Wilkinson County Board of Education, Irwinton, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

WILKINSON 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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

"l (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

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

25

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

26

2 SCHEDULE OF STATE REVENUE

28

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

29

EARNINGS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

BY PROGRAM

30

5

BY SITE

31

WILKINSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
I ,I
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 vnTH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE vnTH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-l33
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

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I:

i

'v. !
,i!SSELL

HINTOI'O

I STATE AUDITOR

(404) 656-2174

DEPARTl\'IENT OF AlJDITS AND ACCOlJNTS
25.:l Washinglon Slr':l:l. s.w.. SUill: 21.:l Allanl'!' Gl:orgia ~o:n.:l-X.:l()()
February 11, 2002

Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members of the State Board of Education

I'

and

I

Superintendent and Members of the

Wilkinson 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 Wilkinson County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Wilkinson 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 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:

2001ARL-13

I:

* 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.

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"

* 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

I

principles, revenues should be recorded when available and measurable and

I

expenditures should be recorded when incurred, ratherthan when funds are received or disbursed.

The aggregate effects on the general-purpose financial statements of these variances or omissions

,I'

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 Wilkinson County Board of

'I

Education as ofJune 30, 2001, 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 February 11, 2002, on our consideration ofthe Wilkinson County Board of Education's internal control over financial reporting arid our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audi~ was performed for the purpose of forming an opinion on the general-purpose financial statements of the Wilkinson County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 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 procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except

200lARL-13

I I 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,
~~
Ru ell W. Hinton State Auditor RWH:as 200lARL-13
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WILKINSON COUNTY BOARD OF EDUCAnON

WILKINSON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 115,098.09 $ 38,917.23 $

9,789.03

1,919,691.97

4,764,692.90

194,396.24

196,102.98

226,003.92

7,666.56 2,659.44

$ 2,229,186.30 $ 245,346.21 $ 5,000,485.85

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable General Obligation Bonds Payable
Total Liabilities
FUND EqUITY
Fund Balances Reserved For Bus Replacement Funds For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects Unreserved Undesignated
Total Fund Equity

$

3,820.71 $ 38,265.94

152,073.76

6.93

$

54,604.00

92,998.59

$

3,820.71 $ 190,346.63 $ 147,602.59

$ 183,789.48

$
2,041,576.11 $ 2,225,365.59 $

7,666.56 2,659.44
$

2,694,806.40 2,158,076.86

44,673.58

54,999.58 $ 4,852,883.26

Total Liabilities and Fund Equity

$ 2,229,186.30 $ 245,346.21 $ 5,000,485.85

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

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EXHIBIT "A"

DEBT SERVICE
FUND

$

0.00

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$

163,804.35 $

123,531.51

6,684,384.87

7,559,995.62

616,503.14

580,525.82

_ _ _ _ $ 3,260,000.00

7,666.56 2,659.44 0

12,675.44 2,447.62

3,260,000.00

4,185,000.00

$

0.00 $ 3,260,000.00 $ 10,735,018.36 $ 12,464,176.01

$
$ 3,260,000.00 $ 3,260,000.00 $

42,086.65 $ 152,073.76
6.93 54,604.00 92,998.59 3,260,000.00
3,601,769.93 $

48,329.08 157,070.71
137,899.10 33,814.80
4,185,000.00
4,562,113.69

$

0.00

$

0.00

$

183,789.48 $

158,414.20

7,666.56 2,659.44 2,694,806.40 2,158,076.86

12,675.44 2,447.62
4,012,838.91 1,544,564.26

2,086,249.69

2,171.121.89

$ 7,133,248.43 $ 7,902,062.32

$

0.00 $ 3,260,000.00 $0 10.735,018.36 $ 12,464,176.01

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WILKINSON 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)
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

$ 7,211,386,22 $ 35,442.79
4,260,510.59 363,764.64
$ 11 ,871 ,104.24 $

487,474,06 1,517,034,37
186,673.98
2,191,182.41

$ 7,875,275.42 $
389,076.67 301,259,31 259,359.55 266,162,17 807,020.86 137,741.94 1,061,957,88 823,232.07
7,956,00 1,222.38

