GtI '. ,, ., " ASDo .,' ,' , " ,'R I .'~ .:.' ',~ , r;:;;l(, wf ,, ilOC! I.:;'cq " " " , ", " " " '. ,.... . "STATE OF GEORGIA: ... ,. . .'DEPARTMENlOF:AU'OI'TS'AND,'ACCOUNTS .. \ \. , _, ~ ,. I ,_ ...." " . ,, , ' .' \ ...~, , . .. ,~, " ", "' ," . " , , , ,'.' ,. ., '. , I " "' " ...' ,. " ., " ., .," , ,' "' ." " ., '. -'" '" .' , ,., .'. r " .' ; '" , . , ' " .' ,. ,, ., " . .,', , " " ... ... -.' J ~ ' " '. ." " , .. " " ,," '" ..' . ", ,\ , Ii ' , " " ," .. ., , , '. " .' " .. .' ,. ,. ,. .' " " " '. ,..,::, " '': ." I .... '.... ,1 I -. I ~ .J r J . . I 0_. . '. I " .WORTH COUN.TY BOARD O.F 'EDUCATION:' . , , , :' .. " " ,. SYLVESTER, G.EORGI~ '. < ,. " " , REPORT ON' AU'orr " r ,. , , " OF.,THE:FINANCIAL STA,~ TEM,E.NTS. . FOR THE FISCAL YEAR ENDED JUNE 30, 2002 ," " .. ., , ,,j ' " '. " ., " " "! ". "' :: .. ""'" ' ,'0:: ' I, I~. .. I ~. ~ r , > ' I , ,". " -- .' " ., .. ,. ,. " .; \ . I, "7 ". "," " ,. , . '. " ' .. .' f' : ....' -,', .. " "" " '~ ." ~ . " '. , ,''1." . R'ussell,W. Hinton' State, AUdltpr, :' : .. .~. ' . ..,.., " ., " .. ,' ., " ;-'. . . ',' ' , ,, " " " " '. . " , " '" " ., " " " . ."-' " " '.. " I ," " .. .' .~ ",- , , ,.. '. " WORTH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED RFPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SLPPLEMENTARY INFORMATlONSCHeDULE OF EXPENDIl URES or rEDERAL AWARDS EXHIBITS GENERAL-PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENT<; - OVLRVILW A COMBINED DALANCF SHEET ALL FUND TYPES AND ACCOUN I' GROUP 2 B COMBINED STATEMENT or REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGLS IN FUND BALANCES - BUDGEl AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 7 D COMBINED STATEMENT OF REVENUI-.S, EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NON EXPENDABLE TRUST FUNDS 8 E COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS lJ I' NO I ES TO THE GENI,RAL-PURPOSE FINANCIAL STATEMENTS 10 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMEN rs SPECIAL REVENUE FUND G COMBINING BALANCE SIIEET 22 H COMBINING STATEMENT or REVENUES, EXPENDITURES AND CIIANGES IN FUND BALANCES 24 CAPITAL PROJECTS FUND I COMBINING BALANCE SHEEl 26 J COMBINING STArl:.MENTOF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE rUND K COMBINING BALANCF SHFf.T 28 L COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 2lJ M FIDUCIARY FUND TYPI- COMBINING BALANCE SIIEET 30 WORTH COUNTY BOARD OF EDUCAliON - TABLE OF CONTENTS- SECTION I r1NANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES SCHFDULL OF EXPENDITURES OF FEDERAL AWARDS 31 2 SCHEDULE OF STATE REVENUE 33 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECl S 35 ALLOTMENTS AND EXPENDITURI:.S GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 36 5 BY SITE 37 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF fINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABI.E TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SuMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONFD COSTS SCHEDULf OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL HI"". I. W. HI'" 10' 5 rArr "u~)JJOP DEPARTMENT OF AUDITS AND ACCOUNTS ::!54 W.I...tllng:ton ~Iru.~l ~ W SUlIl ::! 14 AII""I" GeorgI" ~()114-X4(K) June 13.2003 Honorable Sonny Perdue, Governor Members of the General Assembly Member~ of the State Board of l.du~allon and Supenntendent and Members of the Worth County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GLNERAL-PURPOSE FI"lANCIAI STATEMlN'! SAND SUI'I'IJ,MLI'orne respect<, from generally accepted accounting pnnclples TheM: vanances are de..cnbed a~ tollows 2002ARL-13 * Inc general-purpose Iinanclal ,tatement, of the Hoard of Educallon did not contain a General fixed A,;cts Account Group to account for property and cqUipment o\\ned by the Board of Educallon \\hlLh ~hould be Included to conform to generally accepted accounting pnnciples * Inc Board of EducatIOn dId not report compcn>ated absenccs \\lthln the general-purposc financIal ,tatement~ a~ reqUired by generally acccpted accounting pnnclples * School actIVIty accounts maintained at the Indmdual schools arc not Included In the general-purpose financial statement~ To conform to generally accepted accounting pnnciples. the,e accounts should be Included In the geneml-purposc financIal statement~ The aggregatc effect> on the general-purpose financial ,tatements of these vanances or omI>>Ion, have not been determined. but are believed to be matenal 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 Iinanclal statements referred to above present Ilmly, In all matenal respects, the finanCial po>ltlOn ofthe Worth County Board ofEducatIOn as of June 30, 2002, and the result> of Its operations and the cash flows of lis nonexpendable trust funds for the year then ended, In conformity With accounting principle, generally accepted In the Umted State, of Amenea In accordance With Government Audnlng Standard" we have abo Is,ued our report dated June 13, 2003, on our con~lderatlOn of the Worth County Board of EducatIOn's Internal control over financial reportIng and our tests of lis compliance With certain provI~lon~ of law" regulations, contracts and gmnts 1nat report I~ an Integml part 01 an audIt performed In accordance wllh Government Auditing Standards and should be read In conJunctIOn \\lth thl~ report In con,ldenng thc results of our audit Our audll was performed for the purpose of forming an opinIOn on the general-purpose financIal statements of the Worth County Board of J:.duealJon taken a~ a whole The accompanYIng wmblnlng statements (E'\hlblh G through M) and the finanCIal sehedule~ (Schedules 1through 5), which Includes the Schedule of E'\pendltures of Federal Awards a~ reqUired by U S Office of Management and Budget Circular A-l33, Audl/' o{StLl/e" Local (iul'I?rnments, and l'v'on-Profit OrKllnl=atlUnI are presented for purpo~e~ of addlllOnal analY~I; and arc not a reqUired part of the general-purpose financIal ~tatement> Such InlormalJon ha.~ been subjected to the auditing proeedure~ applied In the audll of the general-purpo~e finanCIal statement, and In our opinIOn. except for the effects of the matters referred to In the third paragraph, ~ueh InformatIOn I' fairly 'tated. In all matenal re~peets, In relalJon to the general-purpo,e financial statements taken as a whole 2002ARL-13 A copy ofthl~ report has been filed as a permanent record in the office of the State Auditor and made aVailable to the press ofthe State, as provided for by OffiCial Code ofGeorgm Annotated Secllon 50- 6-24 RWHas 2002ARL-13 WORTH COUNTY BOARD OF EDUCAnON EXHIBIT -g DEBT SERVICE FUND FIDUCIARY FUND TYPE TRUST FUNDS ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only) JUNE 30, 2002 JUNE 30, 2001 S 1375,93256 S 163223 S 364704386 S 463773855 368425 520391 95 904 467 23 6971 24889 337853930 332123301 5739 S 137600227 618,99773 406697 1156481 1,37800227 61899773 66934 1360033 1 26558850 884,41150 S 1,37600227 S 556517 S 1,99500000 S 9 ~56 664 08 S 1102770846 S 9594576B S 76921540 2 ~3 765 51 2764,664 12 14 336 58 9 59B 82 17,017 00 221 03772 69 BOO 00 11143540 7842 S 1,99500000 1995,000 00 2,150,00000 S 1995000 00 S 5 999,3B5 97 S 6026 029 68 S 1,37600227 S 000 S 1,376,00227 S S 1,376,00227 S 450000 1 oe~ 17 556517 S 2273206 S 7168500 1 37600227 1265 588 50 450000 450000 406697 1156461 478 ..9883 66934 1360033 492 "29 00 888 "'5 25 14905 85 1,64500752 22 707 85 2,241,88331 S 3,557,27811 S 5,00167858 5,56517 S 1,995.000 00 S 9,5566&408 S 11,027,70646 -3- WORTH COUNTy BOARD OF EDUCATION CQMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2002 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current InstruCbOn Support SoMce, Pupil Servk:es Improvement of InstrucbonBl 8eMCeS EducabOnaJ Media ServIces General Admlnlstratlon School N:Jmllllstrabon Busmess Admmlslrahon Maintenance and Operabon of Plant Student Transportation Services Central Support efVlC8S Other Support ServICeS Food 5eMces Operatloo Enlerpnse Operations Communrty SeMCeS OperatIons Capllal Outlay Debt service PnnClpal Interest PaYIng Agent Fees Total Expenchtures Excess of Revenues over' (under) Expendrtla"es QTHER FINANCING SOURCES (USES) Operating Transfers In OperaliJlQ Transfers Oul TOlal Other Ftnancmg Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other FlI\8ncmg Uses FUND BAlANCE JULY 1 Food Inventory - Net Change In Penod Donated Commochbe5 Purt:l1aSed Food GENERAL FUND SPECIAL REVENUE FUND S 198047317 15 S 804713804 4931 86251 34068186 S 25,1804,57536 S 800 695 90 349751335 368 64217 4866 85142 S 17 173 05714 S 1211,990 16 531,27578 666 018 66 264,"349 1,850,06346 278,"550 1 866,8043 58 '4'1,77470 246054 70 240.390 277 25 945267 1878817 79 8570589 162,21669 9,98319 160,78283 48572 13,47075 10.,79795 134 669 43 208651917 ,.6296 S 25 531 8040 99 S S -34726563 S 4658 912 37 793905 S S -200 10. 