.CTIY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNfY - TABLE OF CONTENTS-

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE

FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION -

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

.I

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D

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

11

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND .

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

FIDUCIARY FUND TYPES

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPI;NDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

30

K

.COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILmES

AGENCY FUNDS

33

CITY OF THOMASYaLE BOARD OF EDUCATION-THOMAS COUNTY -TABLE OF CONTENTS -

SECTION I

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL ~WARDS

34

2 SCHEDULE OF STATE REVENUE

36

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

3

BY PROGRAM

38

4

BY SITE

39

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STA~MENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

SECTIONm 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

I RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Slreet, S.w', Suite 214 Atlanta, Georgia 30334-8400
May 1, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe City ofThomasville 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 City ofThomasville 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 City ofThomasville Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States 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 oplDlon.
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.
* 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 fmancial statements.
* The Board of Education did not recognize as expenditures, in the year ended
June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefitseamed for contractual services completed prior to June '30~ 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Thomasville Board of Education 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 May 1, 2002, on our consideration of the City of Thomasville Board of Education's' internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the City of Thomasville Board of Education taken as a whole. The accompanying combining statements (Exhibits G through K) and the financial schedules (Schedules 1 through 4), 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
200 1ARL-13
!
I

general-pwpose financial statements. Such infonnation 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 infonnation is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a 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.

RWH:as 2001ARL-13

Respectfully submitted,

.----....

~.~~

Rus 11 W. Hinton

.

State Auditor

CITY OF mOMASVILLE BOARD OF EDUCATION - mOMAS COUNTY

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY COMBINED BALANCE SHEET
AlL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount to be Provided in Future Years For Payment of Capital Lease Agreements
Total Assets
LIABILITIES AND FUND EqUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Funds Held for Others Capital Lease Agreements
Total Liabilities
FUND EqUITY
Fund Balances Reserved For Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
'Total Liabilities and Fund Equity

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 1,071,375.49 $

652,821.85 $

3,700.00

4,406.83

240.574.06

274,783.91

7,421.97 7,219.01

$ 1.316,356.38 $

942,246.74 $

3,700.00

$

30',659.49 $

86,303.49

327,958.48

$

30,659.49 $ 414.261.97

$
$ 1,285,696.89 $ 1,285,696,89 $

7,421.97 7,219.01
513,343,79 $
527,984.77 $

$ 1,316,356.38 $

942,246.74 $

3,700.00 3.700.00
3,700.00

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

EXHIBIT "A"
i'

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

$

11,970.65

106,nO.65

306.34

ACCOUNT GROUP
GENERAL LON~TERM
DEBT

TOTAlS

(Memorandum Only)

JUNE 3D, 2001

JUNE 3D, 2000

$ 1,739,867.99 $ 1,709,405.31

111,1n.48

106,771.73

515,664.31

434,060.76

_ _ _ _ _ $ _ _---::8~80~,4~2:.:::8::.:::.3:.:..1

7,421.97 7,219.01
880,428.31

9,081.81 6,315.90
990,649.22

$

119,047.64 $

880:428.31 $ 3,261,n9.07 $ 3,256,284.73

$

116,962.98 $

302,459.36

327,958.48

329,735.01

$

4,419.90

4,419.90

878.12 1,065.94

'$

880,428.31

880,428.31

990,649.22

$

4,419.90 $

880,428,31 $ 1,329,769,67 $ 1,624,787.65

$

85,605.61

29,022.13

$

114,627.74

$

119,047.64 $

$

85,605.61 $

85,605.61

49,707.40

7,421.97 7,219.01

9,081.81 6,315.90

1,831,762,81

1,480,786.36

$ 1,932,009.40 $ 1,631 ,497,08

880,428.31 $ 3,261,n9.07 $ 3,256,284.73

3

CITY OF THOMASVlLLE'BOARD OF EDUCATION - THOMAS COUNTY
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND !)'PES AND EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30. 2001

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

GENERAL FUND

GOVERNMENTAL FUND !)'PES

SPECIAL

CAPITAL

. REVENUE

PROJECTS

FUND

FUND

$ 12,921,317.70 $
6,675,437.22 355,330,56
$ 19,952,085,48 $

963,045,74 $ 2,809,911.21
681,916.06
4,454,873,01 $

9,000.00 9,000,00

$ 12,936,933.88 $
980,892.72 426,346,60 463,410.48 289,175,74 1,665,725,44 318,147.55 1,804,154,37 124,225.24 119,610,58
25,158,72
29,089,39

