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

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WORTII couNTY BOARi:> OF EDUCAnON
- TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

E)CillBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDmJRES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDmJRES AND

CHANGES IN FUND BALANCES - BUDGET AND AcruAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

8

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

9

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

10

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDmJRES

AND CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVENUES, E){PENDITURES

AND CHANGES IN FUND BALANCES

27

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

28

L

COMBINING STATEMENT OF REVENUES, EXPENDmJRES

AND CHANGES IN FUND BALANCES

29

M

FIDUCIARY FUND TYPE

COMBINING BALANCE SHEET

30

WORTH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDrruRES OF FEDERAL AWARDS

31

2 SCHEDULE OF STATE REVENUE

33

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

35

ALL01MENTS AND EXPENDrruRES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BynOGRAM

36

5

BY SITE

37

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
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S w., Suite 214
Atlanta, Georgia 30334-!!400
June 5, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Worth County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements ofthe Worth 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 Worth County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial 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

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.
The Board ofEducation did not report compensated absences within the general-purpose financial statements as required by generally accepted accounting principles.
School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Worth County Board ofEducation as of June 30, 2001, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated June 5, 2002, on our consideration ofthe Worth 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 Worth County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through M) 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 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.
200lARL-13

A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,


RWH:as 2001ARL-13

R sell W. Hinton State Auditor

WORTH COUNTY BOARD OF EDUCATION

----- - ---- ------
WORTH COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUp
JUNE 30, 2001

~ cash and cash Equivalents
Investments
Accounts Receivable
Inventones Food Donated Commodities Purchased Food
Amount Available In Debt servtce Fund
Amount to be Provided In Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1.125.231.40 $

155.978.40 $ 2.089.434 64

650.000.00

250.782.98

2.605.170.32

466,49559

249.33819

669.34 13.600.33

Total Assets

$ 4.380,401 72 $ 887.52664 $ 2,338.n283

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable salaries Payable Expired Grant Balances Payable Contracts Payable Retalnages Payable Deferred Revenue General Obligation Bonds Payable
Total Uabllltles
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Debt SeMC8 For Endowment Corpus For Inventories Food Donated CommodltJes Purchased Food For School Food SeMC8S Equipment Expendrtures For SPLOST Proj8cls Urveserved Designated for Selflnsurance Undeslgnated
Total Fund EqUity

$

517.497,86 $

2.344.n3,64

238.33084 $ 419.890.48
9.59882

7842

13.386 70
221.03772 111,43540

$ 2.862.271 50 $ 667.89856 $

345.85982

$

71.88500

$
22.707.85 1,423.537 37 $ 1,518,130.22 $

669.34 13,600.33
$

492,42900 888.41525

205.35841 219,62808 $

612.<16876 1.992.913 01

Total UabllltJes and Fund Equity

$ 41380,401 72 $

887152664 $ 2.338,n283

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

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE
TRUST FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$ 1.265,491 09 $

1.603.02

$ 4,637.738.55 $ 4,907,001.23

3,684.25

904,467.23

904,115.59

97.41

131.50

3,321.233.01

3,139,286 61

$

1,265,588.50

884,411.50

669.34 13.600.33 1,265,588.50
884,411.50

928.51 11,999.81 513,083.89
1,781,91611

$ 1,265,588.50 $

5,418.77 $

2,150,000.00 $ 11:027,70846 $ 11,258,331.75

$

769,21540 $

565,356.37

2,764,664.12

2,648.309 94

9,598.82

4,272.75

221,037.72

5,08500

111,43540

7842

$

?,15O,ooo.00

2,150,000 00

2,295,000 00

$

2,150,00000 $ 6,026,029 88 $ 5,518,02406

$ 1.265,588.50 $

4,500.00

0.00 $ 1,265,588.50 $

91877 5,41877

$

71,885.00 $

1,265,588.50

4.500.00

132,508.00 513,083.89
4,500.00

669.34 13,600.33 492,42900 888,415.25

92851 11,999.81 500,00000 1,803,984.81

22,707.85 2,241,883.31

34,31385 2,738,988.82

$ 5,00',678 58 $ 5,740,307.69

$ ',265,588 50 $

5:41877 $

2,150pOO 00 $ 11,027?08 46 $ 11,258,331 75

-3-

WORTH COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES ANp CHANGES IN FUND BAlANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENPED JUNE 30. 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENPITURES
Current Instruction Support services Pupil 5ervlces Improvement of InstruclJonal 5eMceS Educalional Media services General Admlnlstralion SChool Admlnlstralion Business Admlnlstralion Maintenance and Operation of Plant Student Transp0rt8bon 5eMces central Support 5ervlces Other SUpport seMceS Food services Operalion Enterprise OperalJons Community 5ervlces OperalJons
Capital Outlay Debt5eMce
Principal Interest PaYIng Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operabng Transfers In OperalJng 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 Penod Donated CommodllJes Purchased Food
FUND BALANCE JUNE 30

