHOLARSHIP

CmZENSHIP

SCHOLARSHIP

$

7,885.65

$

896.29

14,500.00 $

..:1"",,0~3=:3''-o:.14~

8,000.00

$

22,385.65 $

1,033.14 $

8.,8.9..6...2..9. .

LIABILITIES AND FUND EQUITY
LIABILITIES
Funds Held for Others
FUND EQUITY
Fund Bar~nces
Reserved For Endowment Corpus
Unreserved Designated for Scholarships UndeslQnated
Total Fund Equity

$

14,500.00 $

7,885.65 0.00

$

22,385.65 $

Total Uabilities and Fund Equity

$

1,000.00 $ 33.14 0.00
1,03314 $
1,033.14 $

8,000.00 896.29 0.00
...::8:.,:,8::,::9=:6.:29::.,.
8,1,;;,8.9.6....2_9..

See notes to the general-purpose finanCial statements.

- 36-

EXHIBIT"M"

EXPENDABLE TRUST FUNDS

LIBBY ALEXANDER

LION'S CLUB

SCHOLARSHIP

SCHOLARSHIP

FUND

FUND

AGENCY FUND

TOTALS JUNE 30, 2002 JUNE 30, 2001

$

2,220.48 $

51.00 $

428.91 $

11,482.33 $

10,226.16

23,533.14

23,541.85

$

2,220.48 $

51.00 $

428.91 $

35,015.47 $ _....3..3..,7..6.8...0..1..

$
""

$

2,220.48 $

51.00

000

0.00

$

2,220.48 $

~5.:.:.1."",00<-

$

51.00 $

428.91 $

428.91 $ _ _--'4.;;.97;..:..8;;;;.;;3'-

$

23,500.00 $

23,500.00

11,086.56 0.00

9,nO.18 0.00

$

34,586.56 $ _~3;:;3&:,2..:.;70::.:..1.:.:8~

428.91 $

35.01547 $ _....3..3..,7..6.8..0..1...

WHITE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES,'EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 2002

EXHIBIT "N"

LIBBY AlEXANDER SCHOLARSHIP FUND

LION'S CLUB SCHOLARSHIP
FUND

TOTALS YEAR ENDED
JUNE 30, 2002 JUNE 30, 2001

REVENUES Other Funds
EXPENDITURES

$

31652 $

1,000,00 $

1,316,52 $

1,356.56

Current

Support Services

General Administrabon

$

Excess of Revenues over (under) Expenditures $

FUND BALANCE JULY 1

166.66 $ 149.86 $ 2,070.62

1,00000 $ 0,00 $
51.00

1,166,66 $ 149.86 $
2,121,62

1,500.00 -14344 2,265.06

FUND BALANCE JUNE 30

$

2,22048 $

51,00 $

2,271,48 $

2.,1.2..1..6.2. .

:

see notes to the general-purpose finanaal statements.

- 38-

WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2002

EXHIBIT "0

BUS DRIVERS' ASSOCIATION ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JULY 1, 2001

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2002

$

497.83 $ 585.00 $

653.92 $ ~==-a:::::::::4=28=.9=1=

$

497.83 $ 585.00 $

653.92 $ ......~====4=28=.=91....

.'

See notes to the general-purpose financial statements. - 39-

WHITE COUNTY BOARP Of EDUCATION SCHEDULE Of EXPENDITURES Of fEDERAL AWARDS
YEAR ENDER JUNE 30, 2002

SCHEDULE "1"

fUNDING AGENCY PROGRAM/GRANT

CfDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

fEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture. U S, Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education food and Nutr1t1on Program food services SChool Breakfast Program National SChool Lunch Program
Total Child NutrItion Cluster

10.553 10.555

NlA $ 135.521.60

(2)

NlA

460,33909 $ 1,396.901.84 (3)

$ 595.860.69 $ 1,396.901.84

Other Programs

Pass-Through From Georgia Department of Education

food and Nutrttlon Program

food DlstnbutJon Program (1)

10.550

NlA

Pass-Through From OffIce of Treasury and Fiscal services

National forest Reserve funds

10.665

NlA

n,002,18 19,398.95

n,D02.18 (4)

Total U. S. Department of Agriculture

$ 692,261.82 $ 1,473,904.02

Education, U. S. Department of Spedal Educabon Cluster Pass-Through From Georgia Department of Education Individuals with DIsabilities Education Ad Pa-rt B - Spedal Educallon capacity Building Improvement Flow Through Preschool
Total Special Education Cluster