2,452,057,61
107,691.63 131,370,45 29,106.17 134,086.70 56,312,66
67,881.73
2,947,43 68,923,09 1,726,253,54
$

110,220.91 43,5n,85

$ 19,336,669.47 $

$

615,416.01 $

4,n6,631,01 $ -321,758.00 $

5,300,00
5,300,00 3,700.00

$

$

-319,623.34

$

-319,623,34 $

319,623,34 319,623,34

$

295,792,67 $

-2,134.66 $

989,904,22

530,876.16

-1,659.84 903.11

3,700,00 0.00

FUND BALANCE JUNE 30

$

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

527,984.77 $

3.,7.0..,0.,0_.0

EXHIBIT"B"

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

.$ 13,893,363.44 2,809,911.21 6,675,437.22 1,037,246.62 $
$ 24,415,958.49 $

$ 11,847.04

13,893,363.44 $ 2,809,911.21 6,675,437.22 1,049,093.66

13,555,926.40 2,963,779.09 6,118,831.52 1,087,488.65

11,847.04 $ 24,427,805.53 $ 23,726,025.66

$ 15,388,991.49
1,088,584.35 557,717.05 492,516.65 423,262.44
1,722,038.10 318,147.55
1,872,036.10 124,225.24 122,558.01 94,081.81 $
1,726,253.54 29,089.39
5,300.00

110,220.91 43,5n.85

$ 24,118,600.48 $

$

297,358.01 $

$ 15,388,991.49 $ 14,514,505.03

12,401.26

1,088,584.35 557,717.05 492,516.65 423,262.44
1,722,038.10 318,147.55
1,872,036.10 124,225.24 122,558.01 106,483.07
1,726,253.54 29,089.39

1,572,444.97 992,971.71 443,563.85 445,451.01
1,581,821.23 320,107.21
1,850,056.50 137,908.38 142,176.93 45,458.85
1,728,190.65 29,407.58 .

5,300.00

132,708.13 825,371.64

110,220.91 43,5n.85

105,278.53 48,520.23

12,401.26$ 24,131,001.74 $ 24,915,942.43

-554.22 $

296,803.79 $ -1,189,916.n

$

319,623.34

-319,623.34

$

0.00

$

297,358.01 $

1,520,780.38

-1,659.84 903.11

$

319,623.34 $

570,928.83

-319,623.34

-570,928.83

$

0.00 $

0.00

-554.22 $ 20,895.47

296,803.79 $ 1,541,675.85

-1,189,916.n 2,732,426.n

-1,659.84 903.11

-1,325.58 491.43

$ 1,817,381.66 $

20,341.25 $ 1,837,722.91 $ 1,541,675.85

-5-

CITY OF THOMASVILLE BOARD OFEDUCATION - THOMAS COUNTY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - INON-GAAP BASIS)
GENERAL AND SPECIAL REVENUE FUNDS
yeAR ENDED JUNE 30. 2001

EXHIBIT"C"

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

CITY OF THOMASYILLE BOARD OF EDUCATION - THOMAS COUNTY

EXHIBIT "0"

COMBINED STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCES .

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

YEAR ENDED JUNE 3D. 2001

~

"

FUND BALANCE JUNE 30

$

53,854.89 $

40,431.60 $

94,286.49 $ ===89~,8=2=1=.2=3

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

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY . COMBINED STATEMENT OF CASH FLOWS
FlpUCIARY FUND TYPE NONEXPENDABLE TRUST FUNDS YEAR ENPED JUNE 30, 2001

EXHIBIT "E"

Cash Flows from Operating Activities:
Cash Paid for Scholarships
Cash Flows from Investing Activities: Interest Received on Investments SalelPurchase of Investments (Net)
Net Cash Provided by Investment Activities
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1

MEGAN CARR SCHOLARSHIP
FUND

BOBBY SINGLETARY
FAMILY SCHOLARSHIP
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

-1,200.00 $

0.00 $

.1,200.00 $

-4,700.00

$

3,502.86 $

2,475.00 $

5,9n,86 $

4,232.36

-2,302.86

-1,475.00

-3,m.86

-40,960.79

$

1,200.00 $

1,000.00 $

2,200.00 $

-36,728.43

$

0.00 $

1,000.00 $

1,000.00 $

-41,428.43

$

0.00 $

0.00 $

0.00 $

41,428.43

Cash and Cash Equivalents - June 30

$

0.00 $

1,000.00 $

1,000.00 $ ......-==......0..=.0=0

The notes to the general-purpose financial statements are an integral part of this statement. -9-

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001

EXHIBIT "F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The City ofThomasville 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 determine tax revenues flowing to the School District. 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 ofits 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 ora 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.