GENERAL FUND

SPECIAL REVENUE
FUND

$ 19.183,123.03 $ 61,062.53
4,478,430.60 356.26070
$ 24,076,876 86 $

745.66219 3.678.962.22
321,139.63
4,745,764 04

$ 16,236.733.05 $
1,047,408 95 502,72897 592,80579 339,13380
1.928.352 95 275,209.65
1,804,21583 1.432.221 54
169.866 81 15.925.88 2,490n

1,933,381 14
149,74025 167.369.50
6,518.80 157,302.48
60000
29.804 39 93.07483
99,47340 2.199,72530
1.900.63 9,438.00

$ 24,347,09399 $ $ -268,217.13 $

4,848,328 72 -102,564 68

$

$

-28,263.00

$

-28,26300 $

409.60 40960

$ -296,48013 $ 1.814.610.35

-102.155.08 320,441.81

-25917 1,60052

$ 1,518,13022 $

219,62808

The notes to the general-purpose finanCIal statements are an Integral part of thiS statement -4-

EXHIBIT"B"

CAPITAl PROJECTS
FUND

DEBT SERVICE
FUND

TOTAlS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 19,928,785.22 $ 19,428,840.08

3,740,024.75

3,372.21562

$

362,333.28 $ 1,043,302.76

5,884,066 64

5.725,599 41

20,405 57

12,26725

710,07315

675,60647

$

382,738 85 $ 1,055,570 01 $ 30,262,949.76 $ 29,202,261.58

$ 1,504,641.90 $
$ 1,504,641.90 $ $ -1,121,903.05 $

$ 18,170,114.19 $ 16,706,998.75

1,197,149.20 670,09847 599,324.59 496,436.28
1,928,952 95 275,20965
1,834.020.22 1,525,296.37
169,866 81 115,39928 2,202,216.07
1,900.63 9,43800 1,504,641.90

1,401,922 17 891,38538 574,24452 448,718.45
1,757,47331 233,763.11
1,664,878.44 1,497,903 15
186,481.53 126,516.00 1,885,896 49
11,180.00 202,01913

145,000.00 157,36000
70540

145,00000 157,360 00
70540

135,000.00 166,81250
681.06

303,06540 $ 31,003,130.01 $ 27,891,87399

752,504.61 $ -740,180.25 $ 1,310,38759

$

27,853.40

$

27,85340

$

28,26300 $

500,000.00

-28,263.00

500,000.00

$

0.00 $

000

$ -1,094,049.65 $ 3,086,962.66

752,504.61 $ 513,083 89

-740,180 25 $ 5,735,098.71

1,310,38759 4,428,34378

25917 1,600 52

-499.06 3,13360

$ 1,992,913 01 $ 1,265,588.50 $ 4,996,25981 $ 5,735,098.71

5-

WORTH COUNTY BOARP Of EDUCATION COMBINED STATEMENT Of REVENUES, EXPENDITURES AND CHANGES IN fUND BAlANCES
BUDGET AND ACTUAl INON-GMP BASIS) GENERAL AND SPECIAL REVENUE fUNDS
YEAR ENDED JUNE 30 2901

EXHIBIT"C"

The notes to the general-purpose financaal statements are an Integral part oflhls statement 7-

WORTH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

COMBINED STATEMENT OF-REVENUES, EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND'TYPE '. NONEXPENPABLE TRUST FUNPS

YEAR ENDED JUNE 30, 2001

FUNP BALANCE JUNE 30

$ 1,41927 $

3,99950 $

5,418 77 $ -=_=5;l:,2~0_8=9.8..

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

WORTH COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 2001

EXHIBIT"E"

Cash Flows from Operabng Activities: Cash Paid for ScholarshIps
Cash Flows from Invesbng ActJvibes, Interest Received on Investments Purchase of Investments
Net Cash Provided by Investment Activities
Net Increase (Decrease) In Cash
Cash and Cash Equivalents July 1

CHASES OSBORN
FUND

HELEN DAVIS STORY
FUND

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

$

-50,00 $

=0:0::0... $

-5000 $

-50.00

$

41.70 $

$

4170 $

$

-8.30 $

1,427.57

184,25 $ -184.25
=0,:0::0... $
0,00 $ 183.75

225.95 $ -184,25
41.70 $ -8,30 $ 1,61132

226,08
226,08 176,08 1,435.24

Cash and Cash Equivalents June 30

$ 1,419.27 $

183.75 $

1,603.02 $ -===-=,;,!,1,.6..1.1.;,;,,32;;.,

The notes to the general-purpose finanCIal statements are an Integral part of thiS statement -9-

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

WORTH COUNfY BOARD OF EDUCATION

EXHmIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

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

- 10-

WORm COUNfY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
NONEXPENDABLE TRUST FUNDS Chase S. Osborn Fund - the fund used to account for an endowment ofwhich the COlpUS is to be invested and preserved intact with the resultant income to be used to provide an award to the Worth County School System spelling champion.
Helen Davis Story Fund- the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide a scholarship to a senior class student.
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.

