{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2007-h2008","title":"Bleckley County Board of Education, Cochran, 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, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2008-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000.","Report year covers fiscal year.","Has supplements: Bleckley County Board of Education, Cochran, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Bleckley County Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Bleckley County Board of Education), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000, released 2001? (online surrogate); title from PDF cover (Georgia Government Publications database, viewed September 16, 2022).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed September 16, 2022)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Bleckley County Board of Education--Appropriations and expenditures--Periodicals.","Bleckley County (Ga.). Board of Education","Education--Georgia--Bleckley County--Auditing--Periodicals.","Education--Georgia--Bleckley County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Georgia Government Documents--Serial"],"dcterms_title":["Bleckley County Board of Education, Cochran, 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-bb6-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2007-h2008"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","state government records","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS FOR 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 BLECKLEY 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\nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n9 \r\n \r\nI \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n10 \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\n25 \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\n28 \r\n \r\n BLECKLEY 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\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n30 \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\n31 \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 GOVERNMENTAUDITING 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\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nOctober 1, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members of the Bleckley 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 I) ofthe Bleckley 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 Bleckley 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 GovernmentAuditing 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 Bleckley 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-11 \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 Bleckley County Board ofEducation, 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 Bleckley 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 October 1, 2009, on our consideration of the Bleckley 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 25, 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 Bleckley 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 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'::i:),,..... .00_ ~.~ \r\n~~sell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2008ARL-l l \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n BLECKLEY 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 Contracts Payable Deposits and Deferred Revenues 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 Debt Service 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\n487,005.40 \r\n \r\n3,100,529.06 \r\n \r\n301,969.62 1,780,356.38 \r\n238,950.56 23,595.67 82,778.89 \r\n348,219.21 20,307,859.09 \r\n \r\n$ ==2=6,..,67,..1=,2=6=3=.8===8 \r\n \r\n$ \r\n \r\n163,746.15 \r\n \r\n2,424,613.76 \r\n \r\n69,841.21 \r\n \r\n77,374.00 \r\n \r\n100,233.50 124,855.53 \r\n \r\n$ \r\n \r\n2,960,664.15 \r\n \r\n$ 20,430,989.27 \r\n17,788.40 268,360.36 \r\n985.76 813,758.07 2,178,717.87 \r\n$ 23,710,599.73 \r\n \r\n$ ======2=6'=6=71=,2=6=3=.8==8 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1- \r\n \r\n BLECKLEY 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 Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt \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 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 \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 15,437,836.10 $ \r\n857,164.42 447,007.73 360,175.26 407,500.63 1,181,730.45 118,902.94 1,425,844.40 1,160,787.18 \r\n13,688.11 103,433.89 \r\n54,065.80 1,529,010.73 \r\n15,837.50 \r\n$ 23,112,985.14 $ \r\n \r\n136,951.51 \r\n36,676.00 403,294.29 576,921.80 \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$ 12,428,346.19 \r\n355,350.98 292,701.87 305,434.34 649,077.36 731,126.29 \r\n15,053.16 785,742.39 \r\n83,767.55 $ 357.16 \r\n85,715.44 \r\n2,115.21 1,083,979.03 \r\n$ 16,818,766.97 $ \r\n \r\n$ 94,685.17 94 685.17 $ \r\n \r\n-2,872,538.40 \r\n-501,813.44 -154,305.86 \r\n-54,740.92 241,576.73 -450,604.16 -103,849.78 -640, 102.01 -982,334.46 -13,330.95 -17,718.45 \r\n-15,274.59 -41,737.41 -15 837.50 \r\n-5,622,611.20 \r\n \r\n$ \r\n \r\n2,567,663.73 \r\n \r\n1,181,631.58 17,331.76 29,702.57 \r\n1,765,304.00 113,715.31 530,251.01 \r\n \r\n$ \r\n \r\n6,205,599.96 \r\n \r\n$ \r\n \r\n582,988.76 \r\n \r\n23,127,610.97 \r\n \r\n$ ===23='=71=0=,5=9=9.=73= \r\n \r\n-3- \r\n \r\n BLECKLEY 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 Contracts Payable Deposits and Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Bus Replacement Continuation of Federal Programs Debt Service 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\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 372,940.80 $ 113,078.84 $ 2,542,963.36 557,565.70 \r\n \r\n73,343.72 1,780,356.38 \r\n238,950.56 23,595.67 82,778.89 \r\n \r\n215,758.42 \r\n \r\n985.76 $ 487,005.40 3,100,529.06 \r\n289,102.14 1,780,356.38 \r\n238,950.56 23,595.67 82,778.89 \r\n \r\n$ 5,114,929.38 $ 886,402.96 $ 985.76 $ 6,002,318.10 \r\n \r\n$ 160,942.47 $ 2,424,613.76 \r\n77,374.00 \r\n \r\n2,803.68 69,841.21 \r\n \r\n$ 2,662,930.23 $ 72,644.89 \r\n \r\n$ 163,746.15 2,424,613.76 69,841.21 77,374.00 \r\n$ 2,735,575.12 \r\n \r\n$ 17,788.40 268,360.36 $ $ 813,758.07 \r\n120,033.26 \r\n2,045,817.13 \r\n$ 2,451,999.15 $ 813,758.07 $ \r\n \r\n$ 985.76 \r\n \r\n17,788.40 268,360.36 \r\n985.76 813,758.07 \r\n \r\n120,033.26 \r\n \r\n2,045,817.13 \r\n \r\n985.76 $ 3,266,742.98 \r\n \r\n$ 5,114,929.38 $ 886,402.96 $ 985.76 $ 6,002,318.10 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n BLECKLEY 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 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 Payable \r\n \r\n$ 3,266,742.98 \r\n \r\n$ 263,770.00 84,449.21 \r\n794,220.87 23,363,677.00 \r\n2,544,000.90 -6,394,039.68 \r\n \r\n20,656,078.30 \r\n \r\n12,867.48 \r\n \r\n-225,089.03 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 23,710,599.73 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n BLECKLEY 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 Central Support Services Other Support Services Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES} \r\nCapital Leases Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \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\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 2,554,796.25 \r\n \r\n47,034.33 $ 1,181,631.58 \r\n \r\n16,336,114.60 \r\n \r\n2,342,641.54 \r\n \r\n576,921.80 \r\n \r\n102,445.19 \r\n \r\n11,264.31 $ \r\n \r\n530,251.01 \r\n \r\n$ 22,490,204.72 $ 1,192,895.89 $ \r\n \r\n$ 5.81 \r\n \r\n2,554,796.25 1,228,665.91 16,336,114.60 2,342,641.54 \r\n576,921.80 113,715.31 530,251.01 \r\n \r\n5.81 $ 23,683,106.42 \r\n \r\n$ 15,002,508.93 $ 12,891.08 \r\n \r\n$ 15,015,400.01 \r\n \r\n780,792.98 447,007.73 360,175.26 408,149.11 1,181,730.45 118,902.94 1,425,596.81 1,194,819.25 \r\n13,688.11 103,433.89 54,065.80 1,468,492.21 \r\n \r\n76,371.44 365.64 \r\n183,732.45 \r\n105,777.21 \r\n \r\n857,164.42 447,007.73 360,175.26 408,514.75 1,181,730.45 118,902.94 1,609,329.26 1,194,819.25 \r\n13,688.11 103,433.89 54,065.80 1,468,492.21 105,777.21 \r\n \r\n95,003.00 6,601.60 \r\n \r\n$ 905,000.00 15,837.50 \r\n \r\n1,000,003.00 22,439.10 \r\n \r\n$ 22,660,968.07 $ 379,137.82 $ 920,837.50 $ 23,960,943.39 \r\n \r\n$ -170,763.35 $ 813,758.07 $ -920,831.69 $ -277,836.97 \r\n \r\n$ 181,202.00 -920,837.50 \r\n \r\n$ $ 920,837.50 \r\n \r\n$ -739,635.50 \r\n \r\n$ 920,837.50 $ \r\n \r\n$ -910,398.85 $ 813,758.07 $ \r\n \r\n5.81 $ \r\n \r\n3,362,398.00 \r\n \r\n0.00 \r\n \r\n979.95 \r\n \r\n181,202.00 920,837.50 -920,837.50 \r\n181,202.00 \r\n-96,634.97 \r\n3,363,377.95 \r\n \r\n$ 2,451,999.15 $ 813,758.07 $ \r\n \r\n985.76 $ 3,266,742.98 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n BLECKLEY 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\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\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\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\nCapital Lease Payments Bond Principal Retirements \r\nTotal Long-Term Debt Repayments \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -96,634.97 \r\n \r\n$ 562,835.03 -714,879.78 \r\n \r\n-152,044.75 \r\n \r\n12,867.48 \r\n \r\n-181,202.00 \r\n \r\n$ 95,003.00 905,000.00 \r\n \r\n1,000,003.00 \r\n \r\n$ 582,988.76 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2008 \r\n \r\nEXHIBIT\"G\" \r\n \r\nASSETS Cash and Cash Equivalents \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ 23,110.80 $ 36,999.28 \r\n \r\nLIABILITIES Funds Held for Others \r\nNET ASSETS Held in Trust for Private Purposes \r\n \r\n$ . 36,999.28 $ 23,110.80 \r\n \r\nTotal Liabilities and Net Assets \r\n \r\n$ 23,110.80 $ 36,999.28 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2008 \r\n \r\nEXHIBIT\"H\" \r\n \r\nADDITIONS Investment Earnings Interest \r\nDEDUCTIONS Scholarships Change in Net Assets \r\nNet Assets - Beginning \r\nNet Assets - Ending \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n347.83 \r\n \r\n$ \r\n \r\n1,000.00 \r\n \r\n$ \r\n \r\n-652.17 \r\n \r\n23,762.97 \r\n \r\n$ 23,110.80 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Bleckley 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\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 Bleckley 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 ofActivities 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- 10- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \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 (SPLOST) to be used for the acquisition, construction or renovation of major capital facilities. \r\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund types: \r\n Private Purpose Trust funds report trust arrangements under which principal and income may be expended to provide scholarships for female students who attend Bleckley County High School. \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 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- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nliability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. 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, 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 and equity investments 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 of return 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- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \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 Bleckley County Board of Commissioners fixed the property tax levy for the 2007 tax digest year (calendar year) on September 4, 2007 (levy date). Taxes were due on December 20, 2007 (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 Bleckley 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 $2,554,796.25. \r\n \r\nThe tax millage rate levied for the 2007 tax year (calendar year) for the Bleckley 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\n12.00 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 $1,181,631.58 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- 13 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \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 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\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 Construction in Progress \r\n \r\nAll \r\n \r\nNIA \r\n \r\n$ 5,000.00 20 to 80 years \r\n \r\n$ 5,000.00 10 to 80 years \r\n \r\n$ 5,000.00 5 to 50 years \r\n \r\nAll \r\n \r\nNIA \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\n- 14 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nNET ASSETS \r\nThe School District's net assets in the District-wide Statements are classified as follows: \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 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 11 Opercent 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\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 \r\n- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \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 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\nCATEGORIZATION OF DEPOSITS At June 30, 2008, the bank balances were $2,844,851.14. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk: \r\nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \r\ntrust department or agent but not in the School District's name. \r\nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: \r\n \r\n- 16 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n2,522,649.85 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ 225222649.85 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2008, the carrying value ofthe School District's total investments was $2,100,529.06, 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 of Audits and Accounts at http://www.audits.state.ga.us/intemet/searchRpts.html. \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, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2008, was 40 days. \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodi_ties from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\nTotal Capital Assets Not Being Depreciated \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\nTotal Capital Assets, Being Depreciated, Net \r\nGovernmental Activity Capital Assets - Net \r\n \r\nBalances Jul)'. l, 2007 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2008 \r\n \r\n$ 263,770.00 0.00 $ \r\n$ 263,770.00 $ \r\n \r\n$ 84,449.21 \r\n84,449.21 $ \r\n \r\n0.00 $ 263,770.00 84,449.21 \r\n0.00 $ 348,219.21 \r\n \r\n$ 23,363,677.00 2,322,159.58 $ 615,970.87 \r\n \r\n300,135.82 $ 178,250.00 \r\n \r\n$23,363,677.00 78,294.50 2,544,000.90 \r\n794,220.87 \r\n \r\n4,372,455.45 1,200,051.13 \r\n184,947.82 \r\n \r\n457,953.80 229,171.19 \r\n27,754.79 \r\n \r\n$20,544,353.05 $ -236,493.96 $ \r\n \r\n$ 20 808 123 05 $ -152.044.75 $ \r\n \r\n78,294.50 \r\n \r\n4,830,409.25 1,350,927.82 \r\n212,702.61 \r\n \r\n0.00 $ 20,307,859.09 \r\n \r\n0.00 $ 20.656.078.30 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2008, are as follows: \r\n \r\nGovernmental Funds \r\n \r\nEquipment Less: Accumulated Depreciation \r\n \r\n$ 305,837.45 40,218.96 \r\n \r\n$ 265,618.49 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nMaintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 492,600.40 \r\n \r\n$ \r\n \r\n6,524.73 \r\n \r\n149,437.00 \r\n \r\n155,961.73 66,317.65 \r\n \r\n$ 714,879.78 \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 applicable statutory provisions. Restricted assets at June 30, 2008, were as follows: \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nDistrict-wide Capital Projects SPLOST \r\n \r\nDebt Service Funds \r\n \r\nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \r\nRestricted Investments: Capital Acquisitions \r\n \r\n$ \r\n$ 113,078.84 \r\n$ 557,565.70 \r\n \r\n985.76 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2008, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From General Fund \r\n \r\nDebt Service Fund \r\n \r\n$ 920,837.50 \r\n \r\nTransfers are used to move property tax revenues collected by the General Fund to the Debt Service Fund as funding for the bond payments made by the Debt Service Fund. \r\n \r\nNote 8: 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 ofloss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk 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 expenses/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 experienced any unemployment compensation claims during the past two fiscal years. \r\n \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 8: RISK MANAGEMENT \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 $2,000,000.00. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ 50,000.00 $ 100,000.00 \r\n \r\nNote 9: OPERATING LEASES \r\n \r\nBleckley County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2008, for governmental funds amounted to $16,002.04. Future minimum lease payments for these leases are as follows: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2009 2010 2011 2012 2013 \r\n \r\n$ 11,140.35 10,033.68 9,133.68 7,442.40 372.00 \r\n \r\nTotal \r\n \r\n$ 38,122.11 \r\n \r\nNote 10: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Bleckley County Board ofEducation has entered into various lease agreements for the purchase of school buses. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \r\n \r\n- 20- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 10: LONG-TERM DEBT \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows: \r\n \r\nG.O.Bonds Capital 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$ 905,000.00 \r\n \r\n$ 905,000.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n138,890.03 $ 181,202.00 \r\n \r\n95,003.00 \r\n \r\n225,089.03 \r\n \r\n100,233.50 \r\n \r\n$ I,{M3,82Q,Q3 $ 181,202,QQ $ l,QQQ,QQ3,QQ $ 225,Q82,Q3 $ JQQ 233 SQ \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 \r\n \r\n$ 100,233.50 $ 60,919.98 63,935.55 \r\n \r\n12,956.99 6,180.37 3,164.80 \r\n \r\nTotal Principal and Interest Note 11: ON-BEHALF PAYMENTS \r\n \r\n$ 225,089.03 $ 22,302.16 \r\n \r\nThe School District has recognized revenues and costs in the amount of $440,446.51 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$417,056.20 \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $20,084.31 \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 $3,306.00 \r\n \r\n- 21 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 12: 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\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\n \r\nNote 13: 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 ofCommunity 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 of health 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 $2,104,756.47, which equaled the required contribution. \r\n \r\n-22 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 14: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2008 2007 2006 \r\n \r\n100% 100% 100% \r\n \r\n$ 1,142,296.10 $ 1,062,314.00 $ 979,016.00 \r\n \r\n- 23 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY 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 Central Support Services Other Support Services Community Services Food Services Operation \r\nCapital Outlay Debt Service \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nProceeds from Capital Lease Transfers Out \r\nTotal Other Financing Sources \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\n2,640,000.00 $ \r\n \r\n2,640,000.00 $ \r\n \r\n2,554,796.25 \r\n \r\n47,034.33 \r\n \r\n14,146,270.04 \r\n \r\n15,094,248.00 \r\n \r\n16,336,114.60 \r\n \r\n952,043.00 \r\n \r\n2,341,340.96 \r\n \r\n2,342,641.54 \r\n \r\n467,100.00 \r\n \r\n467,100.00 \r\n \r\n576,921.80 \r\n \r\n33,200.00 \r\n \r\n33,200.00 \r\n \r\n102,445.19 \r\n \r\n104 200.00 \r\n \r\n104,200.00 \r\n \r\n530,251.01 \r\n \r\n$ 18,342,813.04 $ 20,680,088.96 $ 22,490,204.72 \r\n \r\n$ 12,142,053.32 $ 13,659,896.67 $ 15,002,508.93 \r\n \r\n457,583.51 321,002.29 358,624.22 241,253.37 1,087,739.14 194,011.32 1,354,626.42 974,161.67 \r\n11,096.02 16,742.00 \r\n1,325,620.00 10,000.00 \r\n \r\n764,533.36 426,828.19 358,375.10 390,594.01 1,120,607.13 204,011.32 1,396,409.92 1,044,725.60 \r\n11,096.02 84,918.00 \r\n1,338,456.23 10,000.00 \r\n \r\n780,792.98 447,007.73 360,175.26 408,149.11 1,181,730.45 118,902.94 1,425,596.81 1,194,819.25 \r\n13,688.11 103,433.89 \r\n54,065.80 1,468,492.21 \r\n101 604.60 \r\n \r\n$ 18,494,513.28 $ 20,810,451.55 $ 22,660,968.07 \r\n \r\n$ \r\n \r\n-151 700.24 $ \r\n \r\n-130 362.59 $ \r\n \r\n-170 763.35 \r\n \r\n$ \r\n \r\n181,202.00 \r\n \r\n-920,837.50 \r\n \r\n$ \r\n \r\n.739 635.50 \r\n \r\n$ \r\n \r\n-151,700.24 $ \r\n \r\n-130,362.59 $ \r\n \r\n-910,398.85 \r\n \r\n1,950,471.92 \r\n \r\n1,950,471.92 \r\n \r\n3,362,398.00 \r\n \r\n7 605.24 \r\n \r\n479 263.40 \r\n \r\nFund Balances  Ending \r\n \r\n$ \r\n \r\n1,806,376.92 $ \r\n \r\n2,299,372.73 $ \r\n \r\n2,451,999.15 \r\n \r\nNotes to the Schedule of Revenues, Ex12enditures 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 BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR 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 (1) \r\nTotal U. S. Department of Agriculture \r\nCorporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs \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 English Language Acquisition Grants Improving Teacher Quality State Grants Rural Education Safe and Drug-Free Schools and Communities - State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Pass-Through From Middle Georgia College Foundation Safe and Drug-Free Schools and Communities - National Programs Mentoring Grant \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Pass-Through From Toombs County Board of Commissioners Center for Substance Abuse Prevention Drug-Free Communities \r\nTotal Federal Financial Assistance \r\nNIA = Not Available \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\nN/A $ \r\n$ \r\n \r\n(2) 1,235,732.96 \r\n1,235,732.96 \r\n \r\n10.550 \r\n \r\nN/A \r\n$ \r\n \r\n124,562.25 1,360,295.21 \r\n \r\n94.004 \r\n \r\nN/A $ \r\n \r\n5 866.10 \r\n \r\n84.027 84.173 \r\n \r\nN/A $ \r\nN/A \r\n$ \r\n \r\n445,214.87 25 128.54 \r\n470,343.41 \r\n \r\n84.048 84.365 84.367 84.358 84.186 84.298 84.010 84.287 \r\n84.184 \r\n \r\nN/A \r\n \r\n22,803.00 \r\n \r\nNIA \r\n \r\n672.00 \r\n \r\nN/A \r\n \r\n116,692.01 \r\n \r\nN/A \r\n \r\n6,955.00 \r\n \r\nN/A \r\n \r\n9,618.28 \r\n \r\nN/A \r\n \r\n3,575.00 \r\n \r\nN/A \r\n \r\n536,647.04 \r\n \r\nN/A \r\n \r\n174,811.52 \r\n \r\nN/A \r\n$ \r\n \r\n6 036.44 1 348 153.70 \r\n \r\n93.243 \r\n \r\nN/A $ \r\n \r\n3 060.03 \r\n \r\n$ ===2=oa7=1=7=3=75==04= \r\n \r\n- 26 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"2\" \r\n \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 ($228,928.63) were not maintained separately and are included in the 2008 National School Lunch Program. \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 Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Bleckley 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- 27 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nCommunity Affairs, Georgia Department of Communities in Schools Local Assistance Grant \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 Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Gifted Student - Category VI Remedial Education Program Alternative Education Program English for Speakers of Other Languages 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 - Alternative Nursing Services Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment \r\n \r\nGOVERNMENTAL FUND TYPE \r\nGENERAL \r\nFUND \r\n \r\n$ \r\n \r\n779,591.46 \r\n \r\n32,402.94 7,000.00 \r\n \r\n773,723.00 132,025.00 1,731,146.00 154,678.00 920,376.00 \r\n18,392.00 23,916.00 1,552,869.00 1,571,446.00 481,186.00 \r\n2,298,821.00 155,501.00 134,963.00 140,252.00 29,817.00 272,809.00 85,772.00 52,413.00 \r\n466,123.00 598,921.00 662,792.00 \r\n375,164.00 80,292.00 35,802.00 59,107.00 17,327.00 \r\n1,765,304.00 78,650.00 62,132.00 \r\n-219,179.00 \r\n \r\n- 28 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Other State Programs Communities in Schools Dropout Prevention Graduation Coaches - High School Graduation Coaches - Middle School Health Insurance Middle School Remediation and Intervention National Teacher Certification Preschool Handicapped Program Pupil Transportation - State Bonds Residential Treatment Center Grants Teachers Retirement Virtual Schools State Grant \r\nGovernor's Office of Highway Safety Drivers Education Grants \r\nHuman Resources, Georgia Department of Family Connection \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement System \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n26,412.00 \r\n \r\n70,606.00 \r\n \r\n42,096.00 \r\n \r\n417,056.20 \r\n \r\n2,435.00 \r\n \r\n33,353.00 \r\n \r\n62,773.00 \r\n \r\n14,393.15 \r\n \r\n206,666.00 \r\n \r\n20,084.31 \r\n \r\n250.00 \r\n \r\n55,206.31 \r\n \r\n49,943.23 \r\n \r\n3,306.00 \r\n \r\n$ ==1=6=,3=36='=11=4=.6=0 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n BLECKLEY 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\nAcquisition, construction and equipping of improvements of a new high school, including the acquisition of any property necessary or desirable. \r\nAcquiring, constructing, equipping and furnishing new school buildings and facilities useful and desirable, including a new middle school and physical education/athletic facilities; adding to, renovating, repairing, improving and equipping existing school buildings or other buildings or facilities useful or desirable, including physical education/athletic facilities; acquiring technology and safety improvements; acquiring land; acquiring any property useful or desirable, both real and personal. \r\n \r\nORIGINAL ESTIMATED \r\nCOST(1) \r\n \r\nCURRENT ESTIMATED COSTSC2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARSC3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 6,000,000.00 $ 14,440,624.50 $ 15,837.50 $ 14,424,787.00 Completed \r\n \r\n6,000,000.00 \r\n \r\n6,000,000.00 \r\n \r\n379,137.82 \r\n \r\nOngoing \r\n \r\n$ 12,000,000.00 $ 20,440,624.50 $ 394,975.32 $ 14,424,787.00 \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 Bleckley County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. 