- 11 -

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001

EXHffiIT "F"

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 Educatio~ and from the Federal govemmentto'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.

FIDUCIARY FUND TYPES - the funds 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, These funds include:

NONEXPENDABLE TRUST FUNDS

Megan Carr Scholarship Fund,and Bobby Singletary Family Scholarship Fund - the funds

used to account for endowments ofwhich the corpus is to be invested and preserved intact with

the resultant income to be used to provide scholarships to graduating seniors ofThomasville High

School on the basis of need, demonstrated ability and desire.

'

EXPENDABLE TRUST FUNDS Ben Karsh Scholarship Fund - the fund used to account for the principal and earnings which, may be expended to provide scholarships to graduating students from Thomasville High School who have demonstr~ted exemplary character, scholastic achievement, athletic ability and spirit.

Parker Poe Foundation Fund - the fund used to account for the principal and earnings which may be expended for the "Books to Grow On" program.

Williams Family Foundation Fund -the fund used to account for the principal and earnings which may be expended for the Balfour School for Young children to provide a Winnebago Circulation/Cataloging system and books for the library.

AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other

,

'

funds, governments,or individuals. ,

ACCOUNT GROUP

GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for capital lease obligations.

BASIS OF ACCOUNTING, '

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust 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

-12 -

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
niNE 30. 200i

EXHIBIT"F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES .

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.

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.

.

Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.

Governmental and expendable trust funds are accounted for using the modified accrual baSis of

accounting under which:

.

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days afteryearend 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, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. 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 departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As 0, June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001.

.:. 13-

CITY OF THOMASVILLE BOARD OF EDUCAnON - THOMAS COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001

EXHIBIT "F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Convers,ely, the s4nilar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

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.

Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.

BUDGET

The City of Thomasville Board of Education's budget is a complete financial plan for the School District's fi~cal year and is based upon estimates of expenditures together with probable funding sources.. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was establi!:lhed by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles..

The budget process begins when the School District's administration prepares a tentative budget for .the Board's approval. Afterapproval ofthis tentative budget by the Board, such budget is advertised at least o~ce in a newspaper ofgeneral circulation in the locality. At the next regular,meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department ofEducation. 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-tenn 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 contra~ts (such as certificate~ 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

- 14-

CITY OF THOMASVILLE BOARD OF EDUCAnON - THOMAS COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001

EXHIBIT "F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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:
(1) 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 ofthe 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,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The City ofThomasville fixed the property tax levy for the 2000 tax year (calendar year) on October 11,2000 (levy date). Taxes were due on February 9,2001 (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 Thomasville City Clerk bills and collects the property taxes for the School District, withholds 1.25% 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 $6,675,437.22.

- 15 -

CITY OF THOMASVILLE BOARD OF EDUCAnON - THOMAS COUNTY
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001

EXHIBIT "F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

,The tax millage rate levied for the 2000 tax year (calendar year) for the City ofThomasvilie Board

' o f Educat.ion

was. as fol. lows

. (a mill. equals

$1

per

thousand

dollars

of assessed

value): ,

'

School Operations

~mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories 'are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component ofnet current assets.

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

T<?ta1 columns on the general-purpose financial statements are captioned "Memorandum Only" to indic~teJhat ,they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows in confomrity with generally accepted
accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations
have not been made in the aggregation of this data.

Note 2: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS, Officiai Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on
deposit ~t any time iIi 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 of the face value ofsuch surety bond and the market value ofsecurities pledged,shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance.

-.16 -

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001

EXHIBIT "F"

Note 2: DEPOSITS AND INVESTMENTS

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 iri demand deposit checking accounts.

Acceptable security for deposits consists ofanyone 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 ofthe 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 rev~nue bonds and bonds ofdevelopment authorities created by the laws ofthe 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.

