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

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WILCOX COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS-

SECTION I

FINANCIAL

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

EXHIDITS

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

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

23

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-
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 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-B3
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR 14041656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washmgton Street, S W., SUite 214 Atlanta, Georgia 30334-R400
April 2, 2003

Honorable Sonny Perdue, 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 INFORMATION SCHEDULE 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, 2002, 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 of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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.
* The Board of Education did not recognize as expenditures, in the year ended
June 30, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002. Also funds received, subsequent to June 30, 2002, 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, 2001, were improperly recorded in the year ended June 30, 2002. 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 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, 2002, and the results ofits 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 April 2, 2003, on our consideration ofthe Wilcox 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 of the Wilcox County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-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 -
2002ARL-13

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

WILCOX COUNTY BOARD OF EDUCAnON

WILCOX COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2002

Cash and Cash Equrvatents
Investments
Accounts Receivable
Inventones Food Donated Commodihes Purchased Food
Amount Available In Debt service Fund
Amount to be Provided in Future Years For Payment of, Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

862,75212 $

25,03662 $ 1,482,983 82

31,047.78

92,161 21

139,660.88

5,53102 2,022,29

Total Assets

$

985,961 11 $

172,250 81 $=~ 1,4~82~ ,98~38= 2

LIABILITIES AND FUND EqUITY
LIABILITIES
Accounts Payable Salanes Payable Capital Lease Agreements General Obligation Bonds Payable
Total liabilities
FUND EqUITY
Fund Balances Reserved For Bus Replacement Funds For Debt service For Inventones Food Donated Commodities Purchased Food For Purpose of Bond Issue Unreserved Undesignated
Total Fund EqUity

$

14024 $

26,26982

114,944.46

$

14024 $

141,21428

$

5,53102

2,02229

$ 1,482,983 82

$

985,820.87

23,48322

000

$

985,820,87 $

31,036,53 $ 1,482,983.82

Total liabilities and Fund Equrty

$

985,961.11 $

The notes to the general-purpose finanoal statements are an Integral part of thiS statement.

-2-

========;;.0;;= 172,250,81 $

1,482 1 9 8 3 8 2

EXHIBIT NAN

DEBT SERVICE
FUND

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30, 2001

$

45,404.26

300,30275

$ 2,416,17682 $

725,86886

I'

331,35053

350,54302

60,14149

291,96358

219,331.47

$

405,84850

5,53102 2,02229
405,848.50

3,05364 2,657.49
500,61464

1,414,15150

1,414,15150

164,38536 99,82560

$

1,820,00000 $ 4,867,044 24 $ 2,066,2800B

$

26,41006 $

114,944 46

$ 1,820,000 00

1,820,000 00

$ 1,820,000 00 $ 1,961,354 52 $

109,790.54 120,812.16
99,82560 665,000 00
995,42830

$

405,84850

000

$

405,84850

$

44,638.91

$

405,84850

500,61464

5,53102 2,02229 1,482,9B3 82

3,05364 2,65749

1,009,304 09

519,B8710

$ 2,905,689 72 $ 1,070,851 78

$

405,84850 $ 1,820,000.00 $ 4,867,044 24 $ 2,066,280 OB

- 3-

WILCOX COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2002

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 7,551,851 83 $ 6,930,32418

1,467,839.77

1,165,254 21

$

78,41500 $

273,454 45

1,885,298.90

1,798,962.93

15,98382

10,361 91

166,13835

126,10667

$

94,39882 $

283,81636 $ 11,071,12885 $ 10,020,64799

$ 6,591,108.19 $ 6,176,91673

$

33,00000

78,41500

534,80110 205,51925 164,161 85 302,22070 515,16399 108,78595 566,95556 559,67219
8,353.00 551,332.82 146,45949

390,20506 210,935.20 163,31450 278,99447 585,234 21
72,935 20 649,345.92 477,51057
8,353.00 538,13807
92,73923

