WILCOX COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHffiITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

.

22

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

24

2 SCHEDULE OF STATE REVENUE

26

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

27

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

28

5

BY SITE

29

WILCOX COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR' PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
SECTION III 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

t'SSEJ.J. \V. H'i'ToN
STATE AUDITOR :404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S,W,. Suite 214 Atlanta, Georgia 30334-X4()()
January 25, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Wilcox County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Wilcox 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 of the Wilcox 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 of America 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 assuranceabout whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opimon.
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:

200IARL-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 Board of Education did not recognize as expenditures, in the year ended

June 30, 2001, a portion of salaries and the corresponding employer's cost of related

benefits earned for contractual services completed prior to June 30, 2001. Also funds

received, subsequent to June 30, 2001, from the Georgia Department of Education for

the State's share of these unrecorded salaries and related benefits were not recorded as

revenue in the year under review. Conversely, the similar expenditures and related

revenues for contractual services completed prior to June 30, 2000, were improperly

recorded in the year ended June 30, 2001. To conform to generally accepted accounting

principles, revenues should be recorded when available and measurable and

expenditures should be recorded when incurred, rather than when funds are received or

II,

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 paragraph, the general-purpose financial statements referred to above present fairly,. in all material respects, the financial position of the Wilcox County Board of Education as ofJune 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 25, 2002, on our consideration of the Wilcox County Board of Education'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 of the Wilcox County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures ofFederal Awards as required by U. S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit 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

2001ARL-13

r
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audit of the general-purpose financial statements and in our opinion, except for the effects of the 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,
~W~ Russell W. Hinton State Auditor

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WILCOX COUNTY BOARD OF EDUCAnON

WILCOX COUNTY BOARD OF EDUCATION COMBINED 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 in 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

$ 550,000,12 $

52,661,24 $

0,00

29,503,63

19.159,35

143.564,37

3.053,64 2.657,49

$ 596.663,10 $ 202,176,74 $===0~.00~

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Continuation of State Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ 56.075,33 $

59.669.61

112.637.76

$ 56.075,33 $ _....:..:.1..:7:.2r.:.:5:.:2:.7:..,:3;::7:.:-

$ 44.636,91

$

3.053.64

2.657,49

495.946,66

23.936,24 $

0.00

$ 540.567,77 $

29.649,37 $

0.00

Total Liabilities and Fund Equity

$ 596.663.10 $ 202,176,74 $

0,00

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

EXHIBIT "A"

DEBT SERVICE
FUND
$ 122,987.50
321,039.39
56,587.75

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS
(Memorandum Only)
JUNE 30, 2001 JUNE 30, 2000

s

725,868.86 $ 350,998.52

350,543.02 219,331.47

701,02~ .35
I
I
338,368.03

3,053.64

3,27'1.61

2,657.49

3,52.3.63

I

$ 500,614.64

500,614.64

429,17:6.85

Ii

164,385.36 99,825.60

164,385.36 99,825.60

510.823.15 194,71'6.80

$ 500,614.64 $ 764.825.60 $ 2.066.280.08 $ 2,531,899.94

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I

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$
s 99,825.60
665,000.00

117,764.94 $ 112,837.76
99,825.60 665.000.00

163,554.84 [
110,23,1.74
194,71 6.80
940,000.00 I

$ 764,825.60 $

995,428.30 $ 1,408,503.38
I,

I

I

\

s 500,614.64
0.00 $ 500,614.64

,

$

44,638.91 $

78,221.41

5,498.59

1,O~8.63

500,614.64

429,y6.85

3,053.64 2,657.49
519.887.10

,i
3,271.61 3,523.63 7,8,65.00
i
594,840.84

s $ 1,070,851.78

1,123,396.56

I

s $ 500,614.64 $ 764,825.60

I
2,066,280.08 $ 2,531.899.94

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

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

GENERAL FUND

SPECIAL REVENUE
FUND

s s 6,595,347,25

266,291,93

1,165,254.21

1,420,818.12

34,500.16

75,843.53

s $ 8,050,665,53

1,507,389,67

$ 5,403,457,67 $

773,459.06

217,092,65 184,635.29 163,314.50 239,119.45 581,584.88 72,935,20 649,345.92 467,951.00
8,353,00 8,842.43 14,849,23