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $3,988,116.14. 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

I

department or agent but not in the School District's name.) - 17-

\

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY NOTES TO THE GENERALPURPOSE FINANCIAL STATEMENTS JUNE 30, 2001

EXHIBIT "F"

Note 2: DEPOSITS AND INVESTMENTS

The ~chool District's dePosits are classified by risk category at June 30, 2001, as follows:

Risk Category

Bank Balance

1

$ 300,000,00

2

.3,688,116,14

3

0,00

Total

$ 3.988.116.14

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value ofthe School District's total investments was $4,406,83 which is materially the same as fair value. This investment consisted entirely offunds invested in the Local .Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal SerVices which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:

The Primary Liquidity Por,tfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6, Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market fuilds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 ina manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool.; The po<;>l's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guaraI1tees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's Gen~!al Fund.

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months;

- 18'-

CITY OF THOMASVILLE BOARD OF EDUCAnON - THOMAS COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001

EXHIBIT "F"

Note 3: NON-MONETARY TRANSACTIONS

The School District receives food commodities from the United States Department ofAgriculture (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 participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. 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.

The School District is self-insured ,,,ith regard to unemployment compensation claims. The School District accounts for claims within the General Fund and the School Food Services Special Revenue Fund. Claims are accounted for 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

$

0.00 $

2,281.00 $

2,281.00 $

0.00

$

0.00 $ 15,633.00 $ 15,633.00 $

0.00

The School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit.
- 19-

CITY OF THOMASVILLE BOARD OF EDUCAnON - THOMAS COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS ruNE 30, 2001

EXHIBIT "F"

Note 4: RISK MANAGEMENT

./

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

Position Covered

Amount

Superintendent All Other Employees

$ 50,000,00. $ 100,000,00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The City ofThomasville Board ofEduc~tionhas entered into various lease agreements as lessee for equipment, fixtures and buses, These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as ofthe date oftheir inception,

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

Capital Leases

Balance July 1,2000

$ 990,649,22

Deductions Payments

110,220,91

Balance June 30, 2001

$ 880,428.31

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

.- 20-

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001

EXHmIT "F"

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

2002 . 2003
2004 2005 2006 2007 - 2009

$ 153,798,76 151,667,25 125,593,00 125,593,00 125,593,00 368,445,87

Total Principal and Interest

$ 1,050,690,88

Deduct: Imputed Interest

170,262.57

Net Present Value ofFuture Minimum Lease Payments

$ 880.428.31

Note 6: SHORT-TERM DEBT

The School District obtains temporary loans in advance ofproperty tax collections, depositing the proceeds in its General Fund, This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred,

Temporary Loans

Beginning Balance

Additions

Payments

Ending Balance

$'==dO~,O~O $ 2,000,000.00 $ 2.000,000,00 $,==..,;O~,O~O

Note 7: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $324,397.63 for health insurance and retirement contributions paid on the School District's behalfby 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 $259,976,55

- 21 -

CITY OF THOMASVILLE BOARD OF EDUCAnON - THOMAS COUNTY. NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
ruNE 30. 2001

EXHIBIT "F"

Note 7: ON-BEHALF PAYMENTS
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$27,419.08
Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost , In the amount of$37,002.00
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 tenns. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.
The School District is a defendant in a civil action pending in the United States District Court for the Middle District ofGeorgia, Thomasville Division. The ultimate disposition ofthis proceeding is not presently determinable, but may have a material effect on the general-purpose financial statements.
Note 9: RETIREMENT PLANS
TEACHERS RETIREMENTSYSTEM 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 ofthe School District who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees 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:

- 22-

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHmIT "F"

Note 9: RETIREMENT PLANS
Fiscal Year
2001 2000 1999

Percentage Contributed
100% 100% 100%

Required Contribution
$ 1,553,537,50 $ 1,554,866,13 $ 1,538,351.32

- 23-



.

CITY OFTHOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY

.COMBINING BALANCE SHEET

SPECIAL REVENUE FUND

JUNE 30, 2001

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

626,724.75 $

154,621.15

1,125.00

7,421.97 7,219.01

$

642,490.73 $ ====1,;,;;;54=,:;;;62=1""".1:=.5

Total Liabilities and Fund Equity

$

642,490.73 $ ===1:=54:::!.,6=2=1,;,,;.1::=,5

See notes to the general-purpose financial statements. - 24- .