$

345,00000

33,582.50

444,82560 38,773.40

369,89120 57,595.30

$

111,415.00 $

378,58250 $ 10,738,13309 $ 10,072,108 66

$

-17,016.18 $

-94,766.14 $

332,995.76 $

-51,46067

$ 1,500,000.00 $ 1,500,000.00

$ 1,500,000 00 10,07132 $
-10,071 32
$ 1,500,000 00 $

18,50357 -18,50357
000

$ 1,482,983.82 $ 000

-94,76614 $ 500,614.64

1,832,995 76 $ 1,070,851 78

51,46067 1,123,396.56

2,477 38 -63520

-21797 -86614

$ 1,482,983.82 $

405,84850 $ 2,905,689 72 $ 1,070,851 78

- 5-

WILCOX COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS> GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT "C

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

GENERAL FUND

BUDGET

ACTUAL

$ 7,081,01400 $ 7,262,261 74

9,984 00

1,540,371 00

1,533,42945

132,51300

65,13266

$ 8,763,88200 $ 8,860,823 85

Current InstruclJon Support servees Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration BUSinessAdmlnlstralJon Maintenance and OperalJon of Plant Student Transportation Services Other Support servrces Food Services OperalJon
Capital Oullay
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 5,557,54900 $ 5,615,177 10

362,52200 200,62800 154,19600 234,33500 605,42100
74,75800 742,14600 594,93700
10,02400 8,11400
159,19900

339,96536 171,484 31 164,161 85 231,317 57 515,16399
75,78595 566,95556 650,48222
8,35300 15,08003 51,592 49

$ 8,703,82900 $ 8,405,51943

$ 60,05300 $ 455,304 42

OTHER FINANCING SOURCES (USES>
Other Sources Other Uses
Total Other Flnancmg Sources (Uses)

$

4,32000

$ -10,071 32

$

4,32000 $ -10,071 32

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

64,37300 $ 445,23310

FUND BALANCE JULY 1 2001

661,04453

540,58777

Adjustments

1,48465

FUND BALANCE JUNE 30 2002

$ 726,90218 $ 985,82087

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 271,01400 $ 289,59009

1,392,936.00

1,467,83977

79,877 00

74,65996

$ 1,743,82700 $ 1,832,089.82

$ 1,053,76200 $ 975,93109

62,45000 36,95100

194,83574 34,034 94

57,04500 1,564 00

70,90313

2,12900

14,20647

509,934 00 15,00000

536,25279 16,45200

$ 1,738,83500 $ 1,842,61616

$

4,99200 $ -10,52634

$ 10,071 32

$ 10,071 32

$

4,99200 $

6,35893

157,65024

-45502 23,93824

$ 169,001 17 $ 23,48322

The notes to the general-purpose financial statements are an Integral part of ttus statement -6-

WILCOX COUNTY BOARD OF EDUCAnON

EXHillIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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

-7-

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

WILCOX COUNTY BOARD OF EDUCAnON

EXHmlT "D"

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 fmancial 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.

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 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 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.

Governmental funds are accounted for using the modified accrual basis of accounting under which:

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and

available). "Measurable" means the amount of the transaction can be determined and "available"

means collectible within the current period or soon enough thereafter to be used to pay liabilities of

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

end 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.-

.

-8-

WILCOX COUNTY BOARD OF EDUCAnON

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I: 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 2002, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. 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, 2002, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2002. Also, the State's portion ofthe compensation paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were recorded in the year ended June 30, 2002. 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 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 ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund. To facilitate comparison with the budget,_ the following adjustments have been made to fund balance as reflected on.Exhibit "B" ofthis report:

-9-

WILCOX COUNfY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1,2001

$ 29,649.37

Adjustments Inventories - July 1,2001 Food Donated Commodities Purchased Foods

-3,053.64 -2,657.49

Fund Balance July 1,2001 (Budget Basis)

$ 23,938.24

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

-455.02

FUND BALANCE JUNE 30, 2002 (Budget Basis)

$ 23.483.22

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds 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:

- 10-

WILCOX COUNTY BOARD OF EOUCAnON

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(I) 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 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 ofCommissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 20,2001 (levy date). Taxes were due on December 20,2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 200 I tax digest are reported as revenue in fiscal year 2002. 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, 2002 for maintenance and operations amounted to $1,525,301.21.

The tax millage rate levied for the 2001 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

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WILCOX COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL~PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SALES TAXES
Special Purpose Local Option Sales Tax revenue during the year amounted to $351,869.45 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 (weighted average). 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.
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-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from 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.
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 or results of operations in conformity with generally accepted accounting principles, Neither are such data comparable to a consolidation. Interfund eliminatio-ns- have not been made in the aggregation of this data.
- 12 -

WILCOX COUNTY BOARD OF EDUCATION

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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 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:
(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.