173,112.41 26,299.91 39,875,02 3,649,33
9,559,57 529,295.64

94,891.20

I

10,125.30

'$ 8,116,497,72 $ 1,555,250.94

$

-65,832.19 $

-47,861.27

$

17,163,57

$

-18,503.57

s

s -18,503.57

17,163.57

:

$

-84,335,76 $

-30,697.70

624,923,53

61,431.18

-217.97 -866,14

FUND BALANCE JUNE 30

$ 540,587.77 $====29=,6=4=9.=37=

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

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EXHiBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

~I

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I,

TOTALS

I,

(Memorandum Only)'

YEAR ENDED 1,

JUNE 30, 2001

JUNE 3'0, 2000 I
I

s 68,685.00
$
s $ 68,685.00

S
378,144.81 15,762.98

6,930,324.18 $ 1,165,254.21 1,798,962.93
126,106.67

393,907.79 $ 10,020,647.99 $

6,255!090.85 1,134[883.45 2,125~922.06
112\888.61
I 9,628',784.97

$ 77,890.00
s
s 77,890.00 S s s -9,205.00

s 6,176,916.73 $

390,205.06 210,935.20 163,314.50 278,994.47 585,234.21
72,935.20 649,345.92 477,510.57
8,353.00 538,138.07
92,739.23

275,000.00 47,470.00

369,891.20 57,595.30

322,470.00 $ 10,072,108.66 $

s 71,437.79

-51,460.67 $

5,277:,437.76 I
I
655,207.01
2711,938.52
184,636.72 23~,961.43 48q,351.29
71,933.30
, 534,665.03 .
655,459.34
,30,894.26
459,634.29
76,989.04
I
351 ,987.20
70,629.30
I
9,355,724.49
I
273,060.48

$ 1,340.00
s 1,340.00

$

s

18,503.57

-18,503.57

$

0.00' $

S -7,865.00 $ 71,437.79 $

-51,460.67 $

7,865.00

429,176.85

1,123,396.56

-217.97 -866.14

24 1,420 .00
-13,154.33 I 13,154.33
i
241,420.00
51~.480.48 ,I
I . 610,968.74 I -f,331.49
i 278.83

I

$

s 0.00 $ 500,614.64

1,070,851.78 $ 1,123,396.56

- 5-

REVENUES

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WILCOX COUNTY BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL -(NON-GAAP BASIS)
GENERAL AND SPEC1M REVENUE FUNDS
YEAR ENDED JUNE 30, 2001
I I
I

EXHIBIT"C"

t
I
GENERAL FUND

SPECIAL REVENUE FUND

I
! BUDGET

ACTUAL (BUDGET
BASIS)

BUDGET

ACTUAL (BUDGET
BASIS)

!

State Funds Federal Funds Taxes Other Funds
Total Revenues

1

$ 6,312,263.66 $ 6,595,347.25

I

1,543,951.00,

1,420,818.12

103,242.00

34,500.16

I I
$ 7,959,456.66 $ 8.050,665.53

$ 313,126.10 $ 266,291.93

1,035,334.00

1,165,254.21

64,600.00

75,843.53

$ 1,413,060.10 $ 1,507,389.67

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services

I

$ 5,113,224.66 $ 5,403,457.67

I

I

197,100.00,

217,092.65

230,510.00

184,635.29

$ 770,146.36 $ 773,459.06

90,839.00 24,656.00

173,112.41 26,299.91

Educational Media Services

192,070,00,

163,314.50

50.00

General Administration School Administration

252,326.00, 544,971.00,

239,119.45 581,584.88

36,323.00 1,246.00

39,875.02 3,649.33

Ii:

Business Administration

Maintenance and Operation of Plant

Student Transportation Services

Other Support Services

Food Services Operation

Capital Outlay

Debt Service

83,699.0p
560,409.00, 551,525.00, 10,025.00,
2,936.00,
154,999,00'
I

72,935.20 649,345.92 467,951.00
8,353.00 8,842.43 14,849.23 105,016.50

1,200.00 488,300.00

9,559.57 529,295.64

Total Expenditures

'-

I

$ 7,893,794.66 $ 8,116,497.72

$ 1,412,760.36 $ 1,555,250.94

Excess of Revenues over (under) Expenditures

$

I
65,662.00 $

-65,832.19

s

299.74 $ -47.861.27

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ -18,503.57

$ 17,163.57

Total Other Financing Sources (Uses)

$ -18,503.57

$ 17,163.57

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

65,662.0 $ -84,335,76

$

FUND BALANCE JULY 1, 2000

10 483,233.y

624,923.53

299.74 $ 58,346.10

-30,697.70 54,635.94

Adjustments

17,860.54

-18,402.70

FUND BALANCE JUNE 30, 2001

I

I

$ 566,756.21 $ 540,587.77

$

40,243.14 $ 23,938.24

I

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

WILCOX COUNTY BOARD OF EDUCAnON

EXHIDIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

I

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The Wilcox County Board of Education (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 isa 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 Iiabilities 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 go~ernmental 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 f o l l o w s : '

.

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 Schooi District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-8-

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WILCOX COUNTY BOARD OF EDUCATION
NOTES TO THE GENERAL-PURPcDSE FINANCIAL STATEMENTS
JUNE 301, 2001

EXHIBIT "D"

i
Notel: SUMMARY OF SIGNIFICANT ACCOllJNTING POLICIES
I
SPECIAL REVENUE FUND - the fund used ro 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

I

acquisition or construction of major capital facilities.

acco~nt DEBT SERVICE FUND - the fund used tn

fnr the accumulation ofresnurces for, and the

I:

payment of, general long-term principal, interest and paying agent fees.

ACCOUNT GROUP
GENERAL LO~G-TERM DEBT ACCOUNTj GROUP - A financial reporting device used to
account for general obligation debt outstanding and capital lease obligations. I
BASIS OF ACCOUNTING

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered 'a measure of available spendable resources.

Liabilities which are expected to be financed fr01 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 beneral Long-Term Debt Account Group.

Governmental funds are accounted for using the mldified 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 ofth1e transaction can be determined and "available"
means collectible within the current period or soo~ enough thereafter to be used to pay liabilities of

the current period. The School District considers receivables collected within sixty days after year-

end to be available and therefore susceptible to acrual. 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 th~ 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.

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WILcox COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel of the School District were employed for a one hundredand ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30,2001. Also, the State's portion of the compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Wilcox County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates ofexpenditures 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 otherthan- 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 ina newspaper of general circulation in the locality. At the next regular meeting of the 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. Alhunexpended budget authority lapses at fiscal year-end.
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual. presents actual and budgeted data for the General Fund and SpecialRevenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" of this report:
- 10 -

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I WILCOX COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPO'SE FINANCIAL STATEMENTS
JUNE 30.12001

EXHIBIT "D"

I
I
I
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

FUND BALANCE JULY 1, 2000

Special Revenue
Fund
s 61,431.18

Adjustments Inventories - July 1, 2000 Food Donated Commodities Purchased Foods
Fund Balance July 1, 2000 (Budget Basis)

-3,271.61 -3,523.63
$ 54,635.94

Excess over

(oufnRdeevr)enEuxepseannddituOrethsearnFdinOatnhceirnFgiSnoa~'ucricnegs

Uses

FUND BALANCE JUNE 30, 2001 (BudgetBasis)

-30,697.70 $ 23,938.24

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from jthe 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 ~nd loan associations.

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one 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 rep,lorted 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

I.

following:

i

(1) Obligations issued by the State of GeOra or by other states,

)
- 11 -

WILCOX COUNTY BOARD OF EDUCA nON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,

(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 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 Wilcox County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 15,2000 (levy date). Taxes were due on December 20,2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 200 1. The Wilcox 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, 2001 for mairttenanceand operations amounted to $1,414,309.84~

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

, School Operations

12.61 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to

- 12 -

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:

.