EXHIBIT"G"

FEDERAL
PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

781,345.90 $

772,145.00

$

273,658.91

274,783.91

192,229.79

7,421.97 7,219.01

9.081.81 6,315.90

$

273,658.91 $ 1,070,770.79 $ =======9=7=9'1::::77:.=2=5.=.0

$

128.524.05 $

128,524.05 $

22,469.54

29,588.57

86,303.49

.95,813.67

115,546.29

327,958.48

329,735.01

878.12

$

273,658.91 $

542,786.02 $

448,896.34

$

7,421.97 $

9,081.81

7,219.01

6,315.90

$

.:.0:.:;.0.::.,0

513,343.79

515,478.45

$

0.00 $

527,984.77 $ _--....;5=3=0,1.;;.87:..;::6-.:.1..:.,6

$

273,658.91 $ 1,070,770.79 $-=====9=7=9'1:7:::7:.=2=.5=.0

- 25-

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 f

FUND BALANCE JUNE 30
See notes to the general-purpose financial statements,
- 26-

$

527,984.77 $=====0;,;;,00=0

EXHIBIT"H"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 3D, 2000

$

$ 1,756,930.92

963,045.74 $ 2,809,911.21

998,373.98 2,963,779.09

116,953.47

681,916.06

661,483.53

$

1,873,884.39 $

4,454,873.01 $

4,623,636.60

53,234.99

319,623.34

233,596.57

$

0.00 $

-2,134.66 $

-4,293.27

0.00

530,876.16

536,003.58

-1,659.84 903.11

-1,325.58 491.43

$

0.00 $

527,984.77 $ = =..5.=30=,8=7..6.,;,,;.1.6...

- 27-

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

NONEXPENDABLE TRUST FUNDS

BOBBY

SINGLETARY

MEGAN CARR

FAMILY

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

,BEN KARSH SCHOLARSHIP
FUND

$

1,000.00

.$

53,699.76

39,319.57 $

12,469.76

155.13

112.03 .

35.53

Total Assets

$

53,854.89 $

40.431.60 $ ===1=2=,5;,,;;0=5.=:29=

LIABILITIES AND FUND EQUITY
LIABILITIES
Funds Held for Others
FUND EQUITY
Fund Balances Reserved For Endowment Corpus Unreserved Undesignated
Total Fund Equity

$ . . 48,105.61 $

" 5,749.28

$

53,854.89 $

37,500.00 2,931.60 $ _'_ _~12::.t,;,5:.:0~5.::.2=9
40.431.60 $ _ _--:.;;12=,5:.:0~5=.2:.=..9

Total Liabilities and Fund Equity

$

53,854.89 $

40,431.60 $ =====12~,5=0=5=.2=9

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

EXHIBIT "I"

EXPENDABLE TRUST FUNDS

WILLIAMS

PARKER POE

FAMILY

FOUNDATION

FOUNDATION

FUND

FUND

AGENCY FUNDS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

5.550.75 $

1.000.00 $

4,419.90 $

11.970.65 $

8.517.95

1.281.56 .

106.nO.65

102.615.09

3.65

306.34

649.60

$

5.550.75 $

2.285.21 $

4.419.90 $

119,047.64 $ -=====11=1:!::7,,,;;;8.2...=.64=

$

4,419.90 $

4,419.90 $ _ _--:1:...:,06=5.:.::.94~

$

5,550.75 $ _ _--=-2,=28=5=.2_1_

$

5,550.75 $ _ _-=.J2'L:;28:.::5;.:.:.2~1

$

85.605.61 $

85.605.61

29,022.13

25,111.09

$

114,627.74 $ _ _..;..11.;.,;:0.,.7.1..=6.;.;.,.70:..

$

5,550.75 $

2,285.21 $

4,419.90 $

119,047.64 $ o=:==:=1...1.:::!1,=78=2=.6..4..

- 29-

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 2001

-REVENUES Other Funds
EXPENDITURES Current Other Support Services
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1
FUND BALANCE JUNE 30

BEN KARSH SCHOLARSHIP
FUND

PARKER POE FOUNDATION
FUND

$

770.74 $

10,000.00

$

500.00 $

11,901.26

$

270.74 $

-1,901.26

12.234.55

7,452.01

$

12,505.29 $ ======-5'555:==.7=5

See notes to the general-purpose financial statements. - 30-

EXHIBIT"J"

WILLIAMS FAMILY
FOUNDATION FUND

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

1,076.30 $

11,847.04 $ _ _...:1.;:;J3,~99::..:1.:.:.6;,:..8

$

0.00 $

12,401.26 $ _ _...:1~1,=23=9=.6=0

$

1,076.30 $

. -554.22 $

2,752.08

1,208.91

20,895.47

18,143.39

$

2,285.21 $

20,341.25 $====2:=0'1::=89=5=.4..7...