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- 30- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \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\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) \r\n \r\nProgram \r\n \r\nMiddle Grades (6-8) Program \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nCategory I \r\n \r\nCategory II \r\n \r\nCategory Ill \r\n \r\nCategory IV \r\n \r\nCategoryV \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\nEnglish Speakers of Other Languages (ESOL) \r\n \r\n831,358.00 $ 157,399.00 1,859,797.00 181,444.00 979,734.00 \r\n \r\n869,868.57 $ 108,066.51 1,735,937.57 103,151.59 1,215,530.23 \r\n \r\n20,543.55 $ 359.43 \r\n61,207.34 1,901.43 \r\n48,959.90 \r\n \r\n890,412.12 108,425.94 1,797,144.91 105,053.02 1,264,490.13 \r\n \r\n24,965.00 22,235.00 1,681,514.00 1,675,690.00 524,910.00 2,447,954.00 \r\n163,951.00 130,717.00 150,197.00 \r\n27 668.00 \r\n \r\n6,623.81 \r\n2,174,247.89 2,032,079.85 \r\n501,645.71 \r\n64,360.90 237,809.63 1,495,990.96 145,421.55 255,915.44 162,035.04 161,423.89 \r\n29,301.64 \r\n \r\n2,184.65 16,901.01 76,349.62 127,797.31 40,731.47 \r\n1,752.76 5,119.53 \r\n426.18 \r\n4,061.62 176.10 \r\n \r\n8,808.46 16,901.01 2,250,597.51 2,159,877.16 542,377.18 \r\n64,360.90 239,562.39 1,501,110.49 145,847.73 255,915.44 166,096.66 161,599.99 \r\n29,301.64 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n10,859,533.00 $ 11,299,410.78 $ 408,471.90 $ 11,707,882.68 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n292,707.00 56 864.00 \r\n \r\n324,487.40 \r\n \r\n23,817.86 \r\n \r\n348,305.26 53,830.89 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n11,209,104.00 $ 11,623,898.18 $ 432,289.76 $ 12,110,018.83 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \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\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nOctober 1, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members ofthe Bleckley 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 ofBleckley County Board ofEducation as ofand for the year ended June 30, 2008, which collectively comprise Bleckley County Board of Education's basic financial statements and have issued our report thereon dated October 1, 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 Bleckley County Board ofEducation's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Bleckley County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe Bleckley County Board of Education's internal control over financial reporting. \r\nA 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 Bleckley County Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally \r\n2008YB-10 \r\n \r\n accepted accounting principles such that there is more than a remote likelihood that a misstatement ofthe Bleckley County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Bleckley County Board of Education's internal control. \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 Bleckley 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 or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Bleckley 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 Bleckley County Board of Education in a separate letter dated October 1, 2009. \r\nThis report is intended solely for the information and use of management, members ofthe Bleckley 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\nRespectfully submitted, \r\n~~~ Russell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2008YB-10 \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 858-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nOctober 1, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members of the Bleckley 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 CIRCULARA-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Bleckley 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, 2008. Bleckley 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 Bleckley County Board of Education's management. Our responsibility is to express an opinion on Bleckley 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 Bleckley County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the \r\n \r\n2008SA-10 \r\n \r\n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Bleckley County Board of Education's compliance with those requirements. \r\nIn our opinion, the Bleckley 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, 2008. \r\nInternal Control Over Compliance \r\nThe management of Bleckley 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 Bleckley 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 Bleckley County Board of Education's internal control over compliance. \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. \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 ofa Federal program will not be prevented or detected by the entity's internal control. \r\nOur consideration ofthe internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \r\n2008SA-10 \r\n \r\n This report is intended solely for the information and use ofmanagement, members ofthe Bleckley 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\n1s~t~C~ State Auditor \r\nRWH:as 2008SA-10 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY 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-6121-07-01 FS-6121-07-02 \r\n \r\nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Bleckley County Board ofEducation's financial statements was unqualified. \r\n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Bleckley County Board ofEducation did not disclose any significant deficiencies related to the financial statements. \r\n3. Noncompliance Material to the Financial Statements The audit of the Bleckley 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 Bleckley County Board ofEducation did not disclose any significant deficiencies in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Bleckley 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 Bleckley 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 Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.287 Twenty-First Century Community Leaming Centers \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The Bleckley County Board ofEducation did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\n- 1- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. 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-bb6-b2006-h2007","title":"Bleckley County Board of Education, Cochran, 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, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2007-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000.","Report year covers fiscal year.","Has supplements: Bleckley County Board of Education, Cochran, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Bleckley County Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Bleckley County Board of Education), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000, released 2001? (online surrogate); title from PDF cover (Georgia Government Publications database, viewed September 16, 2022).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed September 16, 2022)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Bleckley County Board of Education--Appropriations and expenditures--Periodicals.","Bleckley County (Ga.). Board of Education","Education--Georgia--Bleckley County--Auditing--Periodicals.","Education--Georgia--Bleckley County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Georgia Government Documents--Serial"],"dcterms_title":["Bleckley County Board of Education, Cochran, 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-bb6-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2006-h2007"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","state government records","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, 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 BLECKLEY 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\nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n9 \r\n \r\nI \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n10 \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 EXPENDITURES OF FEDERAL AWARDS \r\n \r\n24 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n26 \r\n \r\n BLECKLEY 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\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 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 BLECKLEY 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\nMarch 19, 2008 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members ofthe Bleckley 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 I) ofthe Bleckley 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 Bleckley 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 Bleckley 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 ofthe Bleckley County Board ofEducation, as ofJune 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 Bleckley 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 19, 2008, on our consideration of the Bleckley 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 Bleckley 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 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 \r\nRWH:as 2007ARL-11 \r\n \r\nRus 11 W. Hinton, CPA, CGFM State Auditor \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2007 \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 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 Debt Service 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\n2,542,085 \r\n \r\n1,012,967 \r\n \r\n242,011 1,832,969 \r\n320,503 51,396 77,000 \r\n \r\n263,770 615,971 23,363,677 2,322,159 -5 757 454 \r\n \r\n$ ===2=6-=,8=8=7=,0=54= \r\n \r\n$ \r\n \r\n459,168 \r\n \r\n2,256,385 \r\n \r\n1,000,003 43 887 \r\n \r\n$ \r\n \r\n3 759 443 \r\n \r\n$ \r\n \r\n19,764,233 \r\n \r\n32,691 243,481 920,838 2,166 368 \r\n \r\n$ \r\n \r\n23127611 \r\n \r\n$ ===2=6=8=8=7==0=54= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -1- \r\n \r\n BLECKLEY 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 Central Support Services Other Support Services Operations of Non-Instructional Services Community Services 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 Debi Services 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 \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n13,919,803 $ \r\n \r\n701,968 450,313 334,572 409,919 1,035,190 129,707 1,387,675 1,058,878 \r\n10,630 77,270 \r\n \r\n55,051 1,440,794 \r\n60 561 \r\n \r\n$ \r\n \r\n21,072,331 $ \r\n \r\n531,088 29,271 \r\n403,611 963 970 \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\n11,037,234 \r\n \r\n334,383 307,208 251,210 563,051 611,113 \r\n11,151 681,201 486,547 $ \r\n \r\n60,324 \r\n \r\n1,011,855 \r\n \r\n$ \r\n \r\n15,355,277 $ \r\n \r\n$ 282,798 282 798 $ \r\n \r\n-2,351,481 \r\n-367,585 -113,834 \r\n-83,362 153,132 -424,077 -118,556 -706,474 -289,533 -10,630 -16,946 \r\n-55,051 -25,328 -60 561 \r\n-4,470,286 \r\n \r\n$ \r\n \r\n2,541,842 \r\n \r\n12,598 \r\n \r\n916,900 159,932 \r\n22,633 10,272 1,802,869 46,864 280 886 \r\n \r\n$ \r\n \r\n5 794 796 \r\n \r\n$ \r\n \r\n1,324,510 \r\n \r\n21803101 \r\n \r\n$ ===2=3=1=2-=7-=6==1==1 \r\n \r\n-3- \r\n \r\n BLECKLEY 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 Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 2,747,823 1,012,967 \r\n35,293 $ 1,832,969 \r\n320,503 51,396 77 000 \r\n \r\n$ 206,718 \r\n \r\n980 $ \r\n \r\n2,748,803 1,012,967 \r\n242,011 1,832,969 \r\n320,503 51,396 77 000 \r\n \r\nTotal Assets \r\n \r\n$ 6,077,951 $ \r\n \r\n206,718 $ \r\n \r\n980 $====6;,i,;,2=8~5,~64,;,,;9::,,. \r\n \r\nLIABILITIES AND FUND BALANCES \r\n \r\nLIABILITIES \r\n \r\nCash Overdraft Accounts Payable Salaries and Benefits Payable \r\n \r\n$ \r\n \r\n$ \r\n \r\n459,168 \r\n \r\n2,256,385 \r\n \r\nTotal Liabilities \r\n \r\n$ 2,715,553 $ \r\n \r\nFUND BALANCES \r\n \r\nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories \r\nUnreserved Designated for Student Activities Undesignated Reported in: General Fund \r\n \r\n$ \r\n \r\n32,691 \r\n \r\n166,481 \r\n \r\n919,858 \r\n \r\n77,000 \r\n \r\n129,454 \r\n \r\n2,036,914 \r\n \r\nTotal Fund Balances \r\n \r\n$ 3,362,398 \r\n \r\n206,718 206,718 \r\n$ $ \r\n \r\n$ \r\n \r\n206,718 \r\n \r\n459,168 \r\n \r\n2,256,385 \r\n \r\n$ \r\n \r\n2,922,271 \r\n \r\n$ 980 \r\n980 $ \r\n \r\n32,691 166,481 920,838 77,000 \r\n129,454 \r\n2 036 914 \r\n3,363,378 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 6,077,951 $ \r\n \r\n206,718 $ \r\n \r\n980 $====6-,2=8;,;;,5~,64=9::,,. \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \r\nBonds Payable Capital Leases \r\nTotal Long-Term Liabilities \r\n \r\n$ \r\n \r\n3,363,378 \r\n \r\n$ \r\n \r\n263,770 \r\n \r\n615,971 \r\n \r\n23,363,677 \r\n \r\n2,322,159 \r\n \r\n-5,757,454 \r\n \r\n20,808,123 \r\n \r\n$ \r\n \r\n-905,000 \r\n \r\n-138,890 \r\n \r\n-1,043,890 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 23,127,611 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n BLECKLEY 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 Central Support Services Other Support Services Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nInventory - Net Change in Period \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 2,581,472 32,905 $ \r\n14,924,205 2,516,739 963,970 30,500 280,886 \r\n$ 21,330,677 $ \r\n \r\n159,932 $ \r\n16,356 \r\n176,288 $ \r\n \r\n$ \r\n916,900 \r\n8 \r\n916,908 $ \r\n \r\n2,581,472 1,109,737 14,924,205 2,516,739 \r\n963,970 46,864 \r\n280,886 \r\n22,423,873 \r\n \r\n$ 13,439,212 \r\n \r\n701,968 450,313 334,572 409,919 1,035,190 129,707 1,390,619 1,175,121 \r\n10,630 77,270 55,051 1,438,737 \r\n16,155 $ \r\n \r\n140,353 13 661 \r\n \r\n$ 20,818,478 $ \r\n \r\n$ \r\n \r\n512,199 $ \r\n \r\n0 \r\n$ \r\n0 $ 176 288 $ \r\n \r\n$ \r\n870,000 46 900 \r\n916 900 $ 8 $ \r\n \r\n13,439,212 \r\n701,968 450,313 334,572 409,919 1,035,190 129,707 1,390,619 1,175,121 \r\n10,630 77,270 55,051 1,438,737 16,155 \r\n1,010,353 60 561 \r\n21,735,378 \r\n688,495 \r\n \r\n$ \r\n \r\n176,288 \r\n \r\n$ -176,288 \r\n \r\n$ \r\n \r\n176,288 $ -176 288 \r\n \r\n$ \r\n \r\n688,487 $ \r\n \r\n0 $ \r\n \r\n2,648,672 \r\n \r\n0 \r\n \r\n25,239 \r\n \r\n$ \r\n$ 8 $ \r\n972 \r\n \r\n176,288 -176,288 \r\n0 688,495 2,649,644 \r\n25,239 \r\n \r\nFund Balances - Ending \r\n \r\n$ 3,362,398 $ \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n0 $ \r\n \r\n980 $ =-===3=,3=6=-3,=37=8= \r\n \r\n BLECKLEY 