942,911.45
102,603.64 171,046.63
85,369.55 6,250.93
1,000.64 3,170.15 40,637.06 838,529.27

$ 11 ,930,264,25' $

$

-59,160.01 $

2,191 ,519.32 -336.91

$

-59,160.01 $

2,284,525.60

-336,91 60,133.55
-5,008.88 211.82

FUND BALANCE JUNE 30

$ 2,225,365.59 $ ===5=4,!=:99=9~,5=8=

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

EXHIBIT"B"

TOTALS

CAPITAL

DEBT

(Memorandum Only)

PROJECTS

SERVICE

YEAR ENDED

,I

FUND

FUND

JUNE 30, 2001

JUNE 30, 2000

I".,
$ $

550,259.14 $ 263,326.99
813,586.13 $

$ 1,078,227.50

7,698,860.28 $ 1,552,477.16 5,888,997.23
813,765.61

7,321,683.08 1,734,751.65 5,829,841.46
801 ,743.49

1,078,227.50 $ 15,954,100.28 $ 15,688,019.68

$ 8,818,186.87 $ 8,251,412.75

i
,
II
$ 1,518,106.04

491,680.31 472,305.94 259,359.55 351,531.72 813,271.79 137,741.94 1,062,958.52 826,402.22
48,593.06 839,751.65 1,518,106.04

651,571.97 524,844.27 229,186.72 375,832.31 744,515.77 127,402.65 1,224,495.75 666,664.96
70,954.19 906,481.83 1,108,216.96

$

925,000:00

153,227.50

925,000.00 153,227.50

815,000.00 187,212.50

$ 1,518,106.04 $

1,078,227.50 $ 16,718,117.11 $ 15,883,792.63

$

-704,519.91 $

0.00 $

-764,016.83 $

-195,772.95

"f

$

20,117.00

-20,117.00

$

0.00

$

-704,519.91 $

5,557,403.17

0.00 $ 0.00

-764,016.83 $ 7,902,062.32

-195,772.95 8,098,750.39

-5,008.88 211.82

-1,447.29 532.17

$

4,852,883.26 $ ====0=.=00= $

7,133,248.43 $ 7,902,062.32

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WILKINSON 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, 2001

EXHIBIT "C"

FUND BALANCE JUNE 30, 2001

$ 1,196,841.87 $ 2,225,365.59

$ -20,510.21 $

54,999.58

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

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WILKINSON COUNTY BOARD OF EDUCATION

EXHIDIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 I

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Wilkinson County Board of Education (School District) was established under the laws of the 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 ac<;ounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

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WILKINSON COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

,
I
.1
I Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

I

"

SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue

:,

sources (other than for major capital projects) that are legally restricted to expenditures for

specified purposes. These funds are received primarily from the Georgia Department of

Education and from the Federal government to accomplish specific educational objectives.

CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.

DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.

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 res~urces.

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 yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, 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.

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WILKINSON COUNTY BOARD OF EDUCATION

EXHffiIT "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 ofthe School District were employed for a one hundred and 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 200 1. State grants to fund the State's share of these

contracts were disbursed from the Georgia Department of Education to .the S'chool District in the

same twelve months. As of June 30, 2001, compensation under these employment contracts had

been earned, but two of the twelve monthlypayments, 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 ofthe 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 rev"enues be recorded when available and measurable and that expenditures be

recorded when incurred, rather than when funds are received or disbursed.

"

"

BUDGET

The Wilkinson 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 of general circulation in the locaiity. 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 SCh091 budget. This final budget is then submitted, in accordance with

provisions of the Quality "Basic Education Act, OCGA Section 20-2-167(c), to the Georgia

Department of Education. The Board may increase or decrease the budget at any time during the

year. All unexpended budget authority lapses at fiscal year-end.

.

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial

WILKINSON COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of deposit) 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 II a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. 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:
Obligations issl,l,ed by the State of Georgia or by other states,
Obligations issued by the United States government,
Obligations fully insured or guaranteed by the United States government or a United States government agency,
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 th~ general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

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WILKINSON COUNTY BOARD OF EDUCATION _

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 1

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Wilkinson County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 29,2000 (levy date). Taxes were due on December 29,2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Wilkinson 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 maintenance and operations amounted to $4,232,543.42.

