{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2007-h2008","title":"Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2008","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Taliaferro County, 33.56609, -82.87876"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2008-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2000; ceased with: Fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Taliaferro County Board of Education, Crawfordville, Georgia, schedule of salaries and travel for fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed July 12, 2023).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed July 12, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Taliaferro County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Taliaferro County--Auditing--Periodicals.","Education--Georgia--Taliaferro County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2008"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2007-h2008"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"TALIAFERRO COUNTY BOARD OF EDUCATION \r\nCRAWFORDVILLE, GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n23 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF FEDERAL EXPENDITURES \r\n \r\n24 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n25 \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n27 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 31, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \r\nand Superintendent and Members ofthe Taliaferro County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Taliaferro County Board of Education, as of and for the year ended June 30, 2008, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Taliaferro County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe 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 financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Taliaferro County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 opinions. \r\n \r\n2008ARL-ll \r\n \r\n In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position ofthe governmental activities, each major fund, and the aggregate remaining fund information ofthe Taliaferro County Board of Education, as ofJune 30, 2008, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\nThe Taliaferro County Board ofEducation has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 31, 2009, on our consideration of the Taliaferro County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 23, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Taliaferro County Board of Education's basic financial statements. The accompanying supplementary information which consist ofSchedules 2 through 4, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n~tJ.~ \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\nRWH:gp 2008ARL-11 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2008 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nBus Replacement Continuation of Federal Programs Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT\"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n377,681.70 \r\n \r\n42,424.11 \r\n \r\n71,140.73 83,355.01 97,175.00 18,460.41 \r\n3,064.78 45,590.29 5,298,056.56 \r\n \r\n$ ===6,=0=36=,9=4=8=.5=9 \r\n \r\n$ \r\n \r\n2,884.48 \r\n \r\n187,177.71 \r\n \r\n45,000.00 210,000.00 \r\n \r\n$ \r\n \r\n445,062.19 \r\n \r\n$ \r\n \r\n5,088,646.85 \r\n \r\n56,876.00 3,867.26 \r\n50,409.77 392,086.52 \r\n \r\n$ \r\n \r\n5,591,886.40 \r\n \r\n$ ===6,=0=36=,9=4=8=.5=9 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -1- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2008 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n2,158,622.30 $ \r\n \r\n57,482.71 163,722.31 \r\n62,124.56 150,440.42 179,245.35 102,632.73 197,687.03 227,518.14 \r\n3,820.00 \r\n \r\n35,582.55 180,771.56 \r\n11 416.67 \r\n \r\n$ \r\n \r\n3,531,066.33 $ \r\n \r\n4,884.01 \r\n23,284.36 8,212.25 \r\n36,380.62 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -2- \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n1,221,895.44 $ \r\n \r\n25,072.87 161,465.94 29,351.12 303,315.59 149,302.43 \r\n3,345.98 67,670.11 106,672.14 \r\n \r\n155,656.08 \r\n \r\n$ \r\n \r\n2,223,747.70 $ \r\n \r\n129,042.07 $ 20,325.00 149 367.07 $ \r\n \r\n-802,800.78 \r\n-32,409.84 -2,256.37 \r\n-32,773.44 152,875.17 -29,942.92 -99,286.75 -130,016.92 -100,521.00 \r\n-3,820.00 \r\n-12,298.19 -16,903.23 -11 416.67 \r\n-1, 121,570.94 \r\n \r\n$ \r\n \r\n865,266.28 \r\n \r\n9,258.37 \r\n \r\n114,939.37 9,735.96 8,820.52 \r\n74 779.84 \r\n \r\n$ \r\n \r\n1,082,800.34 \r\n \r\n$ \r\n \r\n-38,770.60 \r\n \r\n5,630,657.00 \r\n \r\n$ ===5=,5=9=1\"=,8=8=6.=40= \r\n \r\n-3- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2008 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Bus Replacement Continuation of Federal Programs Inventories Capital Projects \r\nUnreserved Designated for Student Activities Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 346,495.86 $ 42,424.11 \r\n45,091.04 83,355.01 97,175.00 18,460.41 \r\n3 064.78 \r\n \r\n31,185.84 $ 19,223.93 \r\n \r\n377,681.70 42,424.11 \r\n64,314.97 83,355.01 97,175.00 18,460.41 \r\n3 064.78 \r\n \r\n$ 636,066.21 $ \r\n \r\n50,409.77 $===6=86=,4=7=5=.9=8 \r\n \r\n$ \r\n \r\n2,884.48 \r\n \r\n187 177.71 \r\n \r\n$ 190,062.19 \r\n \r\n$ \r\n \r\n2,884.48 \r\n \r\n187 177.71 \r\n \r\n$ \r\n \r\n190,062.19 \r\n \r\n$ \r\n \r\n56,876.00 \r\n \r\n802.48 \r\n \r\n3,064.78 \r\n \r\n$ \r\n \r\n11,154.95 \r\n \r\n374,105.81 \r\n \r\n$ 446,004.02 $ \r\n \r\n$ 50,409.77 \r\n50409.77 $ \r\n \r\n56,876.00 802.48 \r\n3,064.78 50,409.77 \r\n11,154.95 \r\n374 105.81 \r\n496 413.79 \r\n \r\n$ 636,066.21 $ \r\n \r\n50 409.77 $======6=86=4=7==5=.9=8 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2008 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \r\nLong-Term Liabilities are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \r\nCapital Leases Payable \r\n \r\n$ 496,413.79 \r\n \r\n$ 45,590.29 705,545.13 \r\n4,683,235.30 764,370.01 -855,093.88 \r\n \r\n5,343,646.85 \r\n \r\n6,825.76 \r\n \r\n-255,000.00 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 5,591,886.40 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008 \r\n \r\nEXHIBIT\"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 883,115.79 9,735.96 $ \r\n1,784,701.61 459,371.08 36,380.62 7,978.67 74 779.84 \r\n \r\n$ 114,939.37 \r\n841.85 \r\n \r\n883,115.79 124,675.33 1,784,701.61 459,371.08 36,380.62 \r\n8,820.52 74 779.84 \r\n \r\n$ 3,256,063.57 $ 115,781.22 $ 3,371,844.79 \r\n \r\n$ 2,066,871.76 \r\n \r\n$ 2,066,871.76 \r\n \r\n57,482.71 163,722.31 59,309.33 150,440.42 179,245.35 102,632.73 196,386.84 197,078.97 \r\n3,820.00 35,582.55 168,220.58 \r\n$ \r\n \r\n479,559.78 \r\n \r\n57,482.71 163,722.31 59,309.33 150,440.42 179,245.35 102,632.73 196,386.84 197,078.97 \r\n3,820.00 35,582.55 168,220.58 479,559.78 \r\n \r\n45,000.00 11,416.67 \r\n \r\n45,000.00 11 416.67 \r\n \r\n$ 3,380,793.55 $ 535,976.45 $ 3,916,770.00 \r\n \r\n$ -124,729.98 $ -420, 195.23 $ -544,925.21 \r\n \r\n570,734.00 470,605.00 \r\n \r\n1,041,339.00 \r\n \r\n$ 446,004.02 $ 50,409.77 $ 496,413.79 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2008 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\n \r\n$ -544,925.21 \r\n \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\n \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\n \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\n \r\n$ 488,895.37 -148, 191.88 \r\n \r\n340,703.49 \r\n \r\nSome of the Capital Assets acquired this year were purchased with e-rate funds. In Governmental Funds, these assets, as well as the associated revenue, are not recognized, but in the Statement of Activities, the contribution of e-rate funds is recognized as a capital contribution. \r\n \r\n129,042.07 \r\n \r\nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \r\n \r\n-8,590.95 \r\n \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \r\n \r\nCapital Lease Payments \r\n \r\n45,000.00 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -38,770.60 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2008 \r\nASSETS Cash and Cash Equivalents Investments \r\nCertificate of Deposit \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT\"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n3,522.61 \r\n \r\n10,308.92 \r\n \r\n$ 13,831.53 \r\n \r\n$ 13,831.53 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Taliaferro County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nAdditionally, the Taliaferro County Board of Education operates as a Charter School educating all children in Grades K-12 in the county. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Taliaferro County Board of Education. \r\nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\n \r\n-9- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \r\n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) to be used for the acquisition, construction or renovation of major capital facilities. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be \r\n- 10 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\navailable if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code ofGeorgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation of the United States government, \r\n \r\n- 11 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Taliaferro County Board of Commissioners fixed the property tax levy for the 2007 tax digest year (calendar year) on December 5, 2007 (levy date). Taxes were due on February 8, 2008 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2007 tax digest are reported as revenue in the governmental funds for fiscal year 2008. The Taliaferro County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2008, for maintenance and operations amounted to $873,857.42. \r\n \r\nThe tax millage rate levied for the 2007 tax year (calendar year) for the Taliaferro County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n13.25 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $114,939.37 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\n- 12 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAll \r\n \r\nNIA \r\n \r\n$ 5,000.00 10 to 90 years \r\n \r\n$ 5,000.00 30 to 90 years \r\n \r\n$ 5,000.00 5 to 50 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nNET ASSETS \r\n \r\nThe School District's net assets in the District-wide Statements are classified as follows: \r\n \r\n- 13 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \r\nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nNote 3: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(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, \r\n \r\n- 14 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \r\n \r\n(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 or securities guaranteed 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. \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2008, the bank balances were $513,690.79. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk: \r\n \r\nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \r\ntrust department or agent but not in the School District's name. \r\n \r\nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: \r\n \r\nCustodial Credit Risk Category \r\n1 2 3 \r\n \r\nBank Balance \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n403,435.84 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ 403,435.84 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2008, the carrying value ofthe School District's total investments was $42,424.11, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, 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 of the State of Georgia, Office ofTreasury and Fiscal Services for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State ofGeorgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department ofAudits and Accounts at http://www.audits. state.ga. us/internet/searchRpts.html. \r\n \r\n- 15 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nThe Primary Liquidity Portfolio consists ofGeorgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2008, was 40 days. \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1. 2007 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2008 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 45,590.29 $ 42,822.00 \r\n \r\n0.00 \r\n \r\n$ 45,590.29 \r\n \r\n$ 42,822.00 \r\n \r\n0.00 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 88,412.29 $ \r\n \r\n0.00 $ 42,822.00 $ 45,590.29 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 4,539,855.00 $ 143,380.30 $ \r\n \r\n745,813.00 \r\n \r\n18,557.01 \r\n \r\n206,723.00 498,822.13 \r\n \r\n0.00 $ 4,683,235.30 764,370.01 705,545.13 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n287,342.00 389,233.00 \r\n30,327.00 \r\n \r\n66,122.23 53,636.03 28,433.62 \r\n \r\n353,464.23 442,869.03 \r\n58,760.62 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 4,785,489.00 $ 512,567.56 $ \r\n \r\n0.00 $ 5,298,056.56 \r\n \r\nGovernmental Activity Capital Assets - Net $ 4.873.901.29 $ 512.567.56 $ 42,822.00 $ 5.343.646.85 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2008, are as follows: \r\n \r\n- 16 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nGovernmental Funds \r\n \r\nLand Improvements Less: Accumulated Depreciation \r\n \r\n$ 498,822.00 14,548.98 \r\n \r\n$ 484,273.02 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nEducational Media Services Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 97,067.95 \r\n \r\n$ 2,951.00 1,370.00 \r\n33,648.93 \r\n \r\n37,969.93 13,154.00 \r\n \r\n$ 148,191.88 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST) proceeds are restricted assets in the Statement of Net Assets because their use is limited by statutory provisions. Restricted assets at June 30, 2008, were as follows: \r\n \r\nDistrict-wide Capital Projects SPLOST \r\n \r\nRestricted Cash and Cash Equivalents: Capital Acquisitions \r\n \r\n$ 31,185.84 \r\n \r\nNote 7: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe 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 \r\n \r\n- 17 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 7: RISK MANAGEMENT \r\n \r\ndamage, 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 (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd ofYear Liability \r\n \r\n2007 2008 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n738.00 $ \r\n \r\n738.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n3,906.00 $ \r\n \r\n3,906.00 $ \r\n \r\n0.00 \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\nSuperintendent Each Employee \r\n \r\nAmount \r\n$ 50,000.00 $ 25,000.00 \r\n \r\nNote 8: LONG-TERM DEBT \r\nCAPITAL LEASES The Taliaferro County Board of Education entered into an agreement dated February 1, 2007, with the Georgia School Board Association for the construction and subsequent lease of a multisport \r\n \r\n- 18 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 8: LONG-TERM DEBT \r\n \r\nathletic complex. Under the terms ofthe agreement, the School District will make annual payments through December 1, 2012. This lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows: \r\n \r\nCapital Leases \r\n \r\nBalance July I, 2007 \r\n \r\nGovernmental Funds \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nBalance June 30, 2008 \r\n \r\nDue Within One Year \r\n \r\n$ 3QQ,QQQ,QQ $ \r\n \r\nQ,QQ $ 45 QQQ,QQ $ 255,QQQ QQ $ 45,000.00 \r\n \r\nAt June 30, 2008, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2009 2010 2011 2012 2013 \r\n \r\n$ 45,000.00 $ 12,750.00 \r\n \r\n50,000.00 \r\n \r\n10,500.00 \r\n \r\n50,000.00 \r\n \r\n8,000.00 \r\n \r\n55,000.00 \r\n \r\n5,500.00 \r\n \r\n55,000.00 \r\n \r\n2,750.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 255,000.00 $ 39,500.00 \r\n \r\nNote 9: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $68,054.39 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $67,523.39 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $531.00 \r\n \r\n- 19 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 10: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\nAmounts 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 costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 11: POSTEMPLOYMENT BENEFITS \r\n \r\nGeorgia Retiree Health Benefit Fund \r\n \r\nPlan Description. The School District contributes to the Georgia Retiree Health Benefit Fund (\"GRHBF\"), a cost-sharing multiple-employer defined benefit postemployment healthcare plan administered by the Department of Community Health. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. Pursuant to Title 45, Chapter 18 ofthe Official Code ofGeorgia Annotated, the authority to establish and amend the benefit provisions ofthe plan is assigned to the Board of Community Health. The Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for GRHBF. That report may be obtained from the Department ofCommunity Health at 2 Peachtree Street, Atlanta, Georgia 30303. \r\n \r\nFunding Policy. The contribution requirements of plan members and participating employers are established and may be amended by the Board of Community Health. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately twenty-five percent (25%) of the cost ofhealth insurance coverage. \r\n \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rate established by the Board of Community Health. This contribution rate is established to fund both the active and retired employee health insurance plans based on projected pay-as-you-go financing requirements. The employer contribution rates for the combined active and retiree plans for the fiscal year ended June 30, 2008, were as follows: \r\n \r\nTeachers Non-Certificated Employees \r\n \r\n18.534% of state-based salaries $162.72 per month \r\n \r\nThe School District's contribution to the health insurance plans for the fiscal year ended June 30, 2008, was $296,993.92, which equaled the required contribution. \r\n \r\n- 20 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 12: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2008 2007 2006 \r\n \r\n100% 100% 100% \r\n \r\n$ 163,990.49 $ 168,544.00 $ 158,063.00 \r\n \r\n- 21 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n915,631.00 $ \r\n \r\n915,631.00 $ \r\n \r\n883,115.79 \r\n \r\n12,000.00 \r\n \r\n12,000.00 \r\n \r\n9,735.96 \r\n \r\n1,699,465.00 \r\n \r\n1,721,031.00 \r\n \r\n1,784,701.61 \r\n \r\n485,096.00 \r\n \r\n500,650.00 \r\n \r\n459,371.08 \r\n \r\n9,633.00 \r\n \r\n9,633.00 \r\n \r\n36,380.62 \r\n \r\n12,750.00 \r\n \r\n12,750.00 \r\n \r\n7,978.67 \r\n \r\n74 779.84 \r\n \r\n$ \r\n \r\n3,134,575.00 $ \r\n \r\n3,171,695.00 $ \r\n \r\n3,256,063.57 \r\n \r\n$ \r\n \r\n1,874,837.00 $ \r\n \r\n2,032,875.00 $ \r\n \r\n2,066,871.76 \r\n \r\n65,284.00 164,318.00 \r\n60,491.00 155,892.00 141,078.00 103,016.00 185,132.00 188,656.00 \r\n3,820.00 \r\n182,033.00 \r\n \r\n65,284.00 167,646.00 \r\n61,051.00 156,225.00 141,078.00 103,016.00 185,552.00 188,656.00 \r\n3,820.00 \r\n182,033.00 \r\n \r\n57,482.71 163,722.31 \r\n59,309.33 150,440.42 179,245.35 102,632.73 196,386.84 197,078.97 \r\n3,820.00 35,582.55 168,220.58 \r\n \r\n$ \r\n \r\n3,124,557.00 $ \r\n \r\n3,287,236.00 $ \r\n \r\n3,380,793.55 \r\n \r\n$ \r\n \r\n10,018.00 $ \r\n \r\n-115,541.00 $ \r\n \r\n-124,729.98 \r\n \r\n570,482.75 \r\n \r\n570,482.75 \r\n \r\n570,734.00 \r\n \r\n1 261.56 \r\n \r\n-17.94 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n581,762.31 $ \r\n \r\n454,923.81 $===44=6=,0=0=4=.0==2 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 23 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FEDERAL EXPENDITURES YEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Improving Teacher Quality State Grants Safe and Drug-Free Schools and Communities - State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies \r\nTotal U. S. Department of Education \r\nTotal Federal Expenditures \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n$ \r\n \r\n49,248.35 \r\n \r\n101,222.44 \r\n \r\n$ \r\n \r\n150,470.79 \r\n \r\n8,759.85 $ _ _..;.1.;;;.;59:;.i;,2=3a.;;0.;.:.6'-'-4 \r\n \r\n$ \r\n \r\n35,412.00 \r\n \r\n3,900.00 \r\n \r\n$ \r\n \r\n39,312.00 \r\n \r\n4,276.00 41,395.00 \r\n2,115.00 560.00 \r\n225,029.00 \r\n$ _ _...3...'.\"\"12=1-e__s__1___._o__o__ \r\n \r\n$ ==4=7=1.9.1.=7=.64= \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 24- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, 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 Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Vocational Supervisors Mid-term Adjustment Hold-Harmless Food Services Vocational Education Amended Formula Adjustment Other State Programs Health Insurance High School Graduation Coaches Preschool Handicapped Program Remedial Summer School Virtual Schools Grant \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 25 - \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n103,920.21 \r\n \r\n60,517.00 5,537.50 \r\n129,058.50 5,080.50 \r\n75,674.50 5,067.50 \r\n98,929.50 130,417.50 \r\n33,435.50 \r\n7,176.00 23,781.00 51,359.50 17,652.50 146,226.50 3,041.00 12,193.00 21,509.00 6,475.00 4,082.00 \r\n234,912.50 86,861.50 51,947.00 \r\n102,956.00 20,325.00 189,314.00 23,598.00 8,662.01 3,789.00 8,972.00 21,991.00 -26,663.50 \r\n67,523.39 42,467.00 \r\n6,157.00 150.00 75.00 \r\n531.00 \r\n$ ==1=,7=8=4=,7=01=.6===1 \r\n \r\n (This page left intentionally blank) \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nAcquiring, constructing, installing, furnishing and equipping a new school for grades K-12 in Taliaferro County, including any school buildings and athletics facilities, and payment of expenses incident thereto. \r\nConstructing and equipping of a new multisport athletic complex and renovations and repairs to existing athletic fields and facilities; and acquisition and installation of a sound system for the gymnasium. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 500,000.00 $ 4,808,106.00 $ \r\n \r\n22,730.00 $ 4,756,371.00 Ongoing \r\n \r\n500,000.00 \r\n \r\n559 377.45 \r\n \r\n468,246.45 \r\n \r\n91131.00 Ongoing \r\n \r\n$ 1,000,000.00 $ 5,367,483.45 $ 490,976.45 $ 4,847,502.00 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Taliaferro County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 31, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members ofthe Taliaferro County Board of Education \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Taliaferro County Board of Education as of and for the year ended June 30, 2008, which collectively comprise Taliaferro County Board ofEducation's basic financial statements and have issued our report thereon dated March 31, 2009. 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 of the United States. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Taliaferro County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose ofexpressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness ofthe Taliaferro County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe Taliaferro County Board of Education's internal control over financial reporting. \r\nOur consideration ofinternal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified a certain deficiency in internal control over financial reporting that we consider to be a significant deficiency. \r\n2008YB-41 \r\n \r\n A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Taliaferro County Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement ofthe Taliaferro County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Taliaferro County Board ofEducation's internal control. We consider item FS-7311-08-01 in the accompanying Schedule ofFindings and Questioned Costs to be a significant deficiency in internal control over financial reporting. \r\nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Taliaferro County Board of Education's internal control. \r\nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we consider item FS-7311-08-01 to be a material weakness. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Taliaferro County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nWe noted certain matters that we have reported to management of Taliaferro County Board of Education in a separate letter dated March 31, 2009. \r\nTaliaferro County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit Taliaferro County Board of Education's response and, accordingly, we express no opinion on it. \r\n2008YB-41 \r\n \r\n This report is intended solely for the information and use ofmanagement, members ofthe Taliaferro County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\n \r\nRWH:gp 2008YB-41 \r\n \r\nRespectfully submitted, \r\n~tJ.~ \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7311-07-01 \r\n \r\nUnresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Finding Control Number: FS-7311-07-01 \r\n \r\nThe Board anticipates to consult and hire an outside third party to assist in the preparation of the financial statements. The bookkeeper will gain knowledge and understand the preparation process while providing all necessary information and supporting documents to the third party. This action will become effective upon the closing of the books for fiscal year 2009. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-7311-07-01 \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7311-08-01 \r\n \r\nCondition: \r\n \r\nThis is a repeat finding (FS-7311-07-01) from fiscal year ended June 30, 2007. The School District did not have adequate controls in place to ensure that all required activity was included in the financial statement information presented for audit. \r\n \r\nCriteria: \r\n \r\nChapter 22 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration indicates that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nDuring the audit, the following correcting entries were proposed and accepted by the client to properly present the entity's financial statements: \r\n \r\nCapital Assets were not recorded correctly. An audit adjustment was necessary to record capital assets of $108,375.73 and accumulated depreciation of $3,043.88. \r\n \r\nCapital Grant and Contributions activity were not recorded. An audit adjustment was necessary to record capital grants and contributions revenue in the amount of$129,042.07. \r\n \r\nCause: \r\n \r\nThe School District did not implement an adequate system ofinternal control over the financial reporting process. \r\n \r\nEffect: \r\n \r\nThe School District did not comply with the requirements of the Georgia Department of Education regarding financial reporting. Adjustments were necessary in order for the School District's financial statements to be in conformity with generally accepted accounting principles. \r\n \r\nRecommendation: \r\n \r\nThe School District should implement controls over the financial statement reporting process to ensure that all required activity is included in the financial statement information. \r\n \r\n SECTIONV MANAGEMENT'S RESPONSES \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30, 2008 \r\nFinding Control Number: FS-7311-08-01 \r\nThe Taliaferro County Board of Education concurs with the above finding: Resolutions to be implemented: \r\nThe Board anticipates to consult and hire an outside third party to assist in the preparation of the financial statements. The bookkeeper will gain knowledge and understand the preparation process while providing all necessary information and supporting documents to the third party. This action will become effective upon the closing of the books for fiscal year 2009. \r\nContact Person: Dr. Les Bivens, Superintendent Phone: ((706) 456-2575 Fax: (706) 456-2689 E-mail: lbivens@taliaferro.kl2.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2006-h2007","title":"Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Taliaferro County, 33.56609, -82.87876"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2007-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2000; ceased with: Fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Taliaferro County Board of Education, Crawfordville, Georgia, schedule of salaries and travel for fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed July 12, 2023).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed July 12, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Taliaferro County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Taliaferro County--Auditing--Periodicals.","Education--Georgia--Taliaferro County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2006-h2007"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"TALIAFERRO COUNTY BOARD OF EDUCATION \r\nCRAWFORDVILLE, GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n4 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n5 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n7 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n8 \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n9 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERALFUND \r\n \r\n23 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n24 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n25 \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n27 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 15, 2008 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Taliaferro County Board of Education, as of and for the year ended June 30, 2007, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Taliaferro County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe 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 financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Taliaferro County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 opinions. \r\n \r\n2007ARL-11 \r\n \r\n In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Taliaferro County Board of Education, as of June 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\nThe Taliaferro County Board ofEducation has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated February 15, 2008, on our consideration of the Taliaferro County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 23, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Taliaferro County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 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 ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\nQ,._.....m w ~ \r\n~J;sell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2007ARL-11 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2007 \r\n \r\nEXHIBIT\"A\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nBus Replacement Continuation of Federal Programs Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n- 1- \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n993,318 \r\n \r\n29,743 59,091 90,146 86,122 3,083 \r\n \r\n45,590 42,822 206,723 4,539,855 745,813 -706 902 \r\n \r\n$ ===6=1=3=5=4=04= \r\n \r\n$ \r\n \r\n3,091 \r\n \r\n201,656 \r\n \r\n45,000 255,000 \r\n \r\n$ \r\n \r\n504 747 \r\n \r\n$ \r\n \r\n4,843,329 \r\n \r\n36,551 3,083 \r\n470,605 277 089 \r\n \r\n$ \r\n \r\n5,630,657 \r\n \r\n$===6=1=3=5=4=04= \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2007 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Real Estate Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n2,089,675 $ \r\n \r\n48,696 274,919 \r\n64,220 156,452 171,616 110,014 167,639 192,611 \r\n5,395 \r\n \r\n39,440 211 440 \r\n \r\n$ \r\n \r\n3,532,117 $ \r\n \r\n5,227 \r\n28,413 8146 \r\n41 786 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -2- \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n1,386,814 \r\n \r\n25,367 274,762 \r\n23,348 215,409 128,982 \r\n4,775 $ 58,595 113,306 \r\n336 \r\n \r\n147 001 \r\n \r\n$ \r\n \r\n2,378,695 $ \r\n \r\n$ \r\n58,374 60,636 119 010 $ \r\n \r\n-697,634 \r\n-23,329 -157 \r\n-40,872 58,957 -42,634 -46,865 -109,044 -18,669 -5,059 \r\n-11,027 -56 293 \r\n-992,626 \r\n \r\n$ \r\n \r\n866,813 \r\n \r\n113,236 30,774 11,838 22 300 \r\n \r\n$ \r\n \r\n1 044 961 \r\n \r\n$ \r\n \r\n52,335 \r\n \r\n5,578,322 \r\n \r\n$ ===5=,6=3=0=,6=57= \r\n \r\n-3- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2007 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Bus Replacement Inventories Capital Projects \r\nUnreserved Designated for Student Activities Undesignated Reported in: General Fund School Food Service Fund (Deficit) \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n537,039 $ \r\n \r\n456,279 $ \r\n \r\n59,091 90,146 86,122 \r\n3 083 \r\n \r\n14,326 \r\n \r\n993,318 \r\n14,326 59,091 90,146 86,122 \r\n3083 \r\n \r\n$ \r\n \r\n775 481 $ \r\n \r\n470 605 $ =======1=2=46==08=6= \r\n \r\n$ \r\n \r\n3,091 \r\n \r\n201,656 \r\n \r\n$ \r\n \r\n204 747 \r\n \r\n$ \r\n \r\n3,091 \r\n \r\n201 656 \r\n \r\n$ \r\n \r\n204 747 \r\n \r\n$ \r\n \r\n36,551 \r\n \r\n$ \r\n \r\n3,083 \r\n \r\n$ \r\n \r\n470,605 \r\n \r\n16,369 \r\n \r\n516,565 -1 834 \r\n \r\n$ \r\n \r\n570 734 $ \r\n \r\n470 605 $ \r\n \r\n36,551 3,083 \r\n470,605 \r\n16,369 \r\n516,565 -1 834 \r\n1 041 339 \r\n \r\n$ \r\n \r\n775 481 $ \r\n \r\n470 605 $ =======1=24=6=0=8=6= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \r\nLong-Term Liabilities are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \r\nCapital Leases \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n1,041,339 \r\n \r\n$ \r\n \r\n45,590 \r\n \r\n42,822 \r\n \r\n206,723 \r\n \r\n4,539,855 \r\n \r\n745,813 \r\n \r\n-706,902 \r\n \r\n4,873,901 \r\n \r\n15,417 \r\n \r\n-300,000 $ ====15,=63=0=,6=5=7 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2007 \r\n \r\nEXHIBIT\"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nCapital Leases \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n806,043 \r\n \r\n30,774 $ \r\n \r\n1,853,587 \r\n \r\n585,744 \r\n \r\n41,786 \r\n \r\n9,626 \r\n \r\n27 985 \r\n \r\n$ 3,355,545 $ \r\n \r\n$ 113,236 \r\n2,212 1000 116 448 $ \r\n \r\n806,043 144,010 1,853,587 585,744 41,786 11,838 28,985 \r\n3,471,993 \r\n \r\n$ 2,022,175 \r\n48,696 274,919 60,950 156,452 171,616 110,714 $ 166,121 220,860 \r\n5,395 39,440 196,861 \r\n$ 3,474,199 $ \r\n$ -118,654 $ \r\n \r\n$ \r\n29,872 \r\n52,719 82,591 $ 33,857 $ \r\n \r\n2,022,175 \r\n48,696 274,919 60,950 156,452 171,616 140,586 166,121 220,860 \r\n5,395 39,440 196,861 52 719 \r\n3,556,790 \r\n-84,797 \r\n \r\n300,000 \r\n \r\n$ -118,654 $ 333,857 $ \r\n \r\n689,388 \r\n \r\n136,748 \r\n \r\n300,000 215,203 826,136 \r\n \r\n$ \r\n \r\n570 734 $ 470,605 $ ===1~,0=4=1,~3=39= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\n \r\n$ \r\n \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\n \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\n \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\n \r\n$ 195,888 -112 841 \r\n \r\nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \r\n \r\nIn the Statement of Activities, only the gain on the sale of the land is reported, whereas in the Governmenlal Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the cost of the land sold. \r\n \r\nSome of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability. \r\n \r\n215,203 \r\n83,047 60,770 -6,685 -300,000 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ ===5=2=,3=3=5 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2007 \r\nASSETS Cash and Cash Equivalents Investments \r\nCertificate of Deposit Accounts Receivable, Net \r\nOther \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT\"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n7,348 \r\n \r\n13,711 \r\n \r\n1 000 \r\n \r\n$ ===22=!..0.5. =9= \r\n \r\n$ ===2..,;2,=05=9= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Taliaferro County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nAdditionally, the Taliaferro County Board of Education operates as a Charter School educating all children in Grades K-12 in the county. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Taliaferro County Board of Education. \r\nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofintemal activities. \r\n \r\n-9- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSeparate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \r\n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) to be used for the acquisition, construction or renovation of major capital facilities. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund \r\n \r\n- 10 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nliability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported.at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation ofthe United States government, \r\n(5) Prime banker's acceptances, \r\n \r\n- 11 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Taliaferro County Board ofCommissioners fixed the property tax levy for the 2006 tax digest year (calendar year) on September 12, 2006 (levy date). Taxes were due on December 20, 2006 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2006 tax digest are reported as revenue in the governmental funds for fiscal year 2007. The Taliaferro County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2007, for maintenance and operations amounted to $806,043. \r\n \r\nThe tax millage rate levied for the 2006 tax year (calendar year) for the Taliaferro County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n12.1 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $113,236 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\n- 12 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAll \r\n \r\nNIA \r\n \r\n$ \r\n \r\n5,000 10 to 90 years \r\n \r\n$ \r\n \r\n5,000 30 to 90 years \r\n \r\n$ \r\n \r\n5,000 5 to 50 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nNET ASSETS \r\n \r\nThe School District's net assets in the District-wide Statements are classified as follows: \r\n \r\n- 13 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \r\n \r\nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\n \r\nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\n \r\nDEFICIT FUND BALANCE \r\n \r\nThe fund reporting a deficit fund balance at June 30, 2007, is as follows: \r\n \r\nFund Type/Fund Name \r\n \r\nDeficit Balance \r\n \r\nGovernmental Fund Type School Food Service Fund \r\n \r\n$ \r\n \r\n1,834 \r\n \r\nThe Taliaferro County Board ofEducation plans to eradicate the deficit by eliminating invalid salary and benefits payable included in the School Food Service Fund. \r\n \r\nNote 3: DEPOSITS \r\n \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe 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. 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. \r\n \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n \r\n- 14 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS \r\n \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\n(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, \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\n(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. \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $1,055,646. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk: \r\n \r\nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution in \r\nthe School District's name, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \r\ntrust department or agent but not in the School District's name. \r\n \r\nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0 \r\n \r\n2 \r\n \r\n942,064 \r\n \r\n3 \r\n \r\n0 \r\n \r\nTotal \r\n \r\n$======9=42-,0=6==4 \r\n \r\n- 15 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances \r\nJuly 1. 