WILCOX COUNTY BOARD OF EDUCATION

NOTES TO THE GENERAL-PURP<DSE FINANCIAL STATEMENTS
JUNE 3d. 2001

EXHIDIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOlLTNTING POLICIES
I
$378,144.81 and was recorded in the Debt Service Fund. The State will terminate collection of this
tax once an additional $474,773.08 has been colledted or on June 30, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES

Inventories of donated food commodities used in the preparation of meals are reported on the

Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported

on the Combined Balance Sheet at cost (weighted average). Donated food commodities are recorded

as revenues and expenditures at the time commodity items are received. Purchased foods inventories

are for

recorded as expenditures at donated food commodities

the and

tifmorepoufrpcuhracsheads'e~.ooTdhsearienveeqnutaolrliyesorfefpseotrtbeyd

on the balance sheet reservations of fund

balance which indicates that these amounts do notlconstitute "available spendable resources" even

though they are a component of net current assets.

.

GENERAL OBLIGATION BONDS

The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and dredit ofthe government. The outstanding amount of these bonds is recorded in the General Long-TJnn Debt Account Group.

INTERFUND TRANSACTIONS

I

The School District has the following types of interfund transactions:

Reimbursements of expenditures initially made Jom a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

Operating transfers are recorded for all interfund transactions other than reimbursements.
.I
MEMORANDUM ONLY - TOTAL COLUMiS

Total columns on the general-purpose financial sttatements are captioned "Memorandum Only" to

!I" indicate that they are presented only to facilitate financial analysis. Data in these columns do not

I:

present financial position or results of operations ih conformity with generally accepted accounting

IIi

d principles. Neither are such data comparable to consolidation. Interfund eliminations have not
been made in tbe aggregation oftbis data.

I

I
- 13 -

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I

WILCOX COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 of money which has not

been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face

value of such surety bond and the market value of securities pledged shall be equal to not less than

110 percent ofthe public funds being secured after the deduction ofthe amountofdeposit 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 of operating funds placed in demand deposit checking

accounts. .

..

Acceptable security for deposits consists of anyone 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 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.

- 14-

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.'1 ' , . ' ,

I' "t.'.'

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t

WILCOX COUNTY BOkRD OF EDUCATION

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30,2001

EXHIDIT "D"

Note 2: DEPOSITS

CATEGORIZATION OF DEPOSITS At June 30, 2001 .the bank balances were $1,448,831.36. 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 SChOOl1 District or by the School District's agent in the

School District's name.

.

Category 2 - Cash collateralized with secu'rities held by the pledging financial institution's

I

trust department or agent in the School District's name.

I

Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized

j,lt

I 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 riL category at June 30, 2001, as follows:

Risk Category

Bank Balance

v,

1

2

3

$ 578,477.44 660,760.99 209,592.93

Total

$ 1.448,831.36

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 I
Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT ,I
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 relafed illness or injuries to employees; natural disaster and unemployment compensation.

The School District has obtained commercial insurance for risk ofloss associated with torts, assets

I'I

and error~ or omissions. The School Dist.rict haslneither significant~y r~duc.ed coverage for the~e
risks nor Incurred losses (settlements) WhICh exceeded the School District's Insurance coverage In

III

any of the past three years.

The School District has elected to self-insure for 'all losses related to natural disaster. The School District has not experienced any losses related tolthis risk in the past three years.

I
I
- 15 -
_1I

WILCOX COUNTY BOARD OF EDUCATION .

EXHIBIT "0"

NOTES TO THE' GENERAL-PURPOSE FINANCIAL STATEMENTS.

JUNE 30, 2001

Note 4: RISK MANAGEMENT

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 of that loss can be reasonably estimated,

The School District has not experienced any unemployment compensation claims during the last two

years.

..