- 11 -

WORTH COUNTY BOARD OF EDUCATION

EXHmIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis ofaccounting 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.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 20GO and ending in August 2001. State grants to fund the State's share of these contracts are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
The accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis ofaccounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Worth County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the 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.
- 12-

~.. ~

WORTH COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next called or regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-1 67(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-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 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:
(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 ofGeorgia, Office of Treasury and Fiscal Services,
- 13 -

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

WORTH COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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 infonnation 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 Worth County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on July 20,2000 (levy date). Taxes were due on December 20,2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Worth County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes 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 $4,459,288.18 and for school bonds amounted to $1,331.47.

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

School Operations

l.L.1.6 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,404,304.57 and was recorded in the Capital Projects and Debt Service Funds. The State will tenninate collection ofthis tax once an additional $4,603,479.36 has been collected or on September 30, 2002, whichever occurs first.

INVENTORIES

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

WORTH COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAl-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.
However, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources is material to the general-purpose financial statements and has not been recorded in the General Long-Term Debt Account Group as required by generally accepted accounting principles.
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 of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not

- 15 -

WORTH COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
present financial position, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of 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 ofdevelopment 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.
- 16-

WORTH COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $7,993,509.55. 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

$ 300,000.00

2

7,693,509.55

3

0.00

Total

$ 7.993509.55

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The School District has obtained commercial insurance for risk ofloss associated with 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 of the past three years.

- 17 -

WORTH COUNTY BOARD OF EDUCATION

EXHffiIT "F"

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. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

Beginning of Year LIability

ClaIms and Changes in Estimates

Claims Paid

End of Year LIability

2000 2001

$

1.019.00 $

2,890.00 $

3,909.00 $

0.00

$

0.00 $ 11,606.00 $ 11.606.00 $

0.00

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

Position Covered

Amount

Superintendent Each Principal

$ 20,000.00

$

5,000.00 - $ 10,0000.00

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1990

6.4% -7.25% $ 2,150,000.00

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

General Obligation
Bonds

Balance July 1, 2000

$ 2,295,000.00

Deductions Debt Retired

145.000.00

Balance June 30, 2001

$ 2,150,000.00

- 18 -

WORTII COUNfY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

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

2002 2003 2004 2005 2006 2007 - 2011

$ 231,215.00 306,812.50 310,427.50 307,917.50 309,617.50
1,537,857.50

Total Principal and Interest

$ 3.003,847.50

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $470,513.74 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 Health For Health Insurance of Non-Certified Personnel In the amount of$381,840.56

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$11,987,18

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 $76,686.00

Note 7: SIGNIFICANT COMMITMENTS

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

- 19-

WORTH COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 7: SIGNIFICANT COMMITMENTS

Project

Unearned Executed Contracts

Bus Shop Facility Sylvester Elementary School

$ 18,361.36 846.411.64

$ 864,773.00

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

Note 8: CONTINGENT LIABILITIES

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

Note 9: SUBSEQUENT EVENTS

On March 19,2002, the voters ofWorth County School District voted in favor ofa Special Purpose Local Option Sales Tax referendum for education purposes. The imposition ofthe tax approved by the voters, as stated on the Official Ballot of Worth County, is as follows:

"Shall a special one percent sales and use tax be imposed in Worth County for a period oftime not to exceed 20 calendar quarters, commencing upon the expiration ofthe special one percent sales and use tax currently being levied in Worth County, and for the raising ofnot more than $9,100,000 for the purpose of funding (i) the acquisition and installation of new technology and equipment at all educational facilities; (ii) the acquisition and installation of security cameras and equipment at all educational facilities; (iii) the acquisition, construction and equipping of an auditorium; (iv) the acquisition, construction and equipping of six (6) classroom additions at Worth County High School, multipurpose physical education facility, three (3) classroom additions at Worth Primary School and renovations and modifications to existing educational facilities; (v) the acquisition ofnew buses, transportation equipment and security cameras, including the acquisition of any property necessary or desirable therefore, the maximum cost of such capital outlay projects not to exceed the balance of the balance of one percent sales and use tax proceeds? If imposition of the tax is approved by the voters, such vote shall also constitute approval of the issuance of general obligation debt of Worth County School District in the principal amount of $5,000,000 to pay a portion of the abovedescribed capital outlay projects and to pay capitalized interest on such debt through January 1, 2003 inclusive."

- 20-

I,

WORTH COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 10: ACCUMULATED EMPLOYEES' LEAVB

The School District's sick leave policy allows employees to accumulate up to 60 days of unused sick leave. Upon retirement, an employee may request payment for unused sick leave at the rate of $22.50 per day. See Note 1 - Compensated Absences

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 ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 1,885,792.76 $ 1,808,816.21 $ 1,826,049.67

- 21 -

WORTH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVE-NUE FUND JUNE 30, 2001

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

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

124,590.56 $

76,462.07

250,782.98

148,309.57

669.34 13,600.33

Total Assets

$

537,952.78 $=-==7=6=,4=62=..0...7....