2006 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2007 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ \r\n \r\n52,275 \r\n \r\n$ \r\n \r\n12,250 $ \r\n \r\n30,572 \r\n \r\n6,685 $ \r\n \r\n45,590 42,822 \r\n \r\nTotal Capital Assets Not Being Depreciated $ \r\n \r\n64,525 $ \r\n \r\n30,572 $ \r\n \r\n6,685 $ \r\n \r\n88,412 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 4,444,097 $ 685,855 197,123 \r\n \r\n95,758 $ 59,958 9,600 \r\n \r\n0 $ 4,539,855 745,813 206,723 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n235,734 341,565 \r\n16,762 \r\n \r\n51,608 47,668 13,565 \r\n \r\n287,342 389,233 \r\n30,327 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 4,733,014 $ \r\n \r\n52,475 $ \r\n \r\n0 $ 4,785,489 \r\n \r\nGovernmental Activity Capital Assets - Net $ ~.727,532 $ \r\n \r\n83,047 $ \r\n \r\n6,685 $ ~.873,201 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nEducational Media Services Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ \r\n \r\n66,756 \r\n \r\n$ \r\n \r\n2,951 \r\n \r\n1,370 \r\n \r\n28,610 \r\n \r\n32,931 13,154 \r\n \r\n- 16 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST) proceeds are reported as restricted assets in the Statement of Net Assets because their use is limited by statutory provisions. Restricted assets at June 30, 2007, were as follows: \r\n \r\nDistrict-wide Capital Projects SPLOST \r\n \r\nRestricted Cash and Cash Equivalents: Capital Acquisitions \r\n \r\n$ \r\n \r\n456,279 \r\n \r\nNote 7: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe 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 (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\n- 17 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote7: RISKMANAGEMENT \r\n \r\n2006 2007 \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEndofYear Liability \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n0 $ \r\n \r\n0 $ \r\n \r\n0 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n738 $ \r\n \r\n738 $ \r\n \r\n0 \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $500,000 loss per occurrence, up to $2,000,000. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Principal Assistant Principal Bookkeepers Office Clerk Secretary Athletic Director \r\n \r\n$ \r\n \r\n70,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\nNote 8: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Taliaferro County Board ofEducation entered into an agreement dated February 1, 2007, with the Georgia School Board Association for the construction and subsequent lease of multisport athletic complex. Under the terms ofthe agreement, the School District will make annual payments through December 1, 2012. This lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: \r\n \r\n- 18 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 8: LONG-TERM DEBT \r\n \r\nBalance July 1, 2006 \r\n \r\nGovernmental Funds Capital Leases \r\n \r\n$ \r\n \r\n0 \r\n \r\nAdditions Capital Leases \r\n \r\n300,000 \r\n \r\nBalance June 30, 2007 \r\n \r\n$ 300.000 \r\n \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$_____4..5.....,..0...0..~0 \r\n \r\nAt June 30, 2007, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2008 2009 2010 2011 2012 2013 \r\n \r\n$ \r\n \r\n45,000 $ \r\n \r\n11,417 \r\n \r\n45,000 \r\n \r\n12,750 \r\n \r\n50,000 \r\n \r\n10,500 \r\n \r\n50,000 \r\n \r\n8,000 \r\n \r\n55,000 \r\n \r\n5,500 \r\n \r\n55,000 \r\n \r\n2,750 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 300.000 $====50-,9===1==7 \r\n \r\nNote 9: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of$64,643 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $64,141 \r\n \r\n- 19 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 9: ON-BEHALF PAYMENTS \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $502 \r\n \r\nNote 10: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2007: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nTaliaferro County School \r\n \r\n$===4===27-,0===0==0 \r\n \r\nThe amount described in this note is not reflected in the basic financial statements. \r\n \r\nNote 11: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\nAmounts 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 costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 12: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia {TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\n- 20- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 12: RETIREMENT PLANS \r\nFiscal Year 2007 2006 2005 \r\n \r\nPercentage Contributed \r\n100% 100% 100% \r\n \r\nRequired Contribution \r\n$ 168,544 $ 158,063 $ 147,469 \r\n \r\n- 21 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL {1) \r\n \r\nFINAL {1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n841,204 $ \r\n \r\n841,204 $ \r\n \r\n806,043 \r\n \r\n12,000 \r\n \r\n12,000 \r\n \r\n30,774 \r\n \r\n1,718,884 \r\n \r\n1,719,624 \r\n \r\n1,853,587 \r\n \r\n601,044 \r\n \r\n613,450 \r\n \r\n585,744 \r\n \r\n7,800 \r\n \r\n7,800 \r\n \r\n41,786 \r\n \r\n12,550 \r\n \r\n12,550 \r\n \r\n9,626 \r\n \r\n27 985 \r\n \r\n$ \r\n \r\n3,193,482 $ \r\n \r\n3,206,628 $ \r\n \r\n3,355,545 \r\n \r\n$ \r\n \r\n1,980,145 $ \r\n \r\n1,984,416 $ \r\n \r\n2,022,175 \r\n \r\n63,427 270,610 57,993 168,239 143,149 109,132 208,556 247,926 \r\n4,200 \r\n178 000 \r\n \r\n63,427 283,430 \r\n57,993 158,810 157,246 109,132 208,556 247,926 \r\n6,200 \r\n178 000 \r\n \r\n48,696 274,919 60,950 156,452 171,616 110,714 166,121 220,860 \r\n5,395 39,440 196 861 \r\n \r\n$ \r\n \r\n3 431 377 $ \r\n \r\n3,455,136 $ \r\n \r\n3 474199 \r\n \r\n$ \r\n \r\n-237,895 $ \r\n \r\n-248,508 $ \r\n \r\n-118,654 \r\n \r\n666,132 \r\n \r\n667,330 \r\n \r\n689,388 \r\n \r\n20 \r\n \r\n1 197 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n428 257 $ \r\n \r\n420 019 $ ===a5=7=0=7=34= \r\n \r\nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 23 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Improving Teacher Quality State Grants Reading First State Grants Safe and Drug-Free Schools and Communities - State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \r\nTotal U.S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A N/A $ \r\n$ \r\n \r\n(2) 181 665 \r\n181,665 \r\n \r\n10.550 \r\n \r\nN/A \r\n$ \r\n \r\n6200 187 865 \r\n \r\n84.027 84.173 \r\n \r\nN/A $ N/A \r\n$ \r\n \r\n84.318 84.367 84.357 84.186 84.298 * 84.010 84.048 \r\n \r\nN/A N/A NIA N/A N/A N/A NIA \r\n$ \r\n \r\n40,725 4 079 \r\n44,804 \r\n7 42,541 118,972 \r\n2,213 636 \r\n228,029 10 537 \r\n447739 \r\n \r\nTotal Federal Financial Assistance \r\nN/A = Not Available \r\n \r\n$====63=5=,6=0=4 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($46,917) were not maintained separately and are included in the 2007 National School Lunch Program. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Taliaferro County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 24- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, 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 Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Food Services Vocational Education Amended Formula Adjustment Other State Programs Pupil Transportation State Bonds Health Insurance High School Graduation Coaches K-8 Statewide Reading Program Preschool Handicapped Program Remedial Summer School \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nCONTRACT Education, Georgia Department of Foreign Language Model Program \r\nOTHER Human Resources, Georgia Department of Family Connection \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 25 - \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n106,279 \r\n \r\n46,640 5,045 \r\n126,044 3,978 \r\n104,422 4,586 \r\n110,884 118,209 \r\n72,207 \r\n28,998 68,301 13,856 \r\n9,392 11,040 21,512 \r\n7,179 3,959 \r\n211,861 81,452 57,198 \r\n109,629 10,636 \r\n182,420 24,000 760 9,429 39,513 8,996 25,383 -29,818 \r\n50,000 64,141 40,075 22,500 \r\n5,660 471 \r\n502 \r\n30,500 \r\n45 748 \r\n$ ===1-=8=5,..3=58=7= \r\n \r\n (This page left intentionally blank) \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\nAcquiring, constructing, installing, furnishing \r\n \r\nand equipping a new school for grades \r\n \r\nK-12 in Taliaferro County, including any \r\n \r\nschool buildings and athletics facilities, and \r\n \r\npayment of expenses incident thereto. \r\n \r\n$ \r\n \r\nConstructing and equipping of a new multisport althletic complex and renovations and repairs to existing athletic fields and facilities; and acquisition and installation of a sound system for the gymnasium. \r\n \r\n500,000 $ 4,756,371 $ \r\n \r\n500,000 \r\n \r\n500,000 \r\n \r\n7,524 $ 4,748,847 Ongoing \r\n \r\n75 067 \r\n \r\n16 064 Ongoing \r\n \r\n$ 1,000,000 $ 5,256,371 $ \r\n \r\n82 591 $ 4 764 911 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Taliaferro County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 15, 2008 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Taliaferro County Board of Education as of and for the year ended June 30, 2007, which collectively comprise Taliaferro County Board ofEducation's basic financial statements and have issued our report thereon dated February 15, 2008. 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 of the United States. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Taliaferro County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose ofexpressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness ofthe Taliaferro County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe Taliaferro County Board of Education's internal control over financial reporting. \r\nOur consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified a certain deficiency in internal control over financial reporting that we consider to be a significant deficiency. \r\n2007YB-41 \r\n \r\n A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the Taliaferro County Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement ofthe Taliaferro County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Taliaferro County Board ofEducation's internal control. We consider item FS-7311-07-01 in the accompanying Schedule ofFindings and Questioned Costs to be a significant deficiency in internal control over financial reporting. \r\nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Taliaferro County Board of Education's internal control. \r\nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we consider item FS-7311-07-01 to be a material weakness. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Taliaferro County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nWe noted certain matters that we have reported to management of Taliaferro County Board of Education in a separate letter dated February 15, 2008. \r\nTaliaferro County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit Taliaferro County Board of Education's response and, accordingly, we express no opinion on it. \r\n2007YB-41 \r\n \r\n This report is intended solely for the information and use of the management, members of the Taliaferro County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\n \r\nRWH:as 2007YB-41 \r\n \r\nRespectfully submitted, \r\n~~(~L~~~~ State Auditor \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 15, 2008 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Taliaferro County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2007. Taliaferro County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofTaliaferro County Board of Education's management. Our responsibility is to express an opinion on Taliaferro County Board of Education's compliance based on our audit. \r\nWe 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 0MB Circular A133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance 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 Taliaferro County Board of Education's compliance \r\n \r\n2007SA-30 \r\n \r\n with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Taliaferro County Board ofEducation's compliance with those requirements. \r\nIn our opinion, the Taliaferro County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2007. \r\nInternal Control Over Compliance \r\nThe management of Taliaferro County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Taliaferro County 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 determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Taliaferro County Board of Education's internal control over compliance. \r\nOur consideration of the internal control over compliance was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the Board's internal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies. \r\nA control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type ofcompliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. We consider the deficiency in internal control over compliance described in the accompanying Schedule ofFindings and Questioned Costs as item FA-7311-07-01 to be a significant deficiency. \r\nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control. We do not consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs to be a material weakness. \r\nTaliaferro County Board ofEducation's response to the finding identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Taliaferro County Board of Education's response and, accordingly, we express no opinion on it. \r\n2007SA-30 \r\n \r\n This report is intended solely for the information and use of the management, members of the Taliaferro County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~~-~ Russell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2007SA-30 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-7311-06-01 \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Taliaferro County Board of Education's financial statements was unqualified. \r\n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Taliaferro County Board of Education disclosed a financial statement significant deficiency related to the following control category. \r\nFinancial Reporting \r\nThe significant deficiency described above is considered to be a material weakness. \r\n3. Noncompliance Material to the Financial Statements The audit of the Taliaferro County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Taliaferro County Board of Education disclosed a significant deficiency in internal control over major programs for the following compliance requirement. \r\nSpecial Tests and Provisions \r\nThe significant deficiency described above is not considered to be a material weakness. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Taliaferro County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Taliaferro County Board ofEducation's audit disclosed an audit finding required to be reported by section .510(a) of 0MB Circular A-133. This audit finding is included in section N of this report. \r\n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.010 Title I Grants to Local Educational Agencies \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \r\n- 1- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n9. Low Risk Auditee The Taliaferro County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7311-07-01 \r\n \r\nCondition: \r\n \r\nThe School District did not have adequate controls in place over the financial statement reporting process. \r\n \r\nCriteria: \r\n \r\nManagement is responsible for having adequate controls over the financial reporting process, which not only includes proper recording oftransactions to the general ledger, but extends to accurate preparation and presentation ofthe financial statements, including note disclosures. \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nThe Governmental Accounting Standards Board (GASB) Statement 34 reporting model requires the presentation of both fund level and entity-wide level statements in the School District's financial statements. The School District was unable to provide both fund level and entity-wide level statements for audit, and correcting entries were proposed by the auditor to properly record transactions to the general ledger. \r\n \r\nCause: \r\n \r\nThe School District did not implement an adequate system ofinternal control over the financial statement reporting process. \r\n \r\nEffect: \r\n \r\nThe School District does not have adequate controls in place to ensure that the financial statements were properly prepared in accordance with generally accepted accounting principles. \r\n \r\nRecommendation: \r\n \r\nThe School District should develop and implement internal controls over the financial statement reporting process to ensure that activity is properly recorded in the general ledger; to verify that financial statements (including note disclosures) properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit. \r\n \r\n-2- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nSPECIAL TESTS AND PROVISIONS Fiscal Requirements of Schoolwide Program Not Fully Implemented Significant Deficiency U.S. Department of Education Through Georgia Department of Education Title I Grants to Local Educational Agencies (84.010) Finding Control Number: FA-7311-07-01 \r\n \r\nCondition: \r\n \r\nDuring the year under review, the School District identified its one consolidated school as participating in a schoolwide program. We noted that the School District did not allocate the schoolwide program expenditures to specific Federal funds in proportion to the different Federal funds provided in support of the schoolwide program. \r\n \r\nCriteria: \r\n \r\nIn line with 0MB Circular A-87 requirements, schoolwide expenditures should be charged to those Federal funding sources supporting the schoolwide program in a reasonable manner. If there is only one Federal funding source, then costs should be charged to the Federal program based on the specific benefits derived from that cost. When more than one Federal program supports a schoolwide program, then schoolwide program expenditures may be allocated to specific Federal funds in proportion to the different Federal funds provided in support of the schoolwide program. To distribute such costs, provisions ofOMB Circular A-87, Attachment E, F.3 state that a cost allocation plan should be developed, documented, and maintained for audit. \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nThe School District identified its one consolidated school as participating in a schoolwide program. We noted that the School District did not allocate the schoolwide program expenditures to specific Federal funds in proportion to the different Federal funds provided in support of the schoolwide program. \r\n \r\nCause: \r\n \r\nSchool District personnel were not fully aware of these requirements. \r\n \r\nEffect: \r\n \r\nFailure to appropriately allocate costs can result in noncompliance with requirements of the Federal grant. \r\n \r\n-3- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nSPECIAL TESTS AND PROVISIONS Fiscal Requirements of Schoolwide Program Not Fully Implemented Significant Deficiency U.S. Department of Education Through Georgia Department of Education Title I Grants to Local Educational Agencies (84.0 I0) Finding Control Number: FA-7311-07-01 \r\n \r\nRecommendation: \r\n \r\nThe School District should allocate the schoolwide program expenditures to specific Federal funds in proportion to the different Federal funds provided in support of the schoolwide program. The School District should seek additional guidance from the Georgia Department ofEducation to implement procedures for allocating schoolwide program expenditures. \r\n \r\n-4- \r\n \r\n SECTIONV MANAGEMENT'S RESPONSES \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30, 2007 \r\nFinding Control Number: FS-7311-07-01 \r\nThe Taliaferro County Board of Education concurs with the above finding. Resolutions to be implemented: \r\nInadequate Controls over Financial Reporting: The Board anticipates to consult and hire an outside third party to assist in the preparation of the financial statements. The bookkeeper will gain knowledge and understand the preparation process while providing all necessary information and supporting documents to the third party. This action will become effective upon the closing ofthe books for fiscal year 2008. \r\nFinding Control Number: FA-7311-07-01 \r\nThe Taliaferro County Board of Education concurs with the above finding. Resolutions to be implemented: \r\nFiscal Requirements of Schoolwide Program Not Fully Implemented: The School District will consolidate specific Federal funds and allocate schoolwide program expenditures to those specific Federal funds on a monthly basis. This action is effective March 6, 2008. \r\nContact Person: Lester Bivens Title: Superintendent Telephone: (706) 456-2575 Fax: (706) 456-2689 E-mail: lbivens@taliaferro.kl2.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2005-h2006","title":"Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2006","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Taliaferro County, 33.56609, -82.87876"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2006-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2000; ceased with: Fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Taliaferro County Board of Education, Crawfordville, Georgia, schedule of salaries and travel for fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed July 12, 2023).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed July 12, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Taliaferro County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Taliaferro County--Auditing--Periodicals.","Education--Georgia--Taliaferro County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2006"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2005-h2006"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":" TALIAFERRO COUNTY BOARD OF EDUCATION \r\n- TABLE OF CONTENTS - \r\n \r\nPage \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL \r\nSTATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF \r\nEXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\nGENERAL FUND \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n- TABLE OF CONTENTS - \r\nSECTION I FINANCIAL SCHEDULES SUPPLEMENTARY INFORMATION 2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nSECTION I1 COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A- 133 \r\nSECTION I11 AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n- TABLE OF CONTENTS - \r\nSECTION V MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENOTF AUDITSAND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nNovember 30,2006 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL \r\nSTATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF \r\nEXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining h n d information (Exhibits A through H) of the Taliaferro County Board of Education, as of and for the year ended June 30, 2006, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Taliaferro County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 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 opinions. \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Taliaferro County Board of Education, as of June 30,2006, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\n \r\n The Taliaferro County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \r\nIn accordance with Government Auditing Standards, we have also issued our report datedNovember 30,2006, on our consideration of the Taliaferro County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as \r\npresented on page 2 1, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Taliaferro County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 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 Nun-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n~ d s e lWl . Hinton, CPA, CGFM State Auditor \r\n \r\n                                       "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2004-h2005","title":"Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2005","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Taliaferro County, 33.56609, -82.87876"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2005-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2000; ceased with: Fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Taliaferro County Board of Education, Crawfordville, Georgia, schedule of salaries and travel for fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed July 12, 2023).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed July 12, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Taliaferro County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Taliaferro County--Auditing--Periodicals.","Education--Georgia--Taliaferro County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2005"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. 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Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Taliaferro County, 33.56609, -82.87876"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2004-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2000; ceased with: Fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Taliaferro County Board of Education, Crawfordville, Georgia, schedule of salaries and travel for fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed July 12, 2023).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed July 12, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Taliaferro County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Taliaferro County--Auditing--Periodicals.","Education--Georgia--Taliaferro County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2004"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2003-h2004"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2003-h2004"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"TALIAFERRO COUNTY BOARD OF EDUCATION \r\nCRAWFORDVILLE, GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n3 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n4 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n7 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n8 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n9 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n11 \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n12 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n25 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n26 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n27 \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n28 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n29 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATIERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTIONN MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR (404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nMay 31, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Taliaferro County Board of Education, as of and for the year ended June 30, 2004, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Taliaferro County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe 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 financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm10ns. \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information ofthe Taliaferro County Board of Education, as of June 30, 2004, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\n2004ARL-11 \r\n \r\n As described in Note 2, the Taliaferro County Board ofEducation has implemented a new financial reporting model as required by provisions ofGovernmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2004. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated May 31, 2005, on our consideration of the Taliaferro County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. 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. \r\nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through vii and page 25 respectively, are not a required part of the basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Taliaferro County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated section 506-24. \r\nRespectfully submitted, \r\n \r\nRWH:as 2004ARL-11 \r\n \r\nState Auditor \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nThe discussion and analysis of the Taliaferro County Board of Education's financial performance provides an overall review of the Board's financial activities for the fiscal year ended June 30, 2004. The intent of this discussion and analysis is to look at the Board's financial performance as a whole; readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the Board's financial performance. \r\n \r\nFinancia/Highllghts \r\n \r\nKey financial highlights for fiscal year 2004 as follows: \r\n \r\n \r\n \r\nThe Governmental Accounting Standards Board (GASB) issued GASB Statement 34 on \r\n \r\nJune 30, 1999, requiring statements to comply with a new reporting model for financial \r\n \r\nstatements. Based upon total revenues, the Taliaferro County Board of Education was a \r\n \r\nPhase Three implementer, and was required to implement GASB Statement 34 beginning \r\n \r\nin fiscal year 2004. \r\n \r\n \r\n \r\nDue to this being the implementation year for GASB Statement 34, many comparisons \r\n \r\nare not available that will be available for fiscal year 2005. \r\n \r\n \r\n \r\nThe Board's financial status remained stable during fiscal year 2004. In total, net assets \r\n \r\nincreased $77,777 due to governmental activities since the Board has no business-type \r\n \r\nactivities. \r\n \r\n \r\n \r\nTotal revenues were $2,991,339, with program specific revenues in the form of charges \r\n \r\nfor services and sales, grants and contributions accounting for $2,060,273 and general \r\n \r\nrevenues accounting for $931,066. \r\n \r\n \r\n \r\nThe Board had $2,913,562 in expenses related to governmental activities; only \r\n \r\n$2,060,273 of these expenses were offset by program specific charges for services and \r\n \r\ngrants and contributions. General revenues, primarily taxes of $842,745 were adequate \r\n \r\nto provide for these programs. \r\n \r\n \r\n \r\nAmong major funds, the general fund has $2,906,169 in revenues and $2,839,273 in \r\n \r\nexpenditures for an increase in general fund balance of $66,896. \r\n \r\nUsing the Basic Financial Statements \r\n \r\nThis annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand the Taliaferro County Board of Education as a financial whole, or as an entire operating entity. \r\n \r\nThe Statement ofNet Assets and Statement ofActivities provide information about the activities of the whole Board, presenting an aggregate view of the Board's finances and a longer-term view of those finances. The fund financial statements provide the next level of detail. For \r\n \r\n- 1- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\ngovernmental funds, these statements tell how services were financed in the short-term as well as what remains for future spending. The fund financial statements also look at the Board's most significant funds with all other nonmajor funds, if any, presented in total in one column. In the case of the Taliaferro County Board of Education, the general fund is by far the most significant fund. \r\nReporting the Board as a Whole \r\nStatement ofNet Assets and Statement ofActivities \r\nWhile these documents contain the large number funds used by the Board to provide programs and activities, the view of the Board as a whole looks at all financial transactions and determines how we concluded fiscal year 2004. The Statement ofNet Assets and the Statement of Activities provide this information. These statements include all assets and liabilities using the accrual basis of accounting. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the Board's net assets and changes in those assets. This change in net assets is important because it tells the reader whether, for the Board as a whole, the financial position of the Board has improved or diminished. The causes of this change may be the result of many factors, some financial, some not. Reductions or increases in state or local funding, change in property tax base, additional requirements in educational programs, and facility conditions are just a few of the causes for such change. \r\nIn the Statement of Net Assets and the Statement of Activities, the Board has one distinct type of activity: \r\n Governmental Activities - All of the Board's programs and services reported here including instruction, pupil services, improvement of instructional services, educational media services, administrative services, maintenance and operation of plant, student transportation services, school food services, and various others. \r\nReporting the Board's Most Significant Funds \r\nFund Financial Statements \r\nFund financial reports provide detailed information about the Board's major funds. The Board uses many funds to account for a multitude of financial statements. However, the fund financial statements focus on the Board's most significant funds. The Board's major governmental funds are the general fund and the District-wide capital projects fund. \r\nGovernmental Funds - Most of the Board's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for future spending. These funds are reported using an accounting method called modified accrual spending, which measures cash and all other financial assets that can readily be \r\n- 11 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nconverted to cash. The governmental fund statements provide a detailed short-term view of the Board's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship between governmental activities and governmental funds is reconciled in the financial statements. \r\n \r\nFiduciary Funds - The Board is the trustee, or fiduciary, for assets that belong to others, such as clubs and organizations within the school activity accounts. The Board is responsible for ensuring that the assets reported in these funds are used only for their intended purposes, and used by those to whom the assets belong. The Board excludes these activities from the Districtwide financial statements because it cannot use these assets to finance its operations. \r\n \r\nThe Board as a Whole \r\n \r\nThe perspective of the Statement of Net Assets is of the Board as a whole. Table 1 provides a summary of the Board's net assets for fiscal year 2004. Since this is the first year the Board has been required to prepare financial statements following GASB Statement 34, net asset comparisons to fiscal year 2003 are not available. \r\n \r\nTable 1 Net Assets \r\n \r\nGovernmental Activities Fiscal Year 2004 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 1,073,186 4,832,093 \r\n \r\nTotal Assets \r\n \r\n$ 5,905,279 \r\n \r\nLiabilities Current and Other Liabilities \r\n \r\n$ 172,776 \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\n$ 4,832,093 133,322 767,088 \r\n \r\nTotal Net Assets \r\n \r\n$ 5,732.503 \r\n \r\nTable 2 shows the changes in net assets for fiscal year 2004. Since this is the first year the Board has been required to prepare financial statements following GASB 34, revenue and expense comparisons to fiscal year 2003 are not available. The total net assets increased by $77,777. \r\n \r\n- 111 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nTable 2 Change in Net Assets \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\nTotal Program Revenues \r\nGeneral Revenues: Taxes Property Taxes Sales Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nTotal Revenues \r\nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Operations of Non-Instructional Services Community Services Food Services \r\nTotal Expenses \r\nIncrease in Net Assets \r\n \r\nGovernmental Activities Fiscal Year 2004 \r\n$ 39,950 2,000,343 19,980 \r\n$ 2,060,273 \r\n$ 766,173 76,572 \r\n3,595 10,871 73,855 \r\n$ 931,066 \r\n$ 2,991,339 \r\n$ 1,809,072 \r\n36,243 85,461 46,061 116,654 166,454 110,895 160,531 186,293 13,224 \r\n20,099 162,575 \r\n$ 2,913,562 \r\n$ 77 777 \r\n \r\n- IV - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nGovernmental Activities \r\n \r\nInstruction comprises 62.1 percent of the governmental program expenses. Additionally, among the revenues, grants and contributions comprise 98.1 percent of the program revenues and 67.5 percent of total revenues while property and sales taxes comprise an additional 28.2 percent of total revenues. Although program revenues make up the majority of total revenues, the Board remains dependent upon tax revenue for governmental activities. \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. That is, it identifies the cost of these services supported by tax revenue and unrestricted State entitlements. Since this is the first year the Board has been required to prepare financial statements following GASB Statement 34, cost of service comparisons to fiscal year 2003 are not available. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services Fiscal Year2004 \r\n \r\nNet Cost of Services Fiscal Year 2004 \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Community Services Food Services \r\n \r\n$ 1,809,072 $ 547,560 \r\n \r\n36,243 85,461 46,061 116,654 166,454 110,895 160,531 186,293 13,224 \r\n \r\n11,385 36,815 23,927 -81,840 51,649 110,895 89,442 58,024 13,224 \r\n \r\n20,099 162,575 \r\n \r\n-6,366 -1,426 \r\n \r\nTotal Expenses \r\n \r\n$ 229132562 $ 8532289 \r\n \r\n-v- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\nThe Board's Funds Highlights in Governmental Funds Governmental funds include both the general fund and the District-wide capital projects fund. Total revenues in governmental funds were $2,975,935 while total expenditures in governmental funds were $2,882,587 leaving excess in revenue of $93,348 over expenditures. When added to the beginning fund balance of $896,046, the excess in revenue increases the ending fund balance to $989,394. This positive change in fund balance of governmental funds indicates that the Board was able to meet current costs from current revenues. Highlights in General Fund Budgeting The Board's budget is prepared according to Georgia law. The most significant budgeted fund is the General Fund. During fiscal year 2004, the Board amended its general fund budget as needed. The Board uses function-based budgeting, which is designed to tightly control total function budgets while providing flexibility for site management. Total revenues in the General Fund for fiscal year 2004 were $2,906,169 while total expenditures were $2,839,273 leaving an excess of revenue over expenditures in the general fund of $66,896. When added to the beginning year fund balance, the net increase of $66,896 placed our ending year general fund balance at $892,831. This positive change in fund balance once again indicates that the Board was able to meet current costs from current revenues. Capital Assets and Debt Administration Capital Assets At the end of fiscal year 2004, the Board had $4,832,093 invested in capital assets. Table 4, shown below, indicates balances as of June 30, 2004. Since this is the first year the Board has been required to prepare financial statements following GASB Statement 34, capital asset comparisons to fiscal year 2003 are not available. \r\n- Vl - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities Fiscal Year2004 \r\n \r\nLand Land Improvements Buildings Equipment \r\n \r\n$ 52,275 55,179 \r\n4,303,214 421,425 \r\n \r\nTotal \r\n \r\n$ 4,832.093 \r\n \r\nThe primary increase occurred in Equipment which resulted from the purchase of a bus. \r\n \r\nDebt \r\n \r\nThe Board has no General Long-Term Debt outstanding. \r\n \r\nCurrent Issues \r\n \r\nThe Taliaferro County Board of Education has been no exception in being impacted by the decline in funding due to economic setbacks in the state and national economy over the past few years. As of June 30, 2004, the Board has lost approximately $59,794 in austerity reductions of state funding in the last two fiscal years. During the fiscal year ended June 30, 2004, the Board received additional property tax revenue which partially offset this loss of funds. In spite of the economy, the Board has managed to maintain a healthy financial state as a result of fund reserve from previous years and cautious spending in the present. The Board is optimistic that our system will remain stable in future years. \r\n \r\nContacting the Board's Financial Management \r\n \r\nThis financial report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the Board's finances and to reflect the Board's accountability for the money it receives. If you have any questions about this report or need additional information, contact Bonnie Flynt, Finance Director at the Taliaferro County Board of Education, 557 Broad Street, Crawfordville, Georgia 30631. \r\n \r\n-vn - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2004 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets Land Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries Payable \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nBus Replacement Continuation of Federal Programs Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT\"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n838,145 \r\n \r\n36,290 \r\n \r\n42,269 75,602 70,452 \r\n8,121 2,307 \r\n \r\n52,275 55,851 4,438,810 665,669 -380,512 \r\n \r\n$===5=,9=0=5'=27=9= \r\n \r\n$ \r\n \r\n49,711 \r\n \r\n123,065 \r\n \r\n$ \r\n \r\n172 776 \r\n \r\n$ \r\n \r\n4,832,093 \r\n \r\n793 35,966 96,563 767 088 \r\n \r\n$ \r\n \r\n5,732,503 \r\n \r\n$ ======5=,9=0=5=,2=79= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -3- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30. 