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

School Operations

14.28 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,628,486.64 . and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $3,219,532.29 has been collected or on March 31, 2003, 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 (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

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.

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WILKINSON COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INTERFUND TRANSACTIONS .

The School District !las the following types of interfund transactions:

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

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 ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

Note 2: DEPOSITS AND INVESTMENTS

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COLLATERALIZATION OF DEPOSITS

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!

Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on

, ,i

deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face

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

110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance.

Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe

securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool

balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion,

waive the requirement for security in the case ofoperating funds placed in demand deposit checking

accounts.

!

~I
I

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,

- 13 -

WILKINSON COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 1

Note 2: DEPOSITS AND INVESTMENTS

(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 ~ome Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $1,044,066.62. 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, 2001, as follows: .

Risk Category

Bank Balance

1

$ 212,935.75

2

640,546.52

3

190,584.35

Total

$1.044,066.62

CATEGORIZAnON OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $6,684,384.87 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Priinary Liquidity

- 14-

WILKINSON COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS AND INVESTMENTS

Portfolio) does not provide for investment in d'erivatives or similar investments, A description ofthe Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state

government investment pool, and Fund 6, Georgia Fund 1 is a stable net asset value investment pool.

which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not

registered with the 'SEC as an investment company but does operate Georgia Fund 1 in a manner

consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a-

7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and

diversification while maintaining principal ($1.00 per share value). Net asset value is calculated

weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly

Ii

basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does

not issue any legally binding guarantees to support the value of the shares. Participation in the pool

is voluntary and deposits consist of funds from local governments; operating and trust funds of

Georgia's state agencies, colleges and universities; and current operating funds of the State of

Georgia's General Fund.

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S.

Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S.
I
i Government or any of its agencies or instrumentalities, banker's acceptances and repurchase

I

agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The,average

I investment duration for Fund 6 on June 30,2001, was 6 months.

J

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; natural disaster and unemployment compensation.

The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions, job related illness or injuries to employees and natural disaster. 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 ofthe past three years.

. - 15 -

WILKINSON COUNTY BOARD OF EDUCATION

EXHIDIT tiD"

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 ofthat loss can be reasonably estimated.

.

,

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

follows:

.

2000 2001

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $ 1,968.00 $ 1,968.00 $

0.00

$

0.00 $ 2,194.75 $ 2,194.75 $

0.00

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

Position Covered All Employees

Amount $ 50,000.00

Note 5: OPERATING LEASES

Wilkinson Comity Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2001, amounted to $68,233,20. Future minimum lease payments for these leases are as follows:

Year Ending
2002. 2003 2004 2005 2006 2007
Total

Amount
$ 58,564.63 63,147.96 63,147.96 59,073.96 54,999.96 4,583.33
$ 303.517.80

Note 6: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

General Government - Series 1998

3.80% - 4.20%

Amount $ 3,260,000.00

- 16 -

WILKINSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30,2001

Note 6: GENERAL LONG-TERM DEBT

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

General Obligation
Bonds

Balance July 1,2000

$ 4,185,000.00

Deductions Debt Retired

925,000.00

Balance June 30, 2001

$ 3,260,000.00

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

General Obligation
Bonds

I
I

2002 2003

I

2004

I
j

Total Principal and Interest

$ 1,178,161.25 1,256,902.50 1,026,105.00
$ 3.461.168.75

I Note 7: ON-BEHALF PAYMENTS

I

I
I

The School District has recognized revenues and expenditures in the amount of $162,148.42 (or health insurance and retirement contributions paid on the School District's behalfby the following

~I

State Agencies.

I

Georgia Department of Education Paid to the Georgia Department of Community Health

I

For Health Insurance of Non-Certified Personnel

I

In the amount of$128,363.42

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$33,785:00

- 17 -

,-~-----------------------------------~-~---- - -

WILKINSON COUNTY BOARI:> OF EDUCAnON

EXHIDIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executedby the School District as of June 30, 2001:

Project.