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, 2007 \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\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\nBond Principal Retirements Capital Lease Payments \r\nTotal Long-Term Debt Repayments \r\nFood Inventories are expensed on the District-wide Statements using the consumption method while on the fund level Food Inventories are recorded as expenditures when purchased. In the current period this difference amounts to. \r\n \r\n$ \r\n$ 283,299 -655,844 \r\n$ 870,000 140,353 \r\n \r\n688,495 \r\n-372,545 -27,032 \r\n1,010,353 25,239 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ ==a=a!1,=32=4=,5=-10= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2007 \r\n \r\nEXHIBIT \"G\" \r\n \r\nASSETS Cash and Cash Equivalents \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n23,763 $===38===37=3= \r\n \r\nLIABILITIES Funds Held for Others \r\nNET ASSETS Held in Trust for Private Purposes \r\n \r\n$ \r\n \r\n38,373 \r\n \r\n$ _ _=2=-3'-'--76\"-'3'-- \r\n \r\nTotal Liabilities and Net Assets \r\n \r\n$ \r\n \r\n23,763 $===38='=37=3= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2007 \r\nADDITIONS Investment Earnings Interest \r\nDEDUCTIONS Scholarships Change in Net Assets \r\nNet Assets - Beginning \r\nNet Assets - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n354 \r\n \r\n$ \r\n \r\n1,000 \r\n \r\n$ \r\n \r\n-646 \r\n \r\n24409 \r\n \r\n$ ===2=3==76=3= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n-9- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Bleckley 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\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 Bleckley 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 of goods 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\n \r\n- 10 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund types: \r\n Private Purpose Trust funds report trust arrangements under which principal and income may be expended to provide scholarships for female students who attend Bleckley County High School. \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 \r\n- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\ninterest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. 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 of the United States government, \r\n(5) Prime banker's acceptances, \r\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \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 Bleckley County Board of Commissioners fixed the property tax levy for the 2006 tax digest year (calendar year) on August 29, 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 Bleckley 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, 2007, for maintenance and operations amounted to $2,568,874. \r\n \r\nThe tax millage rate levied for the 2006 tax year (calendar year) for the Bleckley 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\n12.0 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 $1,076,832 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- 13 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the District-wide financial statements, inventories of donated food commodities used in the preparation of meals 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 Construction in Progress \r\n \r\nAll \r\n \r\nNIA \r\n \r\n$ \r\n \r\n5,000 20 to 80 years \r\n \r\n$ \r\n \r\n5,000 10 to 80 years \r\n \r\n$ \r\n \r\n5,000 5 to 50 years \r\n \r\nAll \r\n \r\nNIA \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\n- 14 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \r\nNET ASSETS \r\nThe School District's net assets in the District-wide Statements are classified as follows: \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, and debt service 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 \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 of deposit 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\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- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \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 $4,596,577. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk: \r\n \r\nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or \r\nby its trust department or agent in the School District's name, Category 3 - Cash collateralized with securities held by the pledging financial institution's \r\ntrust department or agent but not in the School District's name. \r\n \r\nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0 \r\n \r\n2 \r\n \r\n4,282,110 \r\n \r\n3 \r\n \r\n0 \r\n \r\nTotal \r\n \r\n$ 4!282!110 \r\n \r\n- 16 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \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. 2006 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2007 \r\n \r\nGovernmental Activities \r\n \r\nCapital Assets, Not Being Depreciated: \r\n \r\nLand \r\n \r\n$ 263,770 $ \r\n \r\n0 $ \r\n \r\n0 $ 263,770 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 23,354,102 $ 2,125,746 615,971 \r\n \r\n9,575 273,724 $ \r\n \r\n$ 23,363,677 \r\n \r\n77,311 \r\n \r\n2,322,159 \r\n \r\n615,971 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n3,914,821 I, 102,451 \r\n161,649 \r\n \r\n457,635 174,911 23,298 \r\n \r\n77,311 \r\n \r\n4,372,456 1,200,051 \r\n184 947 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 20,916,898 $ -372,545 $ \r\n \r\n0 $ 20,544,353 \r\n \r\nGovernmental Activity Capital Assets - Net $ 21,180,668 $ -372,545 $ \r\n \r\n0 $ 20,808,123 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2007, are as follows: \r\n \r\nEquipment Less: Accumulated Depreciation \r\n \r\nGovernmental Funds \r\n$ 420,665 99,859 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\n$==32==0-,8=0==6 \r\n \r\nInstruction Support Services \r\nMaintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 484,011 \r\n \r\n$ \r\n \r\n6,074 \r\n \r\n138,463 \r\n \r\n144,537 27,296 \r\n \r\n$ 655,844 \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nProperty tax revenues collected by the General Fund and Special Purpose Local Option Sales Tax (SPLOST) are restricted assets in the Statement of Net Assets because their use is limited by applicable statutory provisions. Restricted assets at June 30, 2007, were as follows: \r\n \r\nGeneral Fund \r\n \r\nDebt Service Fund \r\n \r\nRestricted Cash and Cash Equivalents: Debt Services \r\n \r\n$ 919,858 $ \r\n \r\n980 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2007, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From District-wide \r\nCapital Projects \r\n \r\nGeneral Fund \r\n \r\n$=====1==76-,2=8=8 \r\n \r\nTransfers are used to move sales tax revenues collected by the District-wide Capital Projects Fund to the General Fund as reimbursement for a portion ofthe bond payment funded by the General Fund. \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2006 2007 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n1 006 $ \r\n \r\n1 006 $ \r\n \r\n0 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n0 $ \r\n \r\n0 $ \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 $2,000,000. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ \r\n \r\n50,000 \r\n \r\n$ 100,000 \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Bleckley County Board ofEducation has entered into various lease agreements for the purchase of school buses. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2002 \r\n \r\n3.50% \r\n \r\n$==\"\"'9===os=,o=o=o \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: \r\n \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nGovernmental Funds \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nObligation \r\n \r\nLeases \r\n \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2006 \r\n \r\n$ 279,243 $ 1,775,000 $ 2,054,243 \r\n \r\nDeductions Debt Retired \r\n \r\n140,353 \r\n \r\n870 000 \r\n \r\n1,010,353 \r\n \r\nBalance June 30, 2007 \r\n \r\n$ 138,890 $ 905,000 $ 1,043,890 \r\n \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$ \r\n \r\n95 003 $ 905,000 $ 1,000,003 \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\nCa12ital Leases \r\n \r\nPrinci12al \r\n \r\nInterest \r\n \r\n2008 2009 \r\n \r\n$ \r\n \r\n95,003 $ \r\n \r\n43 887 \r\n \r\n6,632 2,203 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 138,890 $ \r\n \r\n8 835 \r\n \r\nFiscal Year Ended June 30 \r\n \r\nGeneral Obligation \r\n \r\nDebt \r\n \r\nPrinci12al \r\n \r\nInterest \r\n \r\n2008 \r\n \r\n$ 905,000 $ \r\n \r\n15,838 \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\n- 20 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 11: 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\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2007 2006 2005 \r\n \r\n100% 100% 100% \r\n \r\n$ 1,062,314 $ 979,016 $ 924,380 \r\n \r\n- 21 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY 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\nProperly 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 Central Support Services Other Support Services Community Services Food Services Operation \r\nCapital Outlay Debt Service \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nOther Sources \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nInventory - Net Change in Period \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\n2,592,000 $ \r\n \r\n2,592,000 $ \r\n \r\n2,581,472 \r\n \r\n32,905 \r\n \r\n14,043,804 \r\n \r\n14,674,392 \r\n \r\n14,924,205 \r\n \r\n2,317,498 \r\n \r\n2,480,656 \r\n \r\n2,516,739 \r\n \r\n443,100 \r\n \r\n443,100 \r\n \r\n963,970 \r\n \r\n28,000 \r\n \r\n28,000 \r\n \r\n30,500 \r\n \r\n138108 \r\n \r\n138 108 \r\n \r\n280 886 \r\n \r\n$ \r\n \r\n19,562,510 $ \r\n \r\n20,356,256 $ \r\n \r\n21,330,677 \r\n \r\n$ \r\n \r\n13,011,084 $ \r\n \r\n13,337,051 $ \r\n \r\n13,439,212 \r\n \r\n708,745 511,739 338,710 356,572 1,017,579 230,869 1,360,060 1,050,410 \r\n10,735 110,700 \r\n1,247,968 100,000 \r\n \r\n720,832 519,213 338,710 367,584 1,031,318 232,025 1,362,940 1,292,225 \r\n10,735 109,871 \r\n1,247,968 100,000 \r\n \r\n701,968 450,313 334,572 409,919 1,035,190 129,707 1,390,619 1,175,121 \r\n10,630 77,270 55,051 1,438,737 16,155 154 014 \r\n \r\n$ \r\n \r\n20 055 171 $ \r\n \r\n20,670,472 $ \r\n \r\n20,818,478 \r\n \r\n$ \r\n \r\n-492,661 $ \r\n \r\n-314,216 $ \r\n \r\n512,199 \r\n \r\n176 288 \r\n \r\n$ \r\n \r\n-492,661 $ \r\n \r\n-314,216 $ \r\n \r\n688,487 \r\n \r\n1,551,880 \r\n \r\n1,551,880 \r\n \r\n2,648,672 \r\n \r\n-292,302 \r\n \r\n-100 397 \r\n \r\n25239 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n766 917 $ \r\n \r\n1137267 $===3=,3=6=2,=39=8= \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n 23  \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \r\nTotal U.S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Improving Teacher Quality State Grants Migrant Education Rural Education Safe and Drug-Free Schools and Communities State Grants for Innovative Programs Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Vocational Education - Basic Grants to States \r\nTotal U. S. Department of Education \r\nTotal Federal Financial Assistance \r\nNIA= Not Available \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n(2) 1 257 310 \r\n1,257,310 \r\n \r\n10.550 \r\n \r\nN/A $ \r\n \r\n72 832 1 330 142 \r\n \r\n84.027 84.173 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nNIA \r\n \r\n$ \r\n \r\n562,583 20 775 \r\n583,358 \r\n \r\n84.318 84.367 84.011 84.358 84.186 84.298 84.010 84.287 84.048 \r\n \r\nN/A N/A NIA N/A N/A N/A N/A NIA NIA \r\n$ \r\n \r\n26 127,049 \r\n3,777 68,648 \r\n9,749 3,846 591,833 177,150 34 116 \r\n1,599,552 \r\n \r\n$ ===2,=92=9=,6=9=4 \r\n \r\n- 24 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"2\" \r\n \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 ($217,706) were not maintained separately and are included in the 2007 National School Lunch Program. \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 Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Bleckley 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- 25- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \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 School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Gifted Student - Category VI 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 - Alternative Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Comprehensive Academic Performance Standards K-8 Reading and Mathematics Program Middle School Remediation and Intervention National Teacher Certification Preschool Handicapped Program Pupil Transportation - State Bonds Virtual Schools State Grant \r\n- 26 - \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n753,310 \r\n \r\n744,973 83,417 \r\n1,633,221 246,677 796,841 25,057 \r\n1,534,270 1,412,446 \r\n514,555 \r\n2,036,017 126,753 29,914 129,413 251,210 79,638 48,893 \r\n438,048 645,000 561,296 \r\n399,490 47,191 35,802 58,331 7,924 9,429 \r\n1,825,093 76,046 54,485 \r\n-226,765 \r\n106,741 30,975 1,530 34,593 62,117 \r\n235,607 50 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \r\nAGENCY/FUNDING CONTRACT Human Resources, Georgia Department of Family Connection OTHER Georgia Department of Community Affairs Communities in Schools \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n49,995 \r\n \r\n24 622 \r\n \r\n$ ===1=4=,9=2=4=,2=05= \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n BLECKLEY 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\nAcquisition, construction and equipping of improvements of a new high school, including the acquisition of any property necessary or desirable \r\n \r\n$ 6,000,000 $ 14,424,787 $ \r\n \r\n46,900 $ 14,377,887 Ongoing \r\n \r\nAcquiring, constructing, equipping and furnishing new school buildings and facilities useful and desirable, including a new middle school and physical education/athletic facilities; adding to, renovating, repairing, improving and equipping existing school buildings or other buildings or facilities useful or desirable, including physical education/athletic facilities; acquiring technology and safety improvements; acquiring land; acquiring any property useful or desirable, both real and personal \r\n \r\n6,000,000 \r\n \r\n6,000,000 \r\n \r\nOngoing \r\n \r\n$ 12,000,000 $ 20,424,787 $ \r\n \r\n46 900 $ 14,377,887 \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 Bleckley County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. 