2004 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Community Services Food Services \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year (Restated) \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n1,809,072 \r\n \r\n36,243 85,461 46,061 116,654 166,454 $ 110,895 160,531 186,293 13,224 \r\n \r\n20,099 162 575 \r\n \r\n$ \r\n \r\n2,913,562 $ \r\n \r\n6,931 \r\n26,465 6 554 \r\n39 950 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n1,261,512 \r\n \r\n24,858 48,646 22,134 198,494 107,874 \r\n \r\n71,089 108,289 $ \r\n \r\n157 447 \r\n \r\n$ \r\n \r\n2,000,343 $ \r\n \r\n$ 19,980 19980 $ \r\n \r\n-547,560 \r\n-11,385 -36,815 -23,927 81,840 -51,649 -110,895 -89,442 -58,024 -13,224 \r\n6,366 1426 \r\n-853,289 \r\n \r\n$ \r\n \r\n758,438 \r\n \r\n7,735 \r\n \r\n68,636 2,461 5,475 3,595 10,871 73855 \r\n \r\n$ \r\n \r\n931 066 \r\n \r\n$ \r\n \r\n77,777 \r\n \r\n5,654,726 \r\n \r\n$ ======5=,7=3=2=,5=03= \r\n \r\n-5- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30. 2004 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Bus Replacement Continuation of Federal Programs Inventories Capital Projects \r\nUnreserved Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n748,760 $ \r\n \r\n36,290 \r\n \r\n116,997 75,602 70,452 \r\n8,121 2 307 \r\n \r\n89,385 $ 14,256 \r\n \r\n838,145 36,290 \r\n131,253 75,602 70,452 \r\n8,121 2 307 \r\n \r\n$ 1,058,529 $ \r\n \r\n103 641 $ ===1=1=6=2=17=0= \r\n \r\n$ \r\n \r\n42,633 $ \r\n \r\n123,065 \r\n \r\n$ \r\n \r\n165,698 $ \r\n \r\n7,078 $ 7 078 $ \r\n \r\n49,711 123 065 \r\n172 776 \r\n \r\n$ \r\n \r\n793 \r\n \r\n33,659 \r\n \r\n2,307 \r\n \r\n$ \r\n \r\n856,072 \r\n \r\n$ \r\n \r\n892,831 $ \r\n \r\n$ 96,563 \r\n96,563 $ \r\n \r\n793 33,659 \r\n2,307 96,563 \r\n856 072 \r\n989,394 \r\n \r\n$ 1,058,529 $ \r\n \r\n103 641 $ ===1=1=6=2=17=0= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30. 2004 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n989,394 \r\n \r\n$ \r\n \r\n52,275 \r\n \r\n55,851 \r\n \r\n4,438,810 \r\n \r\n665,669 \r\n \r\n-380,512 \r\n \r\n4,832,093 \r\n \r\n-88,984 \r\n \r\n$ ==5,6=:73=2a!a,5=0=3 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2004 \r\n \r\nEXHIBIT\"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Community Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning (Restated) \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n750,769 \r\n \r\n7,936 $ \r\n \r\n1,449,577 \r\n \r\n574,341 \r\n \r\n39,950 \r\n \r\n9,741 \r\n \r\n73,855 \r\n \r\n$ 2,906,169 $ \r\n \r\n$ 68,636 \r\n1,130 69,766 $ \r\n \r\n750,769 76,572 \r\n1,449,577 574,341 39,950 10,871 73,855 \r\n2,975,935 \r\n \r\n$ 1,743,642 \r\n \r\n36,243 85,461 42,038 116,654 166,454 110,895 158,688 201,232 13,224 20,099 144,643 \r\n$ \r\n \r\n$ 2,839,273 $ \r\n \r\n$ \r\n \r\n66,896 $ \r\n \r\n825,935 \r\n \r\n$ \r\n43 314 43314 $ 26,452 $ 70 111 \r\n \r\n1,743,642 \r\n36,243 85,461 42,038 116,654 166,454 110,895 158,688 201,232 13,224 20,099 144,643 43 314 \r\n2,882,587 \r\n93,348 \r\n896,046 \r\n \r\n$ \r\n \r\n892,831 $ \r\n \r\n96,563 $ ===,;9;;;;:8~9~,3,;;;;94~ \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES \r\nJUNE 30. 2004 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \r\n \r\n$ \r\n$ 62,120 -93,095 \r\n \r\n93,348 \r\n-30,975 15 404 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ ===7=7=7=77= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2004 \r\nASSETS Cash and Cash Equivalents Investments \r\nCertificate of Deposit \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT\"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n9,908 \r\n \r\n14,500 \r\n \r\n$ ===24='=40=8= \r\n \r\n$ ===24:::!'=40=8= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 11 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30. 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Taliaferro County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists ofall the organizations that compose its legal entity. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Taliaferro County Board of Education. \r\nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n- 12 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \r\n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds. \r\nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\n- 13 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nRESTATEMENT OF PRIOR YEAR FUND BALANCE - GENERAL FUND \r\n \r\nIn prior years, the financial activities of the School District's School Food Services Fund and Athletic Fund were reported as Special Revenue Funds. These funds had a combined fund balance of $23,744 at July 1, 2003. For fiscal year 2004, these funds have been reported as part of the General Fund. In addition, governmental fund activity from certain school activity accounts, which were reported in the prior year's financial statements as agency funds, have been reported within the General Fund for fiscal year ended June 30, 2004. The governmental fund activity ofthese school activity accounts had a fund balance of $8,800 at July 1, 2003. This change is in accordance with generally accepted accounting principles. \r\n \r\nGeneral Fund Balance July 1, 2003 \r\n \r\n$ 793,391 \r\n \r\nAdd Funds Consolidated with General Fund: School Food Services Fund Athletic Fund School Activity Account - Governmental Activity \r\n \r\n16,309 7,435 8,800 \r\n \r\nGeneral Fund Balance July 1, 2003 (Restated) CHANGES IN ACCOUNTING PRINCIPLES \r\n \r\n$=====82,,,,,,5-,9=='=3==5 \r\n \r\nThe Taliaferro County Board of Education has implemented a new financial reporting model as required by provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2004. \r\n \r\nThe provisions of GASB Statement No. 34 require the inclusion ofa Statement ofNet Assets. The elements comprising Net Assets - Beginning include the following: \r\n \r\nGeneral Fund (Restated) July 1, 2003 Capital Projects Fund \r\n \r\n$ 825,935 70,111 \r\n \r\nGovernmental Funds (Restated) July 1, 2003 Capital Assets Accumulated Depreciation Property Tax Revenue Timing Differences \r\n \r\n$ 896,046 5,150,485 -287,417 -104,388 \r\n \r\nNet Assets Beginning (See Exhibit \"B\") \r\n \r\n$ 5,654.726 \r\n \r\n- 14 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation of the United States government, \r\n(5) Prime banker's acceptances, \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n(7) Repurchase agreements, and \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\n- 15 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Taliaferro County Board of Commissioners fixed the property tax levy for the 2003 tax digest year (calendar year) on December 26, 2003 (levy date). Taxes were due on February 27, 2004 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2003 tax digest are reported as revenue in the governmental funds for fiscal year 2004. The Taliaferro County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2004, for maintenance and operations amounted to $743,034. \r\n \r\nThe tax millage rate levied for the 2003 tax year (calendar year) for the Taliaferro County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n15.00 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $68,636 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the basic financial statements, inventories ofdonated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\n- 16 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAll \r\n \r\nNIA \r\n \r\n$ \r\n \r\n5,000 20 to 90 years \r\n \r\n$ \r\n \r\n5,000 30 to 90 years \r\n \r\n$ \r\n \r\n5,000 5 to 50 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \r\n \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n \r\n- 17 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(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, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(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. \r\nCATEGORIZATION OF DEPOSITS At June 30, 2004, the bank balances were $973,221. The amounts of the total bank balances are classified into three categories of credit risk: \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\nThe School District's deposits are classified by risk category at June 30, 2004, as follows: \r\n \r\n- 18 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 114,500 \r\n \r\n2 \r\n \r\n858,721 \r\n \r\n3 \r\n \r\n0 \r\n \r\nTotal \r\n \r\n$====9==\"73-,2==2==1 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2004, the carrying value ofthe School District's total investments was $36,290 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: \r\n \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency weekly to ensure stability. The pool distributes earnings (net ofmanagement fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \r\n \r\nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2004, was 24 days. The average investment duration for Fund 6 on June 30, 2004, was 0.22 years. \r\n \r\n- 19 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2003 {Restated) \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2004 \r\n \r\nGovernmental Activities \r\n \r\nCapital Assets, Not Being Depreciated: \r\n \r\nLand \r\n \r\n$ \r\n \r\n52,275 $ \r\n \r\n0 $ \r\n \r\n0 $ \r\n \r\n52,275 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 4,429,310 $ 613,049 55,851 \r\n \r\n9,500 $ 52,620 \r\n \r\n0 $ 4,438,810 665,669 55,851 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n85,783 201,583 \r\n51 \r\n \r\n49,813 42,661 \r\n621 \r\n \r\n135,596 244,244 \r\n672 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 4,810,793 $ \r\n \r\n-30,975 $ \r\n \r\n0 $ 4,779,818 \r\n \r\nGovernmental Activity Capital Assets - Net $ 4,863,068 $ \r\n \r\n-30 975 $ \r\n \r\n0 $ 4,832,093 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nEducational Media Services Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ \r\n \r\n47,997 \r\n \r\n$ \r\n \r\n2,951 \r\n \r\n1,352 \r\n \r\n27,641 \r\n \r\n31,944 13,154 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\n$==='93-,0=\"9===5 \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST) and Georgia State Financing and Investment Commission (GSFIC) funds are reported as restricted assets in the Statement ofNet Assets because their use is limited by statutory provisions. Restricted assets at June 30, 2004, were as follows: \r\n \r\n-20 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nDistrict-wide Capital Projects \r\n \r\nSPLOST \r\n \r\nGSFIC \r\n \r\nRestricted Cash and Cash Equivalents: Capital Acquisitions \r\n \r\n$ \r\n \r\n69,703 $ \r\n \r\n19,682 \r\n \r\nNote 7: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk of loss associated with torts and assets. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. In addition, the School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $400,000 loss per occurrence, up to $2,000,000. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\n- 21 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 7: RISK MANAGEMENT \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Principal Bookkeeper Office Clerk Secretary Athletic Director \r\n \r\n$ \r\n \r\n70,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\nNote 8: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of$26,574 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $26,306 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $268 \r\n \r\nNote 9: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 10: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\n- 22 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 10: RETIREMENT PLANS \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2004 2003 2002 \r\n \r\n100% 100% 100% \r\n \r\n$ 142,341 $ 150,944 $ 127,100 \r\n \r\n- 23 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Community Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES {USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning (Restated) \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL {1) \r\n \r\nFINAL {1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n774,929 $ \r\n \r\n774,929 $ \r\n \r\n750,769 \r\n \r\n5,257 \r\n \r\n5,257 \r\n \r\n7,936 \r\n \r\n1,543,572 \r\n \r\n1,536,659 \r\n \r\n1,449,577 \r\n \r\n509,655 \r\n \r\n559,245 \r\n \r\n574,341 \r\n \r\n6,300 \r\n \r\n6,300 \r\n \r\n39,950 \r\n \r\n13,500 \r\n \r\n13,500 \r\n \r\n9,741 \r\n \r\n73 855 \r\n \r\n$ \r\n \r\n2,853,213 $ \r\n \r\n2,895,890 $ \r\n \r\n2,906,169 \r\n \r\n$ \r\n \r\n1,845,062 $ \r\n \r\n1,860,660 $ \r\n \r\n1,743,642 \r\n \r\n39,888 39,356 43,958 137,712 170,051 107,005 190,872 163,737 21,063 \r\n143 955 \r\n \r\n39,888 84,156 43,958 145,719 167,023 107,005 190,872 219,481 21,063 \r\n144 450 \r\n \r\n36,243 85,461 42,038 116,654 166,454 110,895 158,688 201,232 13,224 20,099 144 643 \r\n \r\n$ \r\n \r\n2,902,659 $ \r\n \r\n3,024,275 $ \r\n \r\n2,839,273 \r\n \r\n$ \r\n \r\n--49 446 $ \r\n \r\n-128 385 $ \r\n \r\n66896 \r\n \r\n$ \r\n \r\n-7,800 \r\n \r\n7 800 \r\n \r\n$ \r\n \r\n0 \r\n \r\n$ \r\n \r\n-49,446 $ \r\n \r\n-128,385 $ \r\n \r\n66,896 \r\n \r\n779,244 \r\n \r\n779,244 \r\n \r\n825,935 \r\n \r\n-61 515 \r\n \r\n-61 515 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n668,283 $ \r\n \r\n589 344 $ \r\n \r\n892,831 \r\n \r\nNotes to the Schedule of Revenues. Exgenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 25 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30 2004 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \r\nTotal U.S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Direct Twenty-First Century Community Learning Centers Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Improving Teacher Quality State Grants Reading First State Grants Safe and Drug-Free Schools and Communities State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\nN/A NIA $ \r\n$ \r\n \r\n(2) 128 792 \r\n128,792 \r\n \r\n10.550 \r\n \r\nN/A $ \r\n \r\n6 468 135,260 \r\n \r\n84.027 84.173 \r\n \r\nN/A $ N/A \r\n$ \r\n \r\n84.287 \r\n84.318 84.367 84.357 84.186 \r\n. 84.298 84.010 84.048 \r\n \r\nN/A N/A N/A N/A NIA N/A NIA \r\n$ \r\n \r\n34,954 4184 \r\n39,138 \r\n86,598 \r\n4,949 46,633 44,943 \r\n4,637 3,076 188,824 7447 \r\n426 245 \r\n \r\nTotal Federal Financial Assistance \r\nN/A = Not Available \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($47,174) were not maintained separately and are included in the 2004 National School Lunch Program. \r\nThe Major Program is identified by an asterisk (*) in front of the CFDA number. \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Taliaferro County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\n$ = = = = 5 6...1..,5.,.0==5 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n-26- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Leaming Pre-Kindergarten Program \r\nEducation, 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 Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV CategoryV Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Food Services Vocational Education Austerity Reduction Other State Programs At-Risk Summer School Program Health Insurance Limited School Choice Program Preschool Handicapped Program \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nCONTRACT Education, Georgia Department of Foreign Language Model Program \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27- \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n80,123 \r\n \r\n40,294 3,958 \r\n139,481 7,133 \r\n63,250 2,894 \r\n137,846 75,637 65,316 \r\n34,196 20,925 12,438 \r\n5,749 11,489 11,943 19,274 6,316 4,268 \r\n188,362 72,356 67,531 \r\n96,553 19,980 170,177 24,858 \r\n957 9,008 8,888 18,628 -56,676 \r\n12,000 26,306 12,211 \r\n7,489 \r\n268 \r\n28151 \r\n$ ===1=-4=4=9=5=77= \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2004 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nAcquiring, constructing, installing, furnishing and equipping a new school for grades K-12 in Taliaferro County, including any school buildings and athletics facilities, and payment of expenses incident thereto. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 500,000 $ 4,548,590 $ \r\n \r\n43314 $ 4,505,276 \r\n \r\nOngoing \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \r\n(3) The voters of Taliaferro County approved the imposition of a 1% sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 28 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Remedial Education Program Alternative Education Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES OPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n57,762 $ \r\n \r\n81,142 $ \r\n \r\n4,490 $ \r\n \r\n85,632 \r\n \r\n5,304 \r\n \r\n8,679 \r\n \r\n274 \r\n \r\n8,953 \r\n \r\n180,305 \r\n \r\n168,857 \r\n \r\n11,275 \r\n \r\n180,132 \r\n \r\n9,560 \r\n \r\n25,297 \r\n \r\n249 \r\n \r\n25,546 \r\n \r\n86,041 \r\n \r\n111,890 \r\n \r\n4,058 \r\n \r\n115,948 \r\n \r\n4,762 177,468 111,711 \r\n78,528 98,880 \r\n16,634 15 297 \r\n \r\n16,897 137,836 172,125 119,364 \r\n79,347 97,296 25,509 16,158 \r\n \r\n207 9,521 30,035 10,527 \r\n7,041 2,819 1,863 \r\n222 92 \r\n \r\n17,104 147,357 202,160 129,891 \r\n7,041 82,166 99,159 25,731 16,250 \r\n \r\n$ \r\n \r\n842,252 $ 1,060,397 $ \r\n \r\n82,673 $ \r\n \r\n1,143,070 \r\n \r\n25,330 5198 \r\n \r\n26,400 2,250 \r\n \r\n13,861 9447 \r\n \r\n40,261 11 697 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n872 780 $ 1,089,047 $ \r\n \r\n105,981 $===1'=19=5.,.,0=2=8 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nMay 31, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members ofthe Taliaferro County Board of Education \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information ofTaliaferro County Board ofEducation as ofand for the year ended June 30, 2004, which collectively comprise Taliaferro County Board of Education's basic financial statements and have issued our report thereon dated May 31, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Taliaferro County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal 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 corning to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Taliaferro County Board of Education'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 of Findings and Questioned Costs as item FS-7311-0401. \r\n2004YB-30 \r\n \r\n A material weakness is a reportable 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 caused by error or fraud 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 believe the reportable condition described above is not a material weakness. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Taliaferro County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nThis report is intended solely for the information and use of the management and members of the Taliaferro County Board of Education and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:as 2004YB-30 \r\n \r\nState Auditor \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nMay 31, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Taliaferro County Board of Education with the types of compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to its major Federal program for the year ended June 30, 2004. Taliaferro County Board of Education's major Federal program is identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to its major Federal program is the responsibility ofTaliaferro County Board ofEducation's management. Our responsibility is to express an opinion on Taliaferro County Board of Education's compliance based on our audit. \r\nWe 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 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Taliaferro County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Taliaferro County Board ofEducation's compliance with those requirements. \r\n2004SA-10 \r\n \r\n In our opinion, the Taliaferro County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to its major Federal program for the year ended June 30, 2004. \r\nInternal Control Over Compliance \r\nThe management of Taliaferro County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Taliaferro County 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 determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\nOur 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 reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements oflaws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \r\nThis report is intended solely for the information and use of the management, members of the Taliaferro County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:as 2004SA-10 \r\n \r\nState Auditor \r\n \r\n SECTION III FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2004 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Taliaferro County Board ofEducation's financial statements was unqualified. \r\n \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Taliaferro County Board ofEducation disclosed a financial statement reportable condition related to the following control categories. \r\n \r\nCash and Cash Equivalents Revenues/Receivables/Receipts \r\n \r\nExpenditures/Liabilities/Disbursements \r\n \r\nThe reportable condition described above is not considered to be a material weakness. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the Taliaferro County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Taliaferro County Board ofEducation did not disclose any reportable conditions in internal control over major programs. \r\n \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Taliaferro County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Reguired to be Reported by Section .510(a) of 0MB Circular A-133 The Taliaferro County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \r\n \r\n7. Major Programs The Federal award audited as a major program is as follows: 84.010 Title I Grants to Local Educational Agencies \r\n \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \r\n \r\n9. Low Risk Auditee The Taliaferro County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\n \r\n- 1- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2004 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-7311-04-01 \r\nOur examination of the principal's accounts disclosed weaknesses in internal control as discussed below: \r\nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions \r\nRevenues/Receivables/Receipts  Deposit preparation was not separated from the record keeping and cash custody functions.  Based on a review of thirty items, twenty-seven had no receipt attached. \r\nExpenditures/Liabilities/Disbursements  The check writing function was not separated from record keeping function.  Based on a review of thirty items, none had documentation indicating approval prior to purchase included with voucher packets. \r\nThese deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions and failure to ensure established controls were functioning as designed. Management should review the accounting procedures in place and implement procedures to ensure that the key accounting functions of custody, record keeping and authorization be segregated. Additionally, controls should be revised and monitored to provide reasonable assurance that transactions are processed according to established procedures. \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n-2- \r\n \r\n SECTION IV MANAGEMENT'S RESPONSES \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30, 2004 \r\nFinding Control Number: FS-7311-04-01 \r\nThe Taliaferro County Board of Education concurs with the above finding. Resolutions to be implemented: \r\nCash and Cash Equivalents: Superintendent or Principal will sign all bank reconciliations; complete listings of all activities for month, both deposits and checks written, will be reviewed and signed by Superintendent or Principal each month; and implementation of numbered deposits with signed receipt from each money source has begun. \r\nRevenues/Receivables/Receipts: Deposits will be prepared using numbered system with receipts from money source attached and will be signed by system bookkeeper or Principal; deposits will be taken to bank by Superintendent; and complete listing of all revenues will be signed by Superintendent or Principal each month. \r\nExpenditures/Liabilities/Disbursements: Monthly reports listing all activities will be reviewed and signed by Superintendent or Principal; numbered purchase order system has been implemented for purchases that will include signature of Principal or Superintendent. \r\nContact Person: Bonnie Flynt Phone: (706) 456-2575 Fax Number: (706) 456-2689 E-mail Address: bf1ynt@doe.k12.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2002-h2003","title":"Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2003","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Taliaferro County, 33.56609, -82.87876"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2003-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2000; ceased with: Fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Taliaferro County Board of Education, Crawfordville, Georgia, schedule of salaries and travel for fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed July 12, 2023).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed July 12, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Taliaferro County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Taliaferro County--Auditing--Periodicals.","Education--Georgia--Taliaferro County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2003"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2002-h2003"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2002-h2003"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"TALIAFERRO COUNTY BOARD OF EDUCATION \r\nCRAWFORDVILLE, GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nGENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS - OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET \r\n \r\nALL FUND TYPES AND ACCOUNT GROUP \r\n \r\n2 \r\n \r\nB \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nALL GOVERNMENTAL FUND TYPES \r\n \r\n4 \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\n7 \r\n \r\nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\n8 \r\n \r\nADDITIONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING AND INDIVIDUAL FUND STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n20 \r\n \r\nF \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n22 \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n24 \r\n \r\nH \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n25 \r\n \r\nI \r\n \r\nFIDUCIARY FUND TYPE \r\n \r\nSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\n \r\nAGENCY FUND \r\n \r\n26 \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n27 \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n29 \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n31 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nADDITIONAL FINANCIAL INFORMATION \r\n \r\nSCHEDULES \r\n \r\n4 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n33 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \r\nFebruary 25, 2004 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying general-purpose financial statements of the Taliaferro County Board of Education, as of and for the year ended June 30, 2003, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Taliaferro County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \r\nWe 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 financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \r\nIn our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Taliaferro County Board of Education as of June 30, 2003, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \r\n \r\n2003ARL-14 \r\n \r\n As discussed in Note 1 to the general-purpose financial statements, during fiscal year 2003, the Board ofEducation completed a comprehensive inventory ofits general fixed assets for inclusion in the general-purpose financial statements and changed its method of accounting for the salaries of certain eleven-month employees from a cash basis to modified accrual basis. This change is in accordance with accounting principles generally accepted in the United States of America. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated February 25, 2004, on our consideration of the Taliaferro County 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 ofan audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Taliaferro County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits E through I) and the financial schedules (Schedules 1 through 4), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part ofthe general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \r\nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \r\nRes ectfully submitted, \r\n~-.JJ-+t--- \r\n \r\nRWH:gp 2003ARL-14 \r\n \r\nState Auditor \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \r\nALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2003 \r\n \r\nCash and Cash Equivalents \r\nInvestments \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\nGeneral Fixed Assets Land Building Improvements Other Than Buildings Equipment \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ \r\n \r\n613,183.60 $ \r\n \r\n17,630.51 $ \r\n \r\n80,932.97 \r\n \r\n35,920.71 \r\n \r\n268,705.68 \r\n \r\n56,204.00 \r\n \r\n109,849.58 \r\n \r\n140.33 1,559.21 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n917,809.99 $ \r\n \r\n75,534.05 $ ==1=9=0=7,=82=.5=5= \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Funds Held for Others \r\nTotal Liabilities \r\nFUND EQUITY \r\nInvestment in General Fixed Assets Fund Balances \r\nReserved For Bus Replacement Funds For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects \r\nUnreserved Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n27,931.23 $ \r\n \r\n23,514.81 $ \r\n \r\n17,400.00 \r\n \r\n96,487.89 \r\n \r\n28,274.95 \r\n \r\n103,271.92 \r\n \r\n$ \r\n \r\n124,419.12 $ \r\n \r\n51,789.76 $ \r\n \r\n120,671.92 \r\n \r\n$ \r\n \r\n33,433.00 \r\n \r\n$ \r\n \r\n140.33 \r\n \r\n1,559.21 \r\n \r\n$ \r\n \r\n759,957.87 \r\n \r\n22,044.75 \r\n \r\n$ \r\n \r\n793,390.87 $ \r\n \r\n23,744.29 $ \r\n \r\n14,826.58 55,284.05 \r\n0.00 \r\n70,110.63 \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n917,809.99 $ \r\n \r\n75,534.05 $==1=90=,7=8=2-=55= \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement. -2- \r\n \r\n EXHIBIT\"A\" \r\n \r\nFIDUCIARY FUND TYPE AGENCY FUND \r\n \r\n$ \r\n \r\n13,562.03 \r\n \r\nACCOUNT GROUP \r\nGENERAL FIXED \r\nASSETS \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nJUNE 30, 2003 \r\n \r\nJUNE 30, 2002 \r\n \r\n$ \r\n \r\n725,309.11 $ \r\n \r\n835,679.73 \r\n \r\n35,920.71 \r\n \r\n35,411.36 \r\n \r\n434,759.26 \r\n \r\n497,161.71 \r\n \r\n$ \r\n \r\n52,275.29 \r\n \r\n4,429,310.30 \r\n \r\n55,850.55 \r\n \r\n634,568.52 \r\n \r\n140.33 1,559.21 \r\n52,275.29 4,429,310.30 \r\n55,850.55 634,568.52 \r\n \r\n118.70 1,715.06 \r\n54,336.69 3,162,439.46 \r\n627,818.52 \r\n \r\n$ \r\n \r\n13,562.03 $ 5,172,004.66 $ 6,369,693.28 $ 5,214,681.23 \r\n \r\n$ \r\n \r\n13,562.03 \r\n \r\n$ \r\n \r\n13,562.03 \r\n \r\n$ \r\n \r\n68,846.04 $ \r\n \r\n10,672.03 \r\n \r\n124,762.84 \r\n \r\n282,990.34 \r\n \r\n103,271.92 \r\n \r\n130,625.24 \r\n \r\n164,734.36 \r\n \r\n13,562.03 \r\n \r\n9,284.62 \r\n \r\n$ \r\n \r\n310,442.83 $ \r\n \r\n598,306.59 \r\n \r\n$ 5,172,004.66 $ 5,172,004.66 $ 3,844,594.67 \r\n \r\n33,433.00 \r\n \r\n10,255.00 \r\n \r\n140.33 1,559.21 14,826.58 55,284.05 \r\n \r\n118.70 1,715.06 11,994.33 52,869.73 \r\n \r\n782,002.62 \r\n \r\n694,827.15 \r\n \r\n$ 5,172,004.66 $ 6,059,250.45 $ 4,616,374.64 \r\n \r\n$ \r\n \r\n13,562.03 $ 5,172,004.66 $ 6,369,693.28 $ 5,214,681.23 \r\n \r\n-3- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2003 \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOperating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 (Restated - See Note 1) \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ 1,806,023.95 $ \r\n716,092.13 43,895.90 \r\n$ 2,566,011.98 $ \r\n \r\n142,408.18 711,282.55 \r\n34,500.08 \r\n888,190.81 \r\n \r\n$ 1,338,124.55 $ \r\n36,887.77 13,878.29 52,001.64 106,649.80 139,459.80 110,164.46 146,866.87 141,066.16 \r\n24,519.00 \r\n \r\n$ 2,109,618.34 $ \r\n \r\n$ \r\n \r\n456,393.64 $ \r\n \r\n631,480.74 \r\n25,185.99 11,363.85 \r\n484.60 18,290.48 \r\n6,007.84 8,344.64 1,389.56 26,881.90 136,937.05 20,000.00 \r\n886,366.65 \r\n1,824.16 \r\n \r\n$ \r\n \r\n$ \r\n \r\n-359,268.82 \r\n \r\n$ \r\n \r\n-359,268.82 $ \r\n \r\n$ \r\n \r\n97,124.82 $ \r\n \r\n696,266.05 \r\n \r\n11,404.49 \r\n11,404.49 \r\n13,228.65 10,649.86 \r\n21.63 -155.85 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n793,390.87 $===23_,7=44==29= \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement. -4- \r\n \r\n EXHIBIT\"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2003 \r\n \r\nJUNE 30, 2002 \r\n \r\n$ \r\n \r\n197,784.00 $ 2,146,216.13 $ 2,903,888.35 \r\n \r\n711,282.55 \r\n \r\n899,356.92 \r\n \r\n80,062.53 \r\n \r\n796,154.66 \r\n \r\n829,801.55 \r\n \r\n80,713.63 \r\n \r\n159,109.61 \r\n \r\n263,912.67 \r\n \r\n$ \r\n \r\n358,560.16 $ 3,812,762.95 $ 4,896,959.49 \r\n \r\n$ 1,969,605.29 $ 2,252,942.42 \r\n \r\n$ \r\n \r\n701,177.92 \r\n \r\n36,887.77 39,064.28 63,365.49 107,134.40 157,750.28 110,164.46 152,874.71 149,410.80 \r\n1,389.56 51,400.90 136,937.05 721,177.92 \r\n \r\n40,676.23 125,879.38 \r\n76,108.01 153,884.49 163,575.58 104,894.34 143,545.96 211,936.62 \r\n11,022.60 167,838.22 2,634,302.63 \r\n \r\n$ \r\n \r\n701,177.92 $ 3,697,162.91 $ 6,086,606.48 \r\n \r\n$ \r\n \r\n-342,617.76 $ \r\n \r\n115,600.04 $ -1, 189,646.99 \r\n \r\n$ \r\n \r\n347,864.33 $ \r\n \r\n359,268.82 $ 1,438,900.48 \r\n \r\n-359,268.82 \r\n \r\n-1,438,900.48 \r\n \r\n$ \r\n \r\n347,864.33 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n5,246.57 $ \r\n \r\n115,600.04 $ -1,189,646.99 \r\n \r\n64,864.06 \r\n \r\n771,779.97 \r\n \r\n1,961,037.07 \r\n \r\n21.63 -155.85 \r\n \r\n-116.89 506.78 \r\n \r\n$ \r\n \r\n70,110.63 $ \r\n \r\n887,245.79 $ ====77=1,=77=9.=97= \r\n \r\n-5- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nBUDGET AND ACTUAL - (NON-GMP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \r\nYEAR ENDED JUNE 30. 2003 \r\n \r\nEXHIBIT\"C\" \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1, 2002 \r\nAdjustments \r\n \r\nGENERAL FUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\n$ 1,703,388.00 5,803.81 \r\n740,136.00 12,000.00 \r\n \r\n$ 1,806,023.95 \r\n716,092.13 43,895.90 \r\n \r\n$ 2,461,327.81 $ 2,566,011.98 \r\n \r\n$ 1,388,989.14 $ 1,338,124.55 \r\n \r\n31,349.00 10,000.00 50,135.00 136,421.00 174,579.00 121,789.00 171,109.00 151,385.00 \r\n \r\n36,887.77 13,878.29 52,001.64 106,649.80 139,459.80 110,164.46 146,866.87 141,066.16 \r\n \r\n21,063.00 \r\n \r\n24,519.00 \r\n \r\n$ 2,256,819.14 $ 2,109,618.34 $ 204,508.67 $ 456,393.64 \r\n \r\n$ -342,268.82 $ -359,268.82 $ -342,268.82 $ -359,268.82 \r\n \r\n$ -137,760.15 $ 97,124.82 \r\n \r\n760,617.51 \r\n \r\n696,266.05 \r\n \r\n-0.20 \r\n \r\nFUND BALANCE JUNE 30. 2003 \r\n \r\n$ 622,857.16 $ 793,390.87 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\n$ 232,982.18 $ 142,408.18 708,432.00 711,282.55 \r\n \r\n7,800.00 \r\n \r\n34,500.08 \r\n \r\n$ 949,214.18 $ 888,190.81 \r\n \r\n$ 718,723.98 $ 631,480.74 \r\n \r\n25,074.85 11,464.00 \r\n515.00 18,972.00 \r\n10,063.00 9,158.00 \r\n4,000.00 141,598.15 \r\n \r\n25,185.99 11,363.85 \r\n484.60 18,290.48 6,007.84 \r\n8,344.64 1,389.56 26,881.90 136,937.05 20,000.00 \r\n \r\n$ 939,568.98 $ 886,366.65 \r\n \r\n$ 9,645.20 $ 1,824.16 \r\n \r\n$ 11,404.49 $ 11,404.49 -17,000.00 \r\n$ -5,595.51 $ 11,404.49 \r\n \r\n$ 4,049.69 $ 13,228.65 \r\n \r\n182.09 \r\n \r\n8,816.10 \r\n \r\n3,349.94 \r\n \r\n$ 7,581.72 $ 22,044.75 \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement. -7- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2003 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe Taliaferro County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nFUND ACCOUNTING \r\nThe 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. \r\nThe 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: \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most ofthe School District's educational activities. Governmental Fund Types include: \r\nGENERAL 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. \r\nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \r\nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \r\nFIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: \r\n \r\n-8- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2003 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nAGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \r\nACCOUNT GROUP \r\nGENERAL FIXED ASSETS ACCOUNT GROUP -A financial reporting device used to account for all general fixed assets acquired or constructed for use by the School District. \r\nBASIS OF ACCOUNTING \r\nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \r\nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. \r\nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \r\nGovernmental funds are accounted for using the modified accrual basis of accounting under which: \r\nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nExpenditures are generally recognized when the related fund liability is incurred. \r\nFor fiscal year 2003, the School District changed its method of accounting for the final payment on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2003 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2003, (even \r\n-9- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2003 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nthough paid in July 2003) and the related revenue due from the State to fund these contracts. Adjustments were also made for the similar salaries, benefits and related State revenues earned in fiscal year 2002 and recorded in fiscal year 2003. \r\n \r\nThe net effect of the above accounting treatment results in the accompanying financial statements reflecting expenditures for those salaries and benefits earned by employees during fiscal year 2003 and the related State revenue to fund these contracts. In addition, the fund balance at July 1, 2002, has been restated for salaries and benefits earned by employees in fiscal year 2002 but not paid until July and August 2002 and for the related State revenue for these contracts. An analysis of this restatement is as follows: \r\n \r\nGeneral Fund Balance July 1, 2002 \r\n \r\n$ 818,164.35 \r\n \r\nAdd: State Revenue Related to July and August 2002 Salary Payments Earned by Employees in Fiscal Year 2002 \r\n \r\n118,481.00 \r\n \r\nDeduct: July and August 2002 Salary Payments Earned by Employees in Fiscal Year 2002 \r\n \r\n240,379.30 \r\n \r\nGeneral Fund Balance July 1, 2002 (Restated) \r\n \r\n$ 696,266.05 \r\n \r\nThis change is in accordance with generally accepted accounting principles. \r\n \r\nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \r\n \r\nRESTATEMENT OF PRIOR YEAR FUND BALANCE \r\n \r\nThe activity of the School District's athletic account, which was not reported in the prior year financial statements, has been reported within the Special Revenue Fund for fiscal year ended June 30, 2003. The activity ofthe athletic account had a fund balance of$5,673.74 at July 1, 2002. \r\n \r\nBUDGET \r\n \r\nThe Taliaferro County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \r\n \r\n- 10 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2003 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nThe budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\n \r\nThe Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit \"B\" ofthis report: \r\n \r\nSpecial Revenue \r\nFund \r\n \r\nFUND BALANCE JULY 1, 2002 (Restated) \r\n \r\n$ 10,649.86 \r\n \r\nAdjustments Inventories - July 1, 2002 Food Donated Commodities Purchased Foods \r\n \r\n-118.70 -1,715.06 \r\n \r\nFund Balance July 1, 2002 (Budget Basis Restated) \r\n \r\n$ 8,816.10 \r\n \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\n \r\n13,228.65 \r\n \r\nFUND BALANCE JUNE 30, 2003 (Budget Basis) \r\n \r\n$ 22,044.75 \r\n \r\nCASH AND CASH EQUIVALENTS \r\n \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \r\n \r\n- 11 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2003 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation of the United States government, \r\n(5) Prime banker's acceptances, \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n(7) Repurchase agreements, and \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\nRECEIVABLES \r\nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nPROPERTY TAXES \r\nThe Taliaferro County Board of Commissioners fixed the property tax levy for the 2002 tax digest year (calendar year) on January 14, 2003 (levy date). Taxes were due on March 14, 2003 (lien date). \r\n- 12 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2003 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nTaxes collected within the current fiscal year or within 60 days after year-end on the 2002 tax digest are reported as revenue in fiscal year 2003. The Taliaferro County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2003 for maintenance and operations amounted to $706,196.28. \r\n \r\nThe tax millage rate levied for the 2002 tax year (calendar year) for the Taliaferro County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n13.39 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax revenue during the year amounted to $80,062.53 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \r\n \r\nGENERAL FIXED ASSETS \r\n \r\nGeneral fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. During fiscal year 2003, the School District completed a comprehensive inventory of its general fixed assets for inclusion in the general-purpose financial statements. This change is in accordance with generally accepted accounting principles. \r\n \r\nINTERFUND TRANSACTIONS \r\n \r\nThe School District has the following types of interfund transactions: \r\n \r\n- 13 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2003 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nReimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \r\nOperating transfers are recorded for all interfund transactions other than reimbursements. \r\nMEMORANDUM ONLY -TOTAL COLUMNS \r\nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications. \r\nNote 2: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\n- 14 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2003 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\n(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, \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\n(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. \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2003, the bank balances were $899,127.36. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2003, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 120,871.71 \r\n \r\n2 \r\n \r\n778,255.65 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ 8991127.36 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2003, the carrying value ofthe School District's total investments was $35,920.71 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 \r\n \r\n- 15 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2003 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\nand 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: \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \r\nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2003, was 30 days. The average investment duration for Fund 6 on June 30, 2003, was 0.39 years. \r\nNote 3: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \r\nNote 4: GENERAL FIXED ASSETS \r\nThe following is a summary ofchanges in the General Fixed Assets Account Group during the fiscal year: \r\n \r\n- 16 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2003 \r\n \r\nNote 4: GENERAL FIXED ASSETS \r\n \r\nLand \r\n \r\nBuildings \r\n \r\nImprovements Other Than \r\nBuildings \r\n \r\nEgui12ment \r\n \r\nTotal \r\n \r\nBalance July 1, 2002 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\nRetroactive Restatement of Prior Year Balances \r\n \r\n54,336.69 3,162,439.46 \r\n \r\n0.00 \r\n \r\n627,818.52 3,844,594.67 \r\n \r\nBalance July 1, 2002 Restated \r\n \r\n$ 54,336.69 $ 3,162,439.46 $ \r\n \r\n0.00 $ 627,818.52 $ 3,844,594.67 \r\n \r\nAdditions \r\n \r\n1,277,116.00 \r\n \r\n55,850.55 \r\n \r\n6,750.00 1,339,716.55 \r\n \r\nDeletions \r\n \r\n2,061.40 \r\n \r\n10,245.16 \r\n \r\n12,306.56 \r\n \r\nBalance June 30, 2003 \r\n \r\n$ 52,275.29 $ 4,429 310.30 $ 55,850.55 $ 634 568 52 $ 5.172.004.66 \r\n \r\nNote 5: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk of loss associated with torts and assets. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. In addition, the School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $400,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\n- 17 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2003 \r\n \r\nNote 5: RISK MANAGEMENT \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Principal Bookkeeper Office Clerk Secretary Athletic Director \r\n \r\n$ 70,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 \r\n \r\nNote 6: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and expenditures in the amount of $29,709.79 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $24,623.79 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $5,086.00 \r\n \r\nNote 7: CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 8: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and \r\n \r\n- 18 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2003 \r\n \r\nNote 8: RETIREMENT PLANS \r\n \r\nsurvivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2003 2002 2001 \r\n \r\n100% 100% 100% \r\n \r\n$ 150,944.18 $ 127,100.07 $ 120,216.26 \r\n \r\n- 19 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2003 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n19,743.26 \r\n \r\n$ \r\n \r\n32,066.00 \r\n \r\n140.33 1,559.21 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n21,442.ao $ ===3=2=,0=66=.o=o= \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salaries Payable \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n9,759.74 \r\n \r\n$ \r\n \r\n879.73 \r\n \r\n17,178.34 \r\n \r\n4,253.47 \r\n \r\n5,127.92 \r\n \r\n$ \r\n \r\n5,133.20 $ \r\n \r\n32,066.00 \r\n \r\n$ \r\n \r\n140.33 \r\n \r\n1,559.21 \r\n \r\n14,610.06 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n16,309.60 $ \r\n \r\n0.00 \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n21,442.80 $ ===32;:,;,0=6=6.=00= \r\n \r\nSee notes to the general-purpose financial statements. - 20- \r\n \r\n EXHIBIT\"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nATHLETIC FUND \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2003 \r\n \r\nJUNE 30, 2002 \r\n \r\n$ \r\n \r\n212.30 $ \r\n \r\n7,434.69 $ \r\n \r\n27,390.25 $ \r\n \r\n31,114.41 \r\n \r\n24,138.00 \r\n \r\n56,204.00 \r\n \r\n32,339.43 \r\n \r\n140.33 1,559.21 \r\n \r\n118.70 1,715.06 \r\n \r\n$ \r\n \r\n24,350.30 $ \r\n \r\n7,434.69 $ \r\n \r\n85,293.79 $ \r\n \r\n65,287.60 \r\n \r\n========= \r\n \r\n$ \r\n \r\n5,456.74 \r\n \r\n18,893.56 \r\n \r\n$ _ _ _2_4-'--,3_50_._30_ \r\n \r\n$ \r\n \r\n9,759.74 $ \r\n \r\n2,287.67 \r\n \r\n23,514.81 \r\n \r\n9,739.03 \r\n \r\n28,274.95 \r\n \r\n42,611.04 \r\n \r\n$ \r\n \r\n61,549.50 $ _ _ _5_4-'--,6_37_._74_ \r\n \r\n$ \r\n \r\n140.33 $ \r\n \r\n118.70 \r\n \r\n1,559.21 \r\n \r\n1,715.06 \r\n \r\n$ \r\n \r\n0.00 $ - - - ~ 7,434-.6-9 \r\n \r\n22,044.75 \r\n \r\n8,816.10 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n7,434.69 $ \r\n \r\n23,744.29 $ _ _ _1_0-'--,6_49_._86_ \r\n \r\n$ \r\n \r\n24,350.30 $ \r\n \r\n7,434.69 $ \r\n \r\n85,293.79 $ ===6=5=,2=87==60= \r\n \r\n- 21 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2003 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nOperating Transfers In \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n6,788.00 $ \r\n \r\n135,620.18 \r\n \r\n133,853.68 \r\n \r\n7,549.92 \r\n \r\n$ \r\n \r\n148,191.60 $ \r\n \r\n135,620.18 \r\n \r\n$ \r\n \r\n127,154.67 \r\n \r\n19,656.85 \r\n \r\n$ \r\n \r\n136,723.90 \r\n \r\n213.15 \r\n \r\n$ \r\n \r\n136,723.90 $ \r\n \r\n147,024.67 \r\n \r\n$ \r\n \r\n11,467.70 $ \r\n \r\n-11,404.49 \r\n \r\n11,404.49 \r\n \r\n$ \r\n \r\n11,467.70 $ \r\n \r\n4,976.12 \r\n \r\n0.00 0.00 \r\n \r\n21.63 -155.85 \r\n \r\nFUND BALANCE JUNE 30 See notes to the general-purpose financial statements. \r\n- 22- \r\n \r\n$ \r\n \r\n16,309.60 $ ====o==oo.... \r\n \r\n EXHIBIT\"F\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nATHLETIC FUND \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2003 \r\n \r\nJUNE 30, 2002 \r\n \r\n$ 577,428.87 $ \r\n$ 577,428.87 $ \r\n \r\n$ 26,950.16 26,950.16 $ \r\n \r\n142,408.18 $ 711,282.55 \r\n34,500.08 \r\n888,190.81 $ \r\n \r\n209,567.51 899,356.92 \r\n7,153.15 \r\n1,116,077.58 \r\n \r\n$ 504,326.07 \r\n \r\n$ \r\n \r\n5,529.14 11,363.85 \r\n484.60 18,290.48 \r\n6,007.84 8,344.64 \r\n$ 3,082.25 \r\n \r\n20,000.00 \r\n \r\n$ 577,428.87 $ \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n1,389.56 23,799.65 \r\n25,189.21 $ 1,760.95 $ \r\n \r\n631,480.74 $ \r\n25,185.99 11,363.85 \r\n484.60 18,290.48 \r\n6,007.84 8,344.64 1,389.56 26,881.90 136,937.05 20,000.00 \r\n886,366.65 $ \r\n1,824.16 $ \r\n \r\n781,093.96 \r\n3,000.00 120,406.87 \r\n23,330.93 9,442.65 \r\n13,816.86 \r\n7,405.28 \r\n459.60 167,838.22 \r\n1,126,794.37 \r\n-10,716.79 \r\n \r\n11,404.49 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n1,760.95 $ \r\n \r\n13,228.65 $ \r\n \r\n-10,716.79 \r\n \r\n0.00 \r\n \r\n5,673.74 \r\n \r\n10,649.86 \r\n \r\n20,976.76 \r\n \r\n21.63 -155.85 \r\n \r\n-116.89 506.78 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n7,434.69 $ \r\n \r\n23,744.29 $ ===1=0=,6=49=.8=6= \r\n \r\n- 23- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2003 \r\n \r\nEXHIBIT\"G\" \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable \r\nTotal Assets \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT \r\nCOMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION \r\nSALES TAX \r\n \r\nTOTALS JUNE 30, 2003 JUNE 30, 2002 \r\n \r\n$ \r\n \r\n80,932.97 \r\n \r\n$ \r\n \r\n80,932.97 $ 348,229.33 \r\n \r\n95,023.00 $ \r\n \r\n14,826.58 \r\n \r\n109,849.58 \r\n \r\n11,994.33 \r\n \r\n$ \r\n \r\n175,955.97 $ \r\n \r\n14,826.58 $ 190,782.55 $ 360,223.66 \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nAccounts Payable Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated \r\nTotal Fund Equity \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n17,400.00 \r\n \r\n103,271.92 \r\n \r\n$ \r\n \r\n120,671.92 \r\n \r\n$ \r\n \r\n17,400.00 \r\n \r\n103,271.92 $ 130,625.24 \r\n \r\n164,734.36 \r\n \r\n$ 120,671.92 $ 295,359.60 \r\n \r\n$ \r\n \r\n14,826.58 $ \r\n \r\n14,826.58 $ \r\n \r\n11,994.33 \r\n \r\n$ \r\n \r\n55,284.05 \r\n \r\n55,284.05 \r\n \r\n52,869.73 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n55,284.05 $ \r\n \r\n14,826.58 $ \r\n \r\n70,110.63 $ \r\n \r\n64,864.06 \r\n \r\n$ \r\n \r\n175,955.97 $ \r\n \r\n14,826.58 $ 190,782.55 $ 360,223.66 \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 24- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nREVENUES \r\nState Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCapital Outlay Professional and Technical Services Expendable Equipment Land and Land Improvements Building and Building Improvements Equipment \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOperating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS YEAR ENDED JUNE 30. 2003 JUNE 30, 2002 \r\n \r\n$ \r\n \r\n197,784.00 \r\n \r\n$ 197,784.00 $ 856,376.09 \r\n \r\n$ \r\n \r\n80,062.53 \r\n \r\n80,062.53 \r\n \r\n88,907.06 \r\n \r\n80,218.72 \r\n \r\n494.91 \r\n \r\n80,713.63 \r\n \r\n143,805.32 \r\n \r\n$ \r\n \r\n278,002.72 $ \r\n \r\n80,557.44 $ 358,560.16 $ 1,089,088.47 \r\n \r\n$ \r\n \r\n26,810.45 $ \r\n \r\n12,157.28 \r\n \r\n55,850.55 \r\n \r\n599,609.64 \r\n \r\n6,750.00 \r\n \r\n$ \r\n \r\n701,177.92 $ \r\n \r\n$ \r\n \r\n-423, 175.20 $ \r\n \r\n0.00 $ \r\n \r\n26,810.45 \r\n \r\n12,157.28 \r\n \r\n55,850.55 $ 127,941.50 \r\n \r\n599,609.64 \r\n \r\n2,379,061.13 \r\n \r\n6,750.00 \r\n \r\n114,395.00 \r\n \r\n0.00 $ 701,177.92 $ 2,621,397.63 \r\n \r\n80,557.44 $ -342,617.76 $ -1,532,309.16 \r\n \r\n$ \r\n \r\n425,589.52 \r\n \r\n$ 425,589.52 $ 1,634,095.70 \r\n \r\n$ \r\n \r\n-77,725.19 \r\n \r\n-77,725.19 \r\n \r\n-195, 195.22 \r\n \r\n$ \r\n \r\n425,589.52 $ \r\n \r\n-77,725.19 $ 347,864.33 $ 1,438,900.48 \r\n \r\n$ \r\n \r\n2,414.32 $ \r\n \r\n2,832.25 $ \r\n \r\n5,246.57 $ -93,408.68 \r\n \r\n52,869.73 \r\n \r\n11,994.33 \r\n \r\n64,864.06 \r\n \r\n158,272.74 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n55,284.05 $ \r\n \r\n14,826.58 $ \r\n \r\n70,110.63 $ ==6=4..,,8=64==06= \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 25- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\nFIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30. 2003 \r\n \r\nEXHIBIT\")\" \r\n \r\nSTUDENT ACTIVITY FUND ASSETS \r\nCash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nBALANCE JULY1,2002 \r\n \r\nADDITIONS \r\n \r\nDEDUCTIONS \r\n \r\nBALANCE JUNE 30, 2003 \r\n \r\n$ \r\n \r\n9,284.62 $ 31,243.10 $ \r\n \r\n26,965.69 $ \r\n \r\n13,562.03 \r\n \r\n======== \r\n \r\n$ \r\n \r\n9,284.62 $ 31,243.10 $ \r\n \r\n26,965.69 $ ==1=3,=56=2=.0=3= \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 26- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2003 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, 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 \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) \r\nTotal U. S. Department of Agriculture \r\nEducation, 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 \r\nTotal Special Education Cluster \r\nOther Programs Direct Twenty-First Century Community Learning Centers Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Enhancing Education Through Technology Title VI Innovative Education Program Strategies TitleX Charter Schools Safe and Drug Free Schools and Communities \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n(2) 131,549.79 (3) \r\n131,549.79 \r\n \r\n10.550 \r\n \r\nNIA \r\n$ \r\n \r\n5,174.11 136,723.90 \r\n \r\n84.027 84.173 84.173 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n26,605.00 5,237.00 1,120.00 \r\n32,962.00 \r\n \r\n84.287 \r\n \r\n82,910.00 \r\n \r\n84.010 \r\n \r\nN/A \r\n \r\n84.281 \r\n \r\nN/A \r\n \r\n84.318 \r\n \r\nN/A \r\n \r\n84.298 \r\n \r\nN/A \r\n \r\n* 84.282 \r\n \r\nN/A \r\n \r\n84.186 \r\n \r\nN/A \r\n \r\n173,869.00 \r\n45,471.00 4,852.87 \r\n3,356.00 \r\n221,338.00 3,999.00 \r\n \r\n-27- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2003 \r\n \r\nSCHEDULE 111 11 \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nEducation, U. S. Department of Other Programs Pass-Through From Georgia Department of Education Vocational Education - Basic Grants to States High School Program Basic Grant \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n84.048 \r\n \r\nNIA \r\n \r\n$ _ _____;8:.,..,s~1....;.1=o..:;_o \r\n \r\n$ _ _ _5_77~,4_2_8_.8_7 \r\n \r\nTotal Federal Financial Assistance N/A = Not Available \r\n \r\n$===7=14..,,1=5=2=.7=7 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($40,917.71) were not maintained separately and are included in the 2003 National School Lunch Program. \r\n(3) Expenditures for this program include State and/or Other Funds. Expenditures were not maintained by fund source. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Taliaferro County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general-purpose financial statements. \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 28 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Community Affairs, Georgia Department of Local Assistance Grants \r\nEducation. 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 Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category Ill Remedial Education Program Alternative Education Program Media Center Program Twenty Days Additional Instruction Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Deferred Summer Salaries - Current Year Deferred Summer Salaries - Prior Year Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Agriculture - Construction Related Equipment Extended Day - Agriculture Extended Year - Agriculture Extended Day - Agriculture-Technology/Career Vocational - Construction Related Equipment Austerity Reduction Other State Programs At-Risk Summer School Program Health Insurance Preschool Handicapped Program Statewide K-3 Reading Program Lottery Programs Assistive Technology Computers in the Classroom Instructional Technology \r\nGeorgia Council for the Arts Georgia Challenge Grant \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 17,000.00 \r\n \r\n$ 17,000.00 \r\n \r\n67,668.00 4,582.00 \r\n125,424.00 8,276.00 \r\n80,865.00 \r\n8,250.00 119,955.00 148.104.00 \r\n25,149.00 \r\n88,920.00 20,161.00 \r\n9,931.00 20,981.00 \r\n7,473.00 4,287.00 354,417.00 \r\n \r\n102,451.00 23,178.00 183,057.00 24,743.00 971.00 1,011.00 115,446.00 \r\n-118,481.00 5,977.00 \r\n20,069.00 $ \r\n \r\n6,788.00 \r\n \r\n75,000.00 10,967.00 \r\n5,705.00 5,452.36 100,000.00 -27,656.00 \r\n \r\n11,400.00 24,623.79 \r\n7,489.00 11,400.00 \r\n \r\n3,237.00 42,403.00 \r\n801.00 \r\n \r\n1,375.00 \r\n \r\n67,668.00 4,582.00 \r\n125,424.00 8,276.00 \r\n80,865.00 \r\n8,250.00 119,955.00 148,104.00 \r\n25,149.00 \r\n88,920.00 20,161.00 \r\n9,931.00 20,981.00 \r\n7,473.00 4,287.00 354,417.00 \r\n102,451.00 23,178.00 183,057.00 24,743.00 971.00 1,011.00 115,446.00 \r\n-118,481.00 5,977.00 \r\n20,069.00 6,788.00 \r\n75,000.00 10,967.00 \r\n5,705.00 5,452.36 100,000.00 -27,656.00 \r\n11,400.00 24,623.79 \r\n7,489.00 11,400.00 \r\n3,237.00 42,403.00 \r\n801.00 \r\n1,375.00 \r\n \r\n-29- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of School Readiness Pre-Kindergarten Program \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nEast Central Georgia Consortium WIAProgram \r\nStudent Information System State Data Research \r\nYouth Apprenticeship Facilitator Program \r\nCONTRACT Education, Georgia Department of Foreign Language Program \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nREVENUE PROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 197.784.00 $ 197,784.00 \r\n \r\n$ 89,179.18 \r\n \r\n89,179.18 \r\n \r\n$ \r\n \r\n5,086.00 \r\n \r\n5,086.00 \r\n \r\n64,264.80 \r\n \r\n64,264.80 \r\n \r\n10,601.00 3,800.00 \r\n \r\n10,601.00 3,800.00 \r\n \r\n26,651.00 \r\n \r\n26,651.00 \r\n \r\n$ 1,806,023.95 $ 142,408.18 $ 197,784.00 $ 2,146,216.13 \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 30- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"3\" \r\n \r\nPROJECT \r\nAcquiring, constructing, installing, furnishing and equipping a new school for grades K-12 in Taliaferro County, including any school buildings and athletics facilities and payment of expenses incident thereto \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS(2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR(3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 500,000.00 $ 4,505,276.48 $ 701,177.92 $ 3,804,098.56 Ongoing \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \r\n(3) The voters of Taliaferro County approved the imposition of a 1% sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 31 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE} \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2003 \r\n \r\nSCHEDULE \"4\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Remedial Education Program Alternative Education Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n79,153.00 $ 74,620.22 $ \r\n \r\n4,539.96 $ \r\n \r\n79,160.18 \r\n \r\n5,360.00 \r\n \r\n5,438.93 \r\n \r\n1,137.79 \r\n \r\n6,576.72 \r\n \r\n146,712.00 \r\n \r\n155,651.12 \r\n \r\n6,284.14 \r\n \r\n161,935.26 \r\n \r\n9,681.00 \r\n \r\n16,803.60 \r\n \r\n167.06 \r\n \r\n16,970.66 \r\n \r\n94,590.00 \r\n \r\n92,261.00 \r\n \r\n1,706.04 \r\n \r\n93,967.04 \r\n \r\n9,650.00 140,315.00 173,241.00 \r\n29,418.00 104,013.00 \r\n23,583.00 11,616.00 \r\n \r\n10,898.35 146,848.20 172,891.75 \r\n67,775.34 \r\n82,530.62 82,138.49 18,555.99 14,112.19 \r\n \r\n169.86 9,974.71 23,928.85 14,031.83 \r\n11,722.48 3,062.41 653.06 940.73 405.69 \r\n \r\n11,068.21 156,822.91 196,820.60 \r\n81,807.17 \r\n11,722.48 85,593.03 82,791.55 19,496.72 14,517.88 \r\n \r\n$ \r\n \r\n827,332.00 $ 940,525.80 $ \r\n \r\n78,724.61 $ 1,019,250.41 \r\n \r\n24,542.00 5,015.00 \r\n \r\n39,022.49 4,717.96 \r\n \r\n17,512.74 5,759.60 \r\n \r\n56,535.23 10,477.56 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n856,889.00 $ 984,266.25 $ 101,996.95 $ 1,086,263.20 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 33- \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \r\nFebruary 25, 2004 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of Taliaferro County Board of Education as of and for the year ended June 30, 2003, and have issued our report thereon dated February 25, 2004. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nCompliance \r\nAs part of obtaining reasonable assurance about whether Taliaferro County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Taliaferro County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might \r\n2003YB-10 \r\n \r\n be material weaknesses. A material weakness is a condition in which the design or operation ofone or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. \r\nThis report is intended solely for the information and use of the management, members of the Taliaferro County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:gp 2003YB-10 \r\n \r\nState Auditor \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \r\nFebruary 25, 2004 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Taliaferro County Board of Education with the types of compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2003. Taliaferro County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Taliaferro County Board of Education's management. Our responsibility is to express an opinion on Taliaferro County Board of Education's compliance based on our audit. \r\nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Taliaferro County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Taliaferro County Board ofEducation's compliance with those requirements. \r\n2003SA-10 \r\n \r\n In our opinion, the Taliaferro County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2003. \r\nInternal Control Over Compliance \r\nThe management of Taliaferro County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Taliaferro County 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 determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \r\nThis report is intended solely for the information and use of the management, members of the Taliaferro County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:gp 2003SA-10 \r\n \r\nState Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2003 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7311-01-01 FS-7311-02-01 \r\n \r\nFurther Action Not Warranted Previously Reported Corrective Action Implemented \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2003 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Taliaferro County Board ofEducation's financial statements was unqualified. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Taliaferro County Board ofEducation did not disclose any reportable conditions related to the financial statements. \r\n3. Noncompliance Material to the Financial Statements The audit of the Taliaferro County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Taliaferro County Board ofEducation did not disclose any reportable conditions in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Taliaferro County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 The Taliaferro County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n7. Major Programs The Federal award audited as a major program is as follows: 84.282 Elementary and Secondary Education Act - Title X - Charter Schools \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The Taliaferro County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2001-h2002","title":"Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Taliaferro County, 33.56609, -82.87876"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2002-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2000; ceased with: Fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Taliaferro County Board of Education, Crawfordville, Georgia, schedule of salaries and travel for fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed July 12, 2023).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed July 12, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Taliaferro County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Taliaferro County--Auditing--Periodicals.","Education--Georgia--Taliaferro County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2001-h2002"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"  TALIAFERRO COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nGENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS - OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET \r\n \r\nALL FUND TYPES \r\n \r\n2 \r\n \r\nB \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nALL GOVERNMENTAL FUND TYPES \r\n \r\n4 \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\n6 \r\n \r\nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\n7 \r\n \r\nADDmONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING AND INDIVIDUAL FUND STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n18 \r\n \r\nF \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n20 \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n22 \r\n \r\nH \r\n \r\n COMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n23 \r\n \r\nI \r\n \r\nFIDUCIARY FUND TYPE \r\n \r\nSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\n \r\nAGENCY FUND \r\n \r\n24 \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n25 \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n27 \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n29 \r\n \r\n\\ \r\n \r\n TALIAFERRO COUNTY BOARD. OF EDUCATION \r\n-TABLE OF CONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nADDIDONAL FINANCIAL INFORMATION \r\n \r\nSCHEDULES \r\n \r\nALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC _EDUCATION PROGRAMS (Q~E) \r\n \r\n4 \r\n \r\n. BY PROGRAM \r\n \r\n5 \r\n \r\nBY SITE \r\n \r\nPage \r\n30 31 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WTIH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WTIH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WTIH 0MB CIRCULAR A-133 \r\n \r\nSECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTIONN FINDINGS AND QUESTIONED COSTS SCHED~E OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n RussELL W. HtNTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nOctober 1, 2002 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nLadies and Gentlemen: \r\n \r\nWe have audited the accompanying general-purpose financial statements of the Taliaferro County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Taliaferro County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \r\n \r\nWe 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 financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a i:easonable basis for our opinion. \r\n \r\nAs described in the notes to the general-purpose financial statements, the Board of Education's \r\n \r\nfinancial statements have been prepared using certain accounting practices and policies which, in our \r\n \r\nopinion, vary in some respects from generally accepted accounting principles. These variances are \r\n \r\ndescribed as follows: \r\n \r\n,  \r\n \r\n2002ARL-13 \r\n \r\n * 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. \r\n \r\n* The Board of Education did not recognize as expenditures, in the year ended June 30, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002. Also funds re~eived, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were improperly recorded in the year ended June 30, 2002. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \r\n \r\nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \r\n \r\nIn 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 Taliaferro County Board of Education as ofJune 30; 2002, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \r\n \r\nIn accordance with Government Auditing Standards, we have also issued our report dated October 1, \r\n \r\n2002, on our consideration of the Taliaferro County Board of Education's internal control over \r\n \r\nfinancial reporting and our tests of its compliance with certain provisions of laws, regulations, \r\n \r\ncontracts and grants. That report is an integral part of an audit performed in accordance with \r\n \r\nGovernment Auditing Standards and should be read in conjunction with this report in considering the \r\n \r\nresults of our audit. \r\n \r\n1 \r\n \r\nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Taliaferro County Board of Education taken as a whole. The accompanying combining _and individual fund statements (Exhibits E through I) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part ofthe general-purpose financial statements. Such informationhas been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \r\n \r\n2002ARL-13 \r\n \r\n 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. \r\n- ~~ Respectfully submitted, \r\n \r\nRWH:gp 2002ARL-13 \r\n \r\nState Auditor \r\n \r\n ' \r\nTALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30. 2002 \r\n \r\nASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories \r\nFood Donated Commodities Purchased Food I \r\nJ \r\nTotal Assets \r\n \r\nGOVERNMENTAL FUND \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n./ \r\n \r\n$ \r\n \r\n449.339.04 $ \r\n \r\n23.153.00 \r\n \r\n35.411.36 \r\n \r\n334.346.95 \r\n \r\n32,339.43 \r\n \r\n118.70 1 715.06 \r\n\\ \r\n \r\n$ \r\n \r\n819,097.35 $ \r\n \r\n57,326.19 \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Bus Replacement Funds For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n933.00 $ \r\n \r\n9,739.03 \r\n \r\n42,611.04 \r\n \r\n$ \r\n \r\n933.00 $ \r\n \r\n52,350.07 \r\n \r\n$ \r\n \r\n10,255.00 \r\n \r\n$ \r\n \r\n118.70 \r\n \r\n1,715.06 \r\n \r\n807,909.35 \r\n \r\n$ \r\n \r\n818,164.35 $ \r\n \r\n3 142.36 4 976.12 \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n819,097.35 $==5=7=,3=2=6.=19= \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement. -2- \r\n \r\n EXHIBIT\"A\" \r\n \r\nTYPES CAPITAL \r\nPROJECTS FUND \r\n \r\nFIDUCIARY FUND TYPE AGENCY FUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ \r\n \r\n348,229.33 $ \r\n \r\n9,284.62 $ \r\n \r\n830,005.99 $ 1,940,512.76 \r\n \r\n35,411.36 \r\n \r\n34,556.52 \r\n \r\n11,994.33 \r\n \r\n378,680.71 \r\n \r\n377,647.15 \r\n \r\n118.70 1 715.06 \r\n \r\n235.59 1,208.28 \r\n \r\n$ \r\n \r\n360,223.66 $ \r\n \r\n9,284.62 $  1,245,931.82 $ 2,354,160.30 \r\n \r\n$ \r\n \r\n130,625.24 \r\n \r\n164,734.36 \r\n \r\n$ \r\n \r\n$ \r\n \r\n295,359.60 $ \r\n \r\n$ \r\n9,284.62 9,284.62 $ \r\n \r\n10,672.03 $ 42,611.04 \r\n130,625.24 164,734.36 \r\n9,284.62 \r\n357,927.29 $ \r\n \r\n28,178.70 37,241.44 \r\n330.99 216,955.50 101,020.12 \r\n7,948.64 7121.58 \r\n398,796.97 \r\n \r\n$ \r\n \r\n11,994.33 \r\n \r\n52,869.73 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n64 864.06 \r\n \r\n$ \r\n \r\n10,255.00 $ \r\n \r\n33,210.00 \r\n \r\n118.70 1,715.06 11,994.33 52,869.73 \r\n \r\n235.59 1,208.28 115,644.21 42,628.53 \r\n \r\n811 051.71 \r\n \r\n1,762,436.72 \r\n \r\n$ \r\n \r\n888,004.53 $. 1,955,363.33 \r\n \r\n$ \r\n \r\n360,223.66 $ \r\n \r\n9,284.62 $ 1,245,931.82 $ 2,354,160.30 -3- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2002 \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOperating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ 1,719,463.75 $ \r\n740,894.49 112,954.20 \r\n$ 2,573,312.44 $ \r\n \r\n209,567.51 899,356.92 \r\nj \r\n7153.15 \r\n1, 116,077.58 \r\n\\ \r\n \r\n$ 1,309,321.00 $ \r\n31,952.89 5,472.51 \r\n48,153.24 \r\n129,558.92 130,121.44 90,910.74 138,249.62 190,826.82 \r\n10,563.00 \r\n12,905.00 \r\n$ 2,098,035.18 $ \r\n$ 475,277.26 $ \r\n \r\n781,093.96 \r\n3,000.00 120,406.87 23,330.93 \r\n9,442.65 13,816.86 \r\n7,405.28 459.60 \r\n167,838.22 \r\n1,126,794.37 \r\n-10 716.79 \r\n \r\n$ -1,438,900.48 $ -1,438,900.48 \r\n \r\n$ -963,623.22 $ 1,781,787.57  \r\n \r\n-10,716.79 15,303.02 \r\n \r\n-116.89 506.78 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ 818, 164.35 $ ===4=9==7=6=.1=2= \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement. \r\n \r\n-4- \r\n \r\n EXHIBIT\"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only} \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 301 2001 \r\n \r\n$ \r\n \r\n856,376.09 $ 2,785,407.35 $ 3,422,038.12 \r\n \r\n899,356.92 \r\n \r\n614,591.95 \r\n \r\n88,907.06 \r\n \r\n829,801.55 \r\n \r\n701,542.99 \r\n \r\n143,805.32 \r\n \r\n263,912.67 \r\n \r\n69,752.05 \r\n \r\n$ 1,089,088.47 $ 4,778,478.49 $ 4,807,925.11 \r\n \r\n$ 2,090,414.96 $ \r\n \r\n$ 2,621,397.63 \r\n \r\n34,952.89 125,879.38 \r\n71,484.17 139,001.57 143,938.30 \r\n90,910.74 138,249.62 198,232.10 \r\n11,022.60 167,838.22 2,634,302.63 \r\n \r\n$ 2,621,397.63 $ 5,846,227.18 $ \r\n \r\n$ -1,532,309.16 $ -1,067,748.69 $ \r\n \r\n1,566,927.78 \r\n44,516.47 110,878.02 \r\n84,574.58 134,209.89 110,772.96 78,083.94 86,139.78 139,804.00 \r\n2,900.06 125,523.17 1,118,835.63 \r\n3,603,166.28 \r\n1,204,758.83 \r\n \r\n$ 1,438,900.48 $ 1,438,900.48 $ -1,438,900.48 \r\n \r\n$ 1,438,900.48 $ \r\n \r\n0.00 $ \r\n \r\n19,421.92 -19,421.92 \r\n0.00 \r\n \r\n$ \r\n \r\n-93,408.68 $ -1,067,748.69 $ 1,204,758.83 \r\n \r\n158,272.74 \r\n \r\n1,955,363.33 \r\n \r\n751,520.64 \r\n \r\n-116.89 506.78 \r\n \r\n-972.18 56.04 \r\n \r\n$ \r\n \r\n64 864.06 $ \r\n \r\n888,004.53 $ 1,955,363.33 \r\n \r\n-5- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nCOMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\n \r\n. \r\n \r\nBUDGET AND ACTUAL - {NON-GAAP BASIS} \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\nYEAR ENDED JUNE 30. 2002 \r\n \r\nEXHIBIT \"C\" \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER EINANCING USES \r\nOther Uses I \r\nExcess of Revenues over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1. 2001 \r\n \r\nGENERAL FUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\n$ 1,663,815.00 $ 1,719,463.75 \r\n \r\n634,410.00 11,000.00 \r\n \r\n740,894.49 112,954.20 \r\n \r\n$ 2,309,225.00 $ 2,573,312.44 \r\n \r\n$ 1,448,131.00 $ 1,309,321.00 \r\n \r\n32,693.00 \\., 5,138.00 \r\n77,543.00 127,176.00 119.523.00 \r\n90,830.00 130,024.00 194,377.00 \r\n12,063.00 \r\n \r\n31,952.89 5,472.51 \r\n48,153.24 129,558.92 130,121.44 \r\n90,910.74 .. 138,249.62 , 190,826.82 \r\n10,563.00 \r\n \r\n16,000.00 \r\n \r\n12,905.00 \r\n \r\n$ 2,253,498.00 $ 2,098,035.18 \r\n \r\n$ 55,727.00 $ 475,277.26 \r\n \r\n-265,000.00 \r\n \r\n-1,438.900.48 \r\n \r\n$ -209,273.00 $ -963,623.22 \r\n \r\n1,761,924.45 \r\n \r\n1,781,787.57 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\n$ 191,488.00 $ 209,567.51 \r\n \r\n787,948.00 \r\n \r\n899,356.92 \r\n \r\n6,800.00 \r\n \r\n7 153.15 \r\n \r\n$ 986,236.00 $ 1.116,077.58 \r\n \r\n$ 700,206.00 $ 781,093.96 \r\n \r\n3,000.00 77,734.00 \r\n9,335.00 15,741.00 \r\n \r\n3,000.00 120,406.87 \r\n23,330.93 9,442.65 13,816.86 \r\n \r\n6,065.00 3,000.00 159,183.00 \r\n \r\n7,405.28 459.60 \r\n167,838.22 \r\n \r\n$ 974,264.00 $ 1.126,794.37 $ 11,972.00 $ -10,716.79 \r\n \r\n$ 11,972.00 $ -10,716.79 \r\n \r\n0.00 \r\n \r\n13,859.15 \r\n \r\nFUND BALANCE JUNE 30. 2002 \r\n \r\n$ 1,552,651.45 $ 818,164.35 \r\n \r\n$ 11,972.00 $===3=,1=4=2.=36== \r\n \r\nThe notes to the, general-purpose financial statements are an integral part of this statement. -6- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe Taliaferro County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity \r\n/ \r\nand has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District 1s a primary government and consists of all the organizations that compose its legal entity. \r\nFUND ACCOUNTING \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGeneral 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. \r\nThe 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 no_tes. Funds presented in this report are as follows: \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educational activities. Governmental Fund Types include: \r\nGENERAL 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. \r\nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \r\nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \r\n \r\n-7- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nFIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a \r\n \r\ntrustee capacity or as an agent for individuals, private organizations, other government units and/or \r\n \r\nother funds. Thi~ fund includes: \r\n \r\n \r\n \r\nAGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \r\n \r\nBASIS OF ACCOUNTING \r\n \r\nThe accounting and financial reporting treatment applied to a fund is detennined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues . and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \r\n \r\nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. \r\n \r\nAgency funds are purely custodial in nature and do not involve measurement ofresultsofoperations. \r\n \r\nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \r\n \r\nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be detennined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in-the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\n \r\nExpenditures are generally recognized when the related fund Jiability is incurred. \r\nJ \r\nA departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2002, a substantial number ofpersonnel ofthe School District were employed for a.one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Personnel contracts for this employment period specify that compensatiop be paid in twelve equal monthly payments beginning \r\n \r\n-8- \r\n \r\n ,. \r\nTALIAFERRO COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\nJUNE 3b, ioo2 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nin September 2001 and ending in August 2002. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2002, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made. Payments for these two months were made and recorded as expenditures by the -School District subsequent to June 30, 2002. Also, the State's portion ofthe compensation paid inJuly and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were recorded in the year ended June 30, 2002. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \r\nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets  and liabilities. \r\nBUDGET \r\nThe Taliaferro County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds w~ prepared on a basis other than generally accepted accounting principles. \r\nThe budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit \"B\" ofthis report: \r\n \r\n-9- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENER.AL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nSpecial , Revenue \r\nFund \r\n \r\nFUND BALANCE JULY 1, 2001 \r\n \r\n$ 15,303.02 \r\n \r\nAdjustments Inventories - July 1, 2001 Food Donated Commodities Purchased Foods \r\n \r\n-235.59 -1~208.28 \r\n \r\nFund Balance July 1, 2001 (Budget Basis) \r\n \r\n$ 13,859.15 \r\n \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\n \r\n-10.716.79 \r\n \r\nFUND BALANCE JUNE 30, 2002 (Budget Basis) . \r\n \r\n$ 3,142.36 \r\n \r\nCASH AND CASH EQUIVALENTS \r\n \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \r\n \r\nINVESTMENTS \r\n \r\nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n \r\n-: 10- \r\n \r\n TALIAFERRO COUNTY BOARD OF ED-UCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(2) Obligations issued by the United States government, \r\n \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n \r\n(4) Obligations of ~y corporation of the United States government, \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures \r\nmade but not reimbursed and other receivables disclosed from information available.- Receivables \r\nare recorded when either the asset or revenue recognition criteria has been met. Receivables \r\nrecorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\n The Taliaferro County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on Mai:ch 15, 2002 (levy date). Taxes were due on May 15, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Taliaferro County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $722,127.77. \r\n \r\nThe tax millage rate levied for the 2001 tax year (calendar year) for the Taliaferro County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n13.39 mills \r\n \r\n- 11 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\n. \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSALES TAXES \r\nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Locai Option Sales Tax revenue during the fiscal year amounted to $88,907.06 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $338,502.36 has been collected or on September 30, 2005, whichever occurs first. \r\nINVENTORIES \r\nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \r\nINTERFUND TRANSACTIONS \r\nThe School District has the following types of interfu.nd transactions: \r\nReimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \r\nOperating transfers are recorded for all interfund transactions other than reimbursements. \r\nMEMORANDUM ONLY -TOTAL COLUMNS \r\nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. ,Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \r\nNote 2: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face \r\n- 12 - \r\n \r\n TALIAFERRO COUNfY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 200.i \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\nvalue of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-1 l(b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\nI \r\n(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 ofthe bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and \r\n(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 Fai:m_Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $1,236,769.74. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the \r\n, School District's name. Category 2 :-- Cash collateralized with securities held by the pledging financial institution's \r\ntrust department or agent in the School District's name. \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\nCategory 3 -  Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2002, as follows: \r\n \r\nRisk Category \r\nI \r\nI 2 .3 \r\n \r\nBank Balance \r\n$ 109~525.57 . 1,127,244.17 0.00 \r\n \r\nTotal \r\n \r\n$ 1,236,769.74 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value ofthe School District's total investments was $35,41 L36 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: \r\nI \r\nThe Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-_7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly toensure stability. The pool distributes earnings (net'ofmanagement 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 guarantees to support the value ofthe shares: Participation in the pool is voluntary and deposits consist of funds from 1ocal governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \r\n \r\nInvestments 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. Go,;ernment or any of its agencies or instrumentalities, banker's acceptances and repurchase \r\n \r\n- 14 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\nagreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1on June 30, 2002, was 0.12 years.  The average investment duration for Fund 6 on June 30, 2002, was 0.75 years. \r\n \r\nNote 3: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \r\n \r\nNote 4: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk of loss associated with torts and assets. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe pa:,;t three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. In addition, the \r\n \r\nSchool District has elected to self-insure for errors or omissions, which includes, among other risks, \r\n \r\nrisks for sexual harassment and discrimination. The School District has not experienced any losses \r\n \r\nrelated to these risks in the past three years. \r\n \r\n' \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can.be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is  provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\n- 15 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 4: RISK MANAGEMENT \r\n. \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Principal Bookkeeper Office Clerk Secretary Athletic Director \r\n \r\n$ 70,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ . 10,000.00 $ 10,000.00 \r\n \r\nNote 5: ON.,BEHALF PAYMENTS \r\n \r\nJ The School District has recognized revenues and expenditures in the amount of $30,253.75 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health . For Health Insurance of Non-Certified Personnel In the amount of$27,406.75 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $2,847.00 \r\n \r\nNote 6: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed .- by the School District as of June 30, 2002: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\n01 /00S-731-006 \r\n \r\n$ 572,872.10 \r\n \r\nThe amount described in this note is not reflected in the general-purpose financial statements. \r\n \r\nNote 7: CONTINGENT LIABILITIES \r\n \r\n, \r\n \r\n' \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and \r\n \r\nreview by grantor agencies. This could result in requests for reimbursement to the grantor agency \r\n \r\nfor any expenditures which are disallowed under grant terms. The School District believes that such \r\n \r\ndis~llowances, if any, will be immaterial to its overall financial position. \r\n \r\n- 16 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 8: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS 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 fro~ the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2002 2001 2000 \r\n \r\n100% 100% 100% \r\n \r\n$ 127,-100.07 $ 120,216.26 $ 88,164.91 \r\n \r\nI  \r\n- 17 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable I \r\nInventories Food Donated Commodities Purchased Food \r\n \r\n'SCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n11,775.85 $ \r\n \r\n13,664.82 \r\n \r\n3,353.43 \r\n \r\n118.70 1 715.06 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n16,963.04 $'===1=3:!:::,6=64==82= \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salaries Payable \r\nI \r\nExpired Grant Balances Payable Deferred Revenue \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \r\nTotal Fund Equity \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n1,067.92 $ \r\n \r\n2,835.94 \r\n \r\n10,919.00 \r\n \r\n10,828.88 \r\n \r\n$ \r\n \r\n11,986.92 $ \r\n \r\n'13,664.82 \r\n \r\n$ \r\n \r\n118.70 \r\n \r\n1,715.06 \r\n \r\n3142.36 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n4 976.12 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n16,963.04 $ ===1=3:!:::,6=64==82= \r\n \r\nSee notes to the general-purpose financial statements. -.18 - \r\n \r\n EXHIBIT\"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ \r\n \r\n25,440.67 $ \r\n \r\n39,446.78 \r\n \r\n$ \r\n \r\n28,986.00 \r\n \r\n32,339.43 \r\n \r\n28,250.00 \r\n \r\n118.70 1,715.06 \r\n \r\n235.59 1,208.28 \r\n \r\n$ \r\n \r\n28,986.00 $ \r\n \r\n59,613.86 $ ===6=9!::1,.4.0.=.6=5= \r\n \r\n$ \r\n \r\n2,287.67 $ \r\n \r\n2,287.67 \r\n \r\n5,835.17 \r\n \r\n9,739.03 $ \r\n \r\n8,316.56 \r\n \r\n20,863.16 \r\n \r\n42,611.04 \r\n \r\n37,241.44 \r\n \r\n330.99 \r\n \r\n7 948.64 \r\n \r\n$ \r\n \r\n28,986.00 $ \r\n \r\n54,637.74 $ \r\n \r\n53,837.63 \r\n \r\n$ \r\n \r\n$ ___---'o__.o__o_ _ \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n118.70 $ 1,715.06 \r\n \r\n235.59 1,208.28 ' \r\n \r\n3,142.36 \r\n \r\n13,859.15 \r\n \r\n4,976.12 $ ___1_5_,3_03_.0_2_ \r\n \r\n$ \r\n \r\n28,986.00 $ \r\n \r\n59,613.86 $ ===6=9!::1,.4.0.=.6=5= \r\n \r\n- 19 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2002 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Student Transportation Services Other Support Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nFUND BALANCE JULY 1 \r\nFood. Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n7,004.00 $ \r\n \r\n202,563.51 \r\n \r\n142,964.28 \r\n \r\n7153.15 \r\n \r\n$ \r\n \r\n157,121.43 $ \r\n \r\n202,563.51 \r\n \r\n$ \r\n \r\n187,563.51 \r\n \r\n15,000.00 \r\n \r\n$ \r\n \r\n167,838.22 \r\n \r\n$ \r\n \r\n167,838.22 $ \r\n \r\n202,563.51 \r\n \r\n$ \r\n \r\n-10,716.79 $ \r\n \r\n0.00 \r\n \r\n15,303.02 \r\n \r\n0.00 \r\n \r\n-116.89 506.78 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n4 976.12 $ ========0.=00= \r\n \r\nSee notes to the general-purpose financial statements. - 20- \r\n \r\n EXHIBIT\"F\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 301 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ \r\n \r\n209,567.51 $ \r\n \r\n121,076.47 \r\n \r\n$ \r\n \r\n756,392.64 \r\n \r\n899,356.92 \r\n \r\n614,591.95 \r\n \r\n7 153.15 \r\n \r\n5 917.49 \r\n \r\n$ \r\n \r\n756,392.64 $ 1.116.077.58 $ _ _7;...4;..;.1,1.;;,5.;:;.85=.;;..91\"'- \r\n \r\n$ \r\n \r\n593,530.45 $ \r\n \r\n781,093.96 $ \r\n \r\n444,163.20 \r\n \r\n3,000.00 105,406.87 23,330.93 \r\n9,442.65 13,816.86 \r\n7,405.28 459.60 \r\n \r\n3,000.00 120,406.87 23,330.93 \r\n9,442.65 13,816.86 7,405.28 \r\n459.60 167.838.22 \r\n \r\n18,949.76 103,994.70 44,500.79 \r\n7,148.62 1,443.28 2,076.42 1,400.06 125,523.17 \r\n \r\n$ \r\n \r\n756,392.64 $ 1,126,794.37 $ \r\n \r\n749,200.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n-10,716.79 $ \r\n \r\n-7,614.09 \r\n \r\n0.00 \r\n \r\n15,303.02 \r\n \r\n23,833.25 \r\n \r\n-116.89 506.78 \r\n \r\n-972.18 56.04 \r\n \r\n$ ========o=.o=o= $ \r\n \r\n4,976.12 $ ===1=s=,3=03=.0=2= \r\n \r\n- 21 - \r\n \r\n / \r\nTALIAFERRO COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002 \r\n \r\nEXHIBIT\"G\" \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable \r\nTotal Assets \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS JUNE 30, 2002 JUNE 30, 2001 \r\n \r\n$ \r\n \r\n348,229.33 \r\n \r\n$ 348,229.33 $ 169,770.38 \r\n \r\n$ \r\n \r\n11,994.33 \r\n \r\n11,994.33 \r\n \r\n306,477.98 \r\n \r\n$ \r\n \r\n348,229.33 $ \r\n \r\n11 994.33 $ 360,223.66 $ 476,248.36 \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nContrads Payable Retainages Payable \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For SPLOST Projeds For State Capital Outlay Projeds Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n130,625.24 \r\n \r\n164i734.36 \r\n \r\n$ \r\n \r\n295,359.60 \r\n \r\n$ 130,625.24 $ 216,955.50 \r\n \r\n164,734.36 \r\n \r\n101,020.12 \r\n \r\n$ 295,359.60 $ 317,975.62 \r\n \r\n$ \r\n \r\n11,994.33 $ \r\n \r\n11,994.33 $ 115,644.21 \r\n \r\n$ \r\n \r\n52,869.73 \r\n \r\n52,869.73 \r\n \r\n42,628.53 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n52,869.73 $ \r\n \r\n11,994.33 $ 64,864.06 $ 158,272.74 \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n348,229.33 $ \r\n \r\n11,994.33 $ 360,223.66 $ 476,248.36 \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n-22- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002 \r\n \r\nEXHIBIT \"H\" \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 \r\n \r\nREVENUES \r\n \r\nState Funds Taxes Other Funds \r\n \r\n$ \r\n \r\n856,376.09 \r\n \r\n$ 856,376.09 $ 938,241.91 \r\n \r\n$ \r\n \r\n88,907.06 \r\n \r\n88,907.06 \r\n \r\n95,978.45 \r\n \r\n141167.04 \r\n \r\n2,638.28 \r\n \r\n143,805.32 \r\n \r\n9098.94 \r\n \r\nTotal Revenues \r\n \r\n$ \r\n \r\n997,543.13 $ \r\n \r\n91,545.34 $ 1,089,088.47 $ 1,043,319.30 \r\n \r\nEXPENDITURES \r\n \r\nCapital Outlay Land and Land Improvements Building and Building Improvements Equipment \r\nTotal Expenditures \r\n \r\n$ \r\n \r\n127,941.50 $ \r\n \r\n2,379,061.13 \r\n \r\n114,395.00 \r\n \r\n$ 2,621,397.63 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n127,941.50 $ 2,379,061.13 \r\n114,395.00 \r\n2,621,397.63 $ \r\n \r\n2,143.15 1, 116,692.48 \r\n' \r\n1,118,835.63 \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\n$ -1,623,854.50 $ - 91 545.34 $ -1,532,309.16 $ -75,516.33 \r\n \r\nOT!::fER FINANCING SOURCES (USES} \r\n \r\nOperating Transft:irs In Operating Transfers Out \r\n \r\n$ 1,634,095.70 \r\n \r\n$ 1,634,095.70 $ \r\n \r\n$ -195,195.22 \r\n \r\n-195, 195.22 \r\n \r\n19,421.92 \r\n \r\nTotal Other Financing Sources (Uses) \r\n \r\n$ 1,634,095.70 $ -195,195.22 $ 1,438,900.48 $ \r\n \r\n19,421.92 \r\n \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ \r\n \r\n10,241.20 $ -103,649.88 $ -93,408.68 $ -56,094.41 \r\n \r\nFUND BALANCE JULY 1 \r\n \r\n42,628.53 \r\n \r\n115,644.21 \r\n \r\n158,272.74 \r\n \r\n214,367.15 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n52,869.73 $ \r\n \r\n11,994.33 $ \r\n \r\n64,864.06 $ 158,272.74 \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n-23- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\n \r\nFIDUCIARY FUND TYPE - AGENCY FUND \r\n \r\n/ \r\n \r\nYEAR ENDED JUNE 30, 2002 \r\n \r\nEXHIBIT\"!\" \r\n \r\nSTUDENT ACTIVITY FUND ASSETS \r\nCash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nBALANCE JULY 11 2001 \r\n \r\nADDITIONS \r\n \r\nDEDUCTIONS \r\n \r\nBALANCE JUNE 30, 2002 \r\n \r\n$ \r\n \r\n7,121.58 $ 10,944.33 $ \r\n \r\n8,781.29 $ \r\n \r\n9,284.62 \r\n \r\n$ \r\n \r\n7,121.58 $ 10,944.33 $ \r\n \r\n8,781.29 $===9=,2=84==62= \r\n \r\n/ \r\nSee notes to the general-purpose financial statements. - 24- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATiON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2002 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, 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 \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition,Program Child and Adult Care Food Program \r\nTotal U. S. Department of Agriculture \r\nEducation, 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 Grant \r\nTotal Special Education Cluster \r\nOther Programs Direct Twenty-First Century Community Leaming Centers Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project Elementary and Secondary Education Act Trtlel Grants to Local Educational Agencies Title II Eisenhower Professional Development Tille Ill Technology Literacy Challenge Fund Grants Tille VI Innovative Education Program Strategies Class Size Reduction Tille X Charter Schools Goals 2000 State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools and Communities Pass-Through From Office of School Readiness Elementary and Secondary Education Act Title II Pre-K Summer.Transition Program \r\nTotal U.S. Department of Education \r\n \r\nCFDA NUMBER \r\n. 10.553 . 10.555 \r\n10.550 10.558 \r\n84.027 84.173 84.173 \r\n84.287 84.332 \r\n. 84.010 \r\n84.281 84.318 84.298 84.340 84.282 84.276 84.186 \r\n84.336 \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nN/A $ 46,136.10 \r\n \r\nN/A \r\n \r\n88,066.78 $ \r\n \r\n$ 134,202.88 $ \r\n \r\n(2) 163,152.34 (3) \r\n163,152.34 \r\n \r\nNIA \r\n \r\n4,685.88 \r\n \r\nNIA \r\n \r\n4,075.52 \r\n \r\n$ 142,964.28 $ \r\n \r\n4,685.88 \r\n{2) 167,838.22 \r\n \r\nNIA $ 17,179.00 $ \r\n \r\nNIA \r\n \r\n4,296.00 \r\n \r\nNIA, \r\n \r\n350.00 \r\n \r\n$ 21,825.00 $ \r\n \r\n17,179.00 4,296.00 \r\n350.00 \r\n21,825.00 \r\n \r\n78,962.00 \r\n \r\nNIA \r\n \r\n67,000.00 \r\n \r\nNIA \r\n \r\n135,821.00 \r\n \r\nNIA \r\n \r\n17,500.00 \r\n \r\nNIA \r\n \r\n125,000.00 \r\n \r\nNIA \r\n \r\n3,140.00 \r\n \r\nNIA \r\n \r\n17,823.00 \r\n \r\nNIA \r\n \r\n230,634.00 \r\n \r\nNIA \r\n \r\n50,000.00 \r\n \r\nNIA \r\n \r\n739.00 \r\n \r\n78,962.00 67,000.00 \r\n135,821.00 17,500.00 125,000.00 3,140.00 17,823.00 230,634.00 \r\n50,000.00 739.00 \r\n \r\nN/A \r\n \r\n7,948.64 \r\n \r\n$ 756,392.64 $ \r\n \r\n7 948.64 756,392.64 \r\n \r\nTotal Federal Financial Assistance \r\nNIA = N'ot Available \r\n \r\n- 25- \r\n \r\n$ 899,356.92 $ \r\n \r\n924,230.86 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2002 \r\n \r\nSCHEDULE \"1\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. \r\n(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2002 National School Lunch Program. \r\n(3) Expenditures for this program include State, and/or Other Funds. Expenditures were not maintained by fund source. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe School District did not _provide Federal Assistance to any ~ubrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Taliaferro County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n 26  \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2002 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Community Affairs, Georgia Department of Local Assistance Grants \r\nEducation, 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 Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Remedial Education Program Alternative Education Program Media Center Program Twenty Days Additional Instruction Program Staff and Professional Development Indirect CosL Categorical Grants Pupil Transportation Regular Bus Repl~cement Sparsity Nursing Services Principal Supplements Vocational Supervisors. Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Preschool Handicapped Program Statewide K-3 Reading Program Lottery Programs Assistive Technology Computers in the Classroom Vocational Technology \r\nGeorgia Council for the Arts Georgia Challenge Grant \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of School Readiness Pre-Kindergarten Program \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nCONTRACT Education, Georgia Department of Foreign Language Program \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 40,000.00 \r\n \r\n$ 40,000.00 \r\n \r\n68,574.00 8,817.00 \r\n107,145.00 15,902.00 71,585.00 11,886.00 \r\n131,469.00 112,883.00 \r\n21,955.00 \r\n57,224.00 60,794.00 16,600.00 \r\n9,542.00 22,207.00 \r\n6,834.00 4,233.00 315,976.00 \r\n \r\n105,762.00 30,023.00 \r\n191,622.00 24,743.00 1,049.00 1,011.00 $ \r\n200,334.00 \r\n \r\n7,004.00 \r\n \r\n3,900.00 27,406.75 \r\n7,164.00 12,000.00 \r\n \r\n3,237.00 8,959.00 100,000.00 \r\n \r\n1,125.00 \r\n \r\n68,574.00 8,817.00 \r\n107,145.00 15,902.00 71,585.00 11,886.00 \r\n131,469.00 112,883.00 \r\n21,955.00 \r\n57,224.00 60,794.00 16,600.00 \r\n9,542.00 22,207.00 \r\n6,834.00 4,233.00 315,976.00 \r\n105,762.00 30,023.00 \r\n191,822.00 24,743.00 1,049.00 1,011.00 7,004.00 \r\n200,334.00 \r\n3,900.00 27,406.75 \r\n7,164.00 12,000.00 \r\n3,237.00 8,959.00 100,000.00 \r\n1,125.00 \r\n \r\n2,847.00 \r\n \r\n$ 856,376.09 90,367.51 \r\n \r\n856,376.09 90,367.51 2,847.00 \r\n \r\n26,651.00 \r\n \r\n26 651.00 \r\n \r\n$ 1;1191463.75 $ 2091567.51 $ 8561376.09 $ 2;185.407.35 \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n-27- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30. 2002 \r\n \r\nSCHEDULE \"3\" \r\n \r\nPROJECT \r\nAcquiring, constructing, installing, furnishing and equipping a new school for grades K-12 in Taliaferro County. induding any school buildings and athletics facilities and payment of expenses incident thereto \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ soo1000.oo $ 3,804,098.56 $ 2,621,397.63 $ 1,182,700.93 Ongoing \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the project. lndudes all cost from project inception to completion. \r\n(3) The voters of Taliaferro County approved the imposition of a 1% sales tax to fund the above project. Amounts expended for this project may indude sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 29- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2002 \r\n \r\nSCHEDULE \"4\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Earty Intervention Program Primary Grades (1-3) Program Primary Grades-Earty Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades:Earty Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Remedial Education Program Altemative Education Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n79,800.00 $ 46,241.88 $ \r\n \r\n1,160.00 $ \r\n \r\n47,401.88 \r\n \r\n10,261.00 \r\n \r\n25,809.01 \r\n \r\n392.11 \r\n \r\n26,201.12 \r\n \r\n124,686.00 \r\n \r\n115,980.91 \r\n \r\n2,678.10 \r\n \r\n118,659.01 \r\n \r\n18,505.00 \r\n \r\n36,441.17 \r\n \r\n1,126.49 \r\n \r\n37,567.66 \r\n \r\n83,304.00 \r\n \r\n105,802.51 \r\n \r\n2,175.71 \r\n \r\n107,978.22 \r\n \r\n13,832.00 152,992.00 131,364.00 25,549.00 137,339.00 \r\n19,318.00 11,104.00 \r\n \r\n14,709.27 156,633.47 181,885.54 49,437.42 \r\n103,555.52 68,434.36 13,887.81 10,710.68 \r\n \r\n624.40 6,249.35 15,574.09 4,082.29 \r\n9,344.00. 7,358.28 \r\n208.98 164.89 \r\n \r\n.15,333.67 162,882.82 197,459.63 53,519.71 \r\n9,344.00 110,913.80 68,643.34 14,052.70 10,710.68 \r\n \r\n$ \r\n \r\n808,054.00 $ 929,529.55 $ 51,138.69 $ 980,668.24 \r\n \r\n25,843.00 4,926.00 \r\n \r\n31,944.47 \r\n \r\n15,579.07 5,472.51 \r\n \r\n47,523.54 5 472.51 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n838,823.00 $ 961,474.02 $ 72,190.27 $ 1,033,664.29 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 30- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE} \r\nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002 \r\n \r\nSCHEDULE \"5\" \r\n \r\nTaliaferro County School Sand Hills Psychoeducational Program Central Office (Alternative Education Program) \r\nTOTAL \r\n(1) Comprised of State Funds plus Local Five Mill Share. \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\n$ \r\n \r\n796,950.00 $ \r\n \r\n957,217.37 \r\n \r\n12,740.19 \r\n \r\n11,104.00 \r\n \r\n10,710.68 \r\n \r\n$ \r\n \r\n808,054.00 $ ===9=80...,,6=6=8=.2=4 \r\n \r\nSee notes to the general-purpose financial statements. - 31 - \r\n \r\n ( \r\nSECTION II COMPLIANCE AND INTERNAL CONfROL REPORTS \r\n \r\n w. RUSSELL \r\n \r\nHINTON \r\n \r\nSTATE AUDITOR \r\n \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nOctober 1, 2002 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members ofthe Taliaferro County Board of Education \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of Taliaferro County Board ofEducation as of and for the year ended June 30, 2002, and have issued our report thereon dated October 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 of the United States. \r\nCompliance \r\nAs part of obtaining reasonab!e assurance about whether Taliaferro County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and.grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective 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. \r\nInternal Control Over Financial Reporting \r\n1n planning and performing our audit, we considered Taliaferro County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \r\n2002YB-41 \r\n \r\n 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 Taliaferro County Board of Education'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-7311-0201. \r\nA material weakness is a condition in which the design or operation of one or more ofthe internal control component!, 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 ofthe 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 item FS-7311-02-01 to be a material weakness. \r\nThis report is intended solely for the information and use of the management, members of the Taliaferro County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n\" lI}_ i.o-:4 ~  11 W. Hinton State Auditor  \r\nRWH:gp 2002YB-41 \r\n \r\n w. RUSSELL \r\n \r\nHINTON \r\n \r\nSTATE AUDITOR \r\n \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nOctober 1, 2002 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members ofthe Taliaferro County Board of Education \r\n \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR \r\n \r\nPROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH \r\n \r\n0MB CIRCULARA-133 \r\n \r\n. \r\n \r\nLadies and Gentlemen: \r\n \r\nCompliance \r\n \r\nWe have audited the compliance of Taliaferro County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. Taliaforro County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofTaliaferro County Board of Education's management. Our responsibility is to express an opinion on Taliaferro County Board of Education's compliance based on our audit. \r\n \r\nWe 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 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Taliaferro County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Taliaferro County Board ofEducation's compliance with those requirements. \r\n \r\n 2002SA-10 \r\n \r\n In our opinion, the Taliaferro County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to eachofits major Federal programs for the year ended June 30, 2002. \r\n \r\nInternal Control Over Compliance \r\n \r\nThe management of Taliaferro County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Taliaferro County 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 determine our auditing procedures for the purpose of expressing ~ur opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\n \r\nOur 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. \r\n \r\nThis report is intended solely for the information and use of the management, members of the Taliaferro County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\n \r\n~,.,~~~ Respectfully submitted, \r\n \r\nRussell W. Hinton \r\n \r\n. \r\n \r\nState Auditor \r\n \r\nRWH:gp 2002SA-10 \r\n \r\n SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n, I \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7311-00-02 FS-7311-01-01 \r\n \r\nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7311-01-01 \r\n \r\nDue to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staffthe School District has decided not to pursue the recording of general fixed assets on the financial statements. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 2002 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Taliaferro County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Taliaferro County Board ofEducation disclosed a financial statement reportable condition related to the following control category. \r\nGeneral Fixed Assets \r\nThe reportable condition described above is considered to be a material weakness. \r\n3. Noncompliance Material to the Financial Statements The audit of the Taliaferro County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Taliaferro County Board ofEducation did not disclose any reportable conditions in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Taliaferro County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 The Taliaferro County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n7. Major Programs Federal awards audited as major programs are as follows:  10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I- Grants to Local Educational \r\nI \r\nAgencies \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The Taliaferro County Board of Education did qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \r\n- 1- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2002 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition~ Material Weakness  Repeated From Prior Year Finding Control Number: FS-7311-02-01 The Taliaferro County Board of Educatio11 did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. \r\nID FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n) \r\n-2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2000-h2001","title":"Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Taliaferro County, 33.56609, -82.87876"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2001-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2000; ceased with: Fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Taliaferro County Board of Education, Crawfordville, Georgia, schedule of salaries and travel for fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed July 12, 2023).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed July 12, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Taliaferro County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Taliaferro County--Auditing--Periodicals.","Education--Georgia--Taliaferro County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Taliaferro County Board of Education, Crawfordville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2000-h2001"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b2000-h2001"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"-~,_ ', ' ., ....., \r\n \r\n---'! \r\n \r\nl:l\u003c - \r\n \r\n~~~r \\~ ,~- \r\n \r\n! -  ' .... \r\n.... ,~ \r\n. . ~ ....~ \r\n \r\n,, ' \r\n \r\n' : F \r\n \r\n1, \r\ni : \r\n \r\n... . ~ \r\n \r\n. \r\n \r\n- . . . 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' I f \r\n \r\n.' \r\n \r\n'' ; \r\n \r\n' . \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nGENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS - OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET \r\n \r\nALL FUND TYPES \r\n \r\nB \" COMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nALL GOVERNMENTAL FUND TYPES \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nADDITIONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING AND INDNIDUAL FUND STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\nF \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\nH \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\nI \r\n \r\nFIDUCIARY FUND TYPE \r\n \r\nSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\n \r\nAGENCY FUND \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n2 \r\n4 6 7 \r\n18 \r\n20 22 \r\n23 \r\n24 \r\n25 27 \r\n29 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nADDITIONAL FINANCIAL INFORMATION \r\n \r\nSCHEDULES \r\n \r\nALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\n4 \r\n \r\nBY PROGRAM \r\n \r\n5 \r\n \r\nBY SITE \r\n \r\nPage \r\n30 31 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n :lL1,~1,,1.1. \\\\\". H1:-. mr,: \r\nSTATE AUDITOR (404) 656 2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Wa,hmg1on Street. S W.. Suite 214 Atlanta. Georgia 30334-8400 \r\nMarch 14, 2002 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying general-purpose financial statements of the Taliaferro County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Taliaferro County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards apphcable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm1on. \r\nAs 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: \r\n \r\n2001ARL-13 \r\n \r\n * The general-purpose financial statements of the Board of Education did not contain a \r\nGeneral 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. \r\n* The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \r\nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \r\nIn 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 Taliaferro County Board of Education as ofJune 30, 2001, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 14, 2002, on our consideration of the Taliaferro County 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. \r\nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Taliaferro County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits E through I) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required byU. S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part ofthe general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \r\n2001ARL-13 \r\n \r\n A copy of this report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \r\nRespectfully submitted, \r\nRWH:gp 2001ARL-13 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30. 2001 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nInvestments \r\nAccounts Receivable \r\nInventories Food Donated Commod1t1es Purchased Food \r\n \r\nGOVERNMENTAL FUND \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ 1,724,174.02 $ \r\n \r\n39,446.78 \r\n \r\n34,556.52 \r\n \r\n42,919.17 \r\n \r\n28,250.00 \r\n \r\n235.59 1,208.28 \r\n \r\nTotal Assets \r\n \r\n$ 1,801,649.71 $ ===6=9=1.=40=6=5== \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others \r\nTotal L1ab1lit1es \r\nFUND EQUITY \r\nFund Balances Reserved For Bus Replacement Funds For Inventories Food Donated Commodities Purchased Food For SPLOST Proiects For State Capital Outlay ProJects Unreserved Undes1gnated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n19,862.14 $ \r\n \r\n8,316.56 \r\n \r\n37,241 44 \r\n \r\n330.99 \r\n \r\n7,948 64 \r\n \r\n$ \r\n \r\n19,862.14 $ \r\n \r\n53,837.63 \r\n \r\n$ \r\n \r\n33,210.00 \r\n \r\n$ \r\n \r\n235.59 \r\n \r\n1,208.28 \r\n \r\n1,748,577.57 $ 1 781 787.57 $ \r\n \r\n13,859.15 15,303.02 \r\n \r\nTotal L1ab1lities and Fund Equity \r\n \r\n$ 1,801,649.71 $ ===,;6~9~1,~40~6~5= \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement -2- \r\n \r\n EXHIBIT\"A\" \r\n \r\nTYPES CAPITAL \r\nPROJECTS FUND \r\n \r\nFIDUCIARY FUND TYPE AGENCY FUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Onl~} \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\n169,770.38 $ \r\n \r\n7,121.58 $ 1,940,512.76 $ \r\n \r\n610,282.28 \r\n \r\n34,556 52 \r\n \r\n32,603.97 \r\n \r\n306,477.98 \r\n \r\n377,647 15 \r\n \r\n162,835.69 \r\n \r\n235.59 1 208.28 \r\n \r\n1,207.77 1 152.24 \r\n \r\n$ \r\n \r\n476,248 36 $ \r\n \r\n7,121.58 $ 2,354,160 30 $===80=8,,..,0=8=1.=9=5 \r\n \r\n$ \r\n \r\n216,955.50 \r\n \r\n101,020.12 \r\n \r\n$ \r\n \r\n$ \r\n \r\n317,975.62 $ \r\n \r\n$ \r\n7 121 58 7121.58 $ \r\n \r\n28,178 70 $ 37,241.44 \r\n330.99 216,955.50 101,020.12 \r\n7,948 64 7 121.58 \r\n398,796.97 $ \r\n \r\n22,078.91 19,988 41 \r\n8,000.00 6,493.99 56,561.31 \r\n \r\n$ \r\n \r\n115,644.21 \r\n \r\n42,628.53 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n158,272.74 \r\n \r\n$ \r\n \r\n33,210.00 $ \r\n \r\n3,753.00 \r\n \r\n235.59 1,208.28 115,644 21 42,628.53 \r\n1,762,436.72 \r\n$ 1,955,363.33 $ \r\n \r\n1,207.77 1,152.24 14,965.15 199,402.00 \r\n531,040 48 \r\n751,520 64 \r\n \r\n$ \r\n \r\n476,248.36 $ \r\n \r\n7,121 58 $ 2,354,160 30 $ ===8=08=,0=81=.95= -3- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Adm1mstrat1on Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES} \r\nOperating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ 2,362,719.74 $ \r\n605,564.54 54,735.62 \r\n$ 3,023,019 90 $ \r\n \r\n121,07647 614,591.95 \r\n5 917 49 \r\n741 585 91 \r\n \r\n$ 1,122,764.58 $ \r\n25,566.71 6,883 32 40,073.79 127,061.27 109,329.68 78,083.94 86,139.78 137,727.58 1,500.00 \r\n \r\n444,163.20 \r\n18,949.76 103,994 70 44,500.79 \r\n7,148 62 1,443.28 \r\n2,076.42 1,400.06 125,52317 \r\n \r\n$ 1,735,130.65 $ $ 1,287,889 25 $ \r\n \r\n749,200.00 -7 614.09 \r\n \r\n$ \r\n \r\n-19,421.92 \r\n \r\n$ \r\n \r\n-19 421.92 \r\n \r\n$ 1,268,467.33 $ 513,320 24 \r\n \r\n-7,614.09 23,833.25 \r\n-972.18 56.04 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ 1 781,787 57 $ =====15=,3=0=3.=02= \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement -4 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\ns 938,241.91 \r\n \r\n3,422,038.12 $ \r\n \r\n894,554.99 \r\n \r\n614,591 95 \r\n \r\n352,028 31 \r\n \r\n95,978.45 \r\n \r\n701,542 99 \r\n \r\n793,537 19 \r\n \r\n9 098 94 \r\n \r\n69,752.05 \r\n \r\n41,62115 \r\n \r\n$ 1,043,319 30 $ 4,807,925 11 $ 2,081,741 64 \r\n \r\n$ 1,566,927 78 $ 1,123,938 43 \r\n \r\n$ 1,118,835 63 \r\n \r\n44,516.47 110,878.02 84,574.58 134,209 89 110,772 96 78,083 94 86,139.78 139,804 00 \r\n2,900 06 125,523.17 1,118,835 63 \r\n \r\n10,473.34 83,373.92 77,353.05 119,513.87 86,862.77 65,402.77 85,718.23 196,208 41 \r\n2,775.16 100,884.02 \r\n99,834.94 \r\n \r\n$ 1,118,835 63 $ 3,603,166.28 $ 2,052,338 91 \r\n \r\n$ \r\n \r\n-75 516 33 $ 1,204,758.83 $ \r\n \r\n29,402 73 \r\n \r\n$ \r\n \r\n19,421.92 $ \r\n \r\n19,421.92 $ \r\n \r\n131,969.46 \r\n \r\n-19 421 92 \r\n \r\n-131,969.46 \r\n \r\n$ \r\n \r\n19421.92 $ \r\n \r\n000 $ \r\n \r\n000 \r\n \r\n$ \r\n \r\n-56,094 41 $ 1,204,758.83 $ \r\n \r\n29,402 73 \r\n \r\n214,367.15 \r\n \r\n751,520.64 \r\n \r\n721,414.00 \r\n \r\n-972 18 56 04 \r\n \r\n791.09 -87 18 \r\n \r\n$ \r\n \r\n158,272 74 $ 1,955,363.33 $ ==7=5=1=,5=20===64= \r\n \r\n- 5- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"C\" \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\n \r\nBUDGET AND ACTUAL - (NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\nYEAR ENDED JUNE 30, 2001 \r\n \r\nGENERAL FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS) \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\n \r\ns 1,202,778.00 $ 2,362,719 74 \r\n \r\n634,410 00 11 000 00 \r\n \r\n605,564.54 54 735 62 \r\n \r\nTotal Revenues EXPENDITURES \r\n \r\n$ 1,848,188.00 $ 3,023,019.90 \r\n \r\nCurrent Instruction Support Services Pupi: Services Improvement of Instructional Services Educational Media Services General Adm1rnstrat1on School Administration Business Adm1nistrat1on Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\n \r\ns $ 1,161,036.00 1,122,764 58 \r\n \r\n47,533.41 9,325.00 37,299.00 \r\n127,844.00 129,916.00 \r\n71,454.00 104,052.00 152,985.00 \r\n2,000.00 \r\n \r\n25,566.71 6,883.32 \r\n40,073.79 127,061.27 109,329.68 \r\n78,083.94 86,139 78 137,727.58 \r\n1,500.00 \r\n \r\n18,000.00 \r\ns 1 86144441 $ 1,735,130 65 \r\n \r\nExcess of Revenues over (under) Expenditures $ -13,256.41 $ 1,287,889.25 \r\n \r\nOTHER FINANCING USES \r\n \r\nOther Uses \r\n \r\n18,000.00 \r\n \r\n-19,421 92 \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\nand Other Financing Uses \r\n \r\n$ \r\n \r\n4,743.59 $ 1,268,467 33 \r\n \r\nFUND BALANCE JULY 1, 2000 \r\n \r\n585,534.26 \r\n \r\n513,320.24 \r\n \r\nFUND BALANCE JUNE 30, 2001 \r\n \r\n$ 590,277.85 $ 1,781,787 57 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS) \r\n \r\ns s 122,299.46 121,076.47 \r\n620,629.00 614,591.95 \r\n \r\n5,550.00 \r\n \r\n5,917 49 \r\n \r\ns 748,478.46 $ 741,585.91 \r\n \r\n$ 430,009 00 $ 444,163.20 \r\n \r\n6,250.00 104,174 00 41,270.00 \r\n7.116 00 1,350 00 \r\n \r\n18,949 76 103,994.70 44,500.79 \r\n7,148 62 1,443.28 \r\n \r\n2.518 00 1,000 00 119,910.00 \r\n \r\n2,076 42 1,400.06 125,523.17 \r\n \r\ns $ 713,597.00 749,200.00 \r\n$ 34,881.46 $ -7,614.09 \r\n \r\n$ 34,881.46 $ -7,614.09 \r\n \r\n0.00 \r\n \r\n2147324 \r\n \r\n$ 34,881.46 $ 13,859 15 \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement -6- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe Taliaferro County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nFUND ACCOUNTING \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accountmg entity with a self-balancing set of accounts. \r\nGeneral 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. \r\nThe 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 presented in this report are as follows: \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include: \r\nGENERAL 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. \r\nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \r\nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \r\n \r\n-7- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nFIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: \r\nAGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \r\nBASIS OF ACCOUNTING \r\nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \r\nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. \r\nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \r\nGovernmental funds are accounted for using the modified accrual basis of accounting under which: \r\nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nExpenditures are generally recognized when the related fund liability is incurred. \r\nA 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 \r\n-8- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nin 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 of 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. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \r\nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \r\nBUDGET \r\nThe Taliaferro County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \r\nThe budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit \"B\" of this report: \r\n \r\n- 9- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nruNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nSpecial Revenue \r\nFund \r\n \r\nFUND BALANCE JULY 1, 2000 \r\n \r\n$ 23,833.25 \r\n \r\nAdjustments Inventories - July 1, 2000 Food Donated Commodities Purchased Foods \r\n \r\n-1,207.77 -1,152.24 \r\n \r\nFund Balance July 1, 2000 (Budget Basis) \r\n \r\n$ 21,473.24 \r\n \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\n \r\n-7,614.09 \r\n \r\nFUND BALANCE JUNE 30, 2001 (Budget Basis) \r\n \r\n$ 13,859.15 \r\n \r\nCASH AND CASH EQUIVALENTS \r\n \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \r\n \r\nINVESTMENTS \r\n \r\nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. 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: \r\n \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n \r\n- 10 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(2) Obligations issued by the United States government, \r\n \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n \r\n(4) Obligations of any corporation of the United States government, \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Taliaferro County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on December 20, 2000 (levy date). Taxes were due on February 20, 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 Taliaferro County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $595,908.66. \r\n \r\nThe tax millage rate levied for the 2000 tax year (calendar year) for the Taliaferro County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n16.39 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. The School District collected revenue from two separate sales tax referendums during the fiscal year. \r\n \r\n- 11 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSales tax revenues on the first referendum during fiscal year 2001, which terminated on September 30, 2000, amounted to $23,387.87 and were recorded in the Capital Projects Fund. \r\nCollections on the second referendum began on October 1, 2000, and sales tax revenues during the fiscal year amounted to $72,590.58. These amounts were recorded in the Capital Projects Fund. The State will terminate collection of this second tax once an additional $427,409.42 has been collected or on September 30, 2005, whichever occurs first. \r\nINVENTORIES \r\nFOOD 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 of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \r\nINTERFUND TRANSACTIONS \r\nThe School District has the following types of interfund transactions: \r\nReimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \r\nOperating transfers are recorded for all interfund transactions other than reimbursements. \r\nMEMORANDUM ONLY - TOTAL COLUMNS \r\nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \r\nNote 2: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not \r\n- 12 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\nbeen secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(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, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(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. \r\nCATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $2,138,330.78. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\nCategory I - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the ' School District's name. \r\n- 13 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2001, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 107,590.66 \r\n \r\n2 \r\n \r\n2,030,740.12 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$2,138,330.78 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value ofthe School District's total investments was $34,556.52 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State 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: \r\n \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAArn rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \r\n \r\n- 14 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. \r\n \r\nTreasury obligations, securities issued or guaranteed as to principal and interest by the U. S. \r\n \r\nGovernment or any of its agencies or instrumentalities, banker's acceptances and repurchase \r\n \r\nagreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The \r\n \r\nweighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average \r\n \r\ninvestment duration for Fund 6 on June 30, 2001, was 6 months. \r\n \r\n \r\n \r\nNote 3: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \r\n \r\nNote 4: RISK MANAGEMENT \r\n \r\nThe 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. \r\n \r\nThe School District has obtained commercial insurance for risk of loss associated with torts and assets. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to natural disaster. In addition, the School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December l, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\n- 15 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 4: RISK MANAGEMENT \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Principal Bookkeeper Office Clerk Secretary Athletic Director \r\n \r\n$ 70,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 \r\n \r\nNote 5: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and expenditures in the amount of $26,486.09 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$21,123.09 \r\n \r\nOffice of Treasury and Fiscal Services Paid to 'the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $5,363.00 \r\n \r\nNote 6: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n01 /O0S-731-006 \r\n \r\n$ 1.550.712.52 $ 856,376.09 \r\n \r\nThe amounts described in this note are not reflected in the general-purpose financial statements. \r\n \r\n- 16 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 7: CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by, grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 8: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2001 2000 1999 \r\n \r\n100% 100% 100% \r\n \r\n$ 120,216.26 $ 88,164.91 $ 85,302.02 \r\n \r\n- 17 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2001 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n21,857.89 $ \r\n \r\n13,518 43 \r\n \r\n1,161.00 \r\n \r\n235.59 11208.28 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n24,462.76 $ ===1=3=5=1=8.==43= \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n823.32 $ \r\n \r\n2,752.16 \r\n \r\n8,336.42 \r\n \r\n10,435.28 \r\n \r\n330.99 \r\n \r\n$ \r\n \r\n9159.74 $ \r\n \r\n131518.43 \r\n \r\n$ \r\n \r\n235.59 \r\n \r\n1,208.28 \r\n \r\n131859.15 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n151303.02 $ \r\n \r\n0.00 \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n24,462.76 $ ===1=3=5=18===43= \r\n \r\nSee notes to the general-purpose financial statements. - 18 - \r\n \r\n EXHIBIT\"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\n4,070.46 $ \r\n \r\n39,446.78 $ \r\n \r\n33,328.45 \r\n \r\n27,089.00 \r\n \r\n28,250.00 \r\n \r\n20,908.38 \r\n \r\n235.59 1,208 28 \r\n \r\n1,207.77 1 152.24 \r\n \r\n$ \r\n \r\n31,159.46 $ \r\n \r\n69 140.65 $ ===5=6,5=96=.8= 4 \r\n \r\n$ \r\n \r\n4,741.08 $ \r\n \r\n8,316.56 $ \r\n \r\n4,775.18 \r\n \r\n18,469.74 \r\n \r\n37,241.44 \r\n \r\n19,988.41 \r\n \r\n330.99 \r\n \r\n7 948.64 \r\n \r\n7 948.64 \r\n \r\n8,000.00 \r\n \r\n$ \r\n \r\n31,159.46 $ \r\n \r\n53,837.63 $ \r\n \r\n32,763.59 \r\n \r\n$ \r\n \r\n$ _ _ _ _o_.o_o_ \r\n \r\n$ \r\n \r\n0 00 $ \r\n \r\n235.59 $ 1,208.28 \r\n \r\n1,207.77 1,152.24 \r\n \r\n13 859 15 \r\n \r\n21 473.24 \r\n \r\n15,303.02 $ _ _--'-2_3...._,8_3__3_._2_5_ \r\n \r\n$ \r\n \r\n31 159.46 $ \r\n \r\n69 140 .65 $ ===5=6=,5=96=.8=4= \r\n \r\n- 19 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Student Transportation Services Other Support Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n6,708.00 $ \r\n \r\n100,574.47 \r\n \r\n105,283.59 \r\n \r\n5917.49 \r\n \r\n$ \r\n \r\n117,909.08 $ \r\n \r\n100 574 47 \r\n \r\n$ \r\n \r\n84,733.40 \r\n \r\n14,000.01 \r\n \r\n1,841.06 \r\n \r\n$ \r\n \r\n125,523.17 \r\n \r\n$ \r\n \r\n125,523.17 $ \r\n \r\n100 574 47 \r\n \r\n$ \r\n \r\n-7,614.09 $ \r\n \r\n0.00 \r\n \r\n23,833.25 \r\n \r\n0.00 \r\n \r\n-972.18 56.04 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n15,303.02 $ =====0.0=0 \r\n \r\nSee notes to the general-purpose financial statements. - 20 - \r\n \r\n EXHIBIT \"F\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\n13,794.00 $ \r\n \r\n121,076.47 $ \r\n \r\n94,110 06 \r\n \r\n509,308.36 \r\n \r\n614,591.95 \r\n \r\n352,028.31 \r\n \r\n5 917.49 \r\n \r\n5,459.34 \r\n \r\n$ \r\n \r\n523,102.36 $ \r\n \r\n741,585.91 $ _ _4....;;5_1\"\"\"5...;;..97----'-71-'-- \r\n \r\n$ \r\n \r\n359,429.80 $ \r\n \r\n444,163.20 $ \r\n \r\n243,259.66 \r\n \r\n18,949.76 89,994.69 44,500.79 \r\n7,148.62 1,443.28 \r\n235.36 1,400.06 \r\n \r\n18,949.76 103,994.70 \r\n44,500.79 7,148.62 1,443.28 2,076.42 1,400.06 \r\n125,523.17 \r\n \r\n4,626.00 43,271.74 38,128.08 16,623.50 \r\n8,526.18 \r\n1,025.16 100,884.02 \r\n \r\n$ \r\n \r\n523,102.36 $ \r\n \r\n749,200.00 $ \r\n \r\n456 344.34 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n-7,614.09 $ \r\n \r\n-4,746.63 \r\n \r\n0.00 \r\n \r\n23,833.25 \r\n \r\n27,875.97 \r\n \r\n-972.18 56.04 \r\n \r\n791.09 -87.18 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n15,303.02 $ =======2=3=,8=3=3=.=2=5= \r\n \r\n- 21 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2001 \r\n \r\nEXHIBIT\"G\" \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable \r\nTotal Assets \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS JUNE 30, 2001 JUNE 30, 2000 \r\n \r\ns \r\n \r\n67,819.15 $ \r\n \r\ns 101,951.23 \r\n \r\n169,770.38 $ 199,402.00 \r\n \r\n292,785 00 \r\n \r\n13,692 98 \r\n \r\n306,477 98 \r\n \r\n1496515 \r\n \r\ns \r\n \r\n360,604.15 $ 115644.21 $ 476,248 36 $ 214,367 15 \r\n \r\nLIABILITIES AND FUND EQUITY \r\n \r\nLIABILITIES \r\n \r\nContracts Payable \r\n \r\n$ \r\n \r\nRetainages Payable \r\n \r\nTotal L1ab11lbes \r\n \r\n$ \r\n \r\nFUND EQUITY \r\n \r\nFund Balances \r\n \r\nReserved \r\n \r\nFor SPLOST Projects \r\n \r\nFor State Capital Outlay ProJects \r\n \r\n$ \r\n \r\nUnreserved \r\n \r\nUndes1gnated \r\n \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n216,955.50 101,020.12 \r\n317,975.62 \r\n \r\n$ 216,955 50 101,020.12 \r\ns 317,975 62 \r\n \r\n$ 42,628.53 \r\n0 00 \r\n42,628 53 $ \r\n \r\n115,644.21 $ \r\n0.00 115 644.21 $ \r\n \r\n115,644.21 $ 42,628.53 \r\n0.00 \r\n158,272.74 $ \r\n \r\n14,96515 199,402.00 \r\n0.00 \r\n214,367.15 \r\n \r\nTotal L1ab1hties and Fund Equity \r\n \r\n$ \r\n \r\n360,60415 $ 115644.21 $ 476,248.36 $ 214,367.15 \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n- 22- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2001 \r\n \r\nEXHIBIT \"H\" \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 \r\n \r\nREVENUES \r\nState Funds Taxes Other Funds \r\nTotal Revenues \r\n \r\ns \r\n \r\n938,241 91 \r\n \r\ns 938,241.91 \r\n \r\ns \r\n \r\n95,978 45 \r\n \r\n95,978.45 $ 109,485 54 \r\n \r\n4 398.33 \r\n \r\n4 700 61 \r\n \r\n9 098 94 \r\n \r\n1,771 56 \r\n \r\ns \r\n \r\ns s s 942,640.24 \r\n \r\n100,679 06 \r\n \r\n1,043,319.30 \r\n \r\n111 257.10 \r\n \r\nEXPENDITURES \r\n \r\nCapital Outlay Land and Land Improvements Building and Bu1ld1ng Improvements Equipment \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\n \r\ns \r\n \r\ns 2,143.15 \r\n \r\n1,116,692.48 \r\n \r\n$ 1,118,835.63 $ \r\n \r\n$ \r\n \r\n-176,195 39 $ \r\n \r\n0 00 $ \r\n \r\ns 2,143.15 \r\n \r\n1,116,692.48 \r\n \r\n0 00 s s 1,118,83563 \r\n100,679 06 $ -75,516 33 $ \r\n \r\n63,263.80 35,366 32 \r\n1,204 82 \r\n99,834.94 \r\n11 422 16 \r\n \r\nOTHER FINANCING SOURCES {USES} \r\n \r\nOperating Transfers In Operating Transfers Out \r\n \r\n$ \r\n \r\n19,421.92 \r\n \r\n$ \r\n \r\n19,421.92 $ 263,267.30 \r\n \r\n-131,297.84 \r\n \r\nTotal Other Financing Sources (Uses) $ \r\n \r\n19 421 92 \r\n \r\n$ \r\n \r\n19,421.92 $ 13196946 \r\n \r\nExcess of Revenues and Other Financing Sources \r\n \r\nover (under) Expenditures and Other F1nanc1ng \r\n \r\nUses \r\n \r\n$ \r\n \r\nFUND BALANCE JULY 1 \r\n \r\n-156,773.47 $ 199,402 00 \r\n \r\n100,679 06 $ 14 965 15 \r\n \r\n-56,094.41 $ 214367.15 \r\n \r\n143,391 62 70,975.53 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\ns \r\n \r\n42,628.53 $ 115644.21 $ 158,272 74 $ 214,367.15 \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n- 23 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\nFIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2001 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSTUDENT ACTIVITY FUND ASSETS \r\nCash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nBALANCE JULY 1, 2000 \r\n \r\nADDITIONS \r\n \r\nDEDUCTIONS \r\n \r\nBALANCE JUNE 30, 2001 \r\n \r\n$ \r\n \r\n6,493 99 $ 10,788.40 $ \r\n \r\n10,160.81 $ ===7=1=21=.58= \r\n \r\n$ \r\n \r\n6,493.99 $ 10,788.40 $ \r\n \r\n10,160.81 $ ===7=12=1=.58= \r\n \r\nSee notes to the general-purpose financial statements. - 24 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nAgriculture, 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 \r\nTotal Child NutntIon Cluster \r\n \r\n. 10 553 \r\n. 10 555 \r\n \r\nNIA \r\n \r\n$ 33,009.87 \r\n \r\nNIA \r\n \r\n63,326.99 $ \r\n \r\ns $ 96,336.86 \r\n \r\n(2) 121,401 40 (3) \r\n121,401 40 \r\n \r\nOther Programs \r\n \r\nPass-Through From Georgia Department of Education \r\n \r\nFood and Nutnt1on Program Food DIstnbutIon Program (1) \r\n \r\n10.550 \r\n \r\nNIA \r\n \r\nPass-Through From Office of School Readiness \r\n \r\nFood and Nutntion Program \r\n \r\nChild and Adult Care Food Program \r\n \r\n10.558 \r\n \r\nNIA \r\n \r\n4,121.77 4,824.96 \r\n \r\n4,121.77 {2) \r\n \r\nTotal U.S. Department of Agnculture \r\n \r\n$ 105,283.59 $ \r\n \r\n125,52317 \r\n \r\nEducation, 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 \r\n \r\n84.027 84.173 84.173 \r\n \r\nNIA \r\n \r\n$ 11,818.00 $ \r\n \r\nNIA \r\n \r\n4,054.00 \r\n \r\nNIA \r\n \r\n327.00 \r\n \r\n11,818.00 4,054.00 \r\n327.00 \r\n \r\nTotal Special Education Cluster \r\n \r\n$ 16,199.00 $ \r\n \r\n16,199.00 \r\n \r\nOther Programs \r\n \r\nPass-Through From Georgia Department of Education \r\n \r\nComprehensive School Reform Demonstration Project \r\n \r\n84.332 \r\n \r\nElementary and Secondary Education Act Title I Grants to Local Educational Agenaes \r\n \r\n. 84.010 \r\n \r\nTitle II \r\n \r\nEisenhower Professional Development \r\n \r\n84.281 \r\n \r\nTitle Ill \r\n \r\nTechnology Literacy Challenge Fund Grants \r\n \r\n84.318 \r\n \r\nTitleVI \r\n \r\nInnovative Education Program Strategies \r\n \r\n84.298 \r\n \r\nClass Size Reduction \r\n \r\n84.340 \r\n \r\nGoals2000 \r\n \r\nState and Local Education Systemic Improvement \r\n \r\nGrants \r\n \r\n84.276 \r\n \r\nSafe and Drug-Free Schools and Communities \r\n \r\n84.186 \r\n \r\nPass-Through From Office of School Readiness \r\n \r\nElementary and Secondary Education Act \r\n \r\nTitle II \r\n \r\nPre-K Summer Transition Program \r\n \r\n84.336 \r\n \r\nNIA \r\n \r\n65,000.00 \r\n \r\nNIA \r\n \r\n141,794.00 \r\n \r\nNIA \r\n \r\n16,000.00 \r\n \r\nNIA \r\n \r\n125,000.00 \r\n \r\nNIA \r\n \r\n3,231.00 \r\n \r\nNIA \r\n \r\n15,240 00 \r\n \r\nNIA \r\n \r\n112,500.00 \r\n \r\nNIA \r\n \r\n12,293.00 \r\n \r\nNIA \r\n \r\n2,051.36 \r\n \r\n65,000.00 \r\n141,794.00 16,000.00 \r\n125,000.00 3,231.00 \r\n15,240.00 \r\n112,500.00 12,293.00 \r\n2,051.36 \r\n \r\nTotal U.S. Department of Education \r\n \r\n$ 509,308.36 $ \r\n \r\n509,308.36 \r\n \r\nTotal Federal Financial Assistance NIA= Not Available \r\n \r\n- 25- \r\n \r\n$ 614,591.95 $ \r\n \r\n634,831.53 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"1\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) The amounts shown for the Food D1stnbut1on Program represents the Federally assigned value of nonmonetary assistance for donated commod1bes received and/or consumed by the system dunng the current fiscal year \r\n(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program \r\n(3) Expenditures on this program/proJect were not maintained on a program/proiect basis \r\nMai or Programs are identified by an asterisk(\") in front of the CFDA number \r\nThe School D1stnct did not provide Federal Assistance to any Subrecip1ent \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant act1v1ty of the Taliaferro County Board of Education and 1s presented on the modified accrual basis of accounting which 1s the basis of accounting used in the presentation of the general-purpose financial statements \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 26- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Community Affairs, Georgia Department of Local Assistance Grants \r\nEducation, 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 Grades (6-8) Program Students with D1sab1lilles Category II Category Ill Remedial Education Program Alternative Education Program Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Education Equalization Funding Grant Food Services Other State Programs At-Risk Summer School Program Health Insurance Innovative Programs Preschool Handicapped Program Lottery Programs Computers in the Classroom \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Proiects \r\nOffice of School Readiness Pre-Kindergarten Program \r\nOffice of Treasury and Fiscal Services Pubhc School Employees Retirement \r\nCONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program Foreign Language Program \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\ns 1,148,000 00 \r\n \r\n$ 1,148,000 00 \r\n \r\n18,312 00 20,995.00 87,757 00 39,716 00 65,459 00 120,244 00 \r\n28,671.00 38,624 00 \r\n5,042 00 5,736 00 14,739.00 3,85800 249,125 00 \r\n \r\n101,224 00 28,657 00 163,590 00 23,183 00 \r\n724.00 8,79900 \r\n$ \r\n \r\n6,708 00 \r\n \r\n612 65 21,123.09 \r\n5,000 OD 14,256 00 \r\n \r\n2,899 DO \r\n \r\n18,312 00 20,99500 87,757 00 39,716.00 65,459 00 120,244 00 \r\n28,671 00 38,624 00 \r\n5,042.00 5,736 00 14,739 00 3,85800 249,125 00 \r\n101,224 00 28,657 00 163,590 00 23,183 00 \r\n724.00 8,799 00 6,70800 \r\n612 65 21,123.09 \r\n5,000 00 14,256 00 \r\n2,899.00 \r\n \r\n$ 938,241 91 97,675 47 5,363 00 \r\n \r\n938,241.91 97,67547 5,363 00 \r\n \r\n117,259 00 26.651 00 \r\n \r\n13,794 00 \r\n \r\n117,259 00 13,794 00 26,651 00 \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n$ 2,362,719 74 $ 121,076 47 $ 938,241 91 $ 3.422,03812  27- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30. 2001 \r\n \r\nSCHEDULE \"3\" \r\n \r\nPROJECT \r\nPurchase of a new 60-passenger school bus to transport children to and from school \r\nConstruction of a covered walkway from Bu1ld1ng 2010 to Building 2030 \r\nGeneral renovation of dassrooms 1 - 9 in Building 2020 \r\nAcquiring, constructing, installing, furnishing and equipping a new school for grades K-12 in Taliaferro County, induding any school buildings and athletics faciht1es and payment of expenses inetdent thereto \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR(3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 47,000.00 $ 48,156.00 \r\n \r\n$ 48,156.00 Completed \r\n \r\n56,250 00 \r\n \r\n28,140.00 \r\n \r\n28,140 00 Completed \r\n \r\n146,750.00 \r\n \r\n9,980.64 \r\n \r\n9,980.64 Completed \r\n \r\n500,000.00 2,658,899.36 $ 1.118,835 63 \r\n \r\n63,865.30 Ongoing \r\n \r\n$ 750,000.00 $ 2,745,176.00 $ 1,118,835.63 $ 150,141.94 \r\n \r\n(1) The School District's onginal cost estimate as specified m the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School DIstnct\"s current estimate of total cost for the projects. lndudes all cost from project inception to completion. \r\n(3) The voters of Taliaferro County approved the ImposItton of a 1% sales tax to fund the above proJects. Amounts expended for these pro1ects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n-29 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION GENERAL FUND  QUALITY BASiC EDUCATION PROGRAM !QBE} \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED~JUNE 30. 2001 \r\n \r\nSCHEDULE \"4\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (45) Program Middle Grades (6-8) Program Students with D1sab1hlies Category I Category II Category Ill Remedial Education Program Alternative Education Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n23,231 00 $ 34,874 71 $ \r\n \r\n915 37 $ \r\n \r\n35,790 08 \r\n \r\n26,635 00 \r\n \r\n26,742 32 \r\n \r\n400 00 \r\n \r\n27,142 32 \r\n \r\n111,330 00 \r\n \r\n155,130 24 \r\n \r\n3,286 16 \r\n \r\n158,416 40 \r\n \r\n50,384 00 \r\n \r\n52,360 82 \r\n \r\n835 00 \r\n \r\n53,195.82 \r\n \r\n83,042.00 \r\n \r\n154,056 70 \r\n \r\n2.458 27 \r\n \r\n156,514 97 \r\n \r\n152.543.00 \r\n \r\n172,164 15 \r\n \r\n7,074 57 \r\n \r\n179,238 72 \r\n \r\n85,373.00 \r\n \r\n9,846 00 \r\n \r\n9,846 00 \r\n \r\n49,682 43 \r\n \r\n5,407 89 \r\n \r\n55,090.32 \r\n \r\n58,398 93 \r\n \r\n58,398 93 \r\n \r\n6.396 00 \r\n \r\n15,41687 \r\n \r\n141 52 \r\n \r\n15,558 39 \r\n \r\n7.277 00 \r\n \r\n8.464 73 \r\n \r\n119 74 \r\n \r\n8,584 47 \r\n \r\n$ \r\n \r\n546,211 00 $ 727,291 90 $ 30,484 52 $ \r\n \r\n757,776 42 \r\n \r\n18.699 00 4,894 00 \r\n \r\n30,703 87 5,233 32 \r\n \r\n8,751 43 150 00 \r\n \r\n39,455 30 5,383 32 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n569,804 00 $ 763,229 09 S 39.385 95 $====8=02,,..=61=5=0==4 \r\n \r\n(1) Compnsed of State Funds plus Local Five Mill Share. \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n 30  \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"5\" \r\n \r\nSITE Taliaferro County Elementary School Sand Hills Psychoeducational Program Central Office (Alternative Education Program) \r\nTOTAL \r\n(1) Comprised of State Funds plus Local Five Mill Share. \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\n$ \r\n \r\n538,934.00 $ \r\n \r\n737,859.32 \r\n \r\n11,425.32 \r\n \r\n7,277.00 \r\n \r\n8,491.78 \r\n \r\n$ \r\n \r\n546,211.00 $ ===7=5=7=7.=7=6=.4=2 \r\n \r\nSee notes to the general-purpose financial statements. - 31 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Rv-;..,L,1.1. \\V. Hi:-. rm; \r\nSTATE AUDITOR 1404) 656 2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Wa,hmgton Street. S W. Sunc 2 14 AtluntJ. Georgia 3(!:~34-8400 \r\nMarch 14, 2002 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\n \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\nLadies and Gentlemen: \r\n \r\nWe have audited the financial statements of Taliaferro County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated March 14, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\n \r\nCompliance \r\n \r\nAs part of obtaining reasonable assurance about whether Taliaferro County Board of Education's \r\n \r\nfinancial statements are free of material misstatement, we performed tests of its compliance with \r\n \r\nce11ain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a \r\n \r\ndirect and material effect on the determination of financial statement amounts. However, providing \r\n \r\nan opimon on compliance with those provisions was not an objective of our audit, and accordingly, \r\n \r\nwe do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance \r\n \r\nthat are required to be reported under Government Auditing Standards. \r\n \r\n \r\n \r\nInternal Control Over Financial Reporting \r\n \r\nIn planning and performing our audit, we considered Taliaferro County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \r\n \r\n2001YB-41 \r\n \r\n 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 of the internal control over financial reporting that, in our judgment, could adversely affect Taliaferro County Board of Education'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 of Findings and Questioned Costs as item FS-7311-0101. \r\nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7311-01-01 to be a material weakness. \r\nThis report is intended solely for the information and use of the management, members of the Taliaferro County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n' \r\n~- \r\n. nton State Auditor \r\nRWH:gp 2001YB-41 \r\n \r\n R1 1..,~1-.1.1 \\V. H1:vror- \r\ns1A1E AUDITOP (404) 656-2170 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 W..i,hington Street. S W. Sullc 214 Atl..inta, Georgia 30334-8400 \r\nMarch 14, 2002 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\n\\ \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Taliaferr\u003c? County Board of Education with the types of compliance reqmrements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Complzance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2001. Taliaferro County Board ofEducation's major Federal programs are identified m the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofTaliaferro County Board of Education's management. Our responsibility is to express an opinion on Taliaferro County Board of Education's compliance based on our audit. \r\nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular Al 33, Audzts of States, Local Governments, and Non-Profit Organzzations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Taliaferro County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Taliaferro County Board ofEducation's compliance with those requirements. \r\n2001SA-10 \r\n \r\n In our opinion, the Taliaferro County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2001. \r\nInternal Control Over Compliance \r\nThe management of Taliaferro County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Taliaferro County 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 determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\nOur 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 of one or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \r\nThis report is intended solely for the information and use of the management, members of the Taliaferro County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\nRWH:gp 2001SA-10 \r\n \r\n SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIOl\\.TED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7311-99-01 FS-7311-00-01 FS-7311-00-02 \r\n \r\nFurther Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7311-00-02 \r\n \r\nDue to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff the School District has decided not to pursue the recording of general fixed assets on the financial statements. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2001 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Taliaferro County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. \r\n2. Reportable Conditions in Internal Control Disclosed bv the Audit of the Financial Statements The audit report for the Taliaferro County Board ofEducation disclosed a financial statement reportable condition related to the following control category. \r\nGeneral Fixed Assets \r\nThe reportable condition described above is considered to be a material weakness. \r\n3. Noncompliance Material to the Financial Statements The audit of the Taliaferro County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Taliaferro County Board ofEducation did not disclose any reportable conditions in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Taliaferro County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Taliaferro County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The Taliaferro County Board ofEducation qualified as a low risk auditee based on a waiver granted by the U.S. Department of Education. \r\n- 1- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS Al\\TD QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2001 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintam General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7311-01-01 The Taliaferro County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff the School District has decided not to pursue the recording of general fixed assets on the financial statements. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b1999-h2000","title":"Taliaferro County Board of Education, Crawfordville, Georgia, year ended June 30, 2000","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Taliaferro County, 33.56609, -82.87876"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2000-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2000; ceased with: Fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Taliaferro County Board of Education, Crawfordville, Georgia, schedule of salaries and travel for fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed July 12, 2023).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed July 12, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Taliaferro County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Taliaferro County--Auditing--Periodicals.","Education--Georgia--Taliaferro County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Taliaferro County Board of Education, Crawfordville, Georgia, year ended June 30, 2000"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b1999-h2000"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n \r\nGr.A \r\n \r\nAsoo \r\n \r\n \r\n \r\n RI \r\n \r\n:}.lo \r\n \r\n114 \r\n \r\no \r\n \r\no \r\n \r\n0 0000 \r\n \r\n1776 \r\n \r\nI \r\nTALIAFERRO COUNTY BOARD OF EDUCATION \r\nCRAWFORDVILLE, GEORGIA REPORT ON AUDIT \r\n \r\nOF THE FINANCIAL STATEMENTS \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2000 \r\nRussell W. Hinton State Auditor \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nGENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS - OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET \r\n \r\nALL FUND TYPES \r\n \r\nB \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nALL GOVERNMENTAL FUND TYPES \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\nD NOTES TO 'IHE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nADDIDONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING AND INDNIDUAL FUND STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\nF \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\nH \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\nI \r\n \r\nFIDUCIARY FUND TYPE \r\n \r\nSTATEMENT OF CHANGES IN ASSETS AND LIABILI'I'IES \r\n \r\nAGENCY FUND \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n2 \r\n4 6 7 \r\n18 \r\n20 \r\n22 \r\n23 \r\n24 25 \r\n27 \r\n28 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nADDIDONAL FINANCIAL INFORMATION \r\n \r\nANALYSIS OF .... ~.,... EXPENDITURE REQUIREMENTS \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \r\n \r\n4 \r\n \r\nOVERALL \r\n \r\n5 \r\n \r\nBYPROGRAM \r\n \r\nPage \r\n29 \r\n30 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITII GOVERNMENT AUDI'IlNG STANDARDS \r\nREPORT ON COMPLIANCE WITII REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITII 0MB CIRCULARA-133 \r\n \r\nSECTION ill \r\nAUDfl'EB'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS  Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n \r\n RussELL W. HtNTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nMarch 14, 2001 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying general purpose financial statements of the Taliaferro County \r\nBoard of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. \r\nThese general purpose financial statements are the responsibility ofthe Taliaferro County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \r\nWe conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfo11n the audit to obtain reasonable assurance about whether the financial statements are free of material \r\nmisstatement. An audit includes examining, on a test basis, evidence supporting the amounts and \r\ndisclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \r\nAs described in the notes to the general purpose financial statements, the Board'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: \r\n* The general purpose financial statements ofthe Board did not contain a General Fixed \r\nAssets Account Group to account for property and equipment owned by the Board which should be included to confotm to generally accepted accounting principles. \r\n2000ARL-13 \r\n \r\n * The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion \r\nof salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, 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, 1999, were improperly recorded in the year ended June 30, 2000. 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. \r\nThe aggregate effects on the general purpose financial statements of these variances or omissions have not been dete11nined, but are believed to be material. \r\nIn 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 Taliaferro County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in confo11nity with generally accepted accounting principles. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 14, 2001, on our consideration of the Taliaferro County 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 perfo1111ed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nOur audit was perfo1n1ed for the purpose of fo11ning an opinion on the general purpose financial statements of the Taliaferro County Board of Education taken as a whole. The accompanying \r\nn combining and individual fund statements (Exhibits E through and the financial schedules \r\n(Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required \r\nby U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a \r\nrequired part ofthe general purpose financial statements. Such info11nation has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such inf011nation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. \r\n2000ARL-13 \r\n \r\n A copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made \r\navailable to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \r\nRespectfully submitted, \r\n \r\nRWH:jb \r\n2000ARL-13 \r\n \r\nkJ. \r\nRus ell W. Hinton \r\nState Auditor \r\n \r\n TALIAFERRO COUNTI:y BOARD OF EDUCATION \r\n' \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2000 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nInvestments \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\n \r\nGOVERNMENTAL FUND \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ \r\n \r\n371,057.84 $ \r\n \r\n33,328.45 \r\n \r\n32,603.97 \r\n \r\n126,962.16 \r\n \r\n20,908.38 \r\n \r\n \r\n1,207.77 1,152.24 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n530,623.97 $ ==5=6=,5=9=6.=84= \r\n \r\nLIABILITIES AND FUND FQUITY \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Deferred Revenue Funds Held for Others \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Bus Replacement Funds For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n17,303.73 $ \r\n \r\n4,775.18 \r\n \r\n19,988.41 \r\n \r\n8,000.00 \r\n \r\n$ \r\n \r\n17,303.73 $ _ _.;:;3:;,J2,c.:.76.=.;3:.:;.5:.:9c.. \r\n \r\n$ \r\n \r\n3,753.00 \r\n \r\n$ \r\n \r\n1,207.77 \r\n \r\n1,152.24 \r\n \r\n509,567.24 \r\n \r\n21,473.24 \r\n \r\n$ \r\n \r\n513,320.24 $ _ _.;2=3=,8=3=3-=25=- \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n530,623.97 $ ===56='=59=6=.8=4= \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. \r\n-2- \r\n \r\n EXHIBIT \"A\" \r\n \r\nTYPES CAPITAL \r\nPROJECTS FUND \r\n \r\nFIDUCIARY FUND TYPE AGENCY FUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n199,402.00 $ \r\n \r\n6,493.99 $ \r\n \r\n610,282.28 $ \r\n \r\n651,484.19 \r\n \r\n32,603.97 \r\n \r\n30,814.07 \r\n \r\n14,965.15 \r\n \r\n162,835.69 \r\n \r\n91,968.01 \r\n \r\n1,207.77 1,152.24 \r\n \r\n416.68 1,239.42 \r\n \r\n$ \r\n \r\n214,367.15 $ \r\n \r\n6,493.99 $ \r\n \r\n808,081.95 $ ==7=7=5-,9=22==37= \r\n \r\n$ \r\n \r\n$ _ _....;;;6_._,4;.;;;.9=3.;;.,.99;;.. \r\n \r\n$ \r\n \r\n6,493.99 $ \r\n \r\n22,078.91 $ 19,988.41 8,000.00 6,493.99 \r\n \r\n27,025.12 22,928.36 \r\n4,554.89 \r\n \r\n56,561.31 $ _ _..;5;..;.4.i.;,5.;.08.;;.;..;;..37;._ \r\n \r\n$ \r\n \r\n14,965.15 \r\n \r\n199,402.00 \r\n \r\n0.00 \r\n \r\n$ --=21.;...4;.,3;..;;6..;..7\";..1.5.... \r\n \r\n$ \r\n \r\n214,367.15 $ \r\n \r\n$ \r\n \r\n3,753.00 $ \r\n \r\n26,903.00 \r\n \r\n1,207.77 1,152.24 14,965.15 199,402.00 \r\n \r\n416.68 1,239.42 70,975.53 \r\n \r\n531,040.48 \r\n \r\n621,879.37 \r\n \r\n$ \r\n \r\n751,520.64 $ _ _1.;.:2;.;1..,.4...;;.14-'-'_=oo;;... \r\n \r\n6,493.99 $ - - -80-8,-08-1- .95 $ ==7=7=5-,9=22==37= \r\n \r\n-3- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOperating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ \r\n \r\n800,444.93 $ \r\n \r\n94,110.06 \r\n \r\n352,028.31 \r\n \r\n684,051.65 \r\n \r\n34,390.25 \r\n \r\n5,459.34 \r\n \r\n$ 1,518,886.83 $ _ _4_5_1.._,5_97_.7_1_ \r\n \r\n$ \r\n \r\n880,678.77 $ \r\n \r\n243,259.66 \r\n \r\n5,847.34 40,102.18 39,224.97 102,890.37 78,336.59 65,402.77 85,718.23 196,208.41 \r\n1,750.00 \r\n \r\n4,626.00 43,271.74 38,128.08 16,623.50 \r\n8,526.18 \r\n1,025.16 100,884.02 \r\n \r\n$ 1,496, 159.63 $ _ 456,344.34 \r\n \r\n$ \r\n \r\n22,727.20 $ ___-4_7_46_._63_ \r\n \r\n$ _ _-1_3_1._,9_69_.4_6_ $ _ _-1.;.;;;3;.;.1=9.;;;.;69;;;.;.4.;.;;6'- \r\n \r\n$ \r\n \r\n-109,242.26 $ \r\n \r\n622,562.50 \r\n \r\n-4,746.63 27,875.97 \r\n791.09 -87.18 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n513,320.24 $ ===2==3=,8==33==.2=5== \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. -4- \r\n \r\n EXHIBIT \"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n894,554.99 $ \r\n \r\n818,018.67 \r\n \r\n352,028.31 \r\n \r\n310,667.80 \r\n \r\n$ \r\n \r\n109,485.54 \r\n \r\n793,537.19 \r\n \r\n709,685.21 \r\n \r\n1 771.56 \r\n \r\n41,621.15 \r\n \r\n29,688.47 \r\n \r\n$ \r\n \r\n111,257.10 $ 2,081,741.64 $ 1,868,060.15 \r\n \r\n$ \r\n \r\n$ _ _....;9;.;;;9..;,8=3..;.;4.\"'-94.;... \r\n \r\n$ \r\n \r\n99,834.94 $ \r\n \r\n$ \r\n \r\n11,422.16 $ \r\n \r\n1,123,938.43 $ \r\n \r\n972,920.54 \r\n \r\n10,473.34 83,373.92 77,353.05 119,513.87 86,862.77 65,402.77 85,718.23 196,208.41 \r\n2,775.16 100,884.02 99,834.94 \r\n \r\n14,914.17 63,985.14 42,531.92 101,426.22 44,067.01 56,071.40 151,620.62 179,257.77 \r\n3,250.00 99,569.73 \r\n2,151.00 \r\n \r\n2,052,338.91 $ 1,731,765.52 \r\n \r\n29,402.73 $ _ _1..a..36\"\"\",2\"\"\"'9_4.\"-\"-63~ \r\n \r\n$ \r\n \r\n131,969.46. $ \r\n \r\n131,969.46 \r\n \r\n-131,969.46 \r\n \r\n$ \r\n \r\n131,969.46 $ _ _ _ _o=.o=o;... \r\n \r\n$ \r\n \r\n143,391.62 $ \r\n \r\n29,402.73 $ \r\n \r\n136,294.63 \r\n \r\n70,975.53 \r\n \r\n721,414.00 \r\n \r\n584,531.60 \r\n \r\n791.09 -87.18 \r\n \r\n218.42 369.35 \r\n \r\n$ \r\n \r\n214,367.15 $ \r\n \r\n751,520.64 $ ======7=2==1=,4=1==4=.0=0== \r\n \r\n-5- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nBUDGET AND ACTUAL - INON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\n. \r\nEXHIBITc \r\n \r\nGENERAL FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS} \r\n \r\nREVENUES \r\n \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\n \r\n$ 752,657.00 $ 800,444.93 \r\n \r\n610,536.00 10,100.00 \r\n \r\n684,051.65 34,390.25 \r\n \r\n$ 1,373,293.00 $ 1,518,886.83 \r\n \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services \r\nEducational Media Services \r\nGeneral Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation \r\n \r\n$ 837,555.00 $ 880,678.77 \r\n \r\n2,994.00 38,872.00 44,506.00 105,808.00 116,312.00 59,069.00 105,748.00 181,844.00 \r\n2,000.00 \r\n \r\n5,847.34 40,102.18 39,224.97 102,890.37 78,336.59 65,402.77 85,718.23 196,208.41 \r\n1,750.00 \r\n \r\nTotal Expenditures \r\n \r\n$ 1,494,708.00 $ 114961159.63 \r\n \r\nExcess of Revenues over (under) Expenditures $ -121,415.00 $ \r\n \r\n22,727.20 \r\n \r\nOTHER FINANCING USES Other Uses \r\n \r\n-131,969.46 \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\nand Other Financing Uses \r\n \r\n$ \r\n \r\n-121,415.00 $ \r\n \r\n-109,242.26 \r\n \r\nFUND BALANCE JULY 1, 1999 \r\n \r\n590,901.36 \r\n \r\n622,562.50 \r\n \r\nFUND BALANCE JUNE 30. 