Unearned Executed Contracts

High School Classroom Additions

$ 277,051.82

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

Note 9: 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 10: RELATED PARTY TRANSACTIONS

The School District employed the services of Mixon and Associates, Incorporated, a construction company. Mixon and Associates, Incorporated is owned and operated by Robert B. Mixon, Jr., the father ofRobert B. Mixon, III, who was the Chairman ofthe Wilkinson County Board ofEducation from July 1, 2000, until December 31,2000. A contract with Mixon and Associates, Incorporated (low bidder) was signed on August 1, 2000, for $66,296.00 (including change orders) for the construction of a pre-fabricated metal warehouse structure. Current year expenditures were $66,296.00.

The School District employed the services of James S. Price Construction Company for various small construction, renovation, and/or maintenance projects. This company is owned and operated by James S. Price, the husband of Linda Price, who is currently the Assistant Bookkeeper for the Wilkinson County Board of Education. These projects were not for services normally secured through a bid procedure. Current year expenditures to James S. Price were $27,102,29.

The School District employed the services of Accucom Networks, Incorporated for various telecommunications projects and/or services, some of which were E-rate projects. The new Chairman of the Wilkinson County Board of Education as of January 1, 2001, Dicky Branan, is a Marketing Manager for Accucom Networks, Incorporated. For their E-rate projects, the School District pays 100% oftheir bills to Accucom Networks; Incorporated, and in tum Accucom donates a portion of the bill (usually 20%) back to the School District. During the year under review, the School District paid -- $126,711.53 to Accucom Networks, Incorporated for various telecommunications services, and- in tum, the School district received $48,419.25 from Accucom
Networks, Incorporated.

- 18 -'

. .-.... ,t. ,. :!;

WILKINSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30,2001

Note 11: 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 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 865,922.16 $ 848,379.37 $ 865,187.64

- 19-

WILKINSON 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

LOTTERY PROGRAMS

$

87,195.17 $

60,636.83

4,833.75

112.28

7,666.56 2,659.44

$

102,354.92 $ ===6=0:!:::,7.4..9. =.=11=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

7,909.82 $

39,445.52

$

47,355.34 $

12,568.86 48,173.32
6.93
60,749.11

$

7,666.56

2,659.44

44,673.58 $

0.00

$

54,999.58 $

0.00

Total Liabilities and Fund Equity
See notes to the general-purpose financial statements. - 20-

$

102,354.92 $ ===6;;;0;.,,7=4=9=:.1;.,;1=

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

147,832.00 $

141,891.10

$
I
i

I

I
I
I
I
I

.1

I I

$

I

I
!

191,156.95

. 196,102.98

223,520.60

7,666.56 2,659.44

12,675.44 2,447.62

191,156.95 $

354,260.98 $

380,534.76

I
I

$

I

I
I
I
i

I
I

$

I

!

i

;1

I

$ $

,108,914.77 $ 17,787.26 64,454.92
191.156.95 $
$ 0.00 0.00 $

)
108,914.77 $ 38,265.94
152,073.76 6.93
299,261.40 $
7,666.56 $ 2,659.44 44,673.58 54,999.58 '$

121,484.01 41,846.49 157,070.71 320,401.21
12,675.44 2,447.62 45,010.49 60,133.55

$

191,156.95 $

354,260.98 $ ==3=8=0,;,;;,5=34.:::.=76=

- 21 -

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

FUND BALANCE JUNE 30

$

54,999.58 $.======~O.~OO~

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

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30,2000

$

487,474.06 $

487,419.50

$

922,295.99

1,517,034.37

1,696,250.04

186,673.98

205,628.58

$

922,295.99 $ 2,191,182.41 $ 2,389,298.12

$

547,980.90 $

942,911.45 $ 1,004,070.91

102,603.64 170,617.15
84,426.89 6,250.93 1,000.64 3,094.79 6,321.05

102,603.64 171,046.63 85,369.55
6,250.93 1,000.64 3,170.15 40,637.06 838,529.27

136,234.69 224,570.63 105,599.36
526.10 1,613.35 2,524.49 54,955:57 903,575.84 22,678.30