- 31 -

CITY Of THOMASYJUE BOARD OFG~m8i~ors C~T

COMBINING STATEMENT OF CHAN E

SET AN LIAB m S

FIDUCIARY FUND TYPE - AGENCYFUNDS

YEAR ENDED JUNE 30, 2001

.EXHIBIT "I("

LIABILmES Funds Held for Others
SPECIAL FUND ASSETS
Cash and Cash Equivalents
LlABlLmES Funds Held for Others
TOTALS-AGENCYFUNDS ASSETS
Cash and Cash Equivalents
LIABILmES Funds Held for Others .

$

941.57 $

1,330.00 $

601.30 $

'1;;;.67.00;,;.2;;",7

$

124.37 $ 6,693.75 $

4,068.49 $ _ _,;;;2,_7.4.9.;;:.6=3

$

124.37 $ 6.693.75 $

4,068.49 $...........::2==:,.7.4..9....6..3=

$

1,065.94 $ 8,023.75 $

4,669.79 $-====4=,4='9;;;;.9..0..

$

1,065.94 $ 8,023.75 $

4,669.79 $-====4"".4..'.,;;;,9.9..=0

See notes to the general-purpose financial statements.

-33-

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001

SCHEDULE "t"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S, Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program.

10.553 10.555

N/A $ 243,858.07

N/A

724,177.96 $

(2) 1,641,309.28 (3)

Total Child Nutrition Cluster

$ 968,036,03 $

1,641,309.28

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Services

Food Distribution Program (1)

10.550

N/A

Fresh Produce Program (1)

10.550

NlA

72,944.26 12,000.00

72,944,26 12,000.00

Total U. S. Department of Agriculture

$ 1,052,980.29 $

1,726,253,54

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Capacity Building Improvement

84.027 84.173 84.027

',,'

N/A $ 251,066.32 $

N/A

35,013.40

N/A

10,239.22

251,066.32 35,013.40 10,239.22 .

Total Special Education Cluster

$ 296,318.94 $

296,318.94

Other Programs

,Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I

Accountability Grant

84.348

N/A

88,638.19

88,638,19

Grants to Local Educational Agencies

84.010

N/A

1,026,613.67

1,026,613.67

Tide" Eisenhower Professional Development

84.281

NlA

24,040.13

24,040.13

TiUeVI

Innovative Education Program Strategies

84.298

N/A

33,271.00

33,271.00

Class Size Reduction

84.340

NlA

144,570.24

144,570.24

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84,048

N/A

51,098.12

51,098.12

Total U, S. Department of Education

$ 1,664,550.29 $

1,664,550.29

Labor, U. S. Department of Pass-Through From Georgia Department of Labor Job Training Partnership Act 98-8-95 Workforce Investment Act 200o-YETP-95

17.250 17.255

N/A

$

42,763.50 $

NlA

24,482.16

42,763.50 24.482.16

Total U. S. Department of Labor

$

67,245.66 $

67,245.66

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CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Defense. U. S. Department of Direct Department of the AIr Force R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$ 25,134.97 $

78.369.96 (3)

Total Federal Financlal Assistance
NlA =Not Available

$ 2.809,911.21 $ =====3=.5=36~!4=1=9=.4==5

Notes to the SchedUle of Exoenditures of Federal Awards
(1) The amounts shown for the Food Distribution and Fresh Produce Programs represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system dUring the currentfiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program.
(3) Expenditures for this program Include State. and/or Other Funds. Expenditures are not maintained by fund source.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The School District did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Thomasville Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general-purpose financial statements.

See notes to the general-purpose financial statements.