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- 28 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2007 \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 School (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 Gifted Student - Category VI 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\n782,678 $ 854,786 $ \r\n \r\n20,182 $ \r\n \r\n874,968 \r\n \r\n97,863 \r\n \r\n58,722 \r\n \r\n165 \r\n \r\n58,887 \r\n \r\n1,748,982 \r\n \r\n1,445,618 \r\n \r\n60,115 \r\n \r\n1,505,733 \r\n \r\n262,383 \r\n \r\n333,223 \r\n \r\n2,519 \r\n \r\n335,742 \r\n \r\n866,677 \r\n \r\n1,160,583 \r\n \r\n25,549 \r\n \r\n1,186,132 \r\n \r\n29,739 1,661,185 1,498,424 \r\n544,830 2,171,810 \r\n135,457 37,373 \r\n138 376 \r\n \r\n31,299 2,046,357 1,741,598 \r\n542,818 \r\n47,650 193,139 1,204,115 180,954 236,794 121,030 \r\n93,262 25 517 \r\n \r\n1,522 26,483 78,592 47,031 \r\n2,686 5,364 \r\n3,841 457 \r\n65655 \r\n \r\n32,821 2,072,840 1,820,190 \r\n589,849 \r\n47,650 195,825 1,209,479 180,954 236,794 124,871 \r\n93,719 91172 \r\n \r\n$ \r\n \r\n9,975,777 $ 10,317,465 $ \r\n \r\n340,161 $ \r\n \r\n10,657,626 \r\n \r\n269,854 53 092 \r\n \r\n310,760 12 934 \r\n \r\n21,491 35 595 \r\n \r\n332,251 48 529 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n10,298,723 $ 10,641,159 $ \r\n \r\n397 247 $ ====1=1.,.,0=38.,.,4=0=6= \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \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\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 19, 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 Bleckley 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 ofBleckley County Board of Education as ofand for the year ended June 30, 2007, which collectively comprise Bleckley County Board of Education's basic financial statements and have issued our report thereon dated March 19, 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 Bleckley County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Bleckley County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Bleckley 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 certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. \r\n2007YB-40 \r\n \r\n A control deficiency exists when the design or operation of a 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 Bleckley 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 Bleckley County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Bleckley County Board ofEducation's internal control. We consider items FS-6121-07-01 and FS-6121-07-02 in the accompanying Schedule of Findings and Questioned Costs to be significant deficiencies 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 Bleckley 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 items FS-6121-07-01 and FS-6121-07-02 to be material weaknesses. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Bleckley 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 Bleckley County Board of Education in a separate letter dated March 19, 2008. \r\nBleckley County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Bleckley County Board of Education's response and, accordingly, we express no opinion on it. \r\n2007YB-40 \r\n \r\n This report is intended solely for the information and use of the management, members of the Bleckley 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~u).J.~ Russell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2007YB-40 \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 19, 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 Bleckley 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 Bleckley 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. Bleckley 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 Bleckley County Board of Education's management. Our responsibility is to express an opinion on Bleckley 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 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 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 Bleckley County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the \r\n \r\n2007SA-10 \r\n \r\n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Bleckley County Board of Education's compliance with those requirements. \r\nIn our opinion, the Bleckley County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2007. \r\nInternal Control Over Compliance \r\nThe management of Bleckley 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 Bleckley 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, 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 Bleckley County Board of Education's internal control over compliance. \r\nA control deficiency in an entity's internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type of compliance 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. \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. \r\nOur consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \r\n2007SA-10 \r\n \r\n This report is intended solely for the information and use of the management, members of the Bleckley 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+mt0~~ Russell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2007SA-10 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY 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\nFINDING CONTROL NUMBER \r\n \r\nAUDITEE'S RESPONSE/STATUS \r\n \r\nSEE AUDITOR'S COMMENTS \r\n \r\nFS-6121-05-02 \r\n \r\nFurther Action Not Warranted \r\n \r\n(1) \r\n \r\nFS-6121-06-01 \r\n \r\nFurther Action Not Warranted \r\n \r\n(1) \r\n \r\nAUDITOR'S COMMENTS \r\n \r\n(1) Findings/internal control deficiencies of this nature, that are not deemed significant deficiencies or material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 112 or Governmental Auditing Standards (Yellow Book), will be communicated in a management letter in subsequent periods. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY 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\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Bleckley County Board ofEducation's financial statements was unqualified. \r\n \r\n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Bleckley County Board of Education disclosed financial statement significant deficiencies related to the following control categories. \r\n \r\nCash and Cash Equivalents Revenues/Receivables/Receipts \r\n \r\nFinancial Reporting \r\n \r\nAll ofthe significant deficiencies described above are considered to be material weaknesses. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the Bleckley County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n \r\n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Bleckley County Board ofEducation did not disclose any significant deficiencies 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 Bleckley County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .5 lO{a) of 0MB Circular A-133 The Bleckley County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n \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 84.287 Twenty-First Century Community Leaming Centers \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 Bleckley County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \r\n \r\n- 1- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \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-6121-07-01 \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 ofboth fund level and entity-wide level statements in the School District's financial statements. During the audit, numerous misstatements were noted by the auditor and brought to the attention of the School District. The client proposed journal entries for the material misstatements noted to properly present the entity's fund level and entity-wide level financial statements. \r\n \r\nCause: \r\n \r\nThe School District did not implement an adequate system of internal 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 BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS Inadequate Internal Control Procedures Material Weakness Finding Control Number: FS-6121-07-02 \r\n \r\nCondition: \r\n \r\nThe accounting procedures ofthe School District were insufficient to provide for adequate internal controls over the bank reconciliation process and accounts receivable management. \r\n \r\nCriteria: \r\n \r\nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nCash and Cash Equivalents \r\n \r\n Four of the six bank accounts maintained by the School District's Central office were not reconciled to the cash amounts reported on the general ledger at June 30, 2007 by $1,228,277. \r\n \r\nRevenues/Receivables/Receipts \r\n \r\n A variance of $211,596 was noted between the accounts receivable subsidiary ledger and the general ledger. \r\n \r\nCause: \r\n \r\nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the Board level. \r\n \r\nEffect: \r\n \r\nErrors and/or irregularities may not be detected in a timely manner. \r\n \r\nRecommendation : \r\n \r\nThe deficiencies noted in the above control categories occurred because of management's failure to establish procedures to: analyze and reconcile balances on the general ledger with supporting records, and ensure that all transactions are properly recorded on the general ledger. The School District should implement appropriate control procedures to ensure all bank and investment statements are reconciled to the general ledger and ensure reconciling items identified are corrected promptly. \r\n \r\n-3- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-4- \r\n \r\n SECTIONV MANAGEMENT'S RESPONSES \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2007 \r\nFinding Control Number: FS-6121-07-01 \r\nWe concur with this finding. Additional work and procedures are being implemented to ensure that internal controls over the School District financial statement reporting process is properly recorded and kept at accepted accounting standards (GASB 34). An accounting consultant has been hired for advising and monitoring the accuracy of the financials presented for audit. \r\nFinding Control Number: FS-6121-07-02 \r\nWe concur with this finding. Procedures are in place to analyze and reconcile balances on the general ledger with supporting records and to ensure that all transactions are properly recorded. Consulting assistance is now in place for the system bookkeeper, who had two months training before assuming the full-time position, which was not adequate training. \r\nContact Person: Debbie Arnold Title: System Bookkeeper Phone: (478) 934-2821 Fax: (478) 934-9595 E-mail: darnold@bleckley.kl2.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2005-h2006","title":"Bleckley County Board of Education, Cochran, 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, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2006-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000.","Report year covers fiscal year.","Has supplements: Bleckley County Board of Education, Cochran, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Bleckley County Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Bleckley County Board of Education), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000, released 2001? (online surrogate); title from PDF cover (Georgia Government Publications database, viewed September 16, 2022).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed September 16, 2022)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Bleckley County Board of Education--Appropriations and expenditures--Periodicals.","Bleckley County (Ga.). 