$

922,295.99 $ 2,191,519.32 $ 2,456,349.24

$

0.00 $

-336.91 $

-67,051.12

0.00

60,133.55

128,099.79

-5,008.88 211.82

-1,447.29 532.17

$

0.00 $

54,999.58 $ ===6=0=,1=33=.=55=

)

- 23-

WILKINSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2001

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2001 JUNE 30, 2000

$

2,820.74 $

6,968.29 $

9,789.03 $

2,553.10

2,839,588.25

1,925,104.65

4,764,692.90

5,545,071.33

226,003.92

226,003.92

181,492.64

Total Assets

$ 2,842,408.99 $ 2,158,076.86 $5,000,485.85 $ 5,729,117.07

LIABILITIES AND FUND EQUITY

LIABILITIES

Contracts Payable Retainages Payable

$ 54,604.00 92,998.59

$

54,604.00 $ 137,899.10

92,998.59

33,814.80

Total Liabilities

$ 147,602.59

$ 147,602.59 $ 171,713.90

FUND EQUITY

Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects

$ 2,694,806.40

$ 2,694,806.40 $ 4,012,838.91

$ 2,158,076.86

2,158,076.86

1,544,564.26

Total Fund Equity

$ 2,694,806.40 $ 2,158,076.86 $ 4,852,883.26 $ 5,557,403.17

Total Liabilities and Fund Equity $ 2,842,408.99 $ 2,158,076.86 $ 5,000,485.85 $ 5,729,117.07

See notes to the general-purpose financial statements.
\

- 24-

;~-

WILKINSON COUNTY BOARD OF EDUCATION

EXHIBIT "H"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

YEAR ENDED JUNE 30, 2001

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

REVENUES

Taxes Other Funds

$ $ 200,037.53

550,259.14 $ 63,289.46

550,259.14 $ 263,326.99

532,288.30 290,267.83

Total Revenues

$ 200,037.53 $ 613,548.60 $ 813,586.13 $ 822,556.13

EXPENDITURES

Capital Outlay Land and Land Improvements Building and Building Improvements

$

3,944.00

1,514,126.04 $

$

3,944.00

36.00

1,514,162.04 $

858,206.51

Total Expenditures

$ 1,518,070.04 $

36.00 $ 1,518,106.04 $ 858,206.51

Excess of Revenues over (under) Expenditures $ -1,318,032.51 $ 613,512.60 $ -704,519.91 $ -35,650.38

OTHER FINANCING SOURCES

Operating Transfers In

20,117.00

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

$ -1,318,032.51 $ 613,512,60 $ -704,519.91 $ -15,533.38

FUND BALANCE JULY 1

4,012,838.91

1,544,564.26

5,557,403.17

5,572,936.55

FUND BALANCE JUNE 30

$ 2,694,806.40 $ 2,158,076.86 $ 4,852,883.26 $ 5,557,403.17

See notes to the general-purpose financial statements.

- 25-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U, S. Department of

Child Nutrition Cluster

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Services School Breakfast Program National School Lunch Program

10,553
10,555

Total Child Nutrition Cluster

N/A $ 139,182.61

N/A

409,293,78 $

$ 548,476.39 $

(2) 792,267,28 (3)
792,267,28

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Distribution Program (1)

10,550

N/A

46,261,99

46,261,99

Total U, S. Department of Agriculture

$ 594,738,38 $

838,529,27

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

84,027 84,173

N/A $ 125,961,30 $

N/A

14,475,00

125,961,30 14,475,00

Total Special Education Cluster

$ 140,436,30 $

140,436,30

Other Programs

Pass-Through From Georgia' Department of Education

Elementary and Secondary Education Act

Title I Grants to Local Educational Agencies
Title II

84,010

Eisenhower Professional Development

8~,281

Title III

Technology Literacy Challenge Fund Grants

84,318

Title VI

Innovative Education Program Strategies

84,298

Class Size Reduction

84,340

Goals 2000

State and Local Education Systemic Improvement

Grants

84,276

Safe and Drug-Free Schools and Communities

84,186

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84,048

Total U, S, Department of Education

N/A

442,579,38

N/A

16,000,00

N/A

116,845.13

N/A

13,977,00

N/A

67,743,00

N/A

5,644.41

N/A

84,713,77

N/A

34,357,00

$ 922,295,99 $

442,579,38 16,000.00
116,845,13 13,977,00 67,743,00
5,644.41 84,713.77
34,357,00 922,295,99