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Uabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undeslgnated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general-purpose financial statements.
- 22-

$

155,143.91 $

162,342.36

83843

$

318,324.70 $

20.309.12 56,152.95
76.462.07

$

669.34

13,600.33

205,358.41 $

000

$

219,628.08 $

0.00

$

537,952.78 $===7.::6=.4=62::;.0:=7=

EXHIBITWG"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

201,052.63 $

241,716.81

250,782.98

250,615.59

$

318,186.02

466,495.59

431,340.20

669.34 13,600.33

928.51 11,999.81

$

318,186.02 $

932,600.87 $ = .....9=3=:6=,6=00=.=92=

$

45,074.23 $

45,074.23 $

75,648.13

62,877.81

238,330.84

177,702.69

201,395.17

419,890.48

358,734.63

8,760.39

9,598.82

4,073.66

78.42

78.42

$

318,186.02 $

712,972.79 $

616,159.11

$

669.34 $

928.51

13,600.33

11,999.81

$

----'0;.;..0;;..;;0'-

205,358.41

307,51349

$

0.00 $

219,628.08 $ _----:3:::2:.::0.L..:,44...:.1~.=-81~

$

318,186.02 $

932,600.87 $==-9;;,;;3:=6,6=00;;,;.9=2;".

- 23-

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instrudlon Support ServiceS Pupil Services Improvement of Instructional Services Educational Media ServiceS General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Enterpnse Operations Community Services Operations
Total Expenditures
Excess of Revenues over (under) ExpenditulCs
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
FUNP BALANCE JULY 1
Food Inventory - Net Change In Penod Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

124,384.00 $

1,653,947.22

321,13963

$ 2,099,470 85 $

621,27819 621,27819

$
$ 2,199,725.30 1,90063

488,528.37
61,612.98 3,34079
28,97626
28,454 45 10,40606
368.88

$ 2,201 ,625 93 $

$

-102,155.08 $

621,68779 40960

$

$

$

-102,155.08 $

320,441 81

-25917 1,600.52

409.60 409.60
0.00 000

$

219,62808 $-==-_ _.....;;.0.0.0;.,.

See notes to the general-purpose finanCIal statements

- 24-

EXHIBIT"H"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

745,66219 $

739,358.57

$ 2,025,015.00

3,678,962.22

3,313,834 42

321,139.63

328,092.39

$ 2,025,01500 $ 4,745,764 04 $ 4,381,285.38

$ 1,444,852.77 $ 1,933,381.14 $ 1,869,365.20

88,127.27 164,02871
6,518.80 128,326.22
60000 1,349.94 82,668.77 99,104.52
9,438.00

149,740.25 167,369.50
6,518.80 157,30248
60000 29,804.39 93,07483 99,47340 2,199,72530
1,900.63 9,43800

113,954.18 199,913.63
11,816.99 155,962.00
6243 8,06910 46,42860 65,572.92 1,885,896 49
11,180.00

$ 2,025,015.00 $ 4,848,328.72 $ 4,368,221 54

$

0.00 $

-102,564 68 $

13,06384

$

40960

$

-500,00000

$

40960 $

-500,00000

$

0.00 $

-102,155.08 $

-486,93616

000

320,441.81

811,010.63

-25917 1,600.52

-49906 -3,13360

$

000 $

219,62808 $-===__3=2=0.,.4.4"";,,,;,,1.8.1.....

- 25-

WORTH COUNTY BOARP OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001

EXHIBIT"'"

Cash and Cash Equivalents Accounts Receivable

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2001 JUNE 30, 2000

$ 614,404,59 $ 1,475.030,05 $ 2,089,434 64 $ 2.849,638 89

249,33819

249,33819

245,554 68

Total Assets

$ 614:404 59 $ 1?24.368,24 $ 2,338,n283 $ 3,095,193,57

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Salanes Payable Contrads Payable Retalnages Payable

$ 2,335,83 $

11,050,87 $
221,037.72 111,43540

13,386,70 $
221,037,72 111 :435 40

206.39 2,939.52 5,085.00

Total Uabihbes

$ 2,335.83 $

343,52399 $ 345,85982 $

8,23091

FUND EQUITY

Fund Balances Reserved For School Food Services Equipment expenditures For SPLOST Projeds Unreserved Undeslgnated

$ $ 612,068.76

492,429,00 $ 888,415.25
0.00

492,42900 $ 500.000.00

888,41525

1.803,984 81

612,06876

782,9n,85

Total Fund Equity

$ 612,068 76 $ 1,380,844 25 $ 1,992,913,01 $ 3,086,962 66

Total liabilities and Fund Equity

$ 614,404.59 $ 1?24,368.24 $ 2,338,n283 $ 3,095,19357

See notes to the general-purpose finanCIal statements

26

WORTH COUNIY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001

EXHIBIT"J"