84.173
84.027
84.173

NlA $ 9,299.28 $

NlA

352.027.84

NlA

20,857.00

$ 382,184.12 $

9,299.28 352,331 18 (3)
20,881.75 (3)
382,512.21

Other Programs Pass-Through From Georgia Department of Educabon Elementary and secondary Education Act Title I Accountability Grant Delinquent Childran Grants to Local Educabonal AgenCies TItle II Eisenhower Professional Development TItle VI Class Size Reductlon Innovabve Educabon Program Strategl8S Vocational Educabon - Basic Grants to States High School Program Basic Grant

84.348

NlA

84.010

NlA

84.010

NlA

84.281

NlA

84.340

NlA

84.298

NlA

84 048

NlA

59.026.00 48,129.37 457,170.15
17.500.00
66,826.00 16,850.00
28.943.00

60.051.89 (3) 48,129.37 457,456.63 (3)
20.712.83 (3)
67,334 41 (3) 16,863.13 (3)
29,371 84 (3)

Total U S. Department of Educabon

$ 1.076,628 64 $ 1,082.432.31

Health and Human services. U. S. Department of Pass-Through From Ninth Dlstncl Opportunity. Incorporated Head Start

93600

NlA $ 83,705.08 $

109.532 57 (3)

Total Federal Financial AsSistance
NlA = Not Available

- 40-

$ 1.852.595.54 $ 2.665.86890

WHITE COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2002

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Dlslrlbu!Jon Program represents !he Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during !he current fiscal year
(2) Expendrtures for !he SChool Breakfast Program were not maintained separately and are Included In the 2002 NaUonal School Lunch Program
(3) Expenditures for this program Include State, and/or Other Funds Expenditures are not maintained by fund source
(4) Funds earned on this program do not require repomng of expendrtures.
Major Programs are idenUfied by an asterisk (*) in front of the CFDA number.
The School Dlslrld did not provide Federal Assistance to any Subreclplent.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the White County Board of Education and Is presented on the modified aeaual basis of accounUng which is !he baSIS of accounting used In the presentaUon of the general-purpose finanCial statements.

.'

see notes to the general-purpose finanaal statements.

- 41 -

WHITE COUNTY BOARD OF EDUCATION SCHEPUlE OF SIDE REVENUE YEAR ENpED JUNE 30 2002

SCHEDULE "2"

AGENCY/fUNDING
GRANTS EducatIOn, Georgia Department of Quality BaSIC Education Direct Instructional Cost KJIldergarten Program KJIldergarten Program - Earty Intervention Program Pnmary Grades (1-3) Program Pnmary Grades Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary - Earty Intervention (4-5) Program Middle Grades (6-8) Program Hrgh School General EdueatJon (9-12) Program Vocational Laboratory (9-12) Program Students with Disabllltles categexy I Category II Getegory III category IV Category V Gifted Student - Getegory VI Remedl8l education Program A1tematlV8 Educatton Program Media Gentar Program Staff and ProfesslonaJ Development Twenty Days Addltlonallnstructron Indirect Cost Calegoncal Grants Pupil Transportebon Regular ~us Replacement Sparsity Nursing 5e1'VlC8S PnnapalSu~emS VocatJonaJ SUperviSOrs Education Equalization FUndIng Grant DefemId Sunvner Salanes (Current Year) Food5eMces Vocational EducatJon Other State Programs ApprenticeshiP Program EnVironmental 5aenca Program Health Insurance Mentor Teachers Pay for Performance Post Secondary OptIon Praschool Handicapped Program StatllWlde After School Program (4-8) StatllWlde Reading Program (K.3) Teachers' Retirement lottlllY Programs Asslstlve Technology Computers In the Classroom Next Generation Schools
QfIice of Public safety Dnvers' Educabon Grant
OfIica of Treasury and Fiscal Services PublIC School Employees Retirement
CONTRACT Education, Georgia Department of Reading First Program

See notes to the general-purpose financaal statements

-42 -

GOVERNMENTAl FUND TYPES

SPECIAl

GENERAL

REVENUE

FUND

FUND

TOTAl

$

772,41500

186,486 00

1,646,284 00

571,88000

998,24500

270,322.00

1,758,698.00

1,254,669 00

568,325.00

126,98000 223,994.00 953,20500 274,239.00
5.690.00 481,55200
84,067.00 129,67400 310,522.00
59,911 00 64,12950 1,951,92000