- 26-

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

SCHEDULE "1"

PASS-

THROUGH

ENTITY

FEDERAL

FUNDING AGENCY

Ii

PROGRAM/GRANT

CFDA NUMBER

ID NUMBER

REVENUE IN PERIOD

EXPENDITURES IN PERIOD

I

II

Justice. U. S. Department of

!

Pass-Through From Children and Youth Coordinating

Council

Juvenile Justice and Delinquency Prevention Program

Subgrant No, 99J-14-9903-0029

16,540

N/A $ 35,442.79

(4)

Total Federal Financial Assistance
N/A = Not Available

$ '1.552,477.16 $ ====1,=76=0=,8=2=5=,2==6

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represent the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program,
(3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

Major Programs are identified by an asterisk (*) in front of the CFDA number,

The School District did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Wilkinson 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 financial statements,

See notes to the general-purpose financial statements.

27 -

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Other State Programs At-Risk Summer School Program Environmental Science Program Health Insurance Mentoring Program Preschool Handicapped Program Remedial Summer School Lottery Programs Assistive Technology Computers in the Classroom
Georgia Council for the Arts Georgia Challenge Grant
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program

See notes to the general-purpose financial statements,

- 28-

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 259,655.00 195,855.00 744,783.00 269,198.00 466,835.00 899,224.00 721,375.00 275,433.00
348,303.00 380,261.00
42,591.00 16,657.00 78,422.00 120,554.00 68,370.00 148,263.00 40,719.00 1,086,747.00

$

259,655.00

195,855.00

744,783.00

269,198.00

466,835.00

899,224.00

721,375.00

275,433.00

348,303,00 380,261.00
42,591.00 16,657.00 78,422.00 120,554.00 68,370.00 148,263,00 40,719.00 1,086,747.00

439,224.00 134,890.00 52,309.00
7,464.00 11,774.00 50,563.00 74,428.00
$

56,780.00

3,107.01 750.00
128,363.42 6,864.52
30,776.00 3,536.27

4,229.19 37,391.00

439,224.00 134,890.00
52,309.00 7,464.00 11,774.00
50,563.00 74,428.00 56,780.00
3,107.01 750.00
128,363.42 6,864.52
30,776.00 3,536.27
4,229.19 37,391.00

5,000.00

5,000.00

389,073.87

389,073.87

33,785.00

33,785.00

40,496.00 24,811.00

40,496.00 24,811.00

$ 7,211,386.22 $ 487,474.06 $ 7,698,860.28

WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

PROJECT
Wilkinson County Board of Education Acquisition, construction and equipping of laboratory facilities at Wilkinson County High School consisting of one (1) Technology Lab, two (2) Business/ Vocational Labs, one (1) English Lab, and one (1) Mathematics Lab; acquisition, construction and equipping of a new 700 fixed-seat auditorium facility; acquisition, construction and equipping of a new classroom wing at the Wilkinson County Primary School; acquiring, constructing, and equipping and adding to, renovating, repairing, improving and equipping instructional and support facilities, existing school buildings and other buildings and facilities useful or desirable in connection therewith; and acquiring any necessary property therefor, both real and personal, and acquiring any necessary or desirable rights in connection therewith

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

PROJECT STATUS

$ 7,500,000.00 $ 6,924,264.26 $ 1,667,369.54 $ 1,807,772,97 Ongoing

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School District's current estimate of total cost for the projects. Includes all costs from project inception to completion.
(3) The voters of Wilkinson County approved the imposition of a 1% sales tax to fund the above projects, Amounts expended for these projects may include sales tax proceeds, state, 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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WILKINSON COUNTY BOARD OF EDUCATION GENERAL FUND gUALlTY BASIC EDUCATION PROGRAM <gBE)
EARNINGS AND EXPENDITURES - BY PROGRAM . YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF . EDUCATION (1)