- 13 -

WILCOX COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS

CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $3,276,664.65. 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:

Risk Category

Bank Balance

1

$ 557,693.95

2

2,172,707.42

3

546,263.28

Total

$ 3.276.664.65

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

- 14-

WILCOX COUNTY BOARD OF EDUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002 __

Note 4: RISK MANAGEMENT

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

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. 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 annual premium 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 $350,000.00 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. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

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

Purpose

Interest Rates

Amount

General Government - Series 1997 General Government - Series 2002

5.05% 3.95%

$ 320,000.00 1.500,000.00

$ 1,820,000.00

- 15 -

WILCOX COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5: GENERAL LONG-TERM DEBT

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1,2001

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

Additions G.O. Bonds

1,500,000.00 1,500,000.00

Deductions Debt Retired

99,825.60

345,000.00

444,825.60

Balance June 30, 2002

$'====d!0~.0~0 $ 1.820,000.00 $ 1.820,000.00

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

$ 393,270.42 334,250.00 338,387.50 336,932.50 335,082.50 337,837.50

Total Principal and Interest

$ 2.075,760.42

Note 6: ON-BEHALF PAYMENJ'S

The School District has recognized revenues and expenditures in the amount of $102,000.74 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 He'!J~
For Health Insurance of Non-Certified Personnel In the amount of $87,056.74

- 16-

WILCOX COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 6: ON-BEHALF PAYMENTS

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost
ID the amount of $14,944.00

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: 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 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 of Trustees 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:

Fiscal Year

Percentage Contributed

Required Contribution

2002 2001 2000

100% 100% 100%

$ 531,083.46 $ 617,101.30 $ 583,625.85

- 17 -

WILCOX COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 3D, 2002

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

56,259,10 $

28,905.62

2,698,54

4,477,00

5,531,02 2,022,29

Total Assets

$

66,510.95 $ =====103:3::,:3::8:=2=.6=2==

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable
Total liabilities
FUND EqUITY
Fund Balances Reserved For Inventories Food Donated CommodIties Purchased Food Unreserved Undesignated
Total Fund Equity

$

6,033,04 $

6,144,94

29,441.38

27,23768

$

35,474.42 $

33,382.62

$

5,531,02

2,022.29

23,483.22 $

0.00

$

31,036.53 $

0.00

Total Liabilities and Fund Equity

$

I
I

I

I
I-
I I

See notes to the general-purpose financial statements.

- 18-

33,382.62

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

85,164 72 $

89,308.75

$

132,485.34

139,660.88

143,584.37

5,531.02 2,02229

3,053.64 2,657.49

$

132,48534 $

232,378.91 $ ======2=3=8,6:=0=4=.2=5==

$

60,128.10 $

60,128.10 $

36,427.51

14,091.84

26,269.82

51,715.21

58,265.40

114,944.46

120,812.16

$

132,485.34 $

201,342.38 $

208,954.88

$

$ - - - - - ' =0;..0.0.

$

0.00 $

5,531.02 $ 2,022.29

3,053.64 2,657.49

23,483.22

23,938.24

31,036.53 $ _ _..2.:9:=,6.=49...:3.:7=_

$

132,485.34 $

232,378.91 $ ======2=3=8=,=6=0=4=.2=5'"=

- 19-

WILCOX 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 Instructional Services General Administration School Administration Student Transportation Services Food Services Operation
Capital Outlay
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