76 49752297 S -200,10. 76 S 49752297 S -54737039 S 1 518 130 22 50546202 21962808 339763 -2,035 72 FUND BALANCE JUNE 30 S 97075983 S 726 452 01 The notes to lhe general.purpose f1nanaal statements are an Integral part of thiS statement - 4- EXHIBIT ~B~ CAPITAl PROJECTS FUND DEBT SERVICE FUND TOTAlS (Memorandum Only) YEAR ENDED JUNE 30 2002 JUNE 30 2001 $ 1021 15088 S 529770 $ 1 026 B 58 S $ 406 685 23 655339 20,648 013 05 S 3562,22719 6,359698 62 721 17512 1992878522 374002475 5884 066 64 71007315 41323862 S 3129111398 $ 30 262 949 76 S 2243 ... 55 $ S 2.243 ... 55 $ S -1,21699597 $ $ 19,05187493 $ 18,17011419 1297696 05 71349247 67600' 85 42522632 1 85054918 276"550 188041433 1 516572 65 246,054 70 15871333 2088 796 42 146296 225289722 1 19714920 67009847 599 324 59 496 436 28 1 92895295 275209 65 1 834,02022 1 525296 37 169866 81 11539926 220221607 1 90063 943800 1 504 641 90 155000 00 14712125 70360 15500000 147121 25 70350 14500000 15736000 70540 30282485 $ 32 737 022 76 $ 31 003 130 01 11041377 $ -1"590878 $ -74018025 $ 200104 76 -49752297 $ -29741821 $ 69762773 $ -69762773 S 000 S 28.26300 -2826300 000 S -1 51441418 S 1 992,91301 11041377 $ 1265,56850 1,"5,908 78 S 4996 259 81 .740,180 25 5735 098 71 339763 -203572 -25917 1 600 52 $ 478498 83 $ 1 37600227 $ 355171294 $ 4996 259 81 -5- WORTH COUNTY BOARD OF EpUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - (NON-GMp BASIS) GENERAl.. AND SPECIAL REyENUE FUNDS YEAR ENDED JUNE 30 2002 EXHIBIT C GENERAl FUND BUDGET ACTUAl REVENUES Slate Funds Federal Funds Taxes Other Funds Tolal Revenues EXPENDITURES $ 19.028 226 80 $ 1984731715 27500000 64 713 84 4866 035 00 493186251 160 040 00 340,68186 $ 24329 301 80 S 25[184 575 36 Current Instruction Support Serw:es Pupil servICes Improvement of InstructIOnal servces Educallonal Media Services General AdministratIOn School AdrrunlstrallOn BuSIness AdminIstratIOn Maintenance and OperatIOn of P1anl Student Transportatlon ServICeS Central Support SeMCes Other Support SeMCeS Food ServICes Ope~hon Enterpnse Operations Capt.lal Outlay Total Expendrtures $ 16756 76156 S 17,17305714 1 13207471 691,834 35 61612197 297,959 54 1876,106 53 279,54942 174681500 1468 16954 233 464 02 361900 121199016 53127578 666 018 66 264 443 49 1850 063 46 27644550 1886 943 58 141177470 246 054 70 2404390 277 25 151000 00 9 452 67 $ 2511747564 $ 25531 840 99 Excess of Rev(lnues over (under) ExpenditUres $ 788 173 84 $ 347,26563 OTHER FINANCING SOURCES (USES) Other Sources Other Uses $ -200 104 76 Total Other FinanCing Sources (useS) $ -200 104 76 Excess of Revenues and Other Flnenong Sources over (under) Expenditures and Olher Flnaoong Uses $ 788 17384 $ -54737039 FUND BALANCE JULY 1 2001 Adjustments Food Inventory Nel Change I1l Penod Donated Commodilles Purchased Food 1684 459 35 1 518 130 22 FUND BALANCE JUNE 30 2002 $ 896[28551 $ _...::9~70::.7::.59;:;:.:B3~ SPECIAL REVENUE FUND BUDGET ACTUAl $ 750 689 00 $ 800 695 90 377030200 349751335 41966500 36864217 $ 4,940,656 00 $ 4666 85142 $ 197641100 $ 187881779 107 2Ql; 00 220 966 00 1000000 182,97100 60000 85705 89 182 216 69 9983 19 160 782 B3 485 72 14,086 00 109 869 00 1347075 104 797 95 149 3B9 00 2168 568 00 134 669 43 2 0B6 519 17 146296 $ 4940156 00 $ 4658 912 37 $ 500 00 S 7939 05 S 497522 97 S 49752297 $ 50000 $ 21543220 368546 50546202 21962808 339763 -2.03572 $ 219 617 66 $ _ _7:.:26~4",5~2.0.~1_ The notes to the general-purpose f1nanoaJ statements are an Integral part of this statement 7 WORTH COUNTY BOARD OF EDUCATION EXHIBIT "D" COMBINED STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NON EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30 2002 OPERATING REVENUES None Recorded OPERATING EXPENSES Current Instruction Qperabng Income (Loss) NONOPERATING REVENUES Interest Earned Net Income (Loss) FUND BALANCE JULY 1 CHASE S OSBORN FUND HELEN DAVIS STORY FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30 2002 JUNE 30 2001 $ 000 $ 000 $ 000 $ 000 $ 000 $ $ 000 $ 000 $ 000 $ 000 $ 000 $ 5000 -5000 2921 $ 29 21 $ 1 41927 117 19 117 19 $ 3,999 50 14640 146 40 $ 5,41877 25979 209 79 5,208 98 FUND BALANCE JUNE 30 $ 1,44848 $ 411669 $ 5,565 17 $ _ _..;5~,4.;.1;,;8~7~7_ 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 2002 EXHIBIT "E" Cash Flows from Operating AclJVIlIBs Cash Paid for Scholarships Cash Flows from Invesbog ActlVlllBs Interest ReceIved on Investments Purchase of Investments Net Cash Provided by Investment ACbvllJes Net Increase (Decrease) In Cash Cash and Cash EqUivalents - July 1 CHASE S OSBORN FUND HELEN DAVIS STORY FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2002 JUNE 30 2001 $ 000 S 000 $ 000 S -5000 $ 2921 $ 000 $ 2921 $ 22595 -184 25 $ 2921 $ $ 2921 $ 141927 000 $ 000 $ 183 75 2921 $ 2921 $ 1 60302 41 70 -830 1 611 32 Cash and Cash EqUivalents - June 30 $ 1,44848 $ 18375 $ 1,632 23 $ ~_~1",,6;;;03;;.;;02;., The noles to the general-purpose finanCial statements are an Integral part of this statement - 9- WORTH COUNTY BOARD OF EDUCATION EXHIBIT "F" NOl ES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 Note I SUMMARY OF SIGNIFICANT ACCOUN rING POLICIES REPORTING ENTITY fhe Worth County Board of EducatIOn (School DIstrIct) was estabh~hed under the laws of the State of Georgia and operates under the gUidance of a school board elected by the voters and a Supenntendent appointed by the Board The School Dlstnct is organlLed as a separate lcgal enllty and has thc power to levy taxes and Issue bonds Its budget IS not subject to approval by any other enllt)' Accordingly, the School DIstrict IS a pnmary government and consIsts of all the orgamzatlOns that compose ItS legal enllty FUND ACCOUNTING The School DistrIct use~ funds and an account group to report on Its finanCial posItion and the results of ItS operatIOns Fund accounting IS deSIgned to demonstrate legal eomphance and to aId finanCial management by segregating transactIOns related to certain go\ernmental funcllons or aCllvllles A fund I~ a separate accounting entity With a self-balancing set of accounts An account group I~ a finanCial reporting device deSIgned to provide aceountabihty for certain assets and habihlles that are not recorded m the funds because they do not directly affect expendable available finanCIal re~ources General FIxed Assets are recorded as expenditures In the varIous funds at the lime ofpurcha~ A General Fixed Assets Account Group IS not presently mamtamed by the School DiStrIct To conform to generally accepted accounting prinCiples, a General FIxed Assets Account Group should be mamtalned for reporting the cost of assets acqUired by governmental fund types Although "school acllvlty accounts" are mamtamed at the indIVidual schools, neIther the assets, hablhtles and fund eqUity, nor the revenues, expenditures and changes In fund balances of these accounts are reflected m 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 DIstnct, In comphance With generally accepted accounting prInCIples apphcable to governmental urnts, unles~ othem1se dIsclosed m these notes Funds and the account group presented in thiS report are as follows GOVERNMENTAL FUND TYPES - are used to account for all or most of the School DI~tnct's educallonal acllvilles Governmental Fund f)pes mclude GENERAL FUND - the fund used to account for all finanCial resources of the School Dlstnct except those required to be accounted for In another fund These transactIOns relate to resources obtamed and used for servIces proVIded by a board of educatIOn - 10 - WORTH COUNTY BOARD OF EDUCAnON EXHIBIT "F" NOTES TO THE GENERAL-PURPOSf:. FINANCIAL S r ATEMrNTS JUNE 30, 2002 :-Jote 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLlCllS SPECIAL REVENUl FUND - the fund used to account for the proeeed~ of speCific revenue sources (other than for maJor capital proJects) that are legally restneted to expenditures for speCified purposes These funds arc received pnmarily from the Georgia Department of EducatIOn and from the Federal government to accomplI,h speCific