$

772,415.00

186,48600

1,646,284 00

571,88000

998,245.00

270,32200

1,756,69800

1,254,66900

588,325.00

126,980 00 223,994 00 953,20500 274,239.00
5,690.00 481,55200
84,06700 129,67400 310,522 00
59,911.00 64,12950 1,951,920 00

158,74800 543,44200
20,000.00 64,22500 15,066.00 25,15700 195,104 00 1,835,627 00
$ 118,27908

98,07200

35,00000 750 00
286,964 80 3,82500
164,000 00 4,85000
45,30200 50,673.20 32,69578 22,04703

75,00000

8,176.00 84,05000

158,74800 543,44200
20,00000 84,225.00 15,066 00 25,157.00 195,104 00 1,835,627.00 98,07200 118,27908
35,00000 75000
286,964 80 3,82500
164,000 00 4,85000
45,30200 50,67320 32,69578 22,04703
8,17600 84,05000 75,00000

4,81236

4,61236

28,109.00

28,109 00

6,24584

6,24584

$ 16,440.884 75 $ 196154384 $ 16,637,42859

WHITE COUNTY BOARP OF EpUCATION SCHEPULE OF APPROVEP LOCAL OPTION SALES TAX PROJECTS
YEAR ENpEp JUNE 30 2002

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

Payments of pnrlClpal and Interest on the 1993 Bonds from February 1, 1999 to August 1, 2003

S 3,160,000.00 S 3,160,00000 S 624,48250 $ 1.407,82635 Ongoing

AcqUisition, construction and eqUipping of a new elementary school and necessary furnIShings and eqUipment, Indudlng the acquISition of all necessary real or personal property and eqUipment, including computers and related technology, adding to, renovating, repairing, Improving and eqUipping existing educabonal bulldll1QS, properties and facdltl8s of the school dlStnd and expenses inCIdent thereto

14,040,00000 12,500,00000 1,200,857.96 11,042,256.38 Completed

AcquiSIbon, construebon and eqUipping one new elementary school, adding to, renovating, repalnng, Improving and eqUipping 8XIBbng school bUildings, acqulnng computers and computer technology eqUipment for the school system, and acqUISition of land for additional schools

16,750,000.00 16,750,000 00

579,966 87

OngoIng

PaYIng a portion of the prinCIpal and Interest due on the White County School DIstnct's Series 1993 General Obh!l;lltlon Bonds from August 1, 2003 through and Including February 1, 2008

2,250,00000

2,250,000 00

OngOIng

$ 36,200,000 00 $ 34,660,00000 $ 2,405,307 33 $ 12,450,08273

(1) The School DlBlnd's ooglnal cost esbmate es speafiad In the resoIubon calling for the Imposition of the Local Optloo Sales Tax
(2) The School Dlstnct's cumsnt eBbmate of total cost for the prqects Indudes all cost from pl'Ol8Cllncapbon to completron
(3) The voters of White County approved the Imposition of a 1% sales tax to fund the above proJeds and retire assoaated debt Amounts expended for these pl'Of8Cls may Indude sales tax proceeds, state, local property taxes and/or other funds over the life of the PI'Oleds

See notes to the general-purpose financaal statements

43

WHITE COUNTY BOARD OF EDUCATION
GENERAL FUNp - gUALlTY BASIC EDUCAnON PROGRAM (gBEl ALLOTMENTS AND'EXPENDITURES - BY PROGRAM YEAR ENpED JUNE 30, 2002

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kmdergarten Program

$

Kindergarten Program-Early Intervention Program

Pnmary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Upper Elementary Grades-Early Intervention (4-5)

Program

Middle SChool (6-8) Program

High School General Education (9-12) Program

Vocabonal Laboratory (9-12) Program

Students with DIsabilities

category I

category II

category III

Category IV

GIfted Student - category VI

Remedial Education Program

Alternative Education Program

922,581.00 S 222,741,00 1,966,339.00 683,059.00 1,189,547.00

893,909.31 $ 237,959,09 1,979,250.13 684,n5.55 1,570,657 66

19,447.03 S 4,347.68 71,717.31 5,091.86 55,396.73

913,356,34 242,306.n 2,050,967 44 689,867.41 1,626,054.39

325,643.00 2,098,219.00 1,498,590.00
678,814.00 1,892,074.00
575,171.00 100,410.00 154,884.00