$

33,146.00 $

256,444.09

427,991.81

74,659.96

$

535,797.77 $

256,444.09

$

238,998.10

6,695.70 6,695.70

$

536,252.79

6,032.39

$

536,252.79 $

258,421.89

$

-455.02 $

-1,977.80

$

-455.02 $

29,649.37

2,477.38 -635.20

1,977.80
0.00 0.00

========== $

31,036.53 $

0.00

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

EXHIBIT "F" -

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

289,590 09 $

266,291.93

$ 1,039,847.96

1,467,839.77

1,165,254.21

74,659.96

75,843.53

$ 1,039,847.96 $ 1,832,089.82 $ 1,507,389.67

$

736,932.99 $

975,931.09 $

773,459.06

188,140.04 27,339.24 70,903.13
8,174.08
16,452.00

194,835.74 34,034.94 70,903.13
14,206.47 536,252.79
16,452.00

173,112.41 26,299.91 39,875.02 3,649.33 9,559.57
529,29564

$ 1,047,941 48 $ 1,842,616.16 $ 1,555,250.94

$

-8,093.52 $

-10,526.34 $

-47,861.27

8,093.52

10,071.32

17,163.57

$

0.00 $

-45502 $

-30,697.70

0.00

29,649.37

61,431.18

2,477 38 -635.20

-217.97 -866.14

$

0.00 $

=========== 31,036.53 $

29,64937

- 21 -

---~------------ - - - - - - - - - -
WILCOX COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002

EXHIBIT"G"

ASSETS Cash and Cash Equivalents

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 3D, 2002

JUNE 30, 2001

$ 1,482,983,82 $

000 $ 1,482,983 82 $ =====s""""0"0~0~

FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue Unreserved Undeslgnated
Total Fund Equity

$ 1,482,983.82
o00 $
$ 1,482,983.82 $

$
----'0=-0=:0....

1,482,983,82 0.00 $

0=,00.0...

ac======--== 0.00 $ 1,482,983,82 $

000

See notes to the general-purpose finanCIal statements

- 22-

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

EXHIBIT"H"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services BUSiness Admlnlstral10n
Capital Outlay Land and Land Improvements BUilding and BUilding Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Proceeds from General Obligation Bonds Par Value
Operating Transfers In
Total Other FinanCing Sources
Excess of Revenues and Other Fmancmq Sources over (under) expenditures
FUND BALANCE JULY 1

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

S

78,41500 $

78,41500 $

68,68500

s

15,98382

15,98382

$

15,98382 S

78.41500 $

94,39882 $

68,68500

$

33,00000

S

$

33,00000 $

$

-17,01618 $

$ 78,41500
78,41500 $ 000 $

33,00000
78,41500 $
111,41500 $ 17,016 18 $

77,89000 77,89000 -9,20500

$ 1,500,00000 $ 1,500,00000 $ 1,482,98382 $
000

$ 1,500,000 00 $
$ 1,500,000 00 $

000 $ 000

1,482,983 82 $ 000

1,34000 1,34000
-7,86500 7,86500

FUND BALANCE JUNE 30

$

1,482 198382 $

000 $ 1.482.983 82 $

000

See notes to the general-purpose financial statements

- 23-

WILCOX COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2002

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
AgnaJlture, U. S. Department of Child Nutntlon Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program
Totil Child Nutrition Cluster
Other Programs
Pass-Through From Georgia Department of Education
Food and Nutritlon Program Food Distribution Program (1)
Total U S Department of Agrlcutture
Education, U S Department of Special Education Cluster Pass-Ttvough From Georgia Department of Education IndiViduals WIth Dlsabtlltles Education Ad Part B - Special Education Flow Through Preschool Capaety Building Improvement Grant
Total Spadal Education Cluster
Other Programs Pass-Through From Georgia Department of Education Elementary"llnd Secondary Education Ad Title I Grants to Local Educational Agenaes Title II Eisenhower Professional Development Title III Technology literacy Challenge Fund Grants TrtleVI Innovative Education Program Strategies Class SIZe ReduclJon Vocational Education - BaSIC Grants to States High School Program BaSICGrant
Total U. S. Department of Education
Defense, U. S Department of Dlred
Department of the Army
RO T C Program
Labor, U S. Department of Pass-Through From Georgia Department of Technical and Adult Education Employment SeMceS and Job Training Pilots Demonstration and Research

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10555

NlA

$ 121.836.09

NlA

275,231.14 $

$ 397.067.23 $

(2) 505,32821 (3)
505,32821

10.550

NlA

30,92458

$ 427,991 81 $

30,924.58 536,25279

84.027 84173 84173

NlA

$ 126,20141 $

NlA

10,652.00

NlA

2,736 00

$ 139.589.41 $

127,553.20 (3) 10,652.00
2,736.00
140,941.20

84 010 84 281 84.318 84298 84,340
84.048

N/A

489,268 26

NlA

17,50000

NlA

124,14900

NlA

12,867.00

NlA

67.904.00

NlA

27,92247

$ 879,200,14 $

489,317 04 (3) 17,561 49 (3)
124,431 38 (3) 13,148 15 (3) 67,904 00
27,92247 881,225.73