The School District participates in the Georgia Education Workers'Compensation Trust, a public

entity risk pool organized on December 1" 1991, to develop, implement and administer a program of

workers' compensation self-insurance for its member organizations. The School District pays an

annualpremium to the Trust for its general insurance coverage. Additional insurance coverage is

provided through an agreement by.the Trust with the United States Fidelity and Guaranty Company

to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per

occurrence, up to $2,000,000.00.

,

~.

..

.

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

Position Covered

Amount

Superintendent Assistant Superintendent Each Principal

$ 10,000.00 $ 10,000.00 $ 10,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Wilcox County Board of Education has entered into various lease .agreements as lessee for' buses. Theselease 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 OBLlGAnON DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: .

Purpose

Interest Rate

Amount

General Government- Series .1997

.. 5.05%

$ . 665,000.00

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

' ..

- 16 - .

[
i I
WILCOX COUNTY BOARD OF EDUCAnON
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30.12001 I

EXHffiIT "D"

Note 5: GENERAL LONG-TERM DEBT

Balance July 1,2000

General

Capi1tal

Obligation

Leases

Bonds

Total

I
$ 194,Y16.80 $ 940,000.00 $ 1,134,716.80

Deductions

Debt Retired

94,891.20

275,000.00

369,891.20

I

Balance June 30, 2001

$ 99,825.60 $ 665,000.00 $ 764,825.60

du~ At June 30, 2001, payments by fiscal year which includes principal and interest for these items

are as follows:

I

'

Fiscal Year Ended June 30
2002 2003

I
Capital

General Obligation

Total

Lea1ses

Bonds

Debt

I.
$ 105'1016.50 $ 378,582.50 $ 483,599.00

336,160.00

336,160.00

Total Principal and Interest $ 105!016.50 $ 714,742.50 $ 819,759.00

Deduct: Imputed Interest

51190.90

Net Present Value of Future Minimum Lease Payments $ 99,825.60

Note 6: ON-BEHALF PAYMENTS
The School District has recognized revenues and expenditures in the amount of $104,318.53 for health insurance and retirement contributions paid on the School District's behalf by 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 $82,867.53

Office of Treasury and Fiscal Services

Paid to the Public School Employees Retirement System

For Public School Employees Retirembnt (PSERS) Employer's Cost

In the amount of $21,451.00

I

.

- 17 -
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I

WILCOX COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL~PURPOSEFINANCIAL STATEMENTS

JUNE 30, 2001

Note 7: 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 8: SUBSEQUENT EVENTS
On November 6, 2001, the voters of Wilcox County voted in favor of a Special Purpose Local Option Sales Tax referendum for educational purposes. The imposition of the tax approved by the voters, as stated on the Official Ballot of Wilcox County, is as follows:
"Shall a special one percent sales and use tax be imposed in Wilcox County for a period of time not to exceed 20 calendar quarters, commencing upon the expiration of the special one percent sales and use tax currently being levied in Wilcox County, and for the raising of not more than $2,100,000.00 for the purposes of providing funds to payor be applied toward the cost of additions, renovations and improvements to the elementary school, the middle school . and the gymnasium at the high school, including the acquisition of any furniture, fixtures and equipment necessary or desirable therefore, the maximum cost of such capital outlay projects not to exceed $2, 1OO,OOO? If imposition of the tax is approved by the voters, such vote shall also constitute approval of the issuance of general obligation debt of Wilcox County School District in the principal amount of $1,700,000.00 to pay a portion of the above-described outlay projects."
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 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 of the 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 of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 1129% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

I
WILCOX COUNTY BOA!RD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30! 2001

EXHIDIT "D"

Note 9: RETIREMENT PLANS
Fiscal Year 2001 2000 1999

Percentage Contributed
100% 100% 100%

Required Contribution
$ 617,101.30 $ 583,625.85 $ 561,288.61

- 19 -

WILCOX 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
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$ 57,199.05 $ 32,109.70

2,675.67

3,053.64 2,657.49

$ 65,585.85 $ =~3~2,1~09=.7= 0

LIABILITIES .A,ND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Continuation of State Programs For Inventories } Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ 7,530.80 $ 28,405.68
$ 35,936.48 $