FUND BALANCE JUNE 30

$ 612,068,76 $ 1,380,844,25 $ 1,992,91301 $ 3,086,962.66

see notes to the general-purpose finanCIal statements

- 27-

WORTH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001

EXHIBIT"K"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

118,37 $ 1,265,372.72 $ 1,265,491.09 $

513,083.89

9741

9741

Total Assets

$

215.78 $ 1,265,372.72 $ 1,265,588.50 $ =====5=1.3..,.0.8.:=3=.8:;;9=

FUND EQUITY

Fund Balances Reserved For Debt Service Unreserved Undeslgnated

$

215.78 $ 1,265,372.72 $ 1,265,588.50 $

513,083.89

0.00 _ _ _ _:::.:o..=.;oo=_

0.00

0.00

Total Fund Equity $

215.78 $ 1,265,372.72 $ 1,265,588.50 $===5=1=3,=08...3.=8:=9=

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

WORTH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXpENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUNP YEAR ENDED JUNE 30, 2001

EXHIBIT"L"

REVENUES
Taxes Other Funds
Total Revenues
EXPENP1TURES
Debt5eMce Pnndpal Interest PaYIng Agent Fees
Total expenditures
Excess of Revenues over (under) expenditures
OTHER fiNANCING SOURCES (USES)
Operallng Transfers In Operallng Transfers Out
Total Other Flnandng Sources (Uses)
Excess of Revenues and Other Financng Sources over (under) Expendrtures and Other Flnandng Uses
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$ 1,331 47 $ 1,041,971,29 $ 1,043,302.76 $ 516,731 47

12,267.25

12,26725

4,67711

S 1,331.47 S 1,054,238 54 $ 1,055,570 01 $ 521,408,58

$

0,00 $

$

0,00 $

$ 1,331,47 $

145,000,00 $ 157,360.00
70540
303,06540 $
751,17314 $

145,000.00 $ 157,360,00
70540
303,06540 $
752,504.61 $

135,00000 166,812.50
681,06
302,49356
218,91502

$ $ -1,115.69
$ -1,11569 S

1,11569 $ 1,115.69 $

1,11569 $ -1,11569
0,00 $

2,22343 -2,22343
0,00

S

215.78 $ 752,288.83 $ 752,504,61 $ 218,915.02

0.00

513,083,89

513,08389

294,168.87

FUND BALANCE JUNE 30

$

21578 $ 1,265,372.72 $ 11265,588.50 $ 513,08389

See notes to the general-purpose financal statements

29 -

Cash and Cash EqUivalents Investments Accounts ReceIVable
Total Assets
FUND EQUITY Fund Balances
Reserved For Endowment Corpus
Unreserved Undeslgnated
Total Fund Equity

WORTH COUNTY BOARD OF EpUCATION COMBINING BALANCE SHEET FIDUCIARY' FI1ND TYPE JUNE 30, 2001

EXHIBIT"M"

NONEXPENDABLE TRUST FUNDS

ENDOWMENT FUNDS

CHASE S,

HELEN

OSBORN

DAVIS STORY

FUND

FUND

TOTALS JUNE 30, 2001 JUNE 30, 2000

$

1,41927 $

183.75 $

1,60302 $

1,61132

3,684,25

3.684,25

3,500,00

131 50

13150

9766

$

1A1927 $

5A18.n $ _ _..5.0;,2;0;,0.8.9;;,;.8..

$

1,000,00 $

3,50000 $

4,500.00 $

4,500.00

419.27

49950

918n

70898

$

1A1927 $

3,999.50 $

5,418 n $~_ _5!O;,2_08a9;,;8;;,.

See notes to the general-purpose finanCIal statements

- 30-

WORTH 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

Agnculture, U S. Department of Child Nutnbon Cluster Pass-Through From Georgia Department of education Food and Nutrlbon Program Food 5elVlces School Breakfast Program Nabonal School Lunch Program Pass-Through From Office of School Readiness Food and Nutnbon Program Summer Food 5ervlce Program for Children

10.553 10.555
10.559

NJA $ 306,904 08

N1A

821,23000 $

(1) 1,763,691 73 (2)

N1A

431,23314

436,03357

Total Child Nutrition Cluster

$ 1,559,367.22 $

2,199,725.30

Other Programs Direct Food and NutntJon Program A1ternabve to Commodity Donabons

10550

94,58000

(1)

Total U S. Department of Agrleulture

$ 1,653,947.22 $

2,199,72530

Education, U S. Department of Speaal Education Cluster Pass-Through From Georgia Department of Educabon IndJVlduals with Dlsablhbes Educabon Ad Part B - Special Educabon Flow Through Preschool Capacity Building Improvement

84.027 84.173 84.173

N1A $ 325,08325 $

N1A

27,69916

N1A

7,97399

325,083.25 27,69916
7,97399

Total Spadal Education Cluster

$ 360,75640 $

360,75640

Other Programs

Pass-Through From Georgia Department of Edl.ocabon

Elementary and 5ealndary Education Ad

Title I

Grants to Local Educational Agenaes

84.010

N1A

Trtlell

Eisenhower Professional Development

84.281

N1A

Titie VI

Innovabve Education Program Strategies

84298

NJA

Class Size Reducbon

84.340

N1A

Goals 2000

State and Local Educabon Systemic Improvement Grants 84.276

N1A

Vocabonal Educabon - BasiC Grants to States

High School Program

BasiC Grant

84.048 .