$ 40.83411 $

46,902 04 (3)

17.249

NlA

$ 119,81371 $

119.813.71

Total Federal Financal Assistance
N/A = Not Available

24 -

$ 1,467,839 77 $ 1,584,194 27

WILCOX COUNTYBOARDOF EDUCATION
SCHEDULEOF EXPENDITURES OF FEDERALAWARDS
YEARENDED JUNE30. 2002

SCHEDULE "1"

Notes to the Schedule of Expenditures of FederalAwards
(1) The amounts shown for the Food DlstnbubonProgramrepresentsthe Federallyassigned value of nonmonetary assistancefor donated commodities received and/orconsumed by the systemdunng the currentfiscal year.
(2) Expenditures for the School BreakfastProgramwere not maintained separatelyand are IncludedIn the 2002 National School Lunch Program
(3) Expenditures for thiSprogram IncludeState. and/or Other Funds Expenditures are not mamtamed by fund source.
Major Programsare Idenlifiecl by an asterisk (0) in front of the CFDA number
The SChool Dlstnd did not provide FederalAssistanceto any Subreoplent
The accompanying scheduleof expenditures of Federal awardsIncludesthe Federalgrant adlVlty of the Wilcox County Board of Educationand is presentedon the modifiedaccrualbaSIS of accounting whIchIS the baSIS of accounting used In the presentationof the general-purpose finanaal statements

See notes to the general-purpose finanaal statements

- 25-

WILCOX COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2002

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Earty Intervention Program Primary Grades (1-3) Program Pnmary Grades - Earty 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 Vocational Laboratory (9-12) Program Students WIthDisabililJes Category I Gifted Student - Category VI Remedial Education Program Altematlve Program Media center Program Staff and Professional Development Indirect Cost Twenty Days AddllJonallnstructlon Gategoncal Grants Pupil Transportation Regular Bus Replacement Sparsrty Nursing Services Pnnopat Supplements Vocational SUpeMSOrs Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Health Insurance Preschool Handicapped Program Lottery Programs Assrsuve Technology Computers In the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal SeMcss Public School Employees Retirement
CONTRACTS EducatIon, Georgia Department of K-3 Statewtde Reading Program 4-8 After School Reading Program
Human Resources, Georgia Department of Family Connection South central Health DIstrict Tobacco Use Prevention Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 400,664,00 27.2n.OO
917,652,00 115,28200 443,03500
89,964,00 817,658.00 742,707.00 274,962,00
425,70500 140,894 00
22,21200 65,667.00 142,12400 23,256,00 1,018,841.00 45,368.00

s 400,664,00
27,277 00 917,65200 115,282,00 443,035.00
89,964.00 817,65800 742,707,00 274,96200
425,70500 140,894.00
22,21200 65,667,00 142,124.00 23,25600 1,018,84100 45,36800

247,36700 66,25100
220,92200 44,49700 5,375,00 9,659.00
609,32100 $
68,30300
87,05674 37,307.00

33,14600
4,477 00 33,300.00

247,367,00 66,251.00
220,92200 44,49700 5,375,00 9,65900
609,32100 33,146.00 68.303.00
87,056,74 37,307,00
4,477 00 33,30000

218,667,09

218,667.09

14,944 00

14,94400

18,545,86 12.68320
104,341.94 2,42000

18,54586 12,683.20
104,34194 2,420.00

See notes to the general-purpose finanaal statements,

s $ 7,262,261 74

289,590,09 $ 7,551,851.83

- 26-

WILCOX COUNTYBOARDOF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2002

SCHEDULE"3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED IN PRIOR YEARS (3)

PROJECT STATUS

Acquismon, consuucnon and equIpping of new middle school, purchasingenergy management, HVAC and similar equipment, as well as dassroom, media center, laboratoryand other furnishings, at the eXIsting education building of the school dlstnd, acquisition, construcnonand equipping a new agriculture saence building, purchaSing, remodeling and renovating IIghllngon school grounds and alhletic fields