6,756.48 25,353.22
32,109.70

$ 3,053.64 2,657.49

23,938.24 $

0,00

$ 29,649.37 $

0.00

$ 65,585.85 $ =====3=2=,1==0=9=.7=0==

See notes to the general-purpose financial statements. - 20-

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS
JUNE 30, 2001 JUNE 30, 2000

$

89,308.75 $ 113,187.50

$ 140,908.70

143,584.37

110,845.78

3,053.64 2,657.49

3,271.61 3,523.63

$ 140,908.70 $ 238,604.25 $ 230,828.52

$ 36,427.51 $ 45,402.33 59,078.86
$ 140,908.70 $

36,427.51 $ 59,689.61 112,837.76
208,954.88 $

6,427.23 52,738.37 110,231.74
169,397.34

$

5,408.59

1,088.63

$

3,053.64

2,657.49

3,271.61 3,523.63

$

0.00

23,938.24

48,138.72

$

0.00. $

29,649.37 $

61,431.18

$ 140,908.70 $ 238,604.25 $ 230,828.52

- 21 I
I
I

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration 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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

32,078.00 $ 234,213.93

397,173.63

75,843.53

$ 505,095.16 $ 234,213.93

$ 214,775.50
8,532.60 8,531.52

8,015.41

$ 529,295.64

$ 529,295.64 $ 239,855.03

$ -24,200.48 $

-5,641.10

4,552.47

$ -24,200.48 $ 54,933.96

-1,088.63 1,088.63

-217.97 -866.14

$

29,649.37 $ ======0.=00~

See notes to the general-purpose financial statements. - 22 -

i
I
I I
EXHIBIT "F"!
I

I

FEDERAL PROGRAMS

I

I

I

TOTALS

I

YEAR ENDED

I

JUNE 30, 2001

JUNE 30, 2000 I

I
!
I
I
I

$

266,291.93 $

294,924. 57 1

$ 768,080.58

1,165,254.21 75,843.53

1,16374,,184843..7425-I,

$ 768,080.58 $ 1,507,389.67 $ 1,496,952.741
I

$ 558,683.56 $

773,459.06 $

566,387.34

164,579.81 17,768.39 39,875.02 3,649.33 1,544.16

173,112.41 26,299.91 39,875.02 3,649.33 9,559.57
529,295.64

I 362,274.55
53,226.81 35,019.13
1,387.17 1
6,903.89 22,207.76 453,832.44
I

$ 786,100.27 $ 1,555,250.94 $ 1,501,239.091

s $ -18,019.69.

-47,861.27 $

-4,286.35

12,611.10

17,163.57

13,154.33

$

-5,408.59 $

-30,697.70 $

5,408.59

61,431.18

8,867.98
I
54,615.86 1

-217.97 -866.14

-2,331.49 278.83

$

0.00 $

29,649.37 $ ==~~,6;1,,;4,31;.,1;8~.,

'1

I
i
- 23-
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I
I

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through , Preschool Severely Emotionally Disturbed
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grants Title'll Innovative Education Program Strategies Class Size Reduction Vocational Education - Basic Grants to States High School Program Basic Grant Tech Prep Education
Total U. S. Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.555

N/A

$

N/A

$

111,091.34 260,529.51 $
371,620.85 $

(2) 503,742.86 (3)
503,742.86

10.550

N/A $

25,552.78 397,173.63 $

25,552.78 529,295.64

84.027 84.173 84.027

N/A

$

N/A

N/A

$

92,859.00 $ 10,058.00
1,672.16
104,589.16 $

92,934.67 (3) 10,058.00'
1,672.16
104,664.83

84.010 84.281 84.318 84.298 84.340
84.048 84.243

N/A

382,322.84

382,417.00 (3)

N/A

16,000.00

16,000.00

N/A

10,425.01

10,489.18 (3)

N/A

13,517,00

25,351.66 (3)

N/A

54,485.00

54,485.00

N/A N/A
$

19,537.02 85,638.78
686,514.81 $

19,537.02 85,640.18 (3)
698,584.87

Defense, U. S. Department of Direct Department of the Army R.OTC. Program

$

37,166.51 $

43,116.14 (3)

- 24-

,i
r
WILCOX COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

I
I

!