. ELIGIBLE aBE PROGRAM COSTS

'SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category II

Category III

Category IV

Category V

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

319,453.00 $ 240,960,00 916,305.00 331,193.00 574,346.00 1,106,314.00 887,506.00 338,865.00 969,245.00
96,483.00 148,318.00 84,116.00

340,361.82 $ 211,549.82 942,122.36 331,141.20 718,953.21 1,352,601.57 1,051,720.54 307,337.97
399,444.87 571,048.86
78,750.19 1,432.98
74,093.92 267,905.37 206,505.77

12,281.52 $ 5,194,25 56,543.31 9,230.66 '17,099.03 41,160.98. 97,900.54 24,528.28
3,076.23 26,119.35
3,325.82
. 1,851.40 36,005.10
54.36

352,643.34 216,744.07 998,665.67 340,371.86 736,052.24 1,393,762.55 1,149,621.08 331,866.25
402:521.10 597,168.21
82,076.01 1,432.98
75,945.32 303,910.47 206,560.13

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

6,013,104.00 $ 6,854.970.45 $ 334,370.83 $ 7,189,341.28

Media Center Program Staff and Professional Development

182,407.00 50,096.00

214,063.83 26,852,95

38,968,01 24,299.82

253,031.84 51,152.77

TOTAL aBE FORMULA FUNDS

$

6,245.607.00 $ 7,095,887.23 $ 397,638.66 $ 7,493,525.89

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

See notes to the general-purpose financial statements.

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WILKINSON COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (OBE)
EARNINGS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

Wilkinson County Elementary School Wilkinson County Middle School Wilkinson County Primary School Wilkinson County High School Centra.1 Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.
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ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,470,997.00 $

1,575,154.91

1,450,521.00

1,716,266.47

1,421,584.00

1,792,803.68

1,585,886.00

2,105,116.22

84,116.00

$

6,013,104.00 $ ====7:l.,1=8=9~,3=4=1.~28=

See notes to the general-purpose financial statements. - 31 -

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SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

_~s~~~~~~~I~~NTON
(404)656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washinl.!loll Stn:el. S.W.. Suile 214
Allanta. Gcorl.!ia 30334-X-HlO
February 11,2002

Honorable Roy E. Barnes, Governor Ii Members of the General Assembly
I
Members of the State Board of Education and
Superintendent and Members of the Wilkinson 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

I Ladies and Gentlemen:

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I We have audited the financial statements of Wilkinson County Board ofEducation as of and for the

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year ended June 30, 2001, and have issued our report thereon dated February 11,2002. 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 Wilkinson 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 Wilkinson County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal

2001YB-40

control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. 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 Wilkinson County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions an~ described in the accompanying Schedule ofFindings and Questioned Costs as items FS-7581-01-01 and FS-7581-01-02.
A material weakness is a condition in which the design or operation ofone 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 'i detected within a timely period by employees in the normal course of performing their assigned
I
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; ofthe reportable conditions described above, we consider item FS-7581-0102 to be a material weakness.
This report is intended solely for the information and use of the management, members of the Wilkinson 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,
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RWH:as 2001YB-40 '

Rus 11 W. Hinton State Auditor

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lisSELI . \\'. HINTO!" i STATE AUDITOR
I (404) 656.2174
11
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DEPARTMENT OF AlJDITS AND ACCOUNTS
254 Washingtoll Slrl:l:t. S.W.. Suile 214 Atlanta. Georgia 30.'34-:-\WO
February 11,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Wilkinson 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
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We have audited the compliance of Wilkinson County Board of Education with the types of

u.s. i compliance requirements described in the Office ofManagement and Budget (OMB) Circular

I A-i33 Compliance Supplement that are applicable to each ofits major Federal programs for the year

ended June 30, 2001. Wilkinson County Board ofEducation'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 ofWilkinson County Board of

Education's management. Our responsibility is to express an opinion on Wilkinson 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 of the United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Wilkinson 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 Wilkinson County Board ofEducation's compliance with those requirements.