2000 \r\n \r\n$ 469,486.36 $ 513.320.24 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS} \r\n \r\n$ 126,802.00 $ \r\n \r\n94,110.06 \r\n \r\n316,839.00 \r\n \r\n352,028.31 \r\n \r\n5,500.00 \r\n \r\n5,459.34 \r\n \r\n$ 449,141.00 $ 451,597.71 \r\n \r\n$ 235,062.00 $ 243,259.66 \r\n \r\n12,800.00 50,050.00 32,591.00 11,538.00 \r\n2,737.00 \r\n \r\n4,626.00 43,271.74 38,128.08 16,623.50 \r\n8,526.18 \r\n \r\n3,000.00 100,875.00 \r\n \r\n1,025.16 100,884.02 \r\n \r\n$ 448,653.00 $ 456,344.34 \r\n \r\n$ \r\n \r\n488.00 $ \r\n \r\n-4,746.63 \r\n \r\n$ \r\n \r\n488.00 $ \r\n \r\n-4,746.63 \r\n \r\n25,160.85 \r\n \r\n26,219.87 \r\n \r\n$ \r\n \r\n25.648.85 $ _ _2_1_,4..,7,_3...,24_ \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. \r\n-6- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe Taliaferro County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity. \r\nFUND ACCOUNTING \r\nThe Board uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGeneral 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 Board. To confo11n 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. \r\nThe general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: \r\nGENERAL FUND - the fund used to account for all financial resources ofthe Board 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. \r\nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \r\nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \r\n \r\n-7- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nFIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: \r\nAGENCY FUND - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \r\nBASIS OF ACCOUNTING \r\nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \r\nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. \r\nAgency funds are purely custodial in nature and do not involve measure1nent ofresults ofoperations. \r\nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \r\nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be dete11nined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. \r\nExpenditures are generally recognized when the related fund liability is incurred. \r\nA 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 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, \r\n \r\n-8- \r\n \r\n TALIAFERRO COUNfY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. 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. \r\nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \r\nBUDGET \r\nThe Taliaferro County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all \r\n \r\ngovernmental funds is prepared by fund, function and object. The legal level ofbudget 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. \r\nThe budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit ''B'' of this report: \r\n \r\n-9- \r\n \r\n TALIAFERRO COUNfY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nSpecial Revenue \r\nFund \r\n \r\nFUND BALANCE JULY 1, 1999 \r\n \r\n$ 27,875.97 \r\n \r\nAdjustments Inventories - July 1, 1999 Food Donated Commodities Purchased Foods \r\n \r\n-416.68 -1,239.42 \r\n \r\nFund Balance July 1, 1999 (Budget Basis) \r\n \r\n$ 26,219.87 \r\n \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\n \r\n-4,746.63 \r\n \r\nFUND BALANCE JUNE 30, 2000 (Budget Basis) \r\n \r\n$ 21,473.24 \r\n \r\nCASH AND CASH EQUIVALENTS \r\n \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. \r\n \r\nINVESTMENTS \r\n \r\nCOMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n \r\n(2) Obligations issued by the United States government, \r\n \r\n- 10 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n \r\n(4) Obligations of any corporation of the United States government, \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info11nation 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. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Taliaferro County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on January 20, 2000 (levy date). Taxes were due on March 20, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Taliaferro County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5o/o of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. \r\n \r\nThe tax millage rate levied for the 1999 tax year (calendar year) for the Taliaferro County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n16.39 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $109,485.54 and was recorded in the Capital Projects Fund. The State will te11ninate collection of this tax once an additional $520,387.93 has been collected or on June 30, 2008, whichever occurs first. \r\n \r\n- 11 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nINVENTORIES \r\nFOOD 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 expenclitures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute ''available spendable resources'' even though they are a component of net current assets. \r\nINTERFUND TRANSACTIONS \r\nThe Board has the following types of interfund transactions: \r\nReimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \r\nOperating transfers are recorded for all interfund transactions other than reimbursements. \r\nMEMORANDUM ONLY - TOTAL COLUMNS \r\nTotal columns on the general purpose financial statements are captioned ''Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in confo11nity 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. \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nOfficial Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on \r\ndeposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than \r\n110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, \r\nwaive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \r\n- 12 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State ofGeorgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(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, \r\n(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and \r\n(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 lntettnediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $697,591.49. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust deparhnent or agent in the Board's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) \r\nThe Board's deposits are classified by risk category at June 30, 2000, as follows: \r\n \r\n- 13 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D'' \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2000 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 106,707.51 \r\n \r\n2 \r\n \r\n590,883.98 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ 697,591.49 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $32,603.97 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board 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: \r\n \r\nI \r\nThe Primary Liquidity Portfolio consists ofGeorgia 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 \r\nwhich follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not \r\nregistered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of_capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value 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 General Fund. \r\n \r\nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-te1m 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, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year. \r\n \r\n- 14 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2000 \r\n \r\nNote 3: NON-MONETARY TRANSACTIONS \r\n \r\nThe Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned \r\nvalue. See Note 1 - Inventories \r\n \r\nNote 4: RISK MANAGEMENT \r\n \r\nThe Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. \r\n \r\nThe Board has obtained commercial insurance for risk ofloss associated with torts and assets. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. \r\n \r\nThe Board has elected to self-insure for all losses related to natural disaster. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years. \r\n \r\nThe Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Board has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\nThe Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program ofworkers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nThe Board has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Principal Bookkeeper Office Clerk Secretary \r\n \r\n$ 70,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 \r\n \r\n- 15 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 5: ON-BEHALF PAYMENTS \r\n \r\nThe Board has recognized revenues and expenditures in the amount of $29,922.01 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $24,989.01 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $4,933.00 \r\n \r\nNote 6: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n01 /OOS-731-006 \r\n \r\n$ 138,000.00 $ 1,794,618.00 \r\n \r\nThe amounts described in this note are not reflected in the general purpose financial statements. \r\n \r\nNote 7: CONTINGENT LIABILITIES \r\n \r\nAmounts 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 tc1n1s. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 8: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems 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 \r\n \r\n- 16 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 8: RETIREMENT PLANS \r\n \r\nsurvivors 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. \r\n. \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and e.rnployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2000 \r\n1999 1998 \r\n \r\n100% 100% 100% \r\n \r\n$ 88,164.91 \r\n$ 85,302.02 \r\n$ 76,187.73 \r\n \r\n- 17 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND \r\nJUNE 30, 2000 \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable Inventories \r\nFood Donated Commodities Purchased Food \r\nTotal Assets \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n27,470.66 $ \r\n \r\n4,797.95 \r\n \r\n1,065.46 \r\n \r\n3,202.05 \r\n \r\n1,207.77 1,152.24 \r\n \r\n$ \r\n \r\n30,896.13 $ =====8=,o=o=o=oo= \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salaries Payable Deferred Revenue \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n689.80 \r\n \r\n6,373.08 \r\n \r\n_ _ _ _ _ _ $ _ _ _8\"\"\"'.;.oo'\"\"'o;...o;..o_ \r\n \r\n$ \r\n \r\n___ __ 7,062.88 $ \r\n \r\n8_.,_0_00.00 \r\n \r\n$ \r\n \r\n1,207.77 \r\n \r\n1,152.24 \r\n \r\n21,473.24 $ - - - - -0.0-0 \r\n \r\n$ \r\n \r\n23,833.25 $ - - - - -0.0-0 \r\n \r\nTotal Liabilities and Fund Equity \r\nSee notes to the general purpose financial statements. \r\n- 18 - \r\n \r\n30,896.13 $ ========8=,0=0=0=.=0=0= \r\n \r\n \r\n EXHIBIT \"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n1,059.84 $ \r\n \r\n0.00 $ \r\n \r\n33,328.45 $ \r\n \r\n32,125.27 \r\n \r\n16,640.87 \r\n \r\n20,908.38 \r\n \r\n27,767.02 \r\n \r\n \r\n \r\n1,207.77 1,152.24 \r\n \r\n416.68 1,239.42 \r\n \r\n$ \r\n \r\n17,700.71 $ \r\n \r\n0.00 $ \r\n \r\n56,596.84 $ ===6=1..,.5.=4=8.=39= \r\n \r\n$ \r\n \r\n4,085.38 \r\n \r\n13,615.33 \r\n \r\n$ _ _ _1..;.7...7_,_0_0._7_1 \r\n \r\n \r\n \r\n$ \r\n \r\n5,000.00 \r\n \r\n$ \r\n \r\n4,775.18 \r\n \r\n5,744.06 \r\n \r\n19,988.41 \r\n \r\n22,928.36 \r\n \r\n8,000.00 \r\n \r\n$ \r\n \r\n___ __ 32,763.59 $ \r\n \r\n33.,.6_7_2.42 \r\n \r\n$ \r\n \r\n1,207.77 $ \r\n \r\n416.68 \r\n \r\n1,152.24 \r\n \r\n1,239.42 \r\n \r\n$ \r\n \r\no.oo $ _ _ _ _.;..o...;...oo_ \r\n \r\n21,473.24 \r\n \r\n26,219.87 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n___ __ 23,833.25 $ \r\n \r\n27.,.8_7_5.97 \r\n \r\n$ \r\n \r\n17,700.71 $ \r\n \r\n0.00 $ \r\n \r\n56,596.84 $ ===6=1=,5=48==39= \r\n \r\n- 19 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Other Support Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\nFUND BALANCE JUNE 30 \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n6,528.00 $ \r\n \r\n59,404.05 \r\n \r\n84,150.05 \r\n \r\n5,459.34 \r\n \r\n$ \r\n \r\n96, 137.39 $ _ __,;5:;.;:9;.i..,4:..:0...:.;4:.::.0=-5 \r\n \r\n$ \r\n \r\n48,225.04 \r\n \r\n9,882.01 1,297.00 \r\n \r\n$ ___1-\"-o.o..,.8-\"-84'---.o'\"'\"2\"-- \r\n \r\n$ \r\n \r\n100,884.02 $ _ _ _5;.;9;.i.,4.;.;0..;.4;.;;.0.;;..5 \r\n \r\n$ \r\n \r\n-4,746.63 $ \r\n \r\n0.00 \r\n \r\n27,875.97 \r\n \r\n0.00 \r\n \r\n791.09 -87.18 \r\n \r\n$ \r\n \r\n23,833.25 $ =====0.=00= \r\n \r\nSee notes to the general purpose financial statements. \r\n- 20 - \r\n \r\n EXHIBIT \"F\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n13,794.00 $ \r\n \r\n267,878.26 \r\n \r\n$ \r\n \r\n281,672.26 $ \r\n \r\n14,384.01 $ 14,384.01 $ \r\n \r\n94,110.06 $ 352,028.31 \r\n5,459.34 \r\n \r\n42,839.06 310,667.80 \r\n5,338.38 \r\n \r\n451,597.71 $ - - -35~ 8,845-.2-4 \r\n \r\n$ \r\n \r\n180,650.61 $ \r\n \r\n4,626.00 43,271.74 38,128.08 \r\n6,741.49 7,229.18 \r\n \r\n1,025.16 \r\n \r\n$ \r\n \r\n281,672.26 $ \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n14,384.01 $ \r\n14,384.01 $ 0.00 $ 0.00 \r\n \r\n243,259.66 $ \r\n \r\n201,318.49 \r\n \r\n4,626.00 43,271.74 38,128.08 16,623.50 \r\n8,526.18 \r\n1,025.16 100,884.02 \r\n \r\n24,361.00 4,529.00 10,784.75 2,400.00 11,568.10 1,500.00 \r\n99,569.73 \r\n \r\n456,344.34 $ _ _3.;...;5;..;;.6.:.;;,0..;;..3..;..;1.~07'-- \r\n \r\n-4,746.63 $ \r\n \r\n2,814.17 \r\n \r\n27,875.97 \r\n \r\n24,474.03 \r\n \r\n791.09 -87.18 \r\n \r\n218.42 369.35 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n23,833.25 $ ===2=7=,8=75==97.... \r\n \r\n- 21 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT\"G\" \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable \r\nTotal Assets \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\nJUNE 30, 2000 JUNE 30, 1999 \r\n \r\n$ \r\n \r\n199,402.00 \r\n \r\n$ 199,402.00 $ \r\n \r\n56,523.58 \r\n \r\n- - - - - - $ _ _.:..14:.,.:,9=6=5..a.;15:;_ \r\n \r\n14,965.15 \r\n \r\n14,451.95 \r\n \r\n$ \r\n \r\n199,402.00 $ \r\n \r\n14,965.15 $ 214,367.15 $ _ _1_0.,9_7_5...,53_ \r\n \r\nFUND EQUITY \r\nFund Balances Reserved For SPLOST Projects For State Capital Outlay Projects $ Unreserved Undesignated \r\n \r\n$ \r\n199,402.00 \r\n0.00 \r\n \r\n14,965.15 $ 0.00 \r\n \r\n14,965.15 $ 199,402.00 \r\n0.00 \r\n \r\n70,975.53 0.00 \r\n \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n199,402.00 $ \r\n \r\n14,965.15 $ 214,367.15 $ _ _1_0_,9..,75_._53.,. \r\n \r\n \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n- 22- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nEXHIBIT\"H\" \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS YEAR ENDED \r\nJUNE 30, 2000 JUNE 30, 1999 \r\n \r\nREVENUES \r\nTaxes Other Funds \r\nTotal Revenues \r\n \r\n$ $ _ _ _ _o~.::;.;oo:;... \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n109,485.54 $ 1 771.56 \r\n111,257.10 $ \r\n \r\n109,485.54 $ 1 771.56 \r\n \r\n99,913.48 \r\n \r\n111,257.10 $ _ __;9,\u003c.::9:.,.:,9:....:,1.:.:3c.:.;48:::.. \r\n \r\nEXPENDITURES \r\n \r\nCurrent Student Transportation Services \r\nCapital Outlay Land and Land Improvements Building and Building Improvements Equipment \r\nTotal Expenditures \r\n \r\n$ \r\n \r\n47,000.00 \r\n \r\n$ \r\n \r\n63,263.80 \r\n \r\n$ \r\n \r\n63,263.80 \r\n \r\n601.50 $ \r\n \r\n34,764.82 \r\n \r\n35,366.32 \r\n \r\n1,204.82 \r\n \r\n1,204.82 \r\n \r\n2,151.00 \r\n \r\n$ \r\n \r\n63,865.30 $ \r\n \r\n35,969.64 $ \r\n \r\n99,834.94 $ _ _4..:.:9\"-1,:.::5~1-c::.OO:::. \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\n$ \r\n \r\n-63,865.30 $ \r\n \r\n75,287.46 $ \r\n \r\n11,422.16 $ _ __,;50=,7~6:::;2,c::;48:::.. \r\n \r\nOTHER FINANCING SOURCES (USES) \r\n \r\nOperating Transfers In Operating Transfers Out \r\n \r\n$ \r\n \r\n263,267.30 \r\n \r\n______ $ \r\n \r\n$ \r\n-131,297.84 \r\n \r\n263,267.30 -131,297.84 \r\n \r\nTotal Other Financing Sources (Uses) \r\n \r\n$ \r\n \r\n263,267.30 $ -131,297.84 $ _---\"-13:a.,;1~,96=9.'-\"46=- \r\n \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ \r\nFUND BALANCE JULY 1 \r\n \r\n199,402.00 $ 0.00 \r\n \r\n-56,010.38 $ 70,975.53 \r\n \r\n143,391.62 $ 70,975.53 \r\n \r\n50,762.48 20,213.05 \r\n \r\n FUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n199,402.00 $ \r\n \r\n14,965.15 $ 214,367.15 $ _ _1_0,.,9..,75_.,5..3..,. \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n-23- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\nFIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2000 \r\n \r\nEXHIBIT \"I\" \r\n \r\nBALANCE JULY 1, 1999 \r\n \r\nADDITIONS \r\n \r\nDEDUCTIONS \r\n \r\nBALANCE JUNE 30, 2000 \r\n \r\nSTUDENT ACTIVITY FUND \r\n \r\nASSETS \r\nCash and Cash Equivalents $ \r\n \r\n4 554.89 $ \r\n \r\n9,251.52 $ \r\n \r\n========== 7,312.42 $ \r\n \r\n6,493.99 \r\n \r\nLIABILITIES \r\nFunds Held for Others \r\n \r\n$ \r\n \r\n4,554.89 $ \r\n \r\n9,251.52 $ \r\n \r\n7,312.42 $ ==-====6.,.4..9..3. ==99= \r\n \r\nSee notes to the general purpose financial statements. \r\n-24- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2000 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nAgriculture, 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 \r\n \r\n10.553 10.555 \r\n \r\nNIA $ 28,520.05 \r\n \r\nNIA \r\n \r\n46,667.33 $ \r\n \r\n(2) \r\n95,829.74 (3) \r\n \r\nTotal Child Nutrition Cluster \r\n \r\n$ 75,187.38 $ \r\n \r\n95,829.74 \r\n \r\nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program \r\n \r\n10.550 \r\n \r\nNIA \r\n \r\n10.558 \r\n \r\nNIA \r\n \r\n5,054.28 3,908.39 \r\n \r\n5,054.28 (2) \r\n \r\nTotal U. S. Department of Agriculture \r\n \r\n$ 84,150.05 $ _ _1:..::0.::.,0,:;884=-.:..:=.0:::.2 \r\n \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Greene County Board of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Capacity Building Improvement \r\n \r\n84.027 84.173 84.173 \r\n \r\nNIA $ NIA NIA \r\n \r\n8,910.00 $ 4,016.00 \r\n300.00 \r\n \r\n8,910.00 4,016.00 \r\n300.00 \r\n \r\nTotal Special Education Cluster \r\n \r\n$ 13,226.00 $ \r\n \r\n13,226.00 \r\n \r\nOther Programs \r\n \r\nPass-Through From Georgia Department of Education \r\n \r\nComprehensive School Reform Demonstration Project Elementary and Secondary Education Act \r\n \r\n84.332 \r\n \r\nNIA \r\n \r\nTitle I Grants to Local Educational Agencies \r\n \r\n 84.010 \r\n \r\nNIA \r\n \r\nTitle II \r\n \r\nEisenhower Professional Development Title VI \r\n \r\n84.281 \r\n \r\nNIA \r\n \r\nInnovative Education Program Strategies Class Size Reduction Goals2000 \r\n \r\n84.298 \r\n \r\nNIA \r\n \r\n84.340 \r\n \r\nNIA \r\n \r\nState and Local Education Systemic Improvement Grants 84.276 \r\n \r\nNIA \r\n \r\nSafe and Drug-Free Schools and Communities \r\n \r\n84.186 \r\n \r\nNIA \r\n \r\n65,000.00 \r\n107,891.87 16,000.00 3,191.00 11,961.39 50,000.00 608.00 \r\n \r\n65,000.00 \r\n107,891.87 16,000.00 3,191.00 11,961.39 50,000.00 608.00 \r\n \r\nTotal U.S. Department of Education \r\n \r\n$ 267,878.26 $ _ ___,2:::::6:!..a7,:.:.87:...:8:.:::.2:.:.6 \r\n \r\nTotal Federal Financial Assistance \r\nNIA = Not Available \r\n \r\n$ 352,028.31 $ _ _3_6,..8,.,.76_2_.2_8 \r\n \r\n-25- \r\n \r\n TALIAFERRO COUNlY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE 1 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. \r\n(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program. \r\n(3) Expenditures on this program/project were not maintained on a program/project basis. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe Board did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Taliaferro County Board of Education and is presented on the modified accrual basis of accounting which is \r\nthe basis of accounting used in the presentation of the general purpose financial statements. \r\n \r\n \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n 26- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Sparsity Grant Special Instructional Assistance In-School Suspension Mid-tenn Adjustment Counselors Technology Specialist Local Five Mill Share Educational Equalization Fonnula Food Services Other State Programs Alternative Program At-Risk Summer School Program Health Insurance Lottery Programs Assistive Technology Computers in the Classroom \r\nGreene County Board of Education Preschool Handicapped Program \r\nHuman Resources, Georgia Department of Second Step Violence Prevention Program \r\nOffice of Treasury and Fiscal Services \r\nPublic School Employees Retirement \r\nCONTRACT Education, Georgia Department of Reading First Program \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ \r\n \r\n326,883.00 \r\n \r\n47,687.00 \r\n \r\n5,906.00 \r\n \r\n15,528.00 \r\n \r\n3,792.00 \r\n \r\n158,817.00 \r\n \r\n92,335.00 28,068.00 146,314.00 28,101.00 24,048.00 \r\n1,138.00 2,994.00 28,842.00 -163,882.00 20,355.00 \r\n$ \r\n \r\n1,695.00 1,901.92 24,989.01 \r\n \r\n$ \r\n6,528.00 6,404.05 53,000.00 \r\n \r\n13,140.00 \r\n \r\n1,244.01 \r\n \r\n4,933.00 \r\n \r\n13,794.00 \r\n \r\nTOTAL \r\n326,883.00 47,687.00 5,906.00 15,528.00 3,792.00 \r\n158,817.00 \r\n92,335.00 28,068.00 146,314.00 28,101.00 24,048.00 \r\n1,138.00 2,994.00 28,842.00 -163,882.00 20,355.00 6,528.00 \r\n1,695.00 1,901.92 24,989.01 \r\n6,404.05 53,000.00 \r\n13,140.00 \r\n1,244.01 \r\n4,933.00 \r\n13,794.00 \r\n \r\n$ \r\n \r\n800,444.93 $ \r\n \r\n------==== 94,110.06 $ \r\n \r\n894,554.99 \r\n \r\nSee notes to the general purpose financial statements. -27- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30. 2000 \r\n \r\nSCHEDULE \"3\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS \r\n \r\nPurchase of a new 60-passenger school bus to transport children to and from school $ \r\n \r\n47,000.00 $. \r\n \r\n48,156.00 \r\n \r\n$ \r\n \r\n48,156.00 \r\n \r\nConstruction of a covered walkway from Building 2010 to Building 2030 \r\n \r\n56,250.00 \r\n \r\n28,140.00 $ \r\n \r\n27,080.00 \r\n \r\n1,060.00 \r\n \r\nGeneral renovation of classrooms 1-9 in Building 2020 \r\n \r\n146,750.00 \r\n \r\n9,980.64 \r\n \r\n8,889.64 \r\n \r\n1,091.00 \r\n \r\nAcquiring, constructing, installing, furnishing and equipping a new school for grades K-12 in Taliaferro County, including any school buildings and athletics facilities, and payment of expenses incident thereto \r\n \r\n500,000.00 \r\n \r\n2,658,899.36 \r\n \r\n63,865.30 \r\n \r\n$ \r\n \r\n750,000.00 $ 2,745, 176.00 $ \r\n \r\n99,834.94 $ _ _ _5.o.,_.30_,1..o...o.. \r\n \r\n(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of Taliaferro County approved the imposition of a 1% sales tax to fund the above projects. \r\n \r\nAmounts expended for these projects may include sales tax proceeds, state, local property taxes \r\n \r\n \r\n \r\nand/or other funds over the life of the projects. \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n-28- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"4\" \r\n \r\nMinimum Expenditure Requirements (Total Allotment) \r\n \r\nExpenditures on Combined Program Basis Salaries Operations \r\nLess: Expenditures for Media Center Programs in Excess of Total Media Allotment \r\nExpenditures per Audit \r\nAmount of Underexpenditure for Total Allotment \r\n \r\nFOURTEEN WEIGHTED AND MEDIA CENTER \r\nPROGRAMS \r\n \r\n100o/o TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \r\n \r\n$ \r\n \r\n397t 716 00 $ _ _ _..,;9-\u003c,.;16;..;_7-\"-'8.;.,;_00.:;_ \r\n \r\n$ \r\n \r\n529,592.60 \r\n \r\n35 t 102.29 $ _ ____,:2;;.,;;;5-\u003c,.7;I_;.3\"\"-'8.;...;_43.:;_ \r\n \r\n$ \r\n \r\n564,694.89 \r\n \r\n-22,813.80 $ _ _ _5;_4;..;.1.:.;,8..;.8.;.,;1.;..;.09.:;.. \r\n \r\n$ \r\n \r\no.oo $ =====o=.o=o \r\n \r\n \r\nSee notes to the general purpose financial statements. - 29 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM \r\nGENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS \r\nYEAR ENDED JUNE 30. 2000 \r\n \r\nGENERAL AND CAREER EDUCATION PROGRAMS \r\nKindergarten (*) \r\nGrades 1 - 3 (*) \r\nSub-Total  K-3 \r\nGrades 4 - 5 (*) \r\nGrades 6 - 8 (*) Total General and Career Education Programs \r\nSPECIAL EDUCATION PROGRAMS \r\nRegular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) \r\nTotal Special Education Programs REMEDIAL EDUCATION PROGRAM (*l \r\nTotal Fourteen Weighted Programs \r\nMEDIA CENTER PROGRAMS \r\nSalaries Operations \r\nTotal Media Center Programs \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF \r\n \r\nREQUIRED \r\n \r\nORIGINAL \r\n \r\n% \r\n \r\nORIGINAL \r\n \r\nMID-TERM \r\n \r\n$ \r\n \r\n56,506.00 \r\n \r\n$ \r\n \r\n140,086.00 \r\n \r\n$ \r\n \r\n196,592.00 90 $ \r\n \r\n89,446.00 90 \r\n \r\n40,845.00 90 \r\n \r\n- - - - - $ \r\n \r\n326,883.00 \r\n \r\n$ \r\n \r\n50,855.40 $ \r\n \r\n0.00 \r\n \r\n126,077.40 \r\n \r\n176,932.80 $ \r\n \r\n0.00 \r\n \r\n80,501.40 \r\n \r\n36,760.50 \r\n \r\n294,194.70 $ _ _ _.._;;o.;.;;.o..;;..o \r\n \r\n$ \r\n \r\n47,687.00 \r\n \r\n$ \r\n \r\n42,918.30 $ \r\n \r\n1,712.00 \r\n \r\n$ \r\n \r\n47,687.00 90 $ \r\n \r\n$ _ _ _s _,9_06_.oo_ 90 $ \r\n \r\n$ \r\n \r\n380,476.00 \r\n \r\n$ \r\n \r\n42,918.30 $ _ _\"\"\"\"\"'1.;..11_2.;.;;.o.;;.o 5,315.40 $ _ _ ___;:o.;.;;.o..;;..o \r\n342,428.40 $ _ _ _17;.;1.;;;;2;.;;.0.;;.0 \r\n \r\n$ \r\n \r\n12,792.00 90 $ \r\n \r\n11,512.80 $ \r\n \r\n0.00 \r\n \r\n2,736.00 100 \r\n \r\n2,736.00 \r\n \r\n$ \r\n \r\n15,528.00 \r\n \r\n$ \r\n \r\n14,248.ao $ _ _ ___;:o;;.;:.oc.=..o \r\n \r\ns_ Total Fourteen Weighted and Media Center Programs \r\n \r\n_,,3.96,_,,...004......,.00. \r\n \r\n$ \r\n \r\n356,sn.20 $ \r\n \r\n- -- ---- - -- - \r\n \r\n1,712.00 \r\n----------- \r\n \r\nSTAFF DEVELOPMENT PROGRAMS \r\nCost of Instruction Professional Development \r\n \r\n$ \r\n \r\n1,233.00 \r\n \r\n$ \r\n \r\n1,233.00 $ \r\n \r\n0.00 \r\n \r\n2,559.00 \r\n \r\n2,559.00 \r\n \r\n0.00 \r\n \r\nTotal Staff Development Programs (*) Identifies Fourteen Weighted Programs. \r\n \r\n$ \r\n \r\n3,792.00 100 $ \r\n \r\n3,792.00 0.00 $ - ---- -- - - - - - - - - - \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n- 30  \r\n \r\n SCHEDULE \"5\" \r\n \r\nEDUCATION TOTAL \r\nREQUIRED \r\n \r\nACTUAL EXPENDITURES \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nAMOUNT OF UNDEREXPENDITURE \r\nFOR REQUIRED ALLOTMENT \r\n \r\n$ \r\n \r\n50,855.40 $ \r\n \r\n64,195.28 $ \r\n \r\n2,093.95 $ \r\n \r\n66,289.23 \r\n \r\n126,077.40 \r\n \r\n191,842.87 \r\n \r\n5,123.78 \r\n \r\n196,966.65 \r\n \r\n$ \r\n \r\n176,932.80 $ \r\n \r\n256,038.15 $ \r\n \r\n7,217.73 $ \r\n \r\n263,255.88 $ \r\n \r\n0.00 \r\n \r\n80,501.40 \r\n \r\n113,639.33 \r\n \r\n4,874.46 \r\n \r\n118,513.79 \r\n \r\n0.00 \r\n \r\n36,760.50 \r\n \r\n63,607.17 \r\n \r\n2,490.74 \r\n \r\n66,097.91 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n294,194.70 $ \r\n \r\n433,284.65 $ \r\n \r\n14,582.93 $ \r\n \r\n447,867.58 \r\n \r\n-----'\"-\"-~ \r\n \r\n$ \r\n \r\n44,630.30 \r\n \r\n$ \r\n \r\n$ \r\n29,243.04 21,418.93 \r\n \r\n6,910.00 $ 3,355.84 \r\n799.00 \r\n \r\n6,910.00 32,598.88 21,418.93 \r\n799.00 \r\n \r\n$ \r\n \r\n44,630.30 $ \r\n \r\n50,661.97 $ \r\n \r\n11,064.84 $ -----\"61-,-72-6=.8~1 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n5,315.40 $ \r\n \r\n16,668.04 $ \r\n \r\n90.66 $ _ _..;1..;a,6,\"-758=.7..;;;.0 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n344,140.40 $ \r\n \r\n500,614.66 $ \r\n \r\n25,738.43 $ _ _5'\"\"26\"'\"'\"\"353.;...;.;.0\"-'-9 \r\n \r\n$ \r\n \r\n11,512.80 $ \r\n \r\n28,977.94 \r\n \r\n$ \r\n \r\n28,977.94 \r\n \r\n0.00 \r\n \r\n_ _....;;;.2,\"\"\"13\"\"\"s\"\"\"'.o-\"-o _ _ _ _ _ _ $ _ _-\"\"-9,\"'\"36-'--'3\"\"'.86\"-'- \r\n \r\n9,363.86 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n14,248.80 $ \r\n \r\n28,977.94 $ \r\n \r\n------- 9,363.86 $ \r\n \r\n38,341.80 \r\n \r\n$ \r\n \r\n358,389.20 $ \r\n \r\n-- --- - - - - - - \r\n \r\n529,592.60 $ \r\n \r\n35,102.29 $ \r\n \r\n564,694.89 $ _ _ _ _ _ _ _o_.o_o \r\n \r\n$ \r\n \r\n1,233.00 \r\n \r\n2,559.00 \r\n \r\n=----- $ \r\n \r\n3,792.00 \r\n \r\n$ \r\n \r\n3,866.02 $ _ _ _3_._,866_.02_ \r\n \r\n$ \r\n \r\n3,866.02 $ \r\n \r\n--------- 3,866.02 $ \r\n \r\n0.00 \r\n \r\n 31  \r\n \r\n SECTIONil COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n  \r\n \r\n RussELL W. H1NTON \r\nSTATE AUDITOR \r\n(404) 656,2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W.. Suite 214 Atlanta. Georgia 30334-8400 \r\nMarch 14, 2001 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements ofTaliaferro County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated March 14, 2001. 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 generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nCompliance \r\nAs part of obtaining reasonable assurance about whether Taliaferro County Board of Education's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions of lav.s, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the deterrnination 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 an instance ofnoncompliance that is required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7311-00-01. \r\nInternal Control Over Financial Reporting \r\nIn planning and perfo11ning our audit, we considered Taliaferro County Board ofEducation's internal control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \r\n2000YB-60 \r\n \r\n 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 Taliaferro County Board of Education'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-7311-00- \r\n02. \r\nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the no11nal course of perfo11ning 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 the reportable condition described above is considered to be a material weakness. \r\nThis report is intended solely for the info1111ation and use ofmanagement, members ofthe Taliafe110 County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\n \r\nRWH:jb \r\n2000YB-60 \r\n \r\nell W. Hinton State Auditor \r\n \r\n RussELI. W. HINTON \r\nSTATE AUDITOR (404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Wasl1ingtc1n Street. S W,, St1itc 214 Atlanta, C,c(\u003ergia 3()334-84()() \r\nMarch 14, 2001 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Taliaferro County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Taliaferro County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to its major Federal program for the year ended June 30, 2000. Taliaferro County Board of Education's major Federal program is identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major Federal program is the responsibility of Taliaferro County Board ofEducation's management. Our responsibility is to express an opinion on Taliaferro County Board of Education's compliance based on our audit. \r\nWe conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo1111 the audit to obtain reasonable assurance about whether noncompliance with the types of compliance 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 Taliaferro County Board of Education's compliance with those requirements and perfo11ning 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 dete11nination on Taliaferro County Board of Education's compliance with those requirements. \r\n2000SA-10 \r\n \r\n In our opinion, the Taliaferro County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to its major Federal program for the year ended June 30, 2000. \r\nInternal Control Over Compliance \r\nThe management of Taliaferro County Board of Education is responsible for establishing and  \r\nmaintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and perforrning our audit, we considered Taliaferro County 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 deter1nine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\nOur 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 no11nal course ofperfo11ning their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \r\nThis report is intended solely for the info11nation and use ofmanagement, members ofthe Taliaferro County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:jb 2000SA-10 \r\n \r\noo ,u ,  w. \r\nssell.W. Hinton State Auditor \r\n \r\n SECTION ill AUDI'I'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\n7311-93-01 7311-99-01 \r\n \r\nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7311-99-01 \r\n \r\nDue to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staffthe Board has decided not to pursue the recording ofgeneral fixed assets on the financial statements. \r\n \r\n   \r\nSECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2000 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Taliaferro County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Taliaferro County Board ofEducation disclosed a financial statement reportable condition related to the following control category. \r\nGeneral Fixed Assets \r\nThe reportable condition described above is considered to be a material weakness. \r\n3. Noncompliance Material to the Financial Statements The audit of the Taliaferro County Board of Education disclosed one instance of noncomplianc.e deemed material to the financial statements. This noncompliance involved the Board's failure to transfer required funds from the General Fund to the Capital Projects Fund. Appropriate audit adjustments have been made to the financial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Taliaferro County Board ofEducation did not disclose any reportable conditions in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Taliaferro County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Taliaferro County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \r\n7. Maior Programs Federal awards audited as major programs are as follows: 84.10 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies \r\n8. Type ''A'' Program Dollar Threshold \r\nThe dollar threshold for type ''A'' programs was $300,000.00. \r\n9. Low Risk Auditee The Taliaferro County Board of Education was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education. \r\n- 1- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED ITJNE 30, 2000 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nGENERAL LEDGER Failure to Transfer Local Matching Funds Material Noncompliance Finding Control Number: FS-7311-00-01 \r\nThe Taliaferro County Board ofEducation received approval for State capital outlay project funding, through Georgia State Financing and Investment Commission. Both the instructions in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA) and the agreement signed by the Taliaferro County Board of Education to receive this funding require that the Taliaferro County Board of Education transfer required local matching funds to the Capital Projects Fund by June 30, 2000, and designate those funds by project name and number. This transfer was not made by the Taliaferro County Board ofEducation at June 30, 2000. This condition occurred because management claimed not to be aware ofthe provisions ofFMGLUA. A correcting audit adjustment was necessary to transfer $131,969.46 from the General Fund to GSFIC Project No. 01/00S-731-006 as required. \r\nManagement's Response: \r\n \r\nA correcting Journal Entry was made on March 20, 2001 to transfer these funds. \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year  Finding Control Number: FS-7311-00-02 \r\nThe Taliaferro County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fo11nal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board 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 Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. \r\nManagement's Response: \r\nDue to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional staff the Board has decided not to pursue the recording of general fixed assets on the financial statements. \r\n-2- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2000 \r\nill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n \r\n \r\n \r\n-3- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b1998-h99","title":"Audit report, Taliaferro County Board of Education, Crawfordville, Georgia, year ended June 30, 1999","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Taliaferro County, 33.56609, -82.87876"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["1999-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2000; ceased with: Fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Taliaferro County Board of Education, Crawfordville, Georgia, schedule of salaries and travel for fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Taliaferro County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed July 12, 2023).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed July 12, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Taliaferro County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Taliaferro County--Auditing--Periodicals.","Education--Georgia--Taliaferro County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Audit report, Taliaferro County Board of Education, Crawfordville, Georgia, year ended June 30, 1999"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b1998-h99"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt14-b1998-h99"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"G7 l-1 \r\nA 800 \r\n\"R l E2b T!4- \r\nl qc,2-c79 \r\nAUDIT REPORT TALIAFERRO COUNTY BOARD OF EDUCATION \r\nCRAWFORDVILLE, GEORGIA YEAR ENDED JUNE 30, 1999 \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 WASHINGTON STREET \r\nATLANTA, GEORGIA 30334-8400 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION! \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nGENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS - OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET \r\n \r\nALL FUND TYPES \r\n \r\n2 \r\n \r\nB \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nALL GOVERNMENTAL FUND TYPES \r\n \r\n4 \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\n5 \r\n \r\nD NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\n7 \r\n \r\nADDIDONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING AND INDIVIDUAL FUND STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n18 \r\n \r\nF \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n20 \r\n \r\nG \r\n \r\nFIDUCIARY FUND TYPE \r\n \r\nSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\n \r\nAGENCYFUND \r\n \r\n22 \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n23 \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n25 \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n26 \r\n \r\n4 SCHEDULEOFEXPENDITURES  \r\n \r\nLOTTERY PROGRAMS \r\n \r\n27 \r\n \r\nANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \r\n \r\n5 \r\n \r\nOVERALL \r\n \r\n29 \r\n \r\n6 \r\n \r\nBYPROGRAM \r\n \r\n30 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION 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 \r\nGOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nSECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTIONIV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION! FINANCIAL \r\n \r\n RussELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nJanuary 19, 2000 \r\n \r\nHonora~le Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation \r\nand Superintendent and Members ofthe Taliaferro County Board ofEducation \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - \r\nSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying general purpose financial statements ofthe Taliaferro County Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Taliaferro County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \r\nWe conducted our audit in accordance with generally accepted auditing standards and the standards applicable \r\nto financial audits contained in Government Auditing Standards, issued by the Comptroller General of the \r\nUnited States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \r\nAs described in the notes to the general purpose financial statements, the Board'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: \r\n* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. \r\n \r\n99ARL-13 \r\n \r\n * The Board did not recognize as expenditures, in the year ended June 30, 1999, a portion of salaries \r\nand the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, from the Georgia Department ofEducation for the State's share ofthese 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, 1998, were improperly recorded in the year ended June 30, 1999. 