FUNDING AGENCY I PROGRAM/GRANT
Labor, U,S, Department of Pass-Through From Georgia Department of Technical and

I,
I
CFD.fNUMBER
I I
I

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

Adult Education Employment Services and Job Training Pilots Demonstration and Research

1
I
17.249

N/A

$

44,399.26

SCHEDULE "1"

EXPENDITURES IN PERIOD

$

44--,3'-9'-9'.-2'-6_

Total Federal Financial Assistance
N/A = Not Available

$ 1.165,254.21 $===1=,31=5=,39=5=.91=

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents t t Federally assigned value of nonmonetary I assistance for donated commodities received and/or consumed by tre 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.
n Major Programs are identified by an asterisk in front of the CFDA number.

The Board did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Wilcox County Board of Education and is presented on the modified accrual basis of accounting which is
the basis of accounting used in the presentation of the general-purpose fi~ancial statements.
I

See notes to the general-purpose financial statements.

- 25-

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

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

GRANTS

Education, Georgia Department of

Quality Basic Education

Direct Instructional Cost

Kindergarten Program

$ 325,907.00

$

Kindergarten Program - Early Intervention Program

13,775.00

Primary Grades (1-3) Program

914,014.00

Primary Grades - Early Intervention (1-3) Program

106.952.00

Upper Elementary Grades (4-5) Program

436,390.00

Middle School (6-6) Program

750,012.00

High School General Education (9-12) Program

720,477.00

Vocational Laboratory (9-12) Program

260,736.00

Students with Disabilities'

Category II

171,316.00

Category III

233,360.00

Category IV

15,676.00

Gifted Student - Category VI

97,966.00

Remedial Education Program

93,043.00

Alternative Program .

63,599.00

Media Center Program

135,029.00

Staff and Professional Development

32,695.00

Indirect Cost

964,502.00

Categorical Grants

Pupil Transportation

Regular

236,413.00

Bus Replacement

71,434.00

Sparsity

162,267.00

Nursing Services

44,646.00

Principal Supplements

5,396.00

Vocational Supervisors

6,670.00

Educational Equalization Funding Grant

465,190.00

Food Services .

$

32,076.00

Vocational Education

54,607.00

Other State Programs

At-Risk Summer School Program

2,179.26

Health Insurance

62,667.53

Innovative Programs

5,000.00

Preschool Handicapped Program

22,673.00

Remedial Summer School

2,202.36

Lottery Programs

Computers in the Classroom

27,916.00

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

$ 66,665.00

Office of School Readiness Pre-Kindergarten Program

206,295.93

Office of Treasury and Fiscal Services PUblic School Employees Retirement

21,451.00

CONTRACTS Human Resources, Georgia Department of Family Connection South Central Health District Tobacco Use Prevention Program

34,156.06 16,100.00

TOTAL
325,907.00 13,775.00
914,01400 106,952.00 436,390.00 750,012.00 720,477.00 260,736.00
171,316.00 233,360.00
15,676.00 97,966.00 93,043.00 63,599.00 135,029.00 32,695.00 964,502.00
236,413.00 71,434.00
162,267.00 44,646.00
5,396.00 6.670.00 465,190.00 32,076.00 54,607.00
2,179.26 62,667.53
5,000.00 22,673.00
2,202.36
27,916.00
66,665.00
206,295.93
21,451.00
34,156.06
16,100.00

See notes to the general-purpose financial statements.

S 6,595,347.25 $ 266,291.93 $ 66.665.00 $ 6,930,324.16 - 26-

,. '1
WILCOX COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

- ,CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

Acquisition, construction and equipping of new middle school, purchasing energy management, HVAC and similar equipment, as well as classroom, media center, laboratory and other furnishings, at the existing education building of the school district. acquisition, construction and equipping a new agriculture science 'building, purchasing. remodeling and renovating lighting on school grounds and athletic fields

I
s s s 2,000.000.00 2.000,000.00

s 47,470.00 1.657.175.49 Ongoing

(1) The Board's original cost estimate as specified in the resolution ~alling for the imposition of the Local Option

Sales Tax.