N1A

1,190,245.54 26,95567 37,48800 166,344.00 120,035.21
57m9.78

1,190,245.54 26,955.67 37,488.00
166,344.00 120,035.21
57,03978

Total U S Department of Educabon

$ 1,958,864 60 $

1,958,864 60

Health and Human 5elVlceS, U S. Department of Pass-Through from Georgia Department of Human Resources Child Care School Age Program Pass-Through From Southwest Georgia Regional Mental Health, Mental Retardabon and Substance Abuse Board Safe and Drug-Free Schools Grant

93037 84.186

N1A $

9,438 00 $

N1A

7,87865

9,438.00 7,878.65

Total U S Department of Health and Human SerVIces

$ 17,31665 $

17,31665

- 31 -

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

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT
Labor, U S Department of Pass-Through From Georgia Department of Labor Woncforce Investment Ad Pass-Through From Southwest Georgia Regional Development center Job Training Partnershlp Ad
Total U. S Department of Labor
Defense, U. S Department of Dtred Department of the Anny R.O.T.C Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

17,259 17.250

NJA $ 35,091.93 $
NJA $ 48,83375 $

35,09193
13,741,82
4~8~,8~3::::3~7~5

$ 61,062.53

(3)

Total Federal Flnandal Assistance

$ 3,740,02475 $

4,224:74030

NJA = Not Available

Notes to the Schedule of Expenditures of Federal AwardS

(1) Expenditures for the A1temabve to Commodity DonalJons Program and the School Breakfast Program were not maintained separately and are Induded In the 2001 NalJonal School Lunch Program
(2) Expenditures for this program Indude State, and/or Other Funds Expenditures are not maintained by fund source
(3) Funds earned on this program do not require repOrIJng of expendrtures

Major Programs are ldenlJfied by an asterisk (.) In front of the CFDA number.

The School Dlstnd did not proVIde Federal AssIStance to any SubreClplent

The accompanYIng schedule of expenditures of Fedt'.-al awards Indudes the Federal grant actMty of the Worth County Board of EducalJon and is presented on the modified aeaual baSIS of accounlJng which Is the baSIS of accounIJng used In the presentalJon of the general-purpose finanCIal statements,

see notes to the general-purpose finanCIal statements

- 32

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

SCHEDULE "2"

AGENCYIFUNplNG
GRANTS Community Affairs, Georgia Department of Govemor's Emergency Funds
Educabon, Georgia Department of Quality Basic Educabon Direct Instrucbonal Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Pnmary 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 Disabillbes Category I Category II Category III Category IV Category V Special Education Ibnerant Speaal EducatIon Supplemental Speech Gifted Student - Category VI Remedial Education Program Alternative Educabon Program Media center Program Staff and Professional Development Indirect Cost Categoncal Grants Pupil Transportabon Regular Bus Replacement Nursing ServiceS Pnnapal Supplements Vocabonal SUpeMsors Mid-term Adjustment Hold-Harmless Deferred Summer Sslanes (Pnor Year) Deferred Summer Salanes (Current Year) Educabon Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Innovative Programs Mentor Teachers Pay for Performance Preschool Handicapped Program Remedial Summer School Speaal Education Low Inadence Grant Teachers' Retirement Lottery Program Computers m the Classroom
Office of School Readmess Pre-Kmdergarten Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

15,000.00

$

15,000.00

910,470.00 109,979.00 2,281,493.00 625,106.00 1,324,805 00 2,619,096.00 1.968,957.00 597,26500
17,468.00 464.828.00 612,512.00
75,250.00 47,319.00
751.00 1,751 00 182.22400 210,755.00 188,825.00 396,830.00 103,73900 2.504,934.00

910,47000 109,979.00 2,281,493.00 625,10600 1,324,805 00 2,619,096.00 1,968.957 00 597.26500
17,46800 464.828.00 612,51200
75,25000 47,31900
75100 1.751.00 182,22400 210.755.00 188,825.00 396,83000 103.739.00 2,504,934.00

856,347.00 246,867.00
99,292.00 17.37000 23.442.00 242,567.00 -2,096,791.00 2,339,390 00 1,268.426.00
$ 141,277 42

124,384.00

8,52457 381.84056
5.00000 48900
154,000.00 59.23500 6.711 30 29,63800 11,98718

91.69200

856.347 00 246,86700
99.29200 17.370.00 23,44200 242,56700 -2.096.791.00 2,339,390 00 1,268,426.00 124,384 00 141,277 42
8.524.57 381,84056
5,000.00 48900
154,00000 59,23500 6,711 30 29,63800 11,98718
91.69200