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. \r\nThe aggregate effects on the general purpose financial statements ofthese variances or omissions have not been determined, but are believed to be material. \r\nIn our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Taliaferro County Board ofEducation as ofJune 30, 1999, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. \r\nIn accordance with Government Auditini Standards, we have also issued our report dated January 19, 2000, \r\non our consideration ofthe Taliaferro County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. \r\nOur audit was performed for the purpose offorming an opinion on the general purpose financial statements ofthe Taliaferro County,Board ofEducation taken as a whole. The accompanying combining and individual fund statements (Exhibits E through G) and the financial schedules (Schedules 1 through 6), which includes the Schedule of Expenditures ofFederal Awards as required byU. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. \r\nA copy of this 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 of Georgia Annotated Section 50-6-24. \r\nRespectfully submitted, \r\nRWH:gp 99ARL-13 \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1999 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nInvestments \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\n \r\nGOVERNMENTAL FUND \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ \r\n \r\n563,280.45 $ \r\n \r\n27,125.27 \r\n \r\n30,814.07 \r\n \r\n49,749.04 \r\n \r\n27,767.02 \r\n \r\n416.68 1,239.42 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n643,843.56 $-======56=,54=====8=.3=9 \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Expired Grant Balances Payable Funds Held for Others \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Bus Replacement Funds For SPLOST Projects For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n21,281.06 $ \r\n \r\n5,744.06 \r\n \r\n22,928.36 \r\n \r\n$ \r\n \r\n21,281.06 $ \r\n \r\n28,672.42 \r\n \r\n$ \r\n \r\n26,903.00 \r\n \r\n$ \r\n \r\n416.68 \r\n \r\n1,239.42 \r\n \r\n595,659.50 \r\n \r\n26,219.87 \r\n \r\n$ \r\n \r\n622,562.50 $ \r\n \r\n27,875.97 \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n643,843.56 $-=====5=6-,54=8=.3=9== \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. -2- \r\n \r\n EXHIBIT\"A\" \r\n \r\nTYPES CAPITAL \r\nPROJECTS FUND \r\n \r\nFIDUCIARY FUND TYPE AGENCY FUND \r\n \r\nTOTALS (Memorandum Only) JUNE 30, 1999 JUNE 30, 1998 \r\n \r\n$ \r\n \r\n56,523.58 $ \r\n \r\n4,554.89 $ \r\n \r\n651,484.19 $ \r\n \r\n542,620.13 \r\n \r\n30,814.07 \r\n \r\n29,148.08 \r\n \r\n14,451.95 \r\n \r\n91,968.01 \r\n \r\n63,145.06 \r\n \r\n416.68 1,239.42 \r\n \r\n198.26 870.07 \r\n \r\n$ \r\n \r\n70,975.53 $ \r\n \r\n775,922.37 $ --=6=3=5._98_1=.6-=0 \r\n \r\n~ \r\n \r\n$ \r\n \r\n27,025.12 $ \r\n \r\n24,404.55 \r\n \r\n22,928.36 \r\n \r\n21,882.42 \r\n \r\n2,267.51 \r\n \r\n$ \r\n \r\n4,554.89 \r\n \r\n4,554.89 \r\n \r\n2,895.52 \r\n \r\n$ \r\n \r\n4,554.89 $ \r\n \r\n54,508.37 $ \r\n \r\n51z450.00 \r\n \r\n$ \r\n \r\n70,975.53 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n70,975.53 \r\n \r\n$ \r\n \r\n26,903.00 \r\n \r\n70,975.53 $ \r\n \r\n20,213.05 \r\n \r\n416.68 1,239.42 \r\n \r\n621,879.37 \r\n \r\n$ \r\n \r\n721,414;00 $ \r\n \r\n198.26 870.07 \r\n563,250.22 \r\n584,531.60 \r\n \r\n$ \r\n \r\n70,975.53 $ \r\n \r\n4,554.89 $ \r\n \r\n775,922.37 $ ___6=3=5,.98=1,..6_,0 \r\n \r\n-3- . \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1999 \r\n \r\nEXHIBIT\"B\" \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTALS {Memorandum Onl~ \r\nYEAR ENDED JUNE 30, 1999 JUNE 30, 1998 \r\n \r\nREVENUES \r\n \r\nState Funds \r\n \r\nFederal Funds \r\n \r\n~ \r\n \r\nTaxes \r\n \r\nOther Funds \r\n \r\n$ n5,179.61 $ 42,839.06 \r\n \r\n$ \r\n \r\n310,667.80 \r\n \r\n609,n1.13 \r\n \r\n$ 99,913.48 \r\n \r\n24,350.09 \r\n \r\n5,338.38 \r\n \r\n818,018.67 $ 310,667.80 709,685.21 29.688.47 \r\n \r\n723,502.10 236,484.86 644,061.59 \r\n30,338.92 \r\n \r\nTotal Revenues EXPENDITURES \r\n \r\n$ 1,409,301.43 $ 358,845.24 $ 99.913.48 $ 1.868,060.15 $ 1,634,387.47 \r\n \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation \r\nCapital Outlay \r\n \r\ns $ n1,602.05 201,318.49 \r\n \r\n$ \r\n \r\n14,914.17 39,624.14 38,002.92 90,641.47 41,667.01 56,071.40 140,052.52 132,257.n \r\n1,750.00 \r\n \r\n24,361.00 4,529.00 10,784.75 2,400.00 \r\n \r\n11,568.10 $ \r\n1,500.00 99,569.73 \r\n \r\n47,000.00 2,151.00 \r\n \r\n972,920.54 $ \r\n14,914.17 63,985.14 42,531.92 101,426.22 44,067.01 56,071.40 151,620.62 179,257.n \r\n3,250.00 99,569.73 2.151.00 \r\n \r\n880,681.85 \r\n2,307.50 47,906.90 36,446.47 124,222.80 38,207.87 51,969.46 80,3n.32 181,684.80 \r\n3,250.00 95,581.40 \r\n \r\nTotal Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 \r\n \r\n$ 1,326,583.45 $ 356,031.07 $ 49,151.00 $ 1,731,765.52 $ 1.542,636.37 \r\n \r\n$ 82,717.98 $ 2,814.17 $ 50,762.48 $ 136,294.63 $ \r\n \r\n91,751.10 \r\n \r\n539,844.52 \r\n \r\n24,474.03 20,213.05 \r\n \r\n584,S31.60 \r\n \r\n492,953:20 \r\n \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\n218.42 369.35 \r\n \r\n218.42 369.35 \r\n \r\n129.00 -301.70 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ 622,562.50 $ 27.875.97 $ 70,975.53 $ 721,414.00 $ 584,531.60 \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement -4- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"C\" \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\n \r\nBUDGET AND ACTUAL - {NON-GAAP BASIS} \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\nYEAR ENDED JUNE 30, 1999 \r\n \r\nGENERAL FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS) \r\n \r\nREVENUES \r\n \r\nState Funds Federal Funds Taxes Other Funds \r\n \r\n$ 741,074.00 $ 775,179.61 \r\n \r\n611,636.00 9,000.00 \r\n \r\n609,771.73 24,350.09 \r\n \r\nTotal Revenues \r\n \r\n$ 1,361,710.00 $ 1,409,301.43 \r\n \r\nEXPENDITURES \r\n \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant . Student Transportation Services Other Support Services Food Services Operation \r\n \r\n$ 748,650.00 $ 771,602.05 \r\n \r\n4,630.00 38,068.00 38,600.00 102,539.00 67,819.00 62,155.00 150,544.00 136,504.00 \r\n1,750.00 \r\n \r\n14,914.17 39,624.14 38,002.92 90,641.47 41,667.01 56,071.40 140,052.52 132,257.77 \r\n1,750.00 \r\n \r\nTotal Expenditures \r\n \r\n$ 1,351,259.00 $ 1,326,583.45 \r\n \r\nExcess of Revenues over (under) Expenditures $ 10,451.00 $ 82,717.98 \r\n \r\nFUND BALANCE JULY 1, 1998 \r\n \r\n513,578.95 \r\n \r\n539,844.52 \r\n \r\nFUND BALANCE JUNE 30, 1999 \r\n \r\n$ 524,029.95 $ 622,562.50 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS) \r\n \r\n$ 89,895.00 $ 42,839.06 \r\n \r\n250,230.00 \r\n \r\n310,667.80 \r\n \r\n5,506.00 \r\n \r\n5,338.38 \r\n \r\n$ 345,631.00 $ 358,845.24 \r\n \r\n$ 212,008.00 $ 201,318.49 \r\n \r\n21,632.00 2,970.00 6,330.00 \r\n \r\n24,361.00 4,529.00 10,784.75 2,400.00 \r\n \r\n11,568.10 \r\n \r\n1,500.00 101,107.00 \r\n \r\n1,500.00 99,569.73 \r\n \r\n$ 345,547.00 $  356,031.07 \r\n \r\n$ \r\n \r\n84.00 $ 2,814.17 \r\n \r\n25,635.94 \r\n \r\n23,405.70 \r\n \r\n$ 25,719.94 $ 26,219.87 \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. -5- \r\n \r\n TALIAFERRO COlJNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 1999 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe Taliaferro County Board ofEducation (Board) was established under the laws ofthe State ofGeorgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity. \r\nFUND ACCOUNTING \r\nThe Board uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGeneral Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. 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. \r\nThe general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Type~ include: \r\nGENERAL FUND - the fund used to account for all financial resources of the Board 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. \r\nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \r\nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \r\nFIDUCIARY 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. This fund includes: \r\n-7- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 1999 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nAGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other_funds, governments, or individuals. \r\nBASIS OF ACCOUNTING \r\nThe accounting and :financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure ofavailable spendable resources. \r\nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. \r\nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \r\nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \r\nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \r\n\"Measurable\" means the amount ofthe transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. \r\nExpenditures are generally recognized when the related fund liability is incurred. \r\nA 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 1999, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1998 and ending in early June 1999. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1999, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 1999, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1999. Also, the State's portion of the compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were recorded in the year ended June 30, 1999. Generally accepted accounting principles require that revenues be recorded when \r\n-8- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 1999 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\navailable and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \r\n \r\nAgency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities. \r\n \r\nBUDGET \r\n \r\nThe Taliaferro County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. \r\n \r\nThe budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, \r\nthe Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school \r\nbudget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, 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. \r\n \r\nThe Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, \r\nthe following adjustments have been made to fund balance as reflected on Exhibit \"B\" ofthis report: \r\n \r\nFUND BALANCE JULY 1, 1998 \r\nAdjustments Inventories - July 1, 1998 Food Donated Commodities Purchased Foods \r\nFund Balance July 1, 1998 (Budget Basis) \r\nExcess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\n \r\nSpecial Revenue \r\nFund \r\n$ 24,474.03 \r\n-198.26 -870.07 $ 23,405.70 \r\n2,814.17 \r\n \r\nFUND BALANCE JUNE 30, 1999 (Budget Basis) \r\n \r\n$ 26!219.82 \r\n \r\n-9- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 1999 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board 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: \r\n{l) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation ofthe United States government, \r\n(5) Prime banker's acceptances, \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n(7) Repurchase agreements, and \r\n(8) Obligations of other political subdivisions of the State of Georgia; \r\nRECEIVABLES \r\nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when \r\n-10- . . \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 1999 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\neither 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. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Taliaferro County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on November 12, 1998 (levy date). Taxes were due on February 17, 1999. The lien date for property taxes was January 1, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The Taliaferro County Tax Commissioner bills and collects the property taxes for the Board ofEducation, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the Board. \r\n \r\nThe tax millage rate levied for the 1998 tax year (calendar year) for the Taliaferro County Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n15.00 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $99,913.48 and was recorded in the Capital Projects Fund. The State will terminate collection ofthis tax once an additional $129,873.47 has been collected or on March 31, 2003, whichever occurs first. \r\n \r\nINVENTORIES \r\n \r\nFOOD 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 of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \r\n \r\nINTERFUND TRANSACTIONS \r\n \r\nThe Board has the following types of interfund transactions: \r\n \r\n-11 - . \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 1999 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nReimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \r\nMEMORANDUM ONLY -TOTAL COLUMNS \r\nTotal coiumns on the general pwpose financial statements are captioned \"Memorandum Only\" to indicate that  they are presented only to facilitate financial analysis. Data in these columns do not present :financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. futerfund eliminations have not been made in the aggregation ofthis data. \r\nNote 2: DEPOSITS AND INYESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nOfficial Code ofGeorgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such 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. OCGA Section45-8-1 l(b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \r\nAcceptable security for deposits consists ofany one ofor any combination ofthe following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) fusurance on accounts provided by the Federal Deposit fusurance Corporation, \r\n(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities of the State of Georgia, \r\n(5) Bonds ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use of the bonds for this pwpose, \r\n(6) fudustrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and \r\n \r\n- 12- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nruNE 30, 1999 \r\n \r\n Note 2: DEPOSITS AND INVESTMENTS \r\n \r\n(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. \r\n \r\n. CATEGORIZATIONOFDEPOSITS At June 30, 1999, the bank balances were $680,693.20. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) \r\n \r\nThe Board's deposits are classified by risk category at June 30, 1999, as follows: \r\n \r\nRisk Categozy \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 104,709.39 \r\n \r\n2 \r\n \r\n575,983.81 \r\n \r\n3 \r\n \r\n0,00 \r\n \r\nTotal \r\n \r\n$ 680.693.20 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 1999, the carrying value ofthe Board's total investments was $30,814.07 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, 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: \r\n \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to \r\n \r\n-13 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\". \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 1999 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\nbe a 2a-7 like pool. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety ofcapital, 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 determines participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist offunds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds ofthe State of Georgia's General Fund. \r\n \r\nInvestments 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 ofits agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average . maturity ofGeorgia Fund 1 may not exceed 60 days. Fund 6 maintains a duration ofapproximately one year. The weighted average maturity for Georgia Fund 1 on June 30, 1999 was 27 days. The average investment duration for Fund 6 on June 30, 1999 was 1.03 years. \r\n \r\nNote 3: NON-MONETARY TRANSACTIONS \r\n \r\nThe Board receives food commodities from the United States Department ofAgriculture (USDA) for school \r\n \r\nbreakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note \r\n \r\n1 - Inventories \r\n \r\n \r\n \r\nNote 4: RISK MANAGEMENT \r\n \r\nThe Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. \r\n \r\nThe Board has obtained commercial insurance for risk ofloss associated with torts and assets. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. \r\n \r\nThe Board has elected to self-insure for all losses related to natural disaster. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years. \r\n \r\nThe Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss-can be reasonably estimated. The Board has not incurred any liabilities for unemployment compensation during 'the past two fiscal years. \r\n \r\n- 14- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 1999 \r\n \r\nNote 4: RISK MANAGEMENT \r\n \r\nThe Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement and administer a program ofworkers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of$250,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nThe Board has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\nSuperintendent Bookkeeper Office Clerk Secretary \r\nNote 5: ON-BEHALF PAYMENTS \r\n \r\nAmount \r\n$ 70,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 \r\n \r\nThe Board has recognized revenues and expenditures in the amount of$30,743.28 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. \r\n \r\nGeorgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$25,648.28 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$5,095.00 \r\n \r\nNote 6: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1999. \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nConstruction ofa Covered Walkway at Taliaferro Elementary School \r\n \r\n$ 26.500.00 \r\n \r\nThe amount described in this note is not reflected in the general purpose financial statements. \r\n \r\n-15 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 1999 \r\n \r\nNote 7: CONTINGENT LIABILITIES \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall :financial position. \r\nNote 8: SUBSEQUENT EVENTS \r\nOn September 21, 1999, the voters ofTaliaferro County voted in favor of a Special Purpose Local Option Sales Tax referendum for education purposes. The imposition ofthe tax approved by the voters, as stated on the Official Ballot ofTaliaferro County, is as follows: \r\n\"Shall a one percent sales and use tax for educational purposes ofthe Taliaferro County School District be imposed within Taliaferro County for a maximum period of time of 20 consecutive calendar quarters, commencing on the first day ofthe calendar quarter immediately following the expiration of the sales and use tax for educational purposes authorized by special election referendum held on November 4, 1997, for the purpose of raising not more than $500,000.00 to be applied to the cost of_ acquiring, constructing, installing, furnishing and equipping a new school for grades K-12 in Taliaferro County, including any school buildings and athletic facilities (the \"Project\") and to pay expenses incident thereto? Ifthe imposition ofthe tax is approved by the voters, such vote shall also constitute approval ofthe application of the unused and unexpended proceeds of the sales and use tax for educational purposes authorized by special election referendum held on November 4, 1997, to the acquisition, construction, installing, furnishing and equipping ofthe Project?\" \r\nNme9: RETIREMENTPLANS \r\nTEACHERS RETIRE~NT SYSTEM OF GEORGIA (TRS) \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone :financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board 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 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n-16- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 1999 \r\n \r\nNme9: RETIREMENTPLANS \r\nFiscal Year \r\n1999 1998 1997 \r\n \r\nPercentage \r\nContributed \r\n100% 100% 100% \r\n \r\nRequired \r\nContribution \r\n$ 85,302.02 $ 76,187.73 $ 73,889.04 \r\n \r\n- 17 - . \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1999 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity \r\nTotal Liabilities and Fund Equity \r\nSee notes to the general purpose financial statements. -18- \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n29,718.47 $ \r\n \r\n0.00 \r\n \r\n3,557.74 \r\n \r\n416.68 11239.42 \r\n \r\n$ \r\n \r\n341932.31 $======o=.o=o \r\n \r\n$ \r\n \r\n808.84 \r\n \r\n6,247.50 \r\n \r\n$ \r\n \r\n71056.34 \r\n \r\n$ \r\n \r\n416.68 \r\n \r\n1,239.42 \r\n \r\n261219.87 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n271875.97 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n34,932.31 $ =======::::::0:.:0::0:: \r\n \r\n EXHIBIT\"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 1999 \r\n \r\nJUNE 30, 1998 \r\n \r\n$ \r\n \r\n2,406.80 \r\n \r\n$ \r\n \r\n32,125.27 $ \r\n \r\n31,918.09 \r\n \r\n19,209.28 $ \r\n \r\n5,000.00 \r\n \r\n27,767.02 \r\n \r\n22,087.49 \r\n \r\n416.68 1,239.42 \r\n \r\n198.26 870.07 \r\n \r\n$ \r\n \r\n21,616.08 $ \r\n \r\n5,000.00 $ \r\n \r\n61,548.39 $ ======5=5=,0=7=3=.9=1= \r\n \r\n$ \r\n \r\n$ \r\n \r\n4,935.22 \r\n \r\n16,680.86 \r\n \r\n$ \r\n \r\n21,616.08 $ \r\n \r\n5,000.00 $ 5,000.00 $ \r\n \r\n5,000.00 $ 5,744.06 22,928.36 \r\n33,672.42 $ \r\n \r\n6,449.95 21,882.42 \r\n2,267.51 \r\n30,599.88 \r\n \r\n$ \r\n \r\n416.68 $ \r\n \r\n1,239.42 \r\n \r\n198.26 870.07 \r\n \r\n$ \r\n \r\no.oo $ _ _ ____,;;;.o.;;.;;.o_o_ \r\n \r\n26,219.87 \r\n \r\n23,405.70 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n27,875.97 $ _ _ _2_4,_47_4_.0_3 \r\n \r\n$ \r\n \r\n21,616.08 $ \r\n \r\n5,000.00 $ \r\n \r\n61,548.39 $ ======5=5,=0=73=.9=1= \r\n-19- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND \r\nYEAR ENDED JUNE 30, 1999 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation.of Plant Other Support Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\nFUND BALANCE JUNE 30 \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n6,360.00 $ \r\n \r\n90,685.52 \r\n \r\n5,338.38 \r\n \r\n$ \r\n \r\n102,383.90 $ \r\n \r\n6,373.06 6,373.06 \r\n \r\n$ \r\n \r\n4,336.06 \r\n \r\n2,037.00 \r\n \r\n$ \r\n \r\n99,569.73 \r\n \r\n$ \r\n \r\n99,569.73 $ \r\n \r\n$ \r\n \r\n2,814.17 $ \r\n \r\n24,474.03 \r\n \r\n218.42 369.35 \r\n \r\n6,373.06 0.00 0.00 \r\n \r\n$ \r\n \r\n27,875.97 $ =========0.=00= \r\n \r\nSee notes to the general purpose financial statements. \r\n-20- \r\n \r\n EXHIBIT\"F\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 1999 \r\n \r\nJUNE 30, 1998 \r\n \r\n$ \r\n \r\n21,040.00 $ \r\n \r\n219,982.28 \r\n \r\n$ \r\n \r\n241,022.28 $ \r\n \r\n9,066.00 $ 9,066.00 $ \r\n \r\n42,839.06 $ 310,667.80 \r\n5,338.38 \r\n \r\n66,087.00 236,484.86 \r\n5,270.63 \r\n \r\n358,845.24 $ _ _3_0_7._,84_2_.4_9 \r\n \r\n$ \r\n \r\n192,916.43 $ \r\n \r\n23,845.04 4,529.00 6,300.71 \r\n363.00 \r\n \r\n11,568.10 1,500.00 \r\n \r\n$ \r\n \r\n241,022.28 $ \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n4,066.00 $ 515.96 \r\n4,484.04 \r\n9,066.00 $ 0.00 $ 0.00 \r\n \r\n201,318.49 $ \r\n24,361.00 4,529.00 10,784.75 2,400.00 \r\n11,568.10 1,500.00 99,569.73 \r\n356,031.07 $ \r\n2,814.17 $ \r\n24,474.03 \r\n \r\n184,886.27 \r\n9,927.21 \r\n6,808.60 3,158.00 \r\n875.97 \r\n1,500.00 95,581.40 \r\n302,737.45 \r\n5,105.04 \r\n19,541.69 \r\n \r\n218.42 369.35 \r\n \r\n129.00 -301.70 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n27,875.97 $ ====2=4=,4=74=.0=3 \r\n \r\n-21 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\nFIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 1999 \r\n \r\nEXHIBIT\"G\" \r\n \r\nSTUDENT ACTIVITY FUND \r\nASSETS Cash and Cash Equivalents \r\n \r\nBALANCE JULY 1, 1998 \r\n \r\nADDITIONS \r\n \r\nDEDUCTIONS \r\n \r\nBALANCE JUNE 30, 1999 \r\n \r\n$ \r\n \r\n2,895.52 $ \r\n \r\n10,013.03 $ \r\n \r\n8,353.66 $ ===4=,5=54===.8=9 \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ \r\n \r\n2,895.52 $ \r\n \r\n10,013.03 $ \r\n \r\n8,353.66 $ ===4=,5=54====.8=9 \r\n \r\nSee notes to the general purpose financial statements. -22- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30.1999 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriailture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1999Grant National School Lunch Program 1999Grant \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program 1999 Contract \r\nTotal U. S. Department of Agriailture . \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Greene County Board of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through 1999Grant Preschool 1999 Grant Capacity Building Improvement 1999Grant \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Program 1999 Grant Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1999 Grant Title II Eisenhower Professional Development 1999 Grant Title VI Innovative Education Program Strategies 1999 Grant \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n 10.553  10.555 \r\n \r\nNIA $ NIA \r\n$ \r\n \r\n31,031.17 48,160.92 $ 79,192.09 $ \r\n \r\n(2) 92,884.34 (3) 92,884.34 \r\n \r\n10.550 \r\n \r\nNIA \r\n \r\n6,685.39 \r\n \r\n6,685.39 \r\n \r\n10.558 \r\n \r\nNIA \r\n$ \r\n \r\n4,808.04 90,685.52 $ \r\n \r\n(2) 99,569.73 \r\n \r\n84.027 84.173 84.173 \r\n \r\nNIA $ NIA NIA \r\n$ \r\n \r\n10,710.00 $ 5,769.00 \r\n582.00 17,061.00 $ \r\n \r\n10,710.00 5,769.00 582.00 \r\n17,061.00 \r\n \r\n84.332 \r\n \r\nNIA \r\n \r\n84.010 \r\n \r\nNIA \r\n \r\n84.281 \r\n \r\nNIA \r\n \r\n84.298 \r\n \r\nNIA \r\n \r\n363.00 \r\n \r\n363.00 \r\n \r\n122,428.28 18,500.00 4,529.00 \r\n \r\n122,428.28 18,500.00 4,529.00 \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n-23- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 1999 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nEducation,U.S.Departmentof Other Programs Pass-Through From Georgia Department of Education Goals2000 State and Local Education Systemic Improvement Grants 1999Grant Safe and Drug-Free Schools 1999 Grant \r\nTotal U.S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n84.276 84.186 \r\n \r\nNIA $ NIA \r\n$ \r\n \r\n56,250.00 $ 851.00 \r\n219,982.28 $ \r\n \r\n56,250.00 851.00 \r\n219,982.28 \r\n \r\nTotal Federal Financial Assistance \r\n \r\n$ \r\n \r\n310,ss1.80 $ ___31_9.,.,5_5_2._0_1 \r\n \r\nNIA= Not Available \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. \r\n(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 1999 National School Lunch Program. \r\n(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. \r\n \r\nMajor Programs are identified by an asterisk (\") in front of the CFDA number. \r\n \r\nThe Board did not provide Federal Assistance to any Subrecipient \r\n \r\nThe accompanying schedule of expenditures of Federal Awards includes the Federal Grant Activity of the Taliaferro County Board of Education and is presented on the modified acaual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n-24- .. \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1999 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Sparsity Grant Special Instructional Assistance Counselors Grades 4 and 5 Technology Specialist Local Fair Share Educational Equalization Funding Grant Food Services Other State Programs At-Risk Summer School Program Charter Schools Health Insurance Student Record Lottery Programs Assistive Technology Computers in the Classroom \r\nGreene County Board of Education Preschool Handicapped Program \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nCONTRACTS Education, Georgia Department of Reading First Program \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nGENERAL. \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 337,395.00 \r\n53,142.00 10,860.00 16,291.00 \r\n4,285.00 161,241.00 \r\n92,724.00 28,059.00 134,643.00 35,244.00 \r\n2,561.00 28,842.00 -173,606.00 12,017.00 \r\n$ \r\n622.08 \r\n25,648.28 116.25 \r\n \r\n$ 337,395.00 \r\n53,142.00 10,860.00 16,291.00 \r\n4,285.00 161,241.00 \r\n \r\n6,360.00 \r\n \r\n92,724.00 28,059.00 134,643.00 35,244.00 \r\n2,561.00 28,842.00 -173,606.00 12,017.00 \r\n6,360.00 \r\n \r\n5,000.00 \r\n \r\n622.08 5,000.00 25,648.28 \r\n116.25 \r\n \r\n3,218.06 3,155.00 \r\n \r\n3,218.06 3,155.00 \r\n \r\n4,066.00 \r\n \r\n4,066.00 \r\n \r\n5,095.00 \r\n \r\n5,095.00 \r\n \r\n21,040.00 \r\n \r\n21,040.00 \r\n \r\n$ 775,179.61 $ 42,839.06 $ 818,018.67 \r\nSee notes to the general purpose financial statements. -25- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 1999 \r\n \r\nSCHEDULE \"3\" \r\n \r\nPROJECT \r\nPurchase of a new 60-passenger school bus to transport children to and from school \r\nConstruction of a covered walkway from Building 2010 to Building 2030 \r\nGeneral renovation of classrooms 1 - 9 in Building 2020 \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED \r\nCOST (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR \r\nYEARS \r\n \r\n$ 47,000.00 $ 48,156.00 $ 48,156.00 $ \r\n \r\n0.00 \r\n \r\n56,250.00 \r\n \r\n56,250.00 \r\n \r\n1,060.00 \r\n \r\n0.00 \r\n \r\n146,750.00 \r\n \r\n146,750.00 \r\n \r\n1,091.00 \r\n \r\n0.00 \r\n \r\n$ 250,000.00 $ 251,156.00 $ \r\n \r\nso,301.00 s_===-====o=.o=o \r\n \r\n(1) The Board's original cost estimate as specified in the resolution calling for imposition of the Local Option Sales Tax. \r\n(2) The Board's current estimate of total cost for each project. Includes all cost from project inception to completion. (3) The voters of Taliaferro County approved the imposition of a 1% sales tax to fund the above projects. \r\nAmounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n-26- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1999 \r\n \r\nSCHEDULE \"4\" \r\n \r\nEXPENDITURES \r\nCurrent Instruction Support Services School Administration \r\n \r\nASSISTIVE TECHNOLOGY \r\n \r\nCOMPUTERS INTHE \r\nCLASSROOM \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n3,218.06 $ \r\n \r\n1,118.00 $ \r\n2,037.00 \r\n \r\n4,336.06 2,037.00 \r\n \r\nTotal Expenditures \r\n \r\n$ \r\n \r\n3,218.06 $ \r\n \r\n3,155.00 $ ===6=,3=7=3=.0=6 \r\n \r\nSee notes to the general purpose financial statements. -27- \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \r\nYEAR ENDED JUNE 30, 1999 \r\n \r\nSCHEDULE \"5\" \r\n \r\nMinimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis \r\nSalaries Operations \r\nLess: Expenditures for Media Center Programs in Excess of Total Media Allotment \r\nExpenditures per Audit \r\nAmount of Underexpenditure for Total Allotment \r\n \r\nFOURTEEN WEIGHTED AND MEDIA CENTER \r\nPROGRAMS \r\n \r\n100% TEST FOR \r\nOPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \r\n \r\n$ \r\n \r\n417,688.00 $ \r\n \r\n10,668.00 \r\n \r\n$ \r\n \r\n508,291.00 \r\n \r\n44,350.00 $ _____3;;.;;8-',.1;,=2=5.\"\"-00~ \r\n \r\n$ \r\n \r\n552,641.00 \r\n \r\n-22,309.00 $ _ _ _5_3o__,3_3_2_.o_o \r\n \r\n$ \r\n \r\n0.00 $ ======0.0=0 \r\n \r\nSee notes to the general purpose financial statements. \r\n- 29 - \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1999 \r\n \r\nGENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Total General and Career Education Programs \r\nSPECl8!, EDUCATION PROGRAMS Regular Programs Category II (*) Category Ill (*) Total Special Education Programs \r\nREMEDIAL EDUCATION PROGRAM(*} Total Fourteen Weighted Programs \r\nMEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF \r\n \r\nREQUIRED \r\n \r\nORIGINAL ~ \r\n \r\nORIGINAL \r\n \r\nMID-TERM \r\n \r\n$ \r\n \r\n54,721.00 \r\n \r\n$ \r\n \r\n49,248.90 $ \r\n \r\n0.00 \r\n \r\n174,433.00 \r\n \r\n156,989.70 \r\n \r\n$ \r\n \r\n229,154.00 90 $ \r\n \r\n206,238.60 $ \r\n \r\n0.00 \r\n \r\n76,584.00 90 \r\n \r\n68,925.60 \r\n \r\n31,657.00 90 \r\n \r\n28,491.30 \r\n \r\n$ \r\n \r\n337,395.00 \r\n \r\n$ \r\n \r\n303,655.50 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n53,142.00 \r\n \r\n$ \r\n \r\n47,827.80 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n53,142.00 90 $ \r\n \r\n47,827.80 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n10,860.00 90 $ \r\n \r\n9,774.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n401,397.00 \r\n \r\n$ \r\n \r\n361,257.30 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n13,227.00 90 $ \r\n \r\n11,904.30 $ \r\n \r\n0.00 \r\n \r\n3,064.00 100 \r\n \r\n3,064.00 \r\n \r\n$ \r\n \r\n16,291.00 \r\n \r\n$ \r\n \r\n14,968.30 $ \r\n \r\n0.00 \r\n \r\nTotal Fourteen Weigh~ and Media Center Programs \r\nSTAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development \r\n \r\n$====4=11==688==.oo= \r\n \r\n$ \r\n \r\n1,353.00 \r\n \r\n2,932.00 \r\n \r\n$ \r\n \r\n376,225.60 $ =-=-=-=0.0=0 \r\n \r\n$ \r\n \r\n1,353.00 $ \r\n \r\n0.00 \r\n \r\n2,932.00 \r\n \r\n0.00 \r\n \r\nTotal Staff Development Programs (*) identifies Fourteen Weighted Programs. \r\n \r\n$ \r\n \r\n4,285.00 100 $ \r\n \r\n4,285.00 $ ===-=0.0=0 \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n- 30 - \r\n \r\n SCHEDULE \"6\" \r\n \r\nEDUCATION TOTAL \r\nREQUIRED \r\n \r\nACTUAL EXPENDITURES \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nAMOUNT OF UNDEREXPENDITURE \r\nFOR REQUIRED ALLOTMENT \r\n \r\n$ \r\n \r\n49,248.90 $ \r\n \r\n60,514.00 $ \r\n \r\n3,250.00 $ \r\n \r\n63,764.00 \r\n \r\n156,989.70 \r\n \r\n192,892.00 \r\n \r\n12,900.00 \r\n \r\n205,792.00 \r\n \r\n$ \r\n \r\n206,238.60 $ \r\n \r\n253,406.00 $ \r\n \r\n16,150.00 $ \r\n \r\n269,556.00 $ \r\n \r\n0.00 \r\n \r\n68,925.60 \r\n \r\n80,785.00 \r\n \r\n8,550.00 \r\n \r\n89,335.00 \r\n \r\n0.00 \r\n \r\n28,491.30 \r\n \r\n59,196.00 \r\n \r\n4,600.00 \r\n \r\n63,796.00 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n303,655.50 $ \r\n \r\n393,387.00 $ \r\n \r\n29,300.00 $ \r\n \r\n422,687.00 \r\n \r\n$ \r\n \r\n47,827.80 \r\n \r\n$ \r\n \r\n41,385.00 $ 31,099.00 \r\n \r\n8,325.00 $ 300.00 \r\n \r\n49,710.00 31,399.00 \r\n \r\n$ \r\n \r\n47,827.80 $ \r\n \r\n72,484.00 $ \r\n \r\n8,625.00 $ \r\n \r\n81,109.00 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n9,n4.oo $ \r\n \r\n10,045.00 $ \r\n \r\n200.00 $ \r\n \r\n10,245.00 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n361,257.30 $ \r\n \r\n475,916.00 $ \r\n \r\n38,125.00 $ \r\n \r\n514,041.00 \r\n \r\n$ \r\n \r\n11,904.30 $ \r\n \r\n32,375.00 \r\n \r\n$ \r\n \r\n32,375.00 \r\n \r\n0.00 \r\n \r\n3,064.oo _ _ _ _ _ $ _ _____,s,a;a;22aa.as\"\"'_.oo_ \r\n \r\n6,225.00 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n14,968.30 $ \r\n \r\n32,375.00 $ \r\n \r\ns_ _ s,22s.oo \r\n \r\n\"\"'3a.a..:..s_o_o_.o_o_ \r\n \r\n$ \r\n \r\n376,225.60 $ \r\n \r\n508,291.00 $ \r\n \r\n44,350.00 $ \r\n \r\n552,641.00 $-=======o=.o_o \r\n \r\n$ \r\n \r\n1,353.00 \r\n \r\n2,932.00 \r\n \r\n$ =======4'=2a=s=.o_o \r\n \r\n$ \r\n \r\n4,291.00 $ \r\n \r\n4,291.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n4,291.00 $ \r\n \r\n- 31 -. \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n RussELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nJanuary 19, 2000 \r\n \r\nHonorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation \r\nand Superintendent and Members ofthe Taliaferro County Board of Education \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH \r\nGOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of Taliaferro County Board of Education as of and for the year ended June 30, 1999, and have issued our report thereon dated January 19, 2000. 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 generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nCompliance \r\nAs part of obtaining reasonable assurance about whether Taliaferro County Board of Education's financial statements are free ofmaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Taliaferro County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its \r\n99YB-40 \r\n \r\n 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 of the internal control over financial reporting that, in our judgement, could adversely affect Taliaferro County Board of Education'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-7311-99-01. \r\nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. Our consideration of the internal control over financial reporting would not riecessarily 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, the reportable condition described above. is considered to be a material weakness. \r\nThis report is intended solely for the information and use ofmanagement, members ofthe Taliaferro County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:gp 99YB-40 \r\n \r\nsell W. Hinton State Auditor \r\n \r\n RussELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nJanuary 19, 2000 \r\n \r\nHonorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation \r\nand Superintendent and Members ofthe Taliaferro County Board ofEducation \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Taliaferro County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1999. Taliaferro County Board ofEducation's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofTaliaferro County Board of Education's management. Our responsibility is to express an opinion on Taliaferro County Board of Education's compliance based on our audit. \r\nWe conducted our audit of compliance in accordance with generally accepted auditing standards; the \r\nstandards applicable to financial audits contained in Government Auditing Standards, issued by the \r\nComptroller General ofthe United States; and 0MB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance 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 Taliaferro County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Taliaferro County Board ofEducation's compliance with those requirements. \r\n \r\n99SA-10 \r\n \r\n In our opinion, the Taliaferro County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 1999. \r\nInternal Control Over Compliance \r\nThe management of Taliaferro County Board ofEducation is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Taliaferro County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to detennine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\nOur consideration of ilie 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 ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions; We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \r\nThis report is intended solely for the information and use ofmanagement, members of the Taliaferro County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~~-~ sell W. Hinton State Auditor \r\nRWH:gp 99SA-10 \r\n \r\n SECTIONill \r\nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 1999 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\n7311-93-01 \r\n \r\nUnresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 7311-93-01 \r\n \r\nDue to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staffthe Board has decided not to pursue the recording ofgeneral fixed assets on the financial statements. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 1999 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Taliaferro County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Taliaferro County Board of Education disclosed a financial statement reportable condition related to the following control category. \r\nGeneral Fixed Assets \r\nThe reportable condition described above is considered to be a material weakness. \r\n3. Noncompliance Material to the Financial Statements The audit ofthe Taliaferro County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Taliaferro County Board of Education did not disclose any reportable conditions in internal control over major programs. \r\n5. T:xpe of Report Issued on Compliance for Major Programs The auditor's opinion on the Taliaferro County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 \r\nThe Taliaferro County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n7. 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 \r\n8. T:xpe \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The Taliaferro County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education. \r\n- 1- \r\n \r\n TALIAFERRO COUNTY BOARD Of EDUCATION SCHEDULE OF FINDINGS ANP QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 1999 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7311-99-01 The Taliaferro County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. \r\nm FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n-2- \r\n \r\n "}],"pages":{"current_page":1,"next_page":2,"prev_page":null,"total_pages":2,"limit_value":10,"offset_value":0,"total_count":15,"first_page?":true,"last_page?":false},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":15}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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