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CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 2001

SCHEDULE "2"

AGENCYIFUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Community Affairs, Georgia Department of Georgia Challenge Program Local Assistance Grants

$

30,000.00

$ $ 9,000.00,

30,000.00 9,000.00

Education, Georgia Department of QualitY Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program PrImary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle SChool (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with DiSabilities category I Category II category III category IV Supplemental Speech Gifted Student- category VI Remedial Education Program Alternative Education Program Media center Program Staff and Professional Development Indirect Cost categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer SChool Program Health Insurance Menloring Program Preschool Handicapped Program Remedial Summer SChool Student Achievement- Travel Teachers' Retirement Youth Apprenticeship Program Lottery Programs Computers in the Classroom

443,214.00 228,295.00 1.529.597.00 527,212.00 903,247.00 1,655,797.00 1,638,269.00 287,409.00
102.358.00 494,980.00 874.589.00
75,514.00 14.364.00 139,623.00 219,820.00 . 131,6n.OO 281,636.00 76,820.00 1.885,352.00
i.
36,921.00 3,794.00
78,104.00 13,349.00 10,918.00 54,010.00 635,059.00
$ 106,176.00 5,694.00
6,870.42 259.976.55
4,399.46 50,534.00 4,099.88
928.31 27,419.08 35,000.00
67.383.00

443.214.00 228,295.00 1,529,597.00 527,212.00 903.247.00 1,655.797.00 1,638,269.00 287,409.00
102,358.00 494.980.00 874,589.00
75,514.00 14,364.00 139,623.00 219,820.00 131,6n.00 281,636.00 76,820.00 1,885,352.00
36,921.00 3,794.00 78,104.00 13,349.00 10,918.00 54.010.00 635,059.00 106,176.00 5,694.00
6,870.42 259,976.55
4.399.46 50,534.00
4,099.88 928.31
27,419.08 35,000.00
67,383.00

Office of SChool Readiness Pre-Kindergarten Program

789,486.74

789,486.74

Office of Treasury and Fiscal Services Public SChool Employees Retirement

37,002.00

37,002.00

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CITY OF THOMASVILLE BOARD OF EDUCATION _THOMAS COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE "2"

AGENCYIFUNDING
CONTRACTS Education, Georgia Department of Georgia'S Reading Challenge Reading First Program

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

$

85,536.00

31,930.00

$

85,536.00

31.930.00

$ 12,921,317.70 $ 963,045.74 $ 9,000,00 $ 13,893,363,44

See notes to the general-purpose financial statements.

37

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY GENERAL FUND - aUALlTY BASIC EDUCATION PROGRAM laBEl ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 300 2001

SCHEDULE "3"

RESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kind'ergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Eariy Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category I

Category II

Category I!!

Category IV

Category V

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

517.751.00 $ 266.688.00 1.786.835.00 615.875.00 1.055.148.00 1.934.259.00 1.913.783.00 335.744.00 1.824.463.00

501.851.13 $ 206.890.80 1,841.861.27 501.878.74 1.099,336.81 2.100.997.21 2.129.459.45 484.376.13

163.104.00 256.788.00 153.822.00

465.219.47 1.155.909.33
289.874.99 33.088.42 148,887.04 89.159.08 333,390.24

18.873.48 $ 368.00
155.625.22 2.587.94 58.575.95
78,238.29 192.100.20 28.574.00
203.46 8.971.16 50.550.79 1.860.29
8.155.01 7.149.87 8.448.12

520.724.61 207.258.80 1.997.486.49 504.466.68 1.157.912.76 2.179.235.50 2.321.559.65 512.950.13
203.46 474.190.63 1.206.460.12 291.735.28
33.088.42 157.042.05 96.308.95 341.838.36

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

10.824.260.00 $ 11.382.180.11 $ 620.281.78 $ 12.002.461.89

Media center Program Staff and Professional Development

329.000.00 89,740.00

382.121.85 40,839.03

73.944.02 49,934.48

456.065.87 90,773.51

TOTAL aBE FORMULA FUNDS

$

11.243.000.00 $ 11,805.140.99 $ 744.160.28 $ 12,549.301.27

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

See notes to the general-purpose financial statements.

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CITY OF THOMASVILLE BOARD OF EDUCATION _THOMAS COUNTY GENERAL FUND - aUALITY BASIC EDUCATION PROGRAM CaBE) ALLOTMENTS ANp EXPENDiTURES - BY SITE
YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

Douglass Elementary School Balfour School For Young Children Macintyre Park Middle School Scott Elementary School Harper Elementary School Thomasville High School Jerger Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share,

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE aBE PROGRAM . COSTS

$

839,637,00 $

962,332,73

2.540,34.7,00 1,667.065,00 1,062,m,00 2,857,671,00 1.702,941,00
153,822.00

45.948.43 2.867.615,17 1,699,366,56 1,060.053,32 3.606.032,32 1.750.437.32
10,676.04