529,58619

529,586 19

- 33-

WORTH COUNlY. BOARD OF EDUCATION SCHEDULEI QF- ST-ATE REVENUE
YEAR ENDED' juNE 30, 2001

SCHEDULE "2"

AGENCYIFUNDING
GRANTS Office of Treasury and Fiscal Services Pubhc School Employees Retirement
CONTRACT Education, Georgia Department of Georgia's Reading Challenge

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

76,686.00

$

76,686,00

51,467.00

51.46700

$ 19,183,123,03 $ 745,66219 $ 19,928,78522

See notes to the general-purpose finanCIal statements

- 34-

WORTH COUNTY BOARD OF EPUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX pROJECTS
YEAR ENPED JUNE 30, 2001

SCHEDULE "3"

pROJECTS
Repayment of pnncipal and interest on the outstanding Worth County, (Georgia) School DlStnct General Obhgatlon Series 1990 matunng on January 6, 1998 and thereafter
Construction and eqUIpping of capital ou1lay plllJeets for the Worth County School District consISting of twelve (12) additional dassrooms and expansion of the music area at Worth County Middle School, six (6) addrtJonal dassrooms and needed renovations at Sylvester Elementary School, and an audltonum
Renovations, additions, expanSions, Improvements, modifications and eqUiPPing all other eXIsting school facdrtJes of Worth County School Dlstnct and Indudlng Sumner School property to indude the acquisrtJon of all property, both real and personal necessary therefor

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 3,510,733.75 $ 3,510,733,75 $ 303,06540 $ 913,29089 Ongoing

5,050,000.00 5,050,000 00 1,305,456.84 1,473,675,56 Ongoing

1,226,266.25 1,226,266 25

000

24,675,59 Ongoing

$ 9,787,00000 $ 9,787,00000 $ 1,608,52224 $ 2,411,64204

(1) The School Dlstnct's onginal 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 each project. Includes all cost from project Inception to completion.
(3) The voters of Worth 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 Ide of the project

See notes to the general-purpose finanCIal statements

- 35-

WORTH COUNTY BOARp OF EPUCATION GENERAL FUND - aUALITY BASIC EDUCATION PROGRAM (aBE)
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

PESCRIPTION

AllOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Pnmary Grades (1-3) Program

Primary Grades-Early Intervenbon (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (H) 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 Educabon Program

Alternative Education Program

1,014,560,00 $ 122,552.00
2,542,326.00 696,571.00
1,476,265 00 2,918.526,00 2,194,059.00
665,548,00 1,359.342,00
203.057.00 234,84900 210,41300

971,82546 $ 263,438 50 2,621.205.89 615,487.94 1,442,978,47 2,845,609.27 2,389,637,97 564.583.50
468.107,94 734,435,59 183,891.61
61,267.89 198,652.73 392,06723 288,02875

21,101,68 $
101,056.49
71,33917 77,406,85 101,130.11 122,943.21
8.654 45 12,00207
8,512.09 1,507.83 9.130.91 3,999,63 6,093,52

992,927.14 263,438,50 2,722,26238 615,487.94 1,514,317 64 2,923,018.12 2,490,768,08 687,52671
476.762,39 746,437.66 192,403.70
62,77572 207,78364 396,066 86 294,122.27

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

13,638,068.00 $ 14,041.218.74 $ 544,88001 $ 14,586,09875

Media center Program Staff and Professional Development

442,198.00 115,599,00

458.948,54 77,63506

87,741 71 36,456.36

546.690.25 116,09144

TOTAL aBE FORMULA FUNDS

$

14,195,865.00 $ 14,577,602.36 $ 671,078,08 $ 15,248,86044

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

see notes to the general-purpose finanCIal statements

- 36-

WORTH COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM CaBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

Worth County High School Holley Elementary School Worth County Middle School Worth County Primary School Sylvester Elementary School Worth County CIS Academy Central Office (A1temative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

$

3,361.741.00 $

3,739,716.77

1.762.848.00

1.753.421.56

3.397,440.00

3,411,917.98

3.455,741.00

3.862,777.51

1.449.885.00

1,575.285.44

242.979.49

210,413.00

$ 13.638.068.00 $ 14,586.098 75

See notes to the general-purpose financial statements. - 37-

SECTIONn COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street. S w., SUIte 214
Atlanta, GeorgIa 30334-8400
June 5, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Worth 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 ofWorth County Board ofEducation as of and for the year ended June 30, 2001, and have issued our report thereon dated June 5, 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 Worth County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Rsmorting
In planning and performing our audit, we considered Worth 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 ourjudgment, could adversely affect Worth County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-7591-01-01 and FS-7591-01-02.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FS-7591-0102 to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe Worth 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,
~~-=:k:..
RWH:as 2001YB-40

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washmgton Street, S w., Sulle 214
Atlanta. GeorgIa 30334-H400
June 5, 2002