$ 2,000,000 00 $ 2,000,000.00 $

111,997.50 $ 1,704,645.49

Ongoing

(1) The School Drstnet's anginal cost eslJmate as speafied In the resolutioncalling for the Impositionof the Local Option Sales Tax
(2) The School Dlstnet'scurrent estimate of total cost for the project, Indudes all cost from projed inception to completion
(3) The voters of Wilcox County approved the nnposmon of a 1% sales tax to fund the above projed and retire assoaated debt Amounts expendedfor thiS project may indude sales tax proceeds, local property taxes and/or other funds over the life of the project

See notes to the general-purpose finanaal statements

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WILCOX COUNTY BOARD OF EDUCATION GENERAL FUND - aUALlTY BASIC EDUCATION PROGRAM IgBEI
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2002

SCHEDULE "4"

DESCRIPTION
DIrect Instructional Programs Kindergarten Program Ktndergarten Program-Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades-Early Intervenllon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Earty Intervenllon (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students WIth Disabilities Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

433,91500 $ 411,99359 $

9,849.13 $

421,84272

29,541.00

36,489.52

485.08

36,97460

993,809.00

914,157.63

36,781.07

950,938.70

124,84900

116,759.08

494.97

117,254.05

479,803,00

539,25047

30,472.71

569,72318

97,430.00 885,51600 804,34500 297,78100 461,034.00
152,58800 24,05500 71,117,00

109,80914 851,91561 889,156.87 283,450.70
237,21449 232,43753
19,73554
123,29081 32,08277

19745 57,936,36 91,681,30 16,420.54
20,608.32 20,73410
17.99 31901 1,05350 66,244 00

110,006 59 909,85197 980,838.17 299,87124
257,82281 253,171,63
19,73554 17.99
123,60982 33,136 27 66,244.00

$

4,855,78300 $ 4,797,743.75 $ 353,295,53 $ 5,151,039.28

153,91900 25,18700

139,08385 2,66185

16,07866 25,32702

155,162.51 27,98887

TOTAL aBE FORMULA FUNDS

$

5,034,88900 $ 4,939,48945 $ 394,70121 $ 5,334,19066

(1) Compnsed 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 - aUALITY BASIC EDUCATION PROGRAM (aBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002

SCHEDULE "5"

Wilcox County Middle School Wilcox County Elementary School Wilcox County High 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

$

1,032,908.00 $

1,091,660.71

2,457,012.00

2,551,579.75

1,294,746.00

1,507,798.82

71,117.00

$

4,855,783.00 $ ===~5.,:151,,;03=9=.2=8=

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

RlI'\SELL W. HINTON
STATE AUDITOR
(404) 656 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S W.. SUIte 214 Atlunta, Georgia 30334-X400
April 2, 2003

Honorable Sonny Perdue, 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, 2002, and have issued our report thereon dated April 2, 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 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 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 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
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 coming to our attention relating to significant deficiencies in the design or operation ofthe 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-7561-02-01.
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 fmancial 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-7561-02-01 to be a material weakness.
This report is intended solely for the information and use of the management, members of the Wilcox County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 2002YB-41

Rus ell W. Hinton State Auditor

RlJSSEU. W. HINTON
STATE AUDITOR
1404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street. S.w.. Suite 214
Atlanta. Georgia 30334-1<400
April 2, 2003

Honorable Sonny Perdue, 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-B3
Ladies and Gentlemen:
Compliance
We have audited the compliance ofWilcox County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-I33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30,2002. Wilcox 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 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 ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Wilcox County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
W.e 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.
2002SA-IO

In our opinion, the Wilcox 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 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-I33.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the 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.

RWH:gp 2002SA-IO

Ru ell W. Hinton State Auditor

SECTION ill 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, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7561-00-01 FS-7561-01-01

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-7561-01-01

Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the School District has decided not to pursue the recording of general fixed assets on the financial statements. We are in the process of consulting with a company to set up our General Fixed Assets.

SECTION IV FINDINGS AND QUESTIONED COSTS

WILCOX 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 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 of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51OCa) of OMB 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 major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Wilcox County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133.
- 1-

WILCOX COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE' 30, 2002
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-7561-02-01 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-