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2005-h2006"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","state government records","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n BLECKLEY 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\nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI \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 IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 11 \r\n25 \r\n26 \r\n27 \r\n \r\n BLECKLEY 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\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 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 BLECKLEY 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\nJanuary 4, 2007 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \r\nand Superintendent and Members ofthe Bleckley 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 I) ofthe Bleckley 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 ofthe Bleckley 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 opm1ons. \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 Bleckley County Board ofEducation, as ofJune 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 ofAmerica. \r\n2006ARL-11 \r\n \r\n The Bleckley County Board ofEducation 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 dated January 4, 2007, on our consideration of the Bleckley 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 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 25, 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 Bleckley 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 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~... Acn0,~ \r\n~ i n t o n , CPA, CGFM State Auditor \r\nRWH:as 2006ARL-11 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2006 \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 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 Debt Service 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\n2,695,977 \r\n \r\n12,967 \r\n \r\n286,221 1,769,113 \r\n289,240 6,669 51,761 \r\n \r\n263,770 615,971 23,354,102 2,125,746 -5,178,921 \r\n \r\n$ ===2=6=,2=92='=61=6= \r\n \r\n$ \r\n \r\n770,931 \r\n \r\n1,664,341 \r\n \r\n1,010,353 1,043,890 \r\n \r\n$ \r\n \r\n4 489 515 \r\n \r\n$ \r\n \r\n19,126,425 \r\n \r\n158,584 222,492 901,063 1394537 \r\n \r\n$ \r\n \r\n21,803,101 \r\n \r\n$ ===2=6=,2=9=2=,6=16== \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -1- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2006 \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 Central Support Services Other Support Services Operations of Non-Instructional Services Community Services 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 Debt Services 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 \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n12,609,499 $ \r\n \r\n693,289 293,172 318,669 372,177 922,057 119,303 1,344,978 959,276 \r\n10,505 93,406 \r\n \r\n45,811 1,277,312 \r\n92 168 \r\n \r\n$ \r\n \r\n19,151,622 $ \r\n \r\n433,384 16,792 \r\n404,965 855 141 \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\n10,556,471 $ \r\n \r\n333,348 130,891 225,431 543,969 561,680 \r\n4,502 669,704 424,437 \r\n \r\n29,537 \r\n \r\n949,978 \r\n \r\n$ \r\n \r\n14,429,948 $ \r\n \r\n589,429 $ \r\n6,498 69,047 49,172 714 146 $ \r\n \r\n-1,030,215 \r\n-359,941 -145,489 \r\n-93,238 171,792 -360,377 -114,801 -668,776 -465,792 -10,505 -63,869 \r\n-45,811 126,803 -92 168 \r\n-3,152,387 \r\n \r\n$ \r\n \r\n2,436,030 \r\n \r\n6,037 \r\n \r\n669,918 429,878 \r\n33,058 16,426 1,772,615 72,568 182 628 \r\n \r\n$ \r\n \r\n5 619 158 \r\n \r\n$ \r\n \r\n2,466,771 \r\n \r\n19,336,330 \r\n \r\n$ ===21=,8=0=3=1'=01= \r\n \r\n-3- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2006 \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\nCash Overdraft Accounts Payable Salaries Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories \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\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 2,907,751 12,967 \r\n46,443 $ 1,769,113 \r\n289,240 6,669 \r\n51,761 \r\n \r\n$ 212,746 \r\n \r\n972 $ \r\n \r\n2,908,723 12,967 \r\n259,189 1,769,113 \r\n289,240 6,669 \r\n51 761 \r\n \r\n$ 5,083,944 $ 212,746 $ \r\n \r\n972 $ ======5=,2=9=7'=66=2= \r\n \r\n$ $ 770,931 \r\n1,664,341 \r\n \r\n212,746 \r\n \r\n$ 2,435,272 $ 212,746 \r\n \r\n$ \r\n \r\n212,746 \r\n \r\n770,931 \r\n \r\n1 664 341 \r\n \r\n$ \r\n \r\n2,648,018 \r\n \r\n$ 158,584 170,731 900,091 51,761 \r\n1,367,505 \r\n$ 2,648,672 \r\n \r\n$ \r\n \r\n$ \r\n \r\n972 \r\n \r\n$ \r\n \r\n972 $ \r\n \r\n158,584 170,731 901,063 \r\n51,761 \r\n1,367,505 \r\n2,649,644 \r\n \r\n$ 5,083,944 $ 212,746 $ \r\n \r\n972 $ ======5=,2=9=7'=66=2= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2006 \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, including Bonds Payable, 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\nBonds Payable Capital Leases \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 2,649,644 \r\n \r\n$ \r\n \r\n263,770 \r\n \r\n615,971 \r\n \r\n23,354,102 \r\n \r\n2,125,746 \r\n \r\n-5,178,921 \r\n \r\n21,180,668 \r\n \r\n27,032 \r\n \r\n$ -1,775,000 -279,243 \r\n$ 21,803,101 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2006 \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 Central Support Services Other Support Services Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nCapital Leases Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nInventory - Net Change in Period \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 2,493,446 49,484 $ \r\n14,092,125 2,179,485 855,141 60,692 182,691 \r\n \r\n429,878 $ 645,099 \r\n11,866 \r\n \r\n$ 19,913,064 $ 1,086,843 $ \r\n \r\n$ 669,918 \r\n10 669,928 $ \r\n \r\n2,493,446 1,149,280 14,737,224 2,179,485 \r\n855,141 72,568 \r\n182,691 \r\n21,669,835 \r\n \r\n$ 13,205,548 \r\n \r\n693,289 293,172 318,669 372,177 922,057 119,303 1,366,119 959,946 \r\n10,505 93,406 45,811 1,326,072 \r\n1,787 $ \r\n \r\n1,181,132 \r\n \r\n165,002 \r\n \r\n$ \r\n \r\n15 430 \r\n \r\n$ 19,908,293 $ 1,181,132 $ \r\n \r\n$ \r\n \r\n4 771 $ \r\n \r\n-94,289 $ \r\n \r\n$ \r\n835,000 76 738 \r\n911 738 $ -241 810 $ \r\n \r\n13,205,548 \r\n693,289 293,172 318,669 372,177 922,057 119,303 1,366,119 959,946 \r\n10,505 93,406 45,811 1,326,072 1,182,919 \r\n1,000,002 92168 \r\n22,001,163 \r\n-331,328 \r\n \r\n$ \r\n \r\n124,635 \r\n \r\n-241,820 \r\n \r\n$ -117185 \r\n \r\n$ -112,414 $ \r\n \r\n2,789,375 \r\n \r\n-28,289 \r\n \r\n$ \r\n$ -94,289 $ 94,289 \r\n \r\n$ 241,820 \r\n241,820 $ 10 $ \r\n962 \r\n \r\n124,635 241,820 -241,820 \r\n124 635 \r\n-206,693 \r\n2,884,626 \r\n-28,289 \r\n \r\n$ 2,648,672 $ \r\n \r\n0 $ \r\n \r\n972 $ \r\n \r\n2,649,644 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n BLECKLEY 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, 2006 \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\nIn the Statement of Activities, only the gain on the sale of the equipment is reported, whereas in the Governmental 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 carrying value of the equipment sold. \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\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\nBond Principal Retirements Capital Lease Payments \r\nTotal Long-Term Debt Repayments \r\nFood Inventories are expensed on the District-Wide Statements using the consumption method while on the fund level Food Inventories are recorded as expenditures when purchased. In the current period this difference amounts to. \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n-206,693 \r\n \r\n$ 2,377,187 -499 359 \r\n \r\n1,877,828 -51,379 \r\n \r\n-63 \r\n \r\n-124,635 \r\n \r\n$ 835,000 165,002 \r\n \r\n1,000,002 \r\n \r\n-28,289 \r\n \r\n$ =====2=46=6=7=7=1 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n ASSETS Cash and Cash Equivalents \r\n \r\nBLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2006 \r\n \r\nEXHIBIT\"G\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n24 409 $ ====3=9,=82=7= \r\n \r\nLIABILITIES Funds Held for Others \r\nNET ASSETS Held in Trust for Private Purposes \r\n \r\n$ \r\n \r\n39,827 \r\n \r\n$ _ _=24\"\"-'--'-40\"-'9'--- \r\n \r\nTotal Liabilities and Net Assets \r\n \r\n$ \r\n \r\n24,409 $ ===39-82=7= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2006 \r\nADDITIONS Investment Earnings Interest \r\nDEDUCTIONS Scholarships Change in Net Assets \r\nNet Assets - Beginning \r\nNet Assets - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n330 \r\n \r\n$ \r\n \r\n1 000 \r\n \r\n$ \r\n \r\n-670 \r\n \r\n251079 \r\n \r\n$ ===2=4 4=09= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Bleckley 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\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 Bleckley 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 of goods 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 of internal 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\n \r\n- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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), Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. \r\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund types: \r\n Private Purpose Trust funds report trust arrangements under which principal and income may be expended to provide scholarships for female students who attend Bleckley County High School. \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\n \r\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. 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. 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 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 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- 13 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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\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 Bleckley County Board of Commissioners fixed the property tax levy for the 2005 tax digest year (calendar year) on August 9, 2005 (levy date). Taxes were due on December 20, 2005 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2005 tax digest are reported as revenue in the governmental funds for fiscal year 2006. The Bleckley 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, 2006, for maintenance and operations amounted to $2,487,409. \r\n \r\nThe tax millage rate levied for the 2005 tax year (calendar year) for the Bleckley 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\n12.0 mills \r\n \r\n- 14 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $1,099,796 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 District-wide 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 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 Construction in Progress \r\n \r\nAll \r\n \r\nNIA \r\n \r\n$ \r\n \r\n5,000 20 to 80 years \r\n \r\n$ \r\n \r\n5,000 10 to 80 years \r\n \r\n$ \r\n \r\n5,000 5 to 50 years \r\n \r\nAll \r\n \r\nNIA \r\n \r\n- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \r\nNote 3: DEPOSITS \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. 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\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 \r\n- 16 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 3: DEPOSITS \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, 2006, the bank balances were $3,632,265. The amounts of the total bank balances are classified into four categories of custodial credit risk: \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal Deposit Insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Cash collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name. \r\nCategory 4 - Uncollateralized. \r\n \r\nThe School District's deposits are classified by custodial credit risk category at June 30, 2006, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 213,939 \r\n \r\n2 \r\n \r\n3,418,326 \r\n \r\n3 \r\n \r\n0 \r\n \r\n4 \r\n \r\n0 \r\n \r\nTotal \r\n \r\n$ 3,632.265 \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\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nBalances July 1, 2005 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2006 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 263,770 \r\n \r\n$ \r\n \r\n12,069,931 $ 1,227,573 $ 13,297,504 \r\n \r\n263,770 0 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 12,333,701 $ 1,227,573 $ 13,297,504 $ 263,770 \r\n \r\nCapital Assets Being Depreciated Buildings and Building Improvements Equipment Land Improvements \r\n \r\n$ 9,907,637 $ 13,446,465 \r\n \r\n1,844,037 \r\n \r\n384,682 $ \r\n \r\n0 \r\n \r\n615,971 \r\n \r\n$ 23,354,102 \r\n \r\n102,973 \r\n \r\n2,125,746 \r\n \r\n615,971 \r\n \r\nLess Accumulated Depreciation for: Buildings and Building Improvements Equipment Land Improvements \r\n \r\n3,734,680 1,047,792 \r\n0 \r\n \r\n180,141 157,569 161,649 \r\n \r\n102,910 \r\n \r\n3,914,821 1,102,451 \r\n161,649 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 6,969,202 $ 13,947,759 $ \r\n \r\n63 $ 20,916,898 \r\n \r\nGovernmental Activity Capital Assets - Net $ 19,302.903 $ 15.175.332 $ 13,297.567 $ 21,180.668 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2006, are as follows: \r\n \r\nGovernmental Funds \r\n \r\nEquipment Less: Accumulated Depreciation \r\n \r\n$ 420,665 57.732 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nMaintenance and Operation of Plant \r\n \r\n$ \r\n \r\nStudent Transportation Services \r\n \r\nFood Services \r\n \r\n$ \r\n3,781 123.965 \r\n \r\n342,999 \r\n127,746 28,614 \r\n \r\n$====4==99=-=.3===5==9 \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nProperty tax revenues collected by the General Fund, Special Purpose Local Option Sales Tax (SPLOST) proceeds are reported as restricted assets in the Statement ofNet Assets because their use is limited by applicable statutory provisions. Restricted assets at June 30, 2006, were as follows: \r\n \r\nGeneral Fund \r\n \r\nDebt Service Fund \r\n \r\nRestricted Cash and Cash Equivalents: Debt Services \r\n \r\n$ 900,091 $ \r\n \r\n972 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2006, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From General Fund \r\n \r\nDebt Service Fund \r\n \r\n$===2=!:41-,8=2~0 \r\n \r\nTransfers are used to move property tax revenues collected by the General Fund to the Debt Service Fund as supplemental funding source for bond payments. \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \r\n \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd ofYear Liability \r\n \r\n2005 2006 \r\n \r\n$ \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\n1 006 $ \r\n \r\n1 006 $ \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 $2,000,000. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ \r\n \r\n50,000 \r\n \r\n$ 100,000 \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Bleckley County Board ofEducation has entered into various lease agreements as lessee for the purchase ofschool buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2002 \r\n \r\n3.50% \r\n \r\n$ 1,775.000 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2006, were as follows: \r\n \r\n-20- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nGovernmental Funds \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nObligation \r\n \r\nLeases \r\n \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2005 \r\n \r\n$ 319,610 $ 2,610,000 $ 2,929,610 \r\n \r\nAdditions Capital Leases \r\n \r\n124,635 \r\n \r\n124,635 \r\n \r\nDeductions Debt Retired \r\n \r\n165,002 \r\n \r\n835,000 \r\n \r\n1,000,002 \r\n \r\nBalance June 30, 2006 \r\n \r\n$ 279,243 $ 1,775,000 $ 2,054,243 \r\n \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$ 140,353 $ 870,000 $ 1,010,353 \r\n \r\nAt June 30, 2006, 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\nCa2ital Leases \r\n \r\nPrinci2al \r\n \r\nInterest \r\n \r\n2007 2008 2009 \r\n \r\n$ 140,353 $ 95,003 43 887 \r\n \r\n13,661 6,632 2,203 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 279,243 $ \r\n \r\n22,496 \r\n \r\nFiscal Year Ended June 30 \r\n \r\nGeneral Obligation \r\n \r\nDebt \r\n \r\nPrinci2al \r\n \r\nInterest \r\n \r\n2007 2008 \r\n \r\n$ 870,000 $ 905,000 \r\n \r\n46,900 15,838 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 1,775,000 $ \r\n \r\n62)38 \r\n \r\n- 21 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 10: PRIOR YEAR DEFEASEMENT OF DEBT \r\nIn fiscal year 2003, the School District defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School District's basic financial statements. The 1995 bonds were paid off on February 1, 2006. At June 30, 2006, none of the bonds are outstanding or considered defeased. \r\nNote 11: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $319,363 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $316,186 \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 $3,177 \r\nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by granter agencies. This could result in requests for reimbursement to the granter 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\nNote 13: SUBSEQUENT EVENTS \r\nIn the subsequent fiscal year, on September 19, 2006, the voters of Bleckley County authorized the continuance of a one percent sales tax (SPLOST) to raise no more than $6,000,000 to be used for various capital outlay projects. \r\nNote 14: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and \r\n- 22 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 14: RETIREMENT PLANS \r\n \r\nsurvivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2006 2005 2004 \r\n \r\n100% 100% 100% \r\n \r\n$ 979,016 $ 924,380 $ 920,159 \r\n \r\n- 23 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2006 \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 Central Support Services Other Support Services Community Services Food Services Operation \r\nCapital Outlay Debt Service \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 \r\nInventory - Net Change in Period \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n2,565,600 $ \r\n \r\n2,565,600 $ \r\n \r\n2,493,446 \r\n \r\n20,000 \r\n \r\n20,000 \r\n \r\n49,484 \r\n \r\n12,891,067 \r\n \r\n13,710,286 \r\n \r\n14,092,125 \r\n \r\n2,007,721 \r\n \r\n2,283,669 \r\n \r\n2,179,485 \r\n \r\n444,000 \r\n \r\n444,000 \r\n \r\n855,141 \r\n \r\n12,000 \r\n \r\n12,000 \r\n \r\n60,692 \r\n \r\n68 866 \r\n \r\n77 902 \r\n \r\n182 691 \r\n \r\n$ \r\n \r\n18,009,254 $ \r\n \r\n19113457 $ \r\n \r\n19913064 \r\n \r\n$ \r\n \r\n11,896,883 $ \r\n \r\n13,252,363 $ \r\n \r\n13,205,548 \r\n \r\n664,531 235,084 341,431 358,778 965,922 175,452 1,338,750 900,111 \r\n10,340 117,538 \r\n1,191,664 \r\n \r\n727,651 282,281 341,431 364,764 976,234 176,744 1,349,426 904,280 \r\n10,340 125,759 \r\n1,193,619 \r\n \r\n693,289 293,172 318,669 372,177 922,057 119,303 1,366,119 959,946 \r\n10,505 93,406 45,811 1,326,072 \r\n1,787 180 432 \r\n \r\n$ \r\n \r\n18 196 484 $ \r\n \r\n19 704 892 $ \r\n \r\n19,908,293 \r\n \r\n$ \r\n \r\n-187 230 $ \r\n \r\n-591 435 $ \r\n \r\n4 771 \r\n \r\n$ \r\n \r\n2,287 $ \r\n \r\n124,635 \r\n \r\n-1 787 \r\n \r\n-241 820 \r\n \r\n$ \r\n \r\n500 $ \r\n \r\n-117 185 \r\n \r\n$ \r\n \r\n-187,230 $ \r\n \r\n-590,935 $ \r\n \r\n-112,414 \r\n \r\n2,755,726 \r\n \r\n2,755,726 \r\n \r\n2,789,375 \r\n \r\n-44 319 \r\n \r\n-44 319 \r\n \r\n-28 289 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n2 524 177 $ \r\n \r\n2 120 472 $ ===2=,6=4=8'=,6=72= \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \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\nSee notes to the basic financial statements. \r\n- 25 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2006 \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 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\nLabor, U. S. Department of Pass-Through From Georgia Department of Labor Workforce Investment Act Adult Program \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\nNIA \r\n \r\n(2) \r\n \r\nN/A \r\n \r\n$ _ _ _1-'-'-'-16~7~5=9_8__ \r\n \r\n$ \r\n \r\n1,167,598 \r\n \r\n10.550 \r\n \r\nN/A \r\n \r\n53875 \r\n \r\n$ _ _ _1~,2~2_1~,4_73_ \r\n \r\n* 84.027 * 84.173 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\n$ \r\n \r\n458,633 31 339 \r\n489,972 \r\n \r\n84.318 84.367 \r\n. 84.186 84.298 84.010 84.048 \r\n \r\nN/A N/A N/A NIA N/A N/A \r\n$ \r\n \r\n11,041 159,170 \r\n16,490 8,212 \r\n596,717 30 026 \r\n1311628 \r\n \r\n17.258 \r\n \r\nN/A \r\n \r\n$ _ _ _ _4~9~2_3 \r\n \r\nTotal Federal Financial Assistance \r\nN/A = Not Available \r\n \r\n$ ===2=!'=53=8=,0=2=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 ($197,628) were not maintained separately and are included in the 2006 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 Bleckley 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- 26- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"3\" \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 Gifted Student - Category VI 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 Alternative Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs Health Insurance K-8 Reading and Mathematics Program National Teacher Certification Preschool Handicapped Program Virtual School Grant \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\nOTHER Pass-Through Communities in Schools of Georgia, Inc. Communities in Schools \r\n \r\nSee notes to the basic financial statements. \r\n \r\n-27- \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n740,770 \r\n \r\n$ \r\n \r\n740,770 \r\n \r\n568,950 123,577 1,486,544 209,237 822,819 \r\n8,944 1,507,207 1,201,303 \r\n419,332 1,810,700 \r\n113,736 64,562 \r\n116,634 225,431 \r\n72,733 45,845 \r\n412,409 625,425 525,054 \r\n375,784 69,047 35,802 58,474 7,934 4,546 188,501 \r\n1,507,983 71,604 \r\n725,191 -544,312 \r\n316,186 37,577 24,211 38,608 100 \r\n \r\n568,950 123,577 1,486,544 209,237 822,819 \r\n8,944 1,507,207 1,201,303 \r\n419,332 1,810,700 \r\n113,736 64,562 \r\n116,634 225,431 \r\n72,733 45,845 \r\n412,409 625,425 525,054 \r\n375,784 69,047 35,802 58,474 7,934 4,546 188,501 \r\n1,507,983 71,604 \r\n725,191 -544,312 \r\n316,186 37,577 24,211 38,608 100 \r\n \r\n$ \r\n \r\n645,099 \r\n \r\n3,177 \r\n \r\n645,099 3,177 \r\n \r\n50,000 \r\n \r\n50,000 \r\n \r\n20,500 \r\n \r\n20500 \r\n \r\n$ 14,092,125 $ \r\n \r\n645,099 $ \r\n \r\n14,737,224 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2006 \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\nAcquisition, construction and equipping \r\n \r\nof improvements of a new high school, including \r\n \r\nthe acquisition of any property necessary or \r\n \r\ndesirable \r\n \r\n$ \r\n \r\n6,000,000 $ 14,377,887 $ \r\n \r\n1,257,870 $ 13,120,017 \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 Bleckley County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. 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 BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \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\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) \r\n \r\nProgram \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nCategory I \r\n \r\nCategory II \r\n \r\nCategory Ill \r\n \r\nCategory IV \r\n \r\nCategoryV \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\n631,246 $ 142,094 1,615,327 231,579 882,117 \r\n45,063 1,645,215 1,295,121 \r\n460,682 1,947,973 \r\n123,400 66,859 126 543 \r\n \r\n773,328 $ 90,634 \r\n1,376,655 272,845 971,404 \r\n88,638 1,778,758 1,713,458 \r\n458,145 \r\n49,192 177,755 1,205,701 161,108 \r\n70,221 183,196 \r\n53,977 30 787 \r\n \r\n12,158 $ 763 \r\n46,232 3,133 \r\n24,752 \r\n1,589 64,404 92,936 50,068 \r\n3,498 9,362 \r\n5,345 618 \r\n59 020 \r\n \r\n785,486 91,397 \r\n1,422,887 275,978 996,156 \r\n90,227 1,843,162 1,806,394 \r\n508,213 \r\n49,192 181,253 1,215,063 161,108 \r\n70,221 188,541 \r\n54,595 89 807 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n9,213,219 $ 9,455,802 $ \r\n \r\n373,878 $ \r\n \r\n9,829,680 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n245,959 49 999 \r\n \r\n287,859 11 821 \r\n \r\n21,663 37 285 \r\n \r\n309,522 49106 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n9 509177 $ 9,755,482 $ \r\n \r\n432826 $==1=0=,1=8=8=,3=0=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\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJanuary 4, 2007 \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 Bleckley 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 ofBleckley County Board ofEducation as ofand for the year ended June 30, 2006, which collectively comprise Bleckley County Board of Education's basic financial statements and have issued our report thereon dated January 4, 2007. 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 Bleckley County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions 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 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 Bleckley 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 FS6121-06-01. \r\n2006YB-30 \r\n \r\n A material weakness is a reportable condition in which the design or operation of one 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 Bleckley 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\nThis report is intended solely for the information and use of the management and members of the Bleckley 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 2006YB-30 \r\n \r\nell W. Hinton, CPA, CGFM 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\nJanuary 4, 2007 \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 Bleckley 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 Bleckley 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, 2006. Bleckley 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 Bleckley County Board of Education's management. Our responsibility is to express an opinion on Bleckley 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 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 Bleckley County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the \r\n \r\n2006SA-10 \r\n \r\n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Bleckley County Board of Education's compliance with those requirements. \r\nIn our opinion, the Bleckley 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, 2006. \r\nInternal Control Over Compliance \r\nThe management of Bleckley 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 Bleckley 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 Bleckley 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~~LD.~ \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2006SA-10 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-6121-04-01 FS-6121-04-02 FS-6121-05-01 FS-6121-05-02 \r\n \r\nFurther Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS Inadequate Separation of Duties Reportable Condition Finding Control Number: FS-6121-05-02 \r\n \r\nWe concur with this finding. Corrective action for this item has been implemented in fiscal year 2007. Additional supporting documentation is being generated to document receipts. The school where the finding was generated has hired a new bookkeeper in the position, and consulting services have been arranged for this individual with the former system bookkeeper, Linda Dykes. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-6121-05-01 \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2006 \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 Bleckley 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 Bleckley County Board ofEducation disclosed a financial statement reportable condition related to the following control categories. \r\n \r\nRevenues/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 Bleckley 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 Bleckley 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 Bleckley County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .510{a) ofOMB Circular A-133 The Bleckley County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n \r\n7. Major Programs Federal awards audited as major programs are as follows: 84.010 Title I Grants to Local Educational Agencies 84.027 Special Education - Grants to States 84.173 Special Education - Preschool Grants \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 Bleckley 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 BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2006 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nREVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Reportable Condition Finding Control Number: FS-6121-06-01 \r\n \r\nCondition: \r\n \r\nThis is a repeat finding (FS-6121-05-02 and FS-6121-04-02) from the years ended June 30, 2005, and 2004, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \r\n \r\nCriteria: \r\n \r\nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nRevenues/Receivables/Receipts: Based on a review of twenty items, the following deficiencies were noted: 1) Eight receipts were not deposited in a timely manner, 2) Thirteen receipts were not supported by adequate documentation. \r\n \r\nExpenditures/Liabilities/Disbursements: Based upon a review oftwenty vouchers, the following deficiencies were noted: 1) Purchase order numbers 7174 through 7178 were missing. In addition, other gaps in the purchase order sequence were noticed during the auditor's review, 2) Three vouchers could not be located, 3) Three vouchers had no invoice or other supporting documentation. \r\n \r\nCause: \r\n \r\nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \r\n \r\nEffect: \r\n \r\nErrors and/or irregularities may not be detected in a timely manner. \r\n \r\nRecommendation: \r\n \r\nManagement should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\n-2 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2006 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-3 - \r\n \r\n SECTIONV MANAGEMENT'S RESPONSES \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2006 \r\nFinding Control Number: FS-6121-06-01 \r\nWe concur with this finding. Additional work and procedures will be put into place to better ensure that school level accounts are kept at accepted accounting standards. Additional supporting documentation will be generated to document cash receipts. Consulting assistance is being arranged for the school bookkeeper who has recently begun work in this position. The school system will continue to review school accounting software to determine the most appropriate options for operational efficiency. Date: February, 2007. \r\nContact Person: Debbie Arnold, Bookkeeper Phone: (478) 934-2821 Fax Number: (478) 934-9595 E-mail Address: damo1d@bleckley.kl2.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2004-h2005","title":"Bleckley County Board of Education, Cochran, 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. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2004-h2005"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2004-h2005"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","state government records","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":null},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2003-h2004","title":"Bleckley County Board of Education, Cochran, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2004","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. 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(online surrogate); (Georgia Government Publications database, viewed September 16, 2022)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Bleckley County Board of Education--Appropriations and expenditures--Periodicals.","Bleckley County (Ga.). 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2003-h2004"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2003-h2004"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","state government records","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, 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 BLECKLEY 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\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\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n27 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n29 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n30 \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n32 \r\n \r\n BLECKLEY 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\n5 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 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 BLECKLEY COUNTY BOARD OF EDUCATION - 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 (404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite214 Atlanta, Georgia 30334-8400 \r\nApril 6, 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 Bleckley 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 Bleckley 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 Bleckley 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 Bleckley County Board ofEducation, as ofJune 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 The Bleckley County Board ofEducation 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 dated April 6, 2005, on our consideration of the Bleckley 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\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 27 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 Bleckley 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 of Georgia Annotated section 506-24. \r\nRespectfully submitted, \r\n \r\nRWH:as 2004ARL-11 \r\n \r\n~l\\u,00.~~ \r\nRussell W. Hinton State Auditor \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30. 2004 \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Relainages 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 Debi Restricted for \r\nBus Replacement Continuation of Federal Programs Debt Service 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\n4,137,263 \r\n \r\n4.286.574 \r\n \r\n359.059 1.741,687 \r\n284,725 12,123 84,513 \r\n \r\n263,770 5,761,710 9,907,637 1,756,956 -4,524,304 \r\n \r\n$ ===24====07=1=7=1=3= \r\n \r\n$ \r\n \r\n517,979 \r\n \r\n1,549,710 \r\n \r\n400,497 \r\n \r\n522,337 \r\n \r\n973,603 2 778 515 \r\n \r\n$ \r\n \r\n6 742 641 \r\n \r\n$ \r\n \r\n9,794,594 \r\n \r\n370,633 218,882 869,850 843,877 5,231,236 \r\n \r\n$ \r\n \r\n17,329,072 \r\n \r\n$ ===2=4=0=7='1=71=3= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -3 - \r\n \r\n BLECKLEY 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 Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services 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 Debt Services 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 \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n11,070,953 $ \r\n \r\n678,096 254,306 310,848 383,245 843,082 \r\n98,372 1,026,392 \r\n781,446 9,755 \r\n129,720 \r\n \r\n55,996 41,889 1,193,126 148,986 \r\n \r\n$ \r\n \r\n17,026,212 $ \r\n \r\n226,810 \r\n59,006 376,236 662 052 \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\n8,931,666 $ \r\n \r\n3,569,465 $ \r\n \r\n369,196 176,987 238,036 530,071 511,010 \r\n5,793 666,972 415,817 \r\n \r\n38,506 \r\n1,579 84,536 \r\n \r\n85,412 \r\n \r\n860,505 \r\n \r\n$ \r\n \r\n12,791,465 $ \r\n \r\n413,114 4 107 200 $ \r\n \r\n1,656,988 \r\n-308,900 -77,319 -34,306 146,826 \r\n-332,072 -92,579 \r\n-357,841 -281,093 \r\n-9,755 -44,308 \r\n3,010 -41,889 456,729 -148,986 \r\n534,505 \r\n \r\n$ \r\n \r\n2,383,969 \r\n \r\n5,579 \r\n \r\n913,345 59,106 30,357 9,504 \r\n1,351,912 103,897 68194 \r\n \r\n$ \r\n \r\n4,925,863 \r\n \r\n$ \r\n \r\n5,460,368 \r\n \r\n11 868 704 \r\n \r\n$===17=,3=2=9'=0=72= \r\n \r\n-5- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30. 2004 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n2,016,129 $ 2,120,181 $ \r\n \r\n1,000,000 \r\n \r\n3,286,574 \r\n \r\n44,586 1,341,190 \r\n284,725 12,123 84,513 \r\n \r\n164,045 400,497 \r\n \r\n953 $ \r\n \r\n4,137,263 4,286,574 \r\n208,631 1,741,687 \r\n284,725 12,123 84,513 \r\n \r\n$ \r\n \r\n4,783,266 $ 5,971,297 $ \r\n \r\n953 $ 10,755,516 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories Capital Projects \r\nUnreserved Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\n \r\n$ \r\n \r\n517,979 \r\n \r\n1,549,710 \r\n \r\n$ \r\n \r\n$ \r\n \r\n2,067,689 $ \r\n \r\n400,497 522,337 \r\n922,834 \r\n \r\n$ \r\n \r\n370,633 \r\n \r\n134,369 \r\n \r\n$ \r\n \r\n868,897 $ \r\n \r\n84,513 \r\n \r\n4,179,566 \r\n \r\n2,126,062 \r\n \r\n$ \r\n \r\n2 715 577 $ 5,048,463 $ \r\n \r\n$ \r\n \r\n517,979 \r\n \r\n1,549,710 \r\n \r\n400,497 \r\n \r\n522,337 \r\n \r\n$ \r\n \r\n2,990,523 \r\n \r\n$ 953 \r\n \r\n370,633 134,369 869,850 \r\n84,513 4,179,566 \r\n \r\n953 $ \r\n \r\n2,126,062 7,764,993 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ \r\n \r\n4,783,266 $ 5,971,297 $ \r\n \r\n953 $ 10,755,516 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n-6- \r\n \r\n BLECKLEY 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 Construction in Progress 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, including Bonds Payable, 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\nBonds Payable Capital Leases \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n7,764,993 \r\n \r\n$ \r\n \r\n263,770 \r\n \r\n5,761,710 \r\n \r\n9,907,637 \r\n \r\n1,756,956 \r\n \r\n-4,524,304 \r\n \r\n13,165,769 \r\n \r\n150,428 \r\n \r\n$ -3,420,000 -332, 118 \r\n \r\n-3,752,118 \r\n \r\n$ 17,329,072 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n BLECKLEY 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 Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nCapital Leases Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nInventory - Net Change in Period \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 2,313,770 \r\n \r\n39,861 $ \r\n \r\n59,106 $ \r\n \r\n12,222,948 \r\n \r\n4,022,664 \r\n \r\n2,004,965 \r\n \r\n662,052 \r\n \r\n56,667 \r\n \r\n47,220 \r\n \r\n259 803 \r\n \r\n$ 17,560,066 $ 4,128,990 $ \r\n \r\n$ 913,345 \r\n10 913 355 $ \r\n \r\n2,313,770 1,012,312 16,245,612 2,004,965 \r\n662,052 103,897 259 803 \r\n22,602,411 \r\n \r\n$ 10,980,291 \r\n \r\n678,096 254,306 309,741 383,245 843,082 \r\n98,372 1,033,246 \r\n820,858 9,755 \r\n129,720 55,996 41,889 \r\n1,207,548 $ \r\n \r\n4,955,351 \r\n \r\n147,100 \r\n \r\n$ \r\n \r\n15 641 \r\n \r\n$ 17,008,886 $ 4,955,351 $ \r\n \r\n$ \r\n \r\n551 180 $ -826 361 $ \r\n \r\n$ 10,980,291 \r\n \r\n678,096 254,306 309,741 383,245 843,082 \r\n98,372 1,033,246 \r\n820,858 9,755 \r\n129,720 55,996 41,889 \r\n1,207,548 4,955,351 \r\n \r\n780,000 133 345 \r\n \r\n927,100 148 986 \r\n \r\n913 345 $ 22 877 582 \r\n \r\n10 $ \r\n \r\n-275 171 \r\n \r\n$ \r\n \r\n144,935 \r\n \r\n$ \r\n \r\n525,802 \r\n \r\n-525 802 \r\n \r\n$ \r\n \r\n-380 867 $ \r\n \r\n525,802 \r\n \r\n$ \r\n \r\n170,313 $ -300,559 $ \r\n \r\n2,518,960 \r\n \r\n5,349,022 \r\n \r\n26 304 \r\n \r\n$ \r\n$ 10 $ 943 \r\n \r\n144,935 525,802 -525 802 \r\n144 935 \r\n-130,236 \r\n7,868,925 \r\n26 304 \r\n \r\n$ 2 715 577 $ 5,048,463 $ \r\n \r\n953 $ \r\n \r\n7 764 993 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n BLECKLEY 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. 2004 \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$ 5,212,425 -314,459 \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 equipment is reported, whereas in the Governmental funds, the entire proceeds from the sale increase financial resources. Thus the change in net assets differs from the changes in fund balances by the carrying value of the equipment 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\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\nBond Principal Retirements Capital Lease Payments \r\nTotal Long-Term Debt Repayments \r\n \r\n$ 780,000 147 100 \r\n \r\nFood Inventories are expensed on the District-Wide Statements using the consumption method while on the fund level Food Inventories are recorded as expenditures when purchased. In the current period this difference amounts to. \r\n \r\n-130,236 \r\n4,897,966 75,778 \r\n-191,609 -144,935 \r\n927,100 26,304 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ =====5'=46=0=,3=6=8 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n BLECKLEY 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\n52,900 \r\n \r\n12,350 \r\n \r\n$ ===6='5,=25=0= \r\n \r\n$ ===65='=25=0= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 11 - \r\n \r\n BLECKLEY 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 Bleckley 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\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 Bleckley 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 ofActivities 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 BLECKLEY 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 Bond Proceeds, Special Purpose Local Option Sales Tax (SPLOST) proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation of major capital facilities. \r\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment of general longterm principal, interest and paying agent's fees. \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 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, except for principal and interest on general long-term debt which are recognized \r\n \r\n- 13 - \r\n \r\n BLECKLEY 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\nas expenditures to the extent they have matured. 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 of specific 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. 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 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(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 \r\n- 14 - \r\n \r\n BLECKLEY 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\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 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 Bleckley County Board of Commissioners fixed the property tax levy for the 2003 tax digest year (calendar year) on October 14, 2003 (levy