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members of the Worth County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofWorth County Board ofEducation with the types ofcompliance
u.s. requirements described in the 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, 2001. Worth 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 Worth County Board of Education's management. Our responsibility is to express an opinion on Worth County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A133, Audits of States, Local Governments. and Non-Profit Organizations. Those standards and QMB 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 Worth 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 Worth County Board of Education's compliance with those requirements.
2001SA-30

In our opinion, the Worth County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Worth 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 Worth County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.
We noted a certain matter involving the internal control over compliance 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 compliance that, in our judgment, could adversely affect the Worth County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-7591-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, 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. Our consideration of the internal control over compliance 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 believe the reportable condition described above is not a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe Worth 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,
~l~~to~~ State Auditor
RWH:as 2001SA-30

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

WORTH 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-7591-99-02 FS-7591-00-01 FS-7591-00-02

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

CORRECTIVE ACTIONIRESPONSES

EXPENDITURESILIABll.,ITIESIDISBURSEMENTS Improper Transfer of Funds Amount: $500,000.00 Finding Control Number: FS-7591-00-01

The transfer from school food service operations will be limited to reimbursements for expenditures allowed by the program. The Worth County Board of Education will return funds not expended and accrued interest to food service operations by June 30, 2002.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7591-00-02

The management of the Worth County Board of Education has begun an implementation plan to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as of June 30, 2002.

SECfIONIV FINDINGS AND QUESTIONED COSTS

WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 2001

I SlJ1\.1MARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Worth 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 Worth County Board of Education disclosed financial statement reportable conditions related to the following control categories.

Procurement

General Fixed Assets

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

3. Noncompliance Material to the Financial Statements The audit ofthe Worth County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Worth County Board of Education disclosed a reportable condition in internal control over major programs for the following compliance requirements.

Activities Allowed or Unallowed

The reportable condition described above is not considered to be a material weakness.

5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Worth County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-I33 The Worth County Board of Education's audit disclosed an audit finding required to be reported by section .510(a) ofOMB Circular A-133. This audit finding is included in section IV of this report.

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WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY QF AUDITOR'S RESULTS
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 10.559 Food and Nutrition Program - Summer Food Service Program for Children 84.027 Individuals with Disabilities Education Act - Part B - Special EducationFlow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84.173 Individuals with Disabilities Education Act - Part B - Special EducationCapacity Building Improvement
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Worth County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education. .'
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
PROCUREMENT Failure to Follow School District's Procurement Policy Reportable Condition Nonmaterial Noncompliance Finding Control Number: FS-7591-01-01
A review ofthe Worth County Board ofEducation's Capital Projects expenditures indicated that the School District failed to adhere to the local School District Policy when it paid seven vendors $153,868.30 for various purchases and services. This condition occurred because management failed to follow School District Policy DlED dated October 25, 1990, which states that purchases of supplies, materials, equipment and contra(,tual services in the amount of$2,500.00 or more shall be based on at least three sealed competitive bids. Procedures should be implemented to ensure future compliance by management with the School District's policy.
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WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-7591-01-02
The Worth County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements 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 ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
ACTIVITIES ALLOWED OR UNALLOWED REPORTING Inaccurate Claim for Reimbursement Reportable Condition U. S. Department of Agriculture Through Office of School Readiness (OSR) Amount: $12,027.19 Finding Control Number: FA-7591-01-01
An examination ofthe Summer Food Service Program for Children (CFDA 10.559) revealed that the June, 2001 claim for reimbursement was not supported by meal count documentation or by the School District's accounting records as required by 7 CFR 225.15c. The meal count included 7,707 lunches served at nine sites which were not on OSR's approved site list. Also, ten sites were selected for testing and only two sites had delivery sheets to document the number of meals delivered to the site. Of the two delivery sheets available to test, only one agreed with the number ofmeals reported on the Daily Meal Count Form. The inaccurate meal counts reported resulted in a questioned cost of $12,027.19 and was due to management's failure to ensure that the number of meals claimed included only meals from approved feeding sites. Additionally there was no documentation to support if the meals in question were delivered and served to participating children. We also noted
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WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS ANt> QtJESTIONED COSTS
YEAR ENDED JUNE 30. 2001
ill FEDERAL AWARD FINDINGS A~rn QUESTIONED COSTS ACTNITIES ALLOWED OR UNALLOWED REPORTING Inaccurate Claim for Reimbursement Reportable Condition U. S. Department of Agriculture Through Office of School Readiness (OSR) Amount: $12,027.19 Finding CONtrol Number: FA-7591-01-01 that the School Dis~ct reported program costs on the claim for reimbursement that was not supported by the general ledger. This occurred because 'the School District did not verify that the amount of reported program costs were in agreement with and supported by the expenditures r.eflected,on the School District's general ledger. The School District should implement procedures to ensure that its claim for reimbursement includes (1) only those meals served at approved sites, (2) an accurate and fully documented count of meals delivered and served and (3) program costs that are supported by the School District's general ledger. The Office of School Readiness should review this matter to determine the resolution of the $12,027.19 in questioned costs and to determine if a portion ofthe reported program costs should be refunded.
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