.

(2) The Board's current estimate of total cost for the projects. tncludes all cost from project inception to completion.

I
(3) The voters of Wilcox County approved the imposition of a 1% sales tax to fund the above projects and retire

associated debt. Amounts expended for these projects may include sales tax proceeds, local property

taxes and/or other funds over the life of the projects.

'

See notes to the general-purpose financial statements,

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,-------------------------------------------

, ",

WILCOX COUNTY BOARD OF EDUCATION

SCHEDULE "4"

GENERAL FUND - OUALITY BASIC EDUCATION PROGRAM (aBE)

ALLOTMENTS AND EXPENDITURES - BY PROGRAM

YEAR ENDED JUNE 30, 2001

TOTAL aBE FORMULA FUNDS

s

4,768,297,00 $ 4,851,465,04 $ 319,898.57 $ 5,171,363.61

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

See notes to the general-purpose financial statements,

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

SCHEDULE "5"

Wilcox County Middle School Wilcox County Elementary School Wilcox County High School Central Office (Alternative Education Program)
TOTAL

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

958,101.00 $

891,074.84

2,305,519.00

2,410,203.54

1,252,246.00

1,681,980.51

69,342.00

$

4,585,208.00 $ ===="=b4;,'9;8'3;,~2=5=8;.;8;9'

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

See notes to the general-purpose financial statements. - 29-

SECTION II
(
COMPLIANCE AND INTERNAL CONTROL REPORTS

SSEU. \\'. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
2."4 Washington Street. S.W.. Suire 214 Atlanta. Georgia 3m34-X4()()
January 25,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Wilcox 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 of Wilcox County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated January 25,2002. 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 of obtaining reasonable assurance about whether Wilcox County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disciosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.

II II
2001YB-41

!~ -
II
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Wilcox County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we c~nsider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgment, could adversely affect Wilcox 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-7561-01-01.
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-7561-01-01 to be a material weakness.
.\
This report is intended solely for the information and use of the management, members of the Wilcox County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:as 2001YB-41

Rus ell W. Hinton State Auditor

'V. I
'SSELI.

HINTOI"

STATE AUDITOR

1404)656.2174

DEPARTMENT OF AUDITS AND ACCOUNTS
2:"4 Washington Street, S.W.. Suite 214 . Atlanta. Georgia 30334-X400
January 25,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Wilcox County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Wilcox County Board ofEducation with the types ofcompliance requirements described in the Us. Office of Management and Budget (OMB) Circular A-I33 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2001. Wilcox County Board of Education's major Federal program is identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to its major Federal program is the responsibility of Wilcox County Board of Education's management. Our responsibility is to express an opinion on Wilcox 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 NOll-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 Wilcox County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Wilcox County Board of Education's compliance with those requirements.
2001SA-10

In our opinion, the Wilcox County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to its major Federal program for the year ended ,June 30, 2001.

Internal Control Over Compliance

The management of Wilcox 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 Wilcox County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.

Our consideration ofthe internal control over compliance would not necessarily disclose all matters

in the internal control that might be material weaknesses. A material weakness is a condition in

which the design or operation of one 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 Wilcox County Board of Education, 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,
~.~

Ru ell W. Hinton State Auditor

RWH:as 2001SA-I0

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

WILCOX 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-7561-99-03 FS-7561-00-01

Further Action Not Warranted Unresolved - See Corrective ActionJResponses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7561-00-01
Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional 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

WILCOX COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
.YEAR ENDED JUNE 30, 2001
SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Wilcox 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 Wilcox 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 Wilcox 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 Wilcox 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 Wilcox County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .5l0(a) ofOMB Circular A-133 The Wilcox County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as a major program are as follows: 84.010 Elementary and Secondary Education Act - Title! - Grants to Local Educational Agencies
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Wilcox County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.
- 1-

WILCOX 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-7561-01-01 The Wilcox 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. The condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions.and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-