educatIOnal obJectlves CAPITAl PROJEC rs FUND - the fund uscd to account for finanCial resources to be u~ed for the acqUlsltlon or constructlon of major capital faCilities DEBT SERVICE FUND - the fund used to account for the accumulatlon ofresources for. and the paymcnt of, general long-term pnnclpal. Interest and paYing agent fces FIDUCIARY FUND TYPE - the fund used to account for assets hcld by a government unit In a trustec capacity or as an agent for indiViduals, pnvatc organIzation." other govcrnment units and/or other funds ThiS fund Includes' NONEXPENDABLE TRUST FUNDS Chase S. Osborn Fund - the fund used to account for an endov.mcnt of\vruch the corpu~ IS to be Invested and preserved Intact v.lth the resultant income to be used to proVide an award to the Worth County School DiStriCt spelling champIOn Helen Davis Story Fund- the fund used to account for an cndov.ment of which thc corpus IS to be 1m ested and preserved Intact With thc resultant Income to be lL.,ed to prov Idc a seholarshlp to a senIor class studcnt ACCOUNT GROUP G[NERAl lONG-TERM DEBT ACCOUNT GROUP - A financial rcporting dcvlce used to account for general obligatlon debt outstanding BASIS OF ACCOUNTING rhc accounting and finanCial reporting treatment applied to a fund IS determined by ItS mcasurement focu, All governmental fund, are accounted for using a current finanCial resources mea~uremcnt focus With thiS measurcment focus, only currcnt assets and current IIabilltles generally are Included on the halance sheet Operating statements ofthesc funds prcscnt Incrcascs (I e , revenues and other finanCing sources) and decreases (I e, expenditures and other finanCing uses) In net current assets Then reportcd fund balancc is consldcred a measure of available spendablc re,ourcc, llabilitles which arc expected to be financed from available spendable resources are reported as IIabllitles In the governmental funds Othcr liabilities, \\ hlch are not cxpcctcd to be financed from availablc spendable resources, are reported In the General long-Term Debt Account Group - 11 - WORTH COUN fV BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 EXHIBIT'T" Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES All nonexpendable trust funds are aecounted for on a flow of economic resources measurement focus With tlus measuremcnt focus, all assets and liabilities associated mth thc operatIOn of these funds are Included on the balance sheet OperatIng statements present mcreases (e g ,re~enue~) and decreases (e g , expenses) In net total assets Governmental funds arc accounted for usmg the modIfied accrual ba~is of accountIng under which Revenues are rccogmzed when su~ccptlble 10 accrual (I e whcn they bccome both measurable and available) "Measurable" means the amount of the lransaclion can be determmed and "available" means collectible WIthIn the current period or soon enough thereafter to be used to pay liabilities of the current period fhe School Dlstnct considers receIvables collected wlthm SIXty days after yearend to be available Property taxes, sales taxes and Interest are conSidered to be susceptible to accrual Nonexchange transactIOns, In which the School Dlstnct gives (or receIves) ~alue Without dIrectly recelVlng (or gl\lng) equal value m exchange, mclude property ta'\es. local optIOn sales taxe~, mtergovernmental grants and donatiOns Revenue for property taxes IS I'\:cogmzed In the fiscal year for wluch the taxes are leVied Revenue from sales taxes IS recogmzed m the fiscal year the resources are received or susceptIble to accrual Revenue from grants and donatIOns IS rccogmzed In the fiscal year m wluch all ellglbl1lty requirements have been salisfied Expenditures are generally recognw:d when the related fund liabIlity IS Incurred A substantIal number of personnel of the School District were employed for a one hundred and mnety day period begmmng In August 2001 and ending In early June 2002 Employment contracts for these employment periods typically speci/) that compensatIon be paid m twelve equal monthly payments beginnIng m September 200 1 and endIng In August 2002 State grants to fund the State\ share of thcse contracts are disbursed to the School Dlstnct In the same twelve month period In accordance With generally accepted accountIng prinCiples, salary and fnnge benefit expendItures and the related re~enue from the State to fund these contracts are recorded m the fiscal period covered by the~e finanCial statements lbe accrual basiS of accountmg, as reqUired by gcnerally accepted accounting principles, IS utIlized by noncxpendable trust funds Under the accrual basiS of accounting, revenues are recorded when carned and expenses are recorded at the time liabilities are mcurred BUDGET The Worth County Board ofEducalion's budget IS a complete finanCial plan for the School DI~ct's fiscal year and IS based upon estimates of expenditures together With probable fundmg source~ Thcre IS no statutory prohibitIOn regardmg ovcrcxpendlture 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 m l:DLJCA nON EXIIIBIT ")." NOTES TO THE GENERAL-PURPOSI: FINANCIAL STATEMENl S JUNE 30, 2002 Note I SUMMARY OF SIGNIFICAN r ACCOUN rING POLICIES The budget proce~., begins when the School Dlstnct's admlnl~trationprepares a tentallve budget for thc Board'~ approval After approval oftlu~ tentallve budget by the Board, such budget IS adverlJsed at least once In a newspaper of general clfculatlOn In the locahty. At the next called or regular mectlng of the Board after ad\crtlsement, the Board receives comments on the tentallve hudget. makes reVI>lons as necessary and adopts a final school budget This final budget IS then submitted, In accordance with provlSlon~ of the QUality BasIc Educallon Act, OCGA SectIOn 20-2-167(c), to the Georgia Department of EducatIOn The Board may Increase or decrease the budget at any time dunng the year All unexpended budget authonty lapses at fiscal year-end CASH AND CASH EQUIVALENTS COMPOSI nON OF DEPOSITS Cash and cash eqUivalents consist ofcash on hand, demand deposits and short-term Investments \\lth onglnal matunlles of three months or less from the date of acqUisitIOn In authorized financial 1n~!ItutlOns Georgia Law~ OCGA 45-8-14 authonze the School Dlstnct to deposllits funds in one or more ~olvent banks or Insured Federal savings and loan associatIOns INVESTMENTS COMPOSITION OF rNVESTMENTS 1m estments made by the School Dlstnct In nonparticipating Interest-earrung contracts (such as certificates of dcposlt) and repurchase agreements are reported at cost Participating Interest-earrung contracts and money market Investments With a maturity at purchase of one year or less are reported at amortlLed cost Both participating Interest-earntng contracts and money market Investments \Hth a maturity at purchase greater than one year arc reported at fair value The OffiCial Code of Georgia Annotated SectIOn 36-83-4 authonzes the School Dlstnct to Invest ItS funds and In selecting among optIOns lor Investment or among Inslltullonal bids for deposits, the lughest rate of return shall he the ohJectlve, given equivalent eondillons of safety and hqUldlly Funds may he Invested In the follo\\lng (I) Obhgations Issued hy the Statc of Georgia or by other states, (2) Obhgallo~ Issued by the Urnted State~ goverrunent, (3) Obhgatlons fully Insured or guaranteed by the Untted States goverrunent or a Untted Stales goverrunent agency, (4) ObhgatlOns of any corporatIOn of the Untted States goverrunent, (5) Pnme banker's acceptances, (6) The Local Goverrunent Investment Pool administered by the State of Georgia, Office of Trea~ury and Fiscal Services, - 13 - WOR fH COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THf GENERAl -PURPOSF FINANCIAL STATFMENl S JUNE 30, 2002 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICILS (7) Repurchase agreements, and (8) OblIgatlOn~ of other polItical subdiVisions of the State of GeorgIa RECEIVABLES Receivables consist of grant reImbursements due on Federal. State or other grants for expendllures made but not reimbursed and other rece...,able~ disclosed from mfonnatlon available, ReceIvables are reeordcd when either the as~et or revenue recogmtlon crIteria has been met ReceIvables recorded on the general-purpose financIal statements do not mclude any amounts whIch would necessItate the need for an allowance for uncollectIble receivables PROPERTY TAXES 1be Worth County Board of CommisSioners fixed the property tID. levy for the 2001 ta, digest year (calendar year) on July 21. 