2001SA-I0

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

Internal Control Over Compliance

I II
The management of Wilkinson 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 Wilkinson County Board of Education's internal control over compliance with

I
I

requirements that could have a direct and material effect on a major Federal program in order to

,I determine our auditing procedures for the purpose of expressing our opinion on compliance and to

test and report on internal control over compliance in accordance with OMB Circular A-133.

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

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

which the design or operation ofone or more ofthe internal control components does not reduce to a

relatively low level of risk that noncompliance with applicable requirements of laws, regulations,

contracts and grants that would be material in relation to a major Federal program being audited may

I occur and not be detected within a timely period by employees in the normal course of performing
I their assigned functions. We noted no matters involving the internal control over compliance and its

I
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operation that we consider to be material weaknesses.

i This report is intended solely for the information and use of the management, members of the
I Wilkinson County Board of Education, Federal awarding agencies and pass-through entities and is
I not intended to be and should not be used by anyone other than these specified parties.
I

:1

Respectfully submitted,

RWH:as 2001SA-IO

Ru sell W. Hinton State Auditor

SECTIONffi AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

"
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WILKINSON 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-7581-99-01 FS-7581-99-02 FS-7581-00-01 FS-7581-00-02

Further Action Not Warranted Further Action Not Warranted Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES
CASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Control Procedures Finding Control Number: FS-7581-00-01

This finding is partially resolved. Journal entries for funds ot~er than School Food Services (SFS) are being reviewed and approved by the Superintendent. A detailed explanation is being written on each journal entry. As for School Food Services, in future periods the journal entries are being approved by Judy Brown, the SFS Director. We will notify the SFS Bookkeeper that a detailed description needs to be written on each journal entry and any supporting documentation attached. We will also notify the SFS Bookkeeper that she is to contact Dr. Kathy Culpepper when she finishes reconciling bank statements so that Dr. Culpepper can review the reconciliations.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7581-00-02 '

At the February, 2002 Board meeting we will be asking the Board for approval to contract with a valuation firm to help with our historical costs and implementing a fixed asset plan. We will also be setting the threshold for general fixed assets at this same meeting. This finding hopefully will be resolved by June 30, 2002.

I
SECTION IV FINDINGS AND QUESTIONED COSTS

r!

WILKINSON COUNTY BOARD OF EDUCATION

I:

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

YEAR ENDED JUNE 30, 2001

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Wilkinson County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.

I: 2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements

II

The audit report for the Wilkinson County Board ofEducation disclosed financial statement reportable conditions related to the following control categories.

Ii

Cash and Cash Equivalents

General Ledger

General Fixed Assets

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Of the reportable conditions described above, General Fixed Assets is considered to be a material weakness.

II

3. Noncompliance Material to the Financial Statements The audit of the Wilkinson County Board of Education disclosed no instances of

Ii

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 Wilkinson 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 Wilkinson 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 .510(a) ofOMB Circular A-I33 The Wilkinson County Board ofEducation's audit did not disclose audit findings required to be reported by section .5IO(a) ofOMB Circular A-I33.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies

8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.

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WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR-ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
9. Low Risk Auditee The Wilkinson County Board ofEducation did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-l33.
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
CASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Control Procedures Reportable Condition Repeated from Prior Year Finding Control Number: FS-758l-0l-0l
A review of the School District's internal control policies and procedures noted deficiencies in providing for adequate internal control over the following functions and related procedures for the School Food Services Program:
The bank reconciliation function was not separated from the general ledger posting and check preparation functions. In addition, the bank reconciliations were not reviewed by an individual independent of cash operations.
The journal entries were not supported by adequate documentation and/or explanations.
These conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions in these areas. The School District should review the accounting procedures in place, design procedures that would enhance segregation ofduties relative 'to the above control categories and implement those procedures to strengthen the internal control over the accounting functions.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-7581-01-02
The Wilkinson County Board of Education failed to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate. action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should
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WILKINSON COUNTY BOARD OF EDUCATION

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SCHEDULE OF FINDINGS AND QUESTIONED COSTS

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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 Pnor Year Finding Control Number: FS-7581-01-02
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.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.

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