245,963.62 2,121,657.87 1,947,472.82
493,203.44
128,195.11 303,864.13 1,254,867.19 336,280.25 643,43649 121,865.70
85,958.11

124,443.09 118,940.25 118,646.14
3,243.32 9,446.32 33,482.95 10,884.60 24,263.31
966.65 103,55539

245,963.62 2,246,100.96 2,066,413.07
611,849.58
131,438.43 313,310.45 1,288,350.14 347,164.85 667,699.80 122,832.35 189,513.50

TOTAL DIRECT INSTRUCTIONAl PROGRAMS

$

12,308,072.00 $ 13,049,316.47 S 703,872.63 $ 13,753,189.10

Media Center Program Staff and Professional Development

370,891.00 71,558.00

421,938.03 11,908.54

136,010.52 61,825.31

557,948.55 73,733.85

TOTAL aBE FORMULA FUNDS

$

12,750,521.00 S 13,483,163.04 $ 901,70846 $ 14,384,871.50

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

see notes to the general-purpose financial statements

44-

WHITE COUNTY BOARD OF EDUCATION GENERAL FUND - aUALlTYBASIC EDUCATION PROGRAM (aBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 3D. 2002

SCHEDULE "5"

White County Intermediate School White County Middle School White County High School Jack P Nix Primary School White County Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

$

1.992,866.00 $ 2,329,353.66

2,847.953.00

3.184,765.43

3,056,316.00

3,467.117.82

2.322,369.00

2,527,143.57

1,933.684.00

2.055.295.12

154,884.00

189.513.50

$ 12,308.072.00 $ 13,753,189.10

see notes to the general-purpose financial statements.
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..

SECTIONn

COMPLIANCE AND INTERNAL CONTROL REPORTS

RUS1\EI.L W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S W., SUite 214 Atlanta, Georgia 30334-8400
March 20, 2003

Honorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members of the White 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 ofWhite County Board ofEducation as ofand for the year ended June 30,2002, and have issued our report thereon dated March 20, 2003. 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 of obtaining reasonable assurance about whether White County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered White County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2002YB-41

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters corning to our attention relating to significant deficiencies in,the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect White County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7541-02-0I.

A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the 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-7541-02-01 to be a material weakness.

This report is intended solely for the information and use ofthe management, members ofthe White County Board of~ucation,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,

Rus ell W. Hinton State Auditor

RWH:gp 2002YB-41

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

DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washmgton Slreet, S w., Suite 214
Atlanta. GeorgIa 30334-8400
March 20, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the White County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliartce
We have audited the compliance ofWhite County Board ofEducation with the types ofcompliance
requirements described in the u.s. Office of Management and Budget (OMB) Circular A-133
Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. White County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of White County Board of Education's management. Our responsibility is to express an opinion on White County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; 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 White County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circwnstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on White County Board of Education's compliance with those requirements.
2002SA-IO

In our opinion, the White County Board of Education 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, 2002.
Internal Control Over Compliance
The management of White 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 White County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-l33.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofthe management, members ofthe White 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,
~~
Rus ell W. Hinton State Auditor
RWH:gp 2002SA-IO

.'

SECTIONm

AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7541-00-01 FS-7541-01-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS . Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7541-01-01

The White County Board of Education had an appraisal done of all its assets at June 30, 2002 for future compliance with GASB 34 requirements. The School District adopted the policy to capitalize assets at $5,000.00. The Capital Assets Report was reported to the auditors a year ahead of Department of Education's required implementation schedule. The White County Board of Education is continuing to implement the requirements of .GASB34.

SECTION IV FINDINGS AND QUESTIONED COSTS

WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the White County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the White County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit ofthe White County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs TPe audit report for the White 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 White County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The White County Board of Education's audit did not disclose audit findings required to be reported by section .51O(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.027 Individuals with Disabilities Education Act - Part B - Special EducationFlow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84.173 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
- 1-

WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS 9. Low Risk Auditee
The White County Board ofEducation qualified as a low risk auditee as defined by Section .530 of OMB Circular A-133.
n 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-7541-02-01 The White County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fonnal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements 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 fQr maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported.
-2-