2001 (levy date) Ta,es were due on December 20,2001 (hen date) faxe~ collected wllhm the current fiscal year or wllhm 60 day~ after year-end on the 2001 tax dIgest arc reported as revenue m fiscal year 2002 The Worth County fax CommissIoner bills and collects the property ta,e~ for the School DIStrict, Withholds 2 5% of taxes collected a~ a fee for tax collectIon and remits the balance of taxes collected to the School DIstrIct Property tax revenue~ dunng the fiscal year ended June 30, 2002 for mamtenanee and operations amounted to S4,912,853,22 and for school bonds amounted to $456 66 1 he ta, mIllage rate leVIed for the 2001 tax year (calendar year) for the Worth County Board of I:ducatlon was a~ follows (a nllll equals $1 per thousand doll~ ofasse%ed value) School Operations U.26 mills SALES TAXES SpeCIal Purpo~c Local Option Sale~ Tax revenue dUrIng the year amounted to $1 ,427,37945 and IS to be used for capital outlay for educatIOnal purpo~es or debt ~ervlce ThIs ~ales ta, wa~ authorIJ'ed by local referendum and the saIes tax must be re-authorIzed at least c"ery Ihe years INVENTORIES rOOD INVENTORIf-5 InventOrIes of donated food commoditIes used m the preparatIOn of meals arc reported on the Combmed 13alance Sheet at thclr Federally asslgncd value Purcha.;ed foods mventOrIes are reported on the Combmed Balance Sheet at co~t (first-m, first-out) Donated food commodltIe~ are recorded as revenues and expenditures at the time commodIly Items are receIved. Purchased foods mventones arc recorded as expendllures al thc time of purchase The inventorIe~ reported on thc balance sheet - 14 - WORTH COLIN I Y BOARD or FDlJCA liON NOTES ro THr GENERAL-PIIRPosr FIN>\:-.iClAL STATE\11 N IS JUNL 30, 2002 I:.XIIIIlIT "~" Note I SI JMMARY OF SIGNIFlCANl ACCOUN11M, POLICIES for donated Il'od commoditIes and for purchascd foods are equally olT,ct by reselYallon, of fund balance which mdlcates that these amount> do not constitute "aVaIlable ,pendable resourcc," cven though thcy arc a component of net current assets PREPAID ITEMS Payments made to vcndor, lor ser\lces that", III benelit penod~ ~ub~cquent to June 30, 2002. are recordcd as prepaid Items COMPENSATED ABSENCES Compensated absence, represent obligations of the School Dlstflet relatmg to employees' rIght, to receive compensation for future ab>enees ba~ed upon servIce already rendcred ThiS obligation relates only to ve,tIng accumulatmg leave m which paymcnt I> probable and can be rea~onably cstlmated No liability has been recorded m the mdlVldual fund, for thc current portion of thl, obligation as thIS amount IS deemed ImmaterIal to the general-purpose finanCial statemcnts However, the dollar value of accumulated compensated absences at June 30. which will be payable trom future re,ourees is matenal to the gencral-purpo,e financial statements and has not been recorded m the General Long-Term Debt Account Group as reqUired by generally accepted aceountmg pnnelples GEl\ERAL OBLIGATION BONDS The School DistrIct Issue, general obligatIOn bonds to proVide funds lor Ihe acqUisitIOn and wnslructlon 01 major capItal facilltle, Bond premlUm~ and dl,Lount" as well as Issuance co~t~. are recogOl/ed m the Iinanelal statements durmg the year bonds are I>,ued General obligation bonds are direct obligations and pledge the full faIth and credit ofthe government The out~tandmg amount of these bonds IS recorded m the General Long-Term Debt Account Group Il\'TERFl1"lD TRANSACTIONS The School Dl>tnet ha~ the followmg types of mterfund transactIOns Reimbun.ements of expendltures/expen~e~1001Ially made from a fund that are properly applicable to anothcr fund are recorded as expendltures/cxpenses m thc rClmbursmg fund and a, reductions of expenuuurcs/expen,e, m the fund that IS reImbursed Operating tramfers are recorded for all mterfund transacllOns other than reimbursements - 15 - WORTH COUNTY BOARD m EDUCATION NOTES ro THE GENERAL-PURPOSE FINANCIAL STATEME!'ITS JUNE 30. 2002 EXHIBIT "F" Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES MEMORANDUM ONLY - TOTAL COLUMNS Total columns on thc gcneral-purpose financial statements are captioned "Memorandum Only" to mdlcate that they are prescntcd only to facilitate financial analySIS Data m these columns do not pre'>Cnt finanCial POSItIOn, rcsults ofoperatIons or cash flows m conformity \nth gcnerally acccpted accountmg pnnciplcs Neither are such data comparable to a consolIdatIOn Interfund elImmatlOns have not been madc m the aggregatIon of tim data Note 2 DEPOSITS COLLATERALIZATION OF DePOSITS Official Codc of Georgia Annotated (OCGA) SectIon 45-8-12 proVides that thcre shall not be on depOSit at any time m any depoSitory for a tImc longer than ten days a sum of money wluch has not hecn secured by surety bond, by guarantee ofmsurance, or by collateral The aggregate of the face value of such surcty bond and thc market value of secuntIes pledged shall be equal to not le% than 110 percent of the pubhc funds bemg secured after the deductIon of the amount of depOSit msurance If a depOSitory elects the pooled mcthod (OCGA 45-8-13 I) the aggregate ofthc markct \alue ofthe securilIes pledged to secure a pool ofpublIc funds shall he not less than 110 percent ofthe dally pool balancc OCGA ScctIon 45-8-11 (b) prOVides an officer holdmg pubhc funds may, m Ius discretion, waive the reqwrement for secunty m the case of operatmg funds placed m demand depoSit checkmg accounts Acceptable secunty for depOSits COnsiStS of anyone of or any combmallon of the followmg (1) Surety bond Signed by a surety company duly qualIfied and authonzed to transact busmess wlthm the State of Georgia. (2) Insurance on accounts prOVided by the Federal DepOSit Insurance CorporatIOn. (3) Bond~, bills. notes. certificates of mdcbtedness or other direct oblIgatIOns of the Untted States or of the State of Georgia, (4) Bonds. bills, notes, certIficates of mdebtcdness or other oblIgations of the counties or muniCipalIties of the State of Georgia, (5) Bonds of any publIc authonty created by the laws of the State of Georgia provldmg that the statute that created the authonty authonzed the use of the bonds for thiS purpose, (6) Industnal revenuc bonds and bonds of development authontIes created by the la\\s of the State of GeorgIa, and - 16 - WORTH COUNTY BOARD OF EDUCATION EXHIBIT "1''' NOTES TO [HE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2 DEPOSITS (7) Bonds, bills. notes, certificates of mdebtedness, or other obhgatlOns of a subSidiary corporatlon of the Uruted States government, which are fully guaranteed by the Untted States government both as to pnnclpal and mtere~t or dcbt obhgatlons Issued by the Fedcral Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatlves, the Farm Credit Banks, the Federal Home Loan Mortgage Assoclatlon, and the Federal NatIOnal Mortgage Assoclatlon CA rCGORIZATlON OF DEPOSITS AtJune 30, 2002. the bank balances were $7,113,455 86 The amounts ofthe total bank balances are claSSified mto three categones of credit nsk Category I - Ca~h that IS Insured (e g , Federal depOSitory msurance) or collateralized with securltles held by the School Dlstnct or by the School Dlstnct's agent m the School Dlstnct's name Catcgory 2 - Cash collaterahzed With secuntles held by the pledgmg financial mstltutlon's trust dcpartment or agent m the School Dlstnct's name Category 3 - Uncollaterahzed depOSits (This mcludes any bank balance that IS collaterahzed With seeuntles held by thc pledgmg financial InstltUtlOn. or by ItS trust department or agcnt but not m the School Dlstnct's name) The School Dlstnct's depOSits are claSSified by nsk catcgory at June 30, 2002, as follows Risk Catcgorv Bank Balance 1 $ 1,675,831 27 2 4,753,413 68 3 684,210 91 Total $ 7.113.4i5..lln Note 3 NON-MONETARY TRANSACTIONS The School Dlstnct rccelves food commodities from the Uruted States Department of Agnculture (USDA) for school breakfast and lunch programs These commoditlcs are recorded at their federally aSSigned value See Note 1 - Inventories Note 4 RISK MANAGEMENT The School DI~tnct IS exposed to varIOus nsks of loss related to torts, theft of, damagc to, and destructlon of assets, crrors or omiSSIOns, Job related Illness or mJurlcs to cmployees, acts of God and uncmployment compensation - 17 - WORTII COUNTY HOARD or EDUCATION EXHIBII 'T" NOTES TO 1 HE GFNERAL-PURPOSE FINANCIAL STATrMENTS JUNI:. 