$ 10.824.260.00 $ 12.002,461.89

See notes to the general-purpose financial statements.
- 39-

SECfIONII 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
May 1,2002

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe City ofThomasville Board ofEducation
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of City ofThomasville Board ofEducation as of and for the year ended June 30, 2001, and have issued our report thereon dated May 1, 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 ofthe United States.
Compliance
As part ofobtaining reasonable assurance about whether City ofThomasville Board ofEducation'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 Reporting
In planning and performing our audit, we considered City of Thomasville Board of Education's internal control over financial reporting in orderto 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 a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect City ofThomasville Board ofEducation's ability to record, process, summarize and report financial data conSistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7891-0102.
A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider the item described above to be a material weakness.
This report is intended solely for the information and use of the finance committee, management, members of the City of Thomasville Board of Education, Federal awarding agencies and passthrough entities and is not intended to be and should not be used by anyone other than these specified parties.
. - -Re...s.pectfully submitted,
~~~
Rus 11 W. Hinton State Auditor
RWH:as 200 1YB-40

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

DEPARTMENT 'OF AUDITS AND ACCOUNTS 254 Washington Street, S.w.. Suite 214
Atlanta. Georgia 30334-8400
May 1,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe City ofThomasville Board ofEducation
REPORT ON COMPLIANCE WITH REOUIREMENTS 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 of City of Thomasville Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. City of Thomasville Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofCity ofThomasville Board of Education's management. Our responsibility is to express an opinion on City ofThomasville 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 ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perfonn 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 City ofThomasville Board ofEducation's compliance with those

200ISA-IO

requirements and perfonning 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 detennination on City of Thomasville Board of Education's compliance with those requirements.

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

Internal Control Over Compliance

The management of City of Thomasville 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 perfonning our audit, we considered City of Thomasville Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to detennine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-I33.

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

This report is .intended solely for the information and use of the finance committee, management, members of the City of Thomasville Board of Education, Federal awarding agencies and passthrough entities and is not intended to be and should not be used by anyone other than these specified parties.

Respectfully submitted,

.-

lh~

Ru ell W. Hinton Sta e Auditor

RWH:as 200ISA-1O

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

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY AUDITEE'S RESPONSE
.SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30. 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7891-99-02 FS-7891-00-01 FS-7891-00-02

Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS~7891-00-02

The School District will continue to study the feasibility of creating and maintaining a general fixed assets account group in accordance with state statues and state implementation schedules.

SECTION IV FINDINGS AND QUESTIONED COSTS

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30. 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the City ofThomasville Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the City of Thomasville Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the City of Thomasville Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the City of Thomasville Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of ReportIssued on Compliance for Major Programs The auditor's opinion on the City ofThomasville Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51O(a) ofOMB Circular A-I33 The City ofThomasville Board ofEducation's audit did not disclose audit findings required to be reported by section .5 IO(a) ofOMB Circular A-133.
7. MajorPrograms Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The City of Thomasville Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department ofEducation.
- 1-

CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
" . YEAR ENDED JUNE 30, 2001
II . FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Outstanding Loan Nonmaterial Noncompliance Finding Control Number: FS-7891-01-01
on December31, 2000, the Generai Fund had an unpaid loan outstanding in the amount of
$2,000,000.00. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia provides, in part, as follows:
"The governing authority of any county, municipality or other political subdivision of this state may incur ~ebt by obtaining temporary loans in each year to pay expenses...Such loans shall be payable on or before December 31 of the calendar in which such loan is made... "
This condition occurred because the School District did not have adequate cash available to retire the loan on Decemb~ 31, 2000 as required. Repayment of loans should be made in conformity with constitutional limitations.
Management's Response:
The School District will repay loans in confonnity with constitutional limitations.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7891-01-02
The City ofThomasville Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the fonnal accounting records as required by generally accepted accounting principles. This condition result~ in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action sheuld 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 recordsshould be maintained of all additions and deletions to the General Fixed Assets Account Group.
Management's Response:
The School District is in the process ofcreating and maintaining a general fixed assets account group to comply with GASB 34 requirements in accordance with state statutes.
-2 -

I
CITY OF THOMASVILLE BOARD OF EDUCATION - THOMAS COUNTY SCHEDULE OF FINDINGS AND -OUESTIONED COSTS YEAR ENDED JUNE 30, 2001
III .FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported.

I,

-3-