30, 2002 Note 4 RISK MANAGEMENT The School District has obtamed commercIal m~urance for risk of loss assocIated with torts, assets, errors or oml~slons,Jobrelated 11Ines~ or injuries to employces and acts of God Ibe School DIStnCt has not Incurred losses (settlemcnts) which exceeded the School DI~trlct's In~unll1ce coverage In any of the past three years Forthe current fiscal year, due to the costs of available coverage, the School District slgmficantly reduced coverage for acts of God. lbe School District IS self-In~ured with regard to unemployment compensatIOn claims In connection with thiS program, a ~lf-msurancc reserve has been establI~hcd Within the General Fund by thc School District The School District accounts for claims within the General Fund with expendIture and liability being reported .... hen It IS probable that a loss has occurred, and the amount of that loss can be rea~onably estimated Change~ m the unemployment compen~tlOn claims liability dunng the last two fiscal yea~ arc a~ follows Beginning of Year Liability Claims and Changes In Estlmale~ Claim, Paid End of Year LJabllltv 2001 $ 000 $ 11.60600 $ 11.60600 $ 000 2002 $ 000 $ 7,80200 $ 7,80200 $ 000 The School District ha~ purchased ~urety bonds to proVide additional Insumllce coverage as !,)llo....s PosItion Covered Amount Superintendent Each Principal $ 20.00000 $ 5,00000- $ 10,00000 Note 5 GENERAL LONG-TERM DEBT GENFRAL OBLIGATION DEBT OUTSTANDING Gcneral Obligation Bond~ currcntly oUhtandIng are as follo .... ~ Purpose lntere~t Rates Amount General Government - Series 1990 640% - 725% $ \'99~tOOO,00 Votcrs have authOrized $5500,000 00 In general obligatIOn debt for vaflou~ SPLOS r approved capital outlay projects which was not Issued as of June 30, 2002 - 18 - WORTH COUNl Y HOARD OF EDUCAnON EXHIHIl "F" NOTES TO THt: GENERAL-PURPOSE fiNANCIAL STATEMENTS JUNE 30, 2002 Note 5 Gr:NCRAL LONG-TERM DEBT The changes m General Long-Tcrm Dcbt dunng thc fiscal year ended Junc 30, 2002, were a~ follows. General Obhgauon Bonds Balance July 1,200 I $ 2,150,000 00 Dcducuons Dcbt RctJrcd 155,00000 Balance June 30. 2002 $) ,995.000.00 At June 30, 2002, payment~ due by fiscal year which mclude~ pnnclpal and Interest for these Items are as follows fiscal Year Ended June 30 General Obligation Bond~ 2003 2004 2005 2006 2007 2008 - 2011 $ 235,905,25 310,42750 307,91750 309,61750 310,16500 1,227,692 50 lotal Pnnclpal and Intere~t $ 2,701.725.25 Note 6 ON-BEHALF PAYMENTS 1 hc School Dlstnct ha~ recognIzed re\'enue~ and expenditures m thc amount of $402,020 92 for health m~urance and retirement contnbutlOns paid on the School Dlstnct'~ behalfby the followmg Statc Agencies Georgia Department of Education Paid to the Georgia Department of CommunIty Health For Health Insurance of Non-Certified Pe~onnel In the amount of $357,89992 - 19 - WORTH COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THe GENERAL-PURPOSE FINANCIAl STATEMENl S JUNE 30, 2002 Note 6 ON-BEHAL~ PAYMENTS Office of Treasury and FIscal SeTVlce~ Paid to the Pubhc School Employces RetIrement Systcm For Pubhc School Employee~ RelIrement (PSERS) Employer's Cost In the amount of $44,1:! I 00 Note 7 COI\TINGENT LIABILITIES Amounl~ recelvcd or receivable pnnclpally from the Federal government are subject to audit and rcvlew by grantor agencIes ThIs could rcsult In requests for reimbursement to the grantor agency for any cxpendltures whIch are disallowed undcr grant terms Thc School Dlstnct believes that such dIsallowances, If any, WIll be Immatcnalto Its overall financial pOSItIon. The School District IS a defendant In various legal proceedIngs pertaInIng to matters InCIdental to the performance of routIne School Distnct opcratlOns The ultimate dIspOSItIon of these proceedIngs I~ not presently determinable, but IS not behcved to be matenal to the general-purpo~c finanCIal statements Note 8 ACCUMULATED EMPLOYEES' LEAV[ The School Dlstnct's Sick leave pohcy allows emplo)ee~ to accumulate up to 60 day~ of unused Sick leave WhIle It IS not In the School Dlstnct's polIcy, It IS the practIce ot thc School Dlstnct upon retIrement or termination to pay employees Sick leave at the ratc of $22 50 pcr day See Note 1 Compensated Absences Note 9 RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION SubstantIally all teachers, admInIstratIve and clencal per~nncl employed by local school dlstncts are covered by the Teachers Rctirement Sy~tem of Georgm (TRS), whIch IS a cost-shanng multIple employer defined benefit penSIOn plan TRS prOVides seTVlce retIrement. dlsablhty retirement and ~urvlvors bcnefits for ItS members In accordance With State statute Thc Teachers RetIrement Systcm of Georgia Issues a separate stand alone finanCIal audit report and a copy can he obtaIned from thc Georgia Department of Audlb and A(,counts 1 RS CONTRIBUTIONS REQUIRED AND MADE Employees ofthc School Dlstnct who arc covered by TRS are reqUIred by State statute to contribute 5% of their gros, carnIngs to TRS The School Dl'>tnct makes monthly employer contnbutIOns to TRS at rates adopted by the TRS Board ofl rustces In accordance With State statute and as adVIsed by their Indcpendent actuary The reqUIred cmployer contnhutlOn ratc IS 9.24% and cmployer contnbutlons for the current fiscal ycar and thc precedIng two fiscal years are as follows - 20- WORTH COUNTY BOARD OF EDUCAnON EXHIBIT "F" NOTES ro THE GENERAL-PURPOSE FINANCIAL S fA fI:.MENTS JUNE 30. 2002 Note 9 RETIREMENT PLANS Fiscal Year 2002 2001 2000 Percentage Contnbuted 100% 100% 100% ReqUired ContnbUtlun $ 1,596,75883 $ 1,885,792 76 $ 1,808,81621 - 21 - WORTH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002 ASSETS Cash and Cash EqUivalents Invesbnents Accounts Receivable Inventories Food Donated Commod,bes Purchased Food Total Assets SCHOOL FOOD SERVICES FUND LOTIERY PROGRAMS $ 564,00704 $ 8822056 266,70770 57,61209 4,066 97 1156461 $ 903,95841 $ _ _..:88~,2~20:::.:;:56~ LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable salanes Payable Expired Grant Balances Payable Deferred Revenue Total UablhlJes FUND EqUITY Fund Balances Reserved For Inventones Food Donated Commodmes Purchased Food Unreserved Undesognated Total Fund EqUity Total Llabllmes and Fund EqUity See notes to the general-purpose finanCIal statements - 22- $ 31,885 71 $ 13128411 14,336 56 $ 177,506 40 $ 2724304 60,977 52 88,22056 $ 4,066 97 1156461 71082043 $ 000 $ 726,45201 $ 000 $ 903 958 41 S ~_..:8::;:8.:;2~20:::.:;:56;:. EXHIBIT"G" FEDERAL PROGRAMS TOTALS JUNE 30, 2002 JUNE 30, 2001 $ 652,22760 $ 201 05263 266,70770 250,78298 $ 381,12028 438,73237 466,49559 4,066 97 11,564 61 66934 1360033 $ 381,12028 $ 1,373,299 25 $ _ _;;:93;;:2;o,60=0~8;,;,7_ $ 12292386 $ 122,92388 $ 45,07423 60 25512 119,383 87 238,33084 197941 30 390,20293 419,890 48 14,336 58 9,598 82 7842 $ 381 12028 $ 646,84724 $ 712972 79 $ 4,066 97 $ 66934 11,564 61 1360033 $ --"-0-"'00"- 710,82043 205,358 41 $ 000 $ 726,45201 $ _---'20-'1-"9"',6,,28"-08""-. $ 381,12028 $ 1,373,299 25 $ _ _~93:;;2:.60=0;.;8;,;7_ - 23- WORTH COUNTY BOARD OF EPUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30 2002 REVENUES Slate Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support SeMces Pupil Services Improvement of Instructional Services Educabonal Media Services General Administration School Admlnlslrabon Maintenance and OperatIOn of Plant Student Transportation ServiceS Other Support Services Food Services Operabon Enterpnse Operabons Community SeMces Operabons Total Expendrtures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES Operabng Transfers In Excess of Revenues and Other Flnanong Sources over (under) Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change In Penod Donated Commodrt",s Purchased Food FUND BALANCE JUNE 30 SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS S 122,798 00 $ 1 604 481 01 368,64217 $ 2,095,921 18 $ 677,89790 677 897 90 $ $ 2088,51917 1,46296 552,90599 64,88989 4396 00 29,09005 3394 12,52343 14,058 60 $ 2,087,98213 $ $ 7,93905 $ 677 897 90 000 497,52297 $ 505,46202 $ 21962808 3 397 63 -203572 000 000 $ 726,452 01 $ orroor:0::.:()()~ See notes to the genera~purpose financal statements - 24- EXHIBIT"H" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30 2001 $ 80069590 $ 745,66219 $ 1,89303234 3,49751335 3,67896222 36864217 321,13963 $ 1,89303234 $ 4666 85142 $ 4,745,764 04 $ 132591180 $ 1,87881779 $ 1,933,361 14 20,81600 177,82069 9,963 19 131,69278 451 78 94732 90,73935 134,66943 85,70589 182,21669 9,98319 180,78283 485 72 13,47075 104 797 95 134,66943 2,086 519 17 146296 14974025 16736950 651880 157,30248 60000 29804 39 93,07483 99,47340 2,199 725 30 1,900 63 9,43800 $ 1,89303234 $ 4,65891237 $ 4648,32872 $ 000 $ 7,93905 $ -102,564 66 497522 97 40960 $ 000 $ 505,46202 $ -102,15508 000 219,62808 32044181 339763 -203572 -259 17 160052 $ 000 $ 726 452 01 $ _ _,;;;2,;,;19;",6;;;2;;;8;,,;08;;;;. - 25- WORTH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 2002 EXHIBIT"I" ASSETS Cash and Cash EqUivalents Accounts ReceIVable Total Assets REGULAR SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2002 JUNE 30, 2001 $ 18264067 $ 238,688 41 $ 421 52906 $ 2069434 64 256 657 70 256 657 70 249338 19 $ 18264067 $ 49554611 $ 678188 78 $ 2338 n2 83 LiABILITIES AND FUNP EQUITY LIABILITIES Accounts Payable Contracts Payable Retalnages Payable $ 112,831 67 $ 6980900 Total LIBb,lrtJes $ 18264087 $ FUND EQUITY Fund Balances Reserved For School Food Services EqUipment Expenditures For SPLOST PrOjects Unreserved Undesgnaled $ $ 000 Total Fund EqUity $ 000 $ 3028 $ 17,017 00 17,04728 $ 11288195 $ 17,017 00 69,809 00 199,68795 $ 13,388 70 221,03772 11143540 34585982 478498 83 $ 000 47849883 $ $ 478498 83 492,42900 888,41525 000 61206876 47849883 $ 1992,91301 TotalLJablilbes and Fund Eqully $ 18264067 $ 495,546 11 $ 678188 78 $ 2338 772 83 See notes to the general-purpose financaal statements - 28- WORTH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REyENUES EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002 EXHIBIT "J" REGULAR SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30 2002 JUNE 30 2001 REVENUES Taxes Other Funds $ 1,021,150 88 $ 1,02115088 $ 36233328 $ 000 5,29770 529770 2040557 Total Revenues S 000 $ 1 026,448 58 $ 1,02644858 $ 382,738 85 EXPENDITURES Capital Outlay land and Land Improvements Building and BUllchng Improvements EqUipmenl $ 107,97000 $ 702,17352 2,03000 11500 $ 1,39228272 38 673 31 108,08500 $ 2094,456 24 40,90331 6,900 00 1383,71990 11402200 Total Expenditures $ 812,17352 $ 1 431,271 03 $ 224344455 $ 1 504,641 90 Excess of Revenues over (under) Expenditures $ -81217352 $ -404,822 45 $ -1,21699597 $ -112190305 OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers Oul $ 200,104 76 $ $ -49752297 200 104 76 $ -497,52297 2785340 Total Other FinanCIng Sources (Uses) $ 200,104 76 $ -49752297 S -297,41821 S 27,85340 Excess of Revenues and Other Flnancmg Sources over (under) Expenditures and Other FInanCIng Uses $ -61206876 $ -902,34542 $ -1,51441418 S -1 094,04965 FUND BALANCE JULY 1 61206876 1 380,644 25 1,99291301 3,086,962 66 FUND BALANCE JUNE 30 s 000 $ 478,498 83 $ 478,498 83 $ 1,99291301 see notes to the general-purpose finanCIal :statements - 27- WORTH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2002 EXHIBIT "K" ASSETS PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2002 JUNE 30, 2001 Cash and Cash EqUIValents $ 43934 $ 1,375,493 22 $ 1,375,932 56 $ 1,265,491 09 Accounts Receivable 6971 000 6971 9741 Total Assets $ 50905 $ 1,375,493 22 $ 1,376,002 27 $ 1,265,568 50 FUND EQUITY Fund Balances Reserved For Debt Service $ Unreserved Undeslgnated 509 05 $ 1,375,493 22 $ 1,376,002 27 $ 1,265,588 50 000 _ _ _ _0::..:::;00"- 0 00 0 00 Total Fund EqUity $ 50905 $ 1,375 493 22 $ 1,376,002 27 $ 1,265,568 50 See notes to the general-purpose finanCIal sta1ements - 28- WORTH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND YEAR ENDED JUNE 30. 2002 EXHIBIT"L" REVENUES Taxes Other Funds Total Revenues EXPENDITURES DebtSeMCe Pnndpal Interest PayIflQ Agent F.... Total Expenditures Excess of Revenues over (under) Expendrtures OTHER FINANCING SCURCES (USES) Operabng Transfers In Operatmg Transfers Out Total Other FmanCIng Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Fmancmg Uses FUND BALANCE JULY 1 PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30. 2002 JUNE 30 2001 $ 456 66 $ 406,22857 $ 406 685 23 $ 104330278 655339 655339 1226725 $ 45666 $ 412781 96 $ 41323862 $ 1 05557001 $ 15500000 $ 15500000 $ 14500000 1047 121 2~ 147,12125 157360 00 $ 000 703 60 70360 70540 $ 000 $ 30282485 $ 302,82485 $ 30306540 $ 456 66 $ 10995711 $ 110,41377 $ 752,504 61 $ $ .16339 $ -16339 $ 16339 $ 16339 $ 16339 $ -16339 000 $ 111569 -1,11569 000 $ 29327 S 11012050 $ 1'0"'377 $ 75250461 21578 1,265 372 72 1265 588 50 51308389 FUND BALANCE JUNE 30 $ _ _-,5~0.::.9~05:. S 1 37549322 $ 1 37600227 $ 1 26558650 See notes to the general-purpose finanaal statements - 29 WORTH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TypE JUNE 30 2002 EXHIBIT ''M" ASSETS Cash and Cash EquIvalents Investments Accounts Receivable Total Assets FUND EQUITY Fund Balances Reserved For Endowment Corpus Unreserved Undesognated Total Fund Equrly NONEXPENDABLE TRUST FUNDS ENDOWMENT FUNDS CHASE S HELEN OSBORN DAVIS STORY FUND FUND TOTALS JUNE 30 2002 JUNE 30 2001 $ 1,44848 $ 183 75 S 1,63223 $ 1,60302 3684 25 3,684 25 3684 25 24869 24869 131 50 $ 411669 $ 5 565 17 $ _ _.::5:.;:,4:.:1~8,:,77:., S 1,00000 $ 44848 350000 $ 61669 450000 $ 1,06517 4,50000 91877 S 1,44848 $ 4,11669 $ 5,56517 $ _ _.;;5:,;;,4,;,;18;;.,77;,,;.. See notes to the general-purpose finanCIal statements 30- WORTH COUNTY BQARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 3Q, 2OQ2 SCHEDULE "1" FUNDING AGENCY PROGRAMIGRANT CEDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Agncuhure U 5 Department of Child Nutnbon Cluster Pass-Through From Georgia Department of EducatkJn Food and Nutnbon Program FoodSeMCeS School Breakfast Program Natlonal School Lund"l Program Pass-Through From Office of School Reachness Food.nd Nutrition Program Summer Food service Program for CMclren lQ 553 10555 lQ 559 NJA S 283,85165 (2) NJA 846,799 lQ $ 1 708 15391 (3) NJA 373804 12 373804 12 Total Child NutnbOn Cluster S 1,5Q44~ 87 S 2081,958 03 Other Programs o.rect Food and Nulnbon Program Alternative to Commodity Donabons Pass-Through From Georgia Department of EduCaUon Food and Nutnbon Program Food DlstnbubOn Program (1) lQ 550 lQ 550 NJA 95465 QQ 4561 14 12) 4,561 14 Total U S Department 01 Agncultur. S 1,604 48101 S 2086,51917 Educaoon U S Department of Speaal Educallon Cluster Pass-Through From Georgia Department of Edueabon IndiVIduals wrth Dlsabl~bes EducatIOn Act Part B . Speaal Educanon Flow Through Preschool Capaclty Building Improvement 54 Q27 54 173 84 173 NJA S 24338855 S NJA 3B 392 92 NJA 545890 24338855 3B 392 92 5,45890 Total Specal EducabOn Cluster S 287240 37 S 287240 37 Other Programs Pass Through From GeorgJa Department of EdoCatlon Elemenlafy .nd Secondary EducabOn Act TIUe I Grants to Local Educallonal AgenCIes Title II Etsenhower ProfeSSIOnal Development TlueVI InnovalJve Education Program StrategIeS Class SIZe Reductlon Goals 2000 State and Local EducalJOn SystemIC Improvement Grants VocatIOnal EducatIOn - BasIC Grants to States High School Program BaSIC Giant 54 Q1Q 54 281 54298 54 34Q 54 276 54 048 NIA 1 15946295 115946295 NJA 3753251 37532 51 NJA 37863 QQ 37863 OQ NJA 168,200 14 168 200 14 NJA 42,254 82 42254 82 NIA 7677400 7677400 Total U S Department of EducabOn Labor U S Department of Pass-Through From Georgia Department of Labor Workfon::e Investment Act 2000-YEPT-96 S 1 80935779 S 1 BOB 357 79 17255 NJA S B3 674 55 S 8367455 - 31 - WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 SCHEDULE ",. FUNDING AGENCY PROGRAMIGRAN! Defense U S Department of Direct Department of the AAny ROT C Program CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAl REVENUE IN PERIOD EXPENDITURES IN PERIOD s 6471384 (4) Total Federal FUlanaal AsSistance NJA =Not Available S 3 562 227 19 S _..;:.3.::,97;,,9;,;5~5~1.::,5;,,' Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Drstnbubon Program represents the Federalty aSSIgned value of nonrTlOlletary assistance for donated commoditieS received andlor consumed by the system dunng the current fiscal year (2) Expenditures for the AttemalJve to Commodity DonatIons Program and the School Breakfast Program were oot maintained separately and are tnduded In the 2002 Natlonal SChool Lunch Program (3) Expenchlures for tht5 program Include State and/or Other Funds ExpendJtures are not malntamed by fund source (4) Funds eamed QI1 thiS program do not requIre reporttog of expcndlture'l MajOr Programs are IdentIfied by an astensk (.) In front of the eFDA number The School DlStnct did not prOVIde Federal AssIStance to any SubreClPlent The accompanymg schedule of expendllures of Federal awards Includes the Federal granl aetMty of the Worth County Board of Educstk:ln Bnd Is presented on the mcxhfied accrual basis of accounting wtnc:h IS the basis of accounbng used m the presentatlon of the genoraJ-purpose finanCIal 6tatSrneflts See not~ to the general purpose f1nBllClal statements - 32- WORTH COUNTY BOARD OF EDUCATION SCHEPULE OF STATE REVENUE YEAR ENDED JUNE 30 2002 SCHEDULE "2" AGENCYIFUNDING GRANTS Community Affairs Georgia Department of Governor's Emergency Funds EducallOl1 Georgaa Department 01 Quality BaSIC EducatKln Direct InslruCtJOnal Cost KIndergarten Program KIndergarten Program Earty InterventIOn Program Pm"",,! Grades (1-3) Program Prtma1y Grades Earty Interventlon (13) Program Upper Elementary Grades (04-51 Program Upper elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Edueatton (912) Program VocabOnai Laboratory (9-12) Program Students with Dlsablhbes Category I Category II Calegory III Category IV Category V Speaal Educabon Ibnerant Specaal Educabon Supplemental Speech Gifted Student - Category VI Remedial Education Program AJtema11ve Education Prograrn Medaa Center Program Staff and Professkmal Development Indirect Cost Twenty AddlbOnal Days InstruetlOl1 Categoncal Grants PUpil Transportation Regular Bus Replacement Sparsrty Nursmg ServICes Pnoopal Suppiements VocatIOnal SupetVlsors Deferred Summer Salanes (Pnor Year) Deferred Summer 8alanes (CulTent Year) Educ:atton EqualizatIOn Funding Grant Food 5eMces VocatIOnal Edueatton Other State Programs 46 StatewKle After School Program Health Insurance K3 Statewtde Reading Program Mentor Tead1ers Outdoor Classroom Preschool HandICapped Program SpecIal Educabon low InCIdence Granl Student Achl8VelT1ent lotlEK)' Programs AssIS1IV8 Technology Computers In the Classroom Office of School Readiness Pre-KIndergarten Program - 33 GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 1000000 $ 10000 00 616,402 CO 550,938 CO 2044 793 00 914,562 00 901 201 00 964 324 00 250347200 1977 064 00 665790 00 564100 450 052 00 63'794 00 122,39300 9264600 67600 2156 00 190 532 00 63904 00 18732400 400 060 00 7511600 2464 957 00 125240 00 61640200 550,938 00 2044 793 00 91456200 90' 201 00 964,32400 2,503 472 00 1977 064 00 56579000 564100 45005200 631,794 00 12239300 9264600 67600 215600 19053200 6390400 16732400 400 060 00 7511600 2484 957 00 12524000 66955200 25766000 20000 CO 9712100 17 656 00 2356500 -2339390 00 234"6000 1 571 966 00 $ 12279600 '5054779 50 438 60 357699 92 56 160 00 45900 750 00 42961 00 2652700 115029 64 7,47000 10712500 66955200 25766000 20000 00 97 121 00 17 656 00 2366500 -233939000 234116000 1 571 95600 122798 00 15054779 5043660 35769992 56 16000 45900 750 00 4298100 2652700 11502964 747000 10712500 56330290 56330290 WORTH COUNT': BOARD OF EDUCA'l'.1~ SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002 SCHEDULE "2" AGENCYIFUNPING GRANTS Office of Trea$Ury and Frscal SeIVlC8s Public School Employees Retirement GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL S _ _44::::...'",2,,'-,,00,,- S _ _::::...44',.,2,,'-,,0"-.-0 S 19847317 '5 S 800 695 90 S 20648,0'305 See notes to the general-puI'l'l'S9 finanCIal statements - 34- WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2002 SCHEDULE "3" PROJECTS Repayment of pnnClpal and Interest on the outstanding Worth County (Georgaa) School Dlslnet General Ob~galJOn 5enes 1990 maturtng on January 6 1996 and thereafter Construction and eqUipping of capital outlay projects for the Worth County SChOOl Dlstnct COIlSlS!Jng of twelve (12) addillonal dassrooms and expansion of the muSIc area at Worth County Middle School SIX (6) ackhflOnal classrooms and needed renovatIOns at Sylvester Elementary School and an audltonum Renovations additions expanSions Improvements mocSificahons and eqUiPPing all other eXIsting school facthhes of Worth County SChool Dlslnct and Indudlng Sumner School property to lndude the acqulsltlOn 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 $ 351073375 $ 3510,733 75 $ 30282485 $ 121635629 OngOIng 505000000 505000000 , 211,108 32 277913240 Ong04ng 1 228266 25 1 226266 25 22016271 2467559 Ongom9 $ 978700000 $ 9787000 00 $ 1 734 095 88 S 4,020164 28 (1) The SChool Dlstncrs anginal cost estimate as SpeCified In the resolutIOn calbng for the Imposition of the Local Option Sales Tax (2) The Sdlool Dlstnet's current esllmate of lolal cost for earo protect Indudes all cost from prated InceplJon to oomplelJon (3) The voters 01 Worth County approved the ImpoSItion of a 1% sales tax 10 fund the above prOjeCiS Amounts expended for Ihese projects may lndude sales talC proceeds state local property taxes andl()( other funds over the life of the project See notes 10 the general purpose finanCIal slalemenls 35 WORTH COUNTY BOARD OF EDUCATION GENERAL FUND aUALID BASIC EDUCATION PROGRAM (aBEl ALLOTMENTS AND EXPENDITURES - ey PROGRAM YEAR ENDED JUNE 3Q 2QQ2 SCHEDULE "4" DESCRIPTION ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE aBE PROGRAM COSTS SALARIES OPERATIONS TOTAL Direct Instrucbonal Programs KlOdergarten Program $ KtnOerganen Program-Earty IntervenUon Program Pnmary Grades (1-3) Program Pnmary Grades-Earty Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Earty InterventIOn (45) Program MMidle School (6-6) Program HIgh School General EducatIOn (9-12) Program Vocahonal Laboratory (9-12) Program Students WIth OIsabllltJe$ Category I category II Calegorylll Category IV Category V Gifted Student - Category VI Remed181 Educallon Program Anematrve Education Program 9QB 281 QQ S 82871235 $ 6'2,94' QO 452,72562 2274916 QQ 2406 87Q 84 1,Q17 51Q 00 91595271 1 QQ2 623 00 1 291 88537 19,37660 $ 4,Q Q, lQ9,309 11 3 21Q 25 78627 QQ 84808895 453'35 63 Z 516 17995 919'6296 1 37Q,512 37 1 095 lQl QQ 2165 215 QO 2199,565 QQ 651 71500 1 45226500 211,975 QQ 71 096 QQ 2Q8,406 QQ 622,198 55 2,136 56751 2843,67589 56283813 871215 n 51Q757 614931 98 23906916 76,338 52 211,54517 1A3084 36 315,57889 134,98Q 09 180,9Q929 82,409 ,Q 1211261 803235 939856 5321 48 lQ 606 12 2294430 622198 55 2,81156166 282458518 64524723 871215 522 87Q 38 622,964 33 248,48174 81 680 00 222,15' 29 143,084 36 33852319 TOTAL DIRECT INSTRUCTIONAL PROGRAMS S 14491 809 00 $ 14,581,48523 $ 677,846 89 $ 1525911212 Media center Program 5laff and ProfeSSIonal Development 445 lQ5 00 83572 00 504 04Q 10 63 73Q 96 88,188 00 3527379 592228'0 99 004 75 TOTAL aBE FORMULA FUNDS $ 15020,288 QQ S 15149236 29 $ 801 108 68 $ 15950 344 91 (1) Compnsed of State Funds plus Local Five Mill Share See notes to tile general-purpose finanCIal statements 38- WORTH COUNTY BOARD OF EDUCATION GENERAL FUND - OUALITY BASIC EDUCATION PROGRAM (OBEl ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002 SCHEDULE "5" Worth County High School Holley Elementary School Worth County Middle School Worth County Pnmary School Sylvester Elemenlary School Worth County CIS Academy Central Office (Allernabve Education Program) TOTAL (1) Compnsed of State Funds plus Local Five Mill Share ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE OBE PROGRAM COSTS $ 3,460,786 00 $ 4,082.61408 1.934 685 00 1,912.707 93 3,277.34500 3,426,71896 3,898.070 00 3,976,14290 1,712.317 00 1.578.697 02 282,231 23 208,406 00 $ 14,491,609 00 $ 15 259,112 12 See notes to the genera~purpose finanCIal statements - 37- SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS W'-'III W.IlIr>IClN STAr!:: AU1)I1QH 14()4) r,5t) ~ 17.11 DEPARTMENT OF AUDITS AND ACCOUNTS ,2')..1. W.I.. hmglon Street S W "iUIlC 21...1Atl.,"IJ. (ll'orgl.1 101,3...l- X-1-()() June 13. ~003 Ilonorablc Sonny Pcrdue. Governor Meml>er; of the General As~embly Mcmbers of the State Board 01 Edueallon and Supenntendent and Members of the Worth County Board of Education REPOR I ON COMPLIANCE AND 01\ IN rERNAL CON rROL OVER FINANCIAl. REPOR liNG BASI- () ON AN ALIDIT or I-INANCIAL STA I EMeN rs PI:.RFORMED IN ACCORDANCe WITH GOVeRNMENT AUDITING S I ANDARDS I adles and Gentlemen We havc audited the financial statements of Worth County Board of EducatIOn a~ of and lorthe ycar ended June 30. ~002. and have I"ued our rcport thercon dated June 13. ~003 Thl~ rcport \\as qualified for vanous departure~ from gencrally accepted accounting pnnclples. as Idenllfied m the auditor's report on the general-purpose finanCial statcment> We conducted our audll In accordance With audlling standards gcnerall)' acceptcd In the untted State~ of Amenca and the standard, applicable to finanCial audits con tamed m Government Audl\lng Standards. I,sued by the Comptroller Gcneral of the Untted States Compliance A, part of ohtalntng reasonahle a,surance about whcther Worth County Board of i::,ducatlOn's finanCial ,tatement, arc free 01 malenal misstatement. we perlonned tests of II, complIance Wllh certam prOVI~lOn~ of laws. regulation,. contract, and grants. noncomplIance v;lIh which could have a direct and matenal cffcct on the determmatlon of finanCial statcmcnt amounts Howevcr. proViding an opinion on wmplIanee With tho~e proviSions was not an objective of our audll. and accordingly. \\e UO nol e"-pre" ,ueh an Opinion I hc re,ult, of our tcsts dl~c1oscd no In,tancc, of noncompliance that Jre reqUired to be reported under Government Audllmg Standard, Internal Control Ovcr FinanCial Reportmg In pl.mnmg and performmg our audit. we con,ldcrcd Worth County Board of Educallon', mternal control over finanCial reportmg In order to determme our audIting procedures for the purpo~e of e:..prcsslng our opmlOn on the finanCial ,tatement, and not to proVide assurance on the Internal 200~YB-40 control over financial reporting However. we noted certain matters involVing the Internal control over financial reporting and Its operatIOn that we consider to bc reportable condilions Reportable condilions Involve matters coming to our attention relating to slgmficant defiCienCies In the dcslgn or operallon of the Internal control ovcr financial rcportlng that. In ourJudgment. could adversely affect Worth County Board of Educatlon\ ability to record, proce%. summanzc and report financial data con'ilstent With assertions of managemcnt In the financial statements Reportable condltlon~ arc descnbed In thc accompanYing Schedule of Findings and Que~tlOned Costs a'i Items FS-7591-02-0l and FS-7591-02-02 to. matcnal weakness IS a condition In which the deSign or operation of one or more of the Internal control component'i does not reduce to a relatively low level the nsk that misstatements In amount~ that would be matenal In relallon to the finanCIal statements being audited may occur and not be detected Within a timely penod hy employees In the normal co~ of performing their asSIgned lunctlonI ~ Our conslderallon ofthc Internal control over finanCial reporting would not necessanly dlsc1o'ie all matters In the Internal control that might be reportable condillon~ and, accordingly. would not nece'isanly disclose all reportable condltlon~ that are also conSidered to be matenal weakne'i'iCs However, ofthe reportable condilions descnbed above, we conSider Item FS-7591-02- 02 to be a matenal weakness Thl~ report IS Intended solely for the Informallon and use of the management, members of the Worth County Board of Educallon. rederal awarding agencies and pass-through enlilies and I~ not Intended to be and should not be used by anyone other than these speCified parties Respectfully submItted, - ~~ Ru ell W Hinton St e Auditor RWII as 2002Y!3-40 {lJ"~.I1 W. 1111'0 roN STAll:: AUlllIOIi (':Q.l.l6S6 ~ 74 DEPARTMENT OF AUDITS AND ACCOUNTS '2';4 Wo.1..hmglon ')trcc\, ~ W ~ulll= 2 '4 1\11.ml.1 (rl'llr!!l.J 3()Y~ l-l\.lllO June 13. 2003 Honorahlc Sonny Pcrduc. Governor Member; of the Gencral Assembly Member; of the State Board ot Education and Supenmendcnt and Membcrs of the Worth County Board of Education REPOR I ON COMPLIANCE WITH REQUIRf MENTS APPI.ICABLE TO EACH MAJOR PROGRAM AND ON IN1H{NAL CON I ROL OVER COMI'L1ANCL IN ACCORDANCE WI n I OMB CIRCULAR A-I D Ladlcs and Gcntlemen Compliancc Wc have audIted the comphance of Worth County Board of Education With the type~ ol comphance rcqUlremcnts desenbcd m the [! S OffiLl! of MlJnlJgemem lind lJudgct tOMBj ClrcullJr 4-/33 ComplwllL e Supplement that arc applicable to cach of Its malor Federal program~ tor the year ended June 30. 2002 Worth County Board of Eduealton\ major fedcral programs are Identified m the Summary of Auditor's Results SectIOn of the accompanymg Schedule of Findings and Questioned Co~ts Compliance With the rcqulremenh of laws. rcgulatlOns. contracts and grants applicable to each of It~ major Fcderal programs I~ the respon>lbllity of Worth County Board of EducatIOn's managcment Our respon~lhllity I~ to expres~ an opinion on Worth County Board of Education's wmphance ha~cd on our audIt We conducted our audit of compliance m accordance wllh auditing standards gcncrally accepted In the Unltcd ~tates of Amenca. the standards applicable to financIal audlt~ contalncd m Government Audltmg Standard~. Issued hy the Comptroller Gcneral of the United States, and OMH Circular A- 133. Audw 01 States, Lowl GOI'ernmentl lJnd Non-Profit ()rglJlll=atlOllI Those ~tandard~ and OMS CIrcular A-\33 require Ihat we plan and perfonn thc audit to obtam reasonable ~~urance about whethcr noneomphanec wllh the types of compliance reqUIrements referred to above that could hay e a dIrect and matenal eOcct on a maJ unqual! tied 6 Audit Fmdmgs ReqUired to be Reported bv Section 510ra) ofOMB Circular A-I33 rhe Worth County Board of Education's audit did not disclose audit findmg~ reqUired 10 be reported by ~eellon 510(a) ofOMB Circular A-133 7 Malor Progmm; Federal awards audited as major programs are as follows 10553 Food and Nutrition Program - Food Services - School Breakfast Program 10555 Food and NutntlOn Program - Food Services - NatIOnal School Lunch Program 10559 Food and Nutntion Program - Summer Food Service Program for Children 8 Type "A" I'rognun Dollar Thre\hold Thc dollar threshold for type "A" programs was $300,000 00 9 Low Rls" Audltee The Worth County Board of Education quaJlfied as a low risk audltee as defined by SectIOn 530 ofOMB Circular A-I33 -I- WOR1 H COUN"I Y BOARD OF [DUCATION SCHEDULE OF FINDINGS AND OUESTIONED COS rs YEAR ENDED JUNL 30, 2002 II FINANCIAL STATEMENT ~INDINGS A1\JD OCESTIONED COSTS CASH AND CASH EQuiVALENTS Uncollatcrahzed Deposits Reportable ConditIOn Nonmatenal Noncomphance FmdmgControl Number I'S-7591-02-01 As of June 30, 2002, the School Dlstnct failed to have ItS bank balanccs fully collatemhzed a~ proVided for by the OfficIal Code of GeorgIa Annotated Section 45-8-12, which state~, m part. as follows "1 he collectmg officer or onicer holdmg pubhc funds may not have on deposit at any onc time m any depoSitory for a time longer than ten days a sum of money belongmg to the pubhc body when such depoSitory has not gIven bond to the publIc body as set forth m thiS code section 1 hc aggregatc 01 the face \ alue of such surety bond and the market value of secuntles pledged shall be equal to not les~ than 110 percent of the pubhc fund~ bemg secured atter the deductIOn of the amount of depo~lt m~urance " Thl~ noncomphance occurred because of management'~ failure to adequately mOnitor the eoliatemlIzatlon of balance, at mdlvldual ban!"s I'he School Dlstnct should Implement adequate procedures to mOnitor the coliaterahzatlOn of ban!" balances to ensure comphance at all times with State Laws governmg deposits and mvestments GENERAL FIXED ASSETS I'all ure to Maintain General FIxed Assets Account Group Reportable ConditIon - Matenal Wea"ness Repeated from Pnor Year Fmdmg Control Number FS-7591-02-02 rhe Worth County Board of Education did not mamtam a system-\\Ide Geneml Frxcd Assets Account Group wlthm the formal accounting records as reqUIred by generally accepted accountmg pnnciple, ThiS condition results In the general-purpose finanCial statements of the School DI~tnet bemg mcomplete and not m accordance With generally accepted accounting pnnclples Appropnate actIon should be taken by the School Dlstnct to estabhsh accounting control~ and procedures to proVide for maintenance ofa Geneml Frxed Assets Account Group These subSidiary record~ ~hould mclude an Inventory of land, bUlldIng~ and eqUIpment owned by the School Dlstnct and ,hould Include, but may not be lImited to, date acqUIred. acquISItion co~t, estimated replacement cost. location and de,cnptlOn DetaIled rewrds should be mamtamed 01 all additions and deletion, to the General fixed A~~ets Account Group WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF ~ IN DINGS AND QUESTIONED COS rs YEAR ENm,D JUNI: 30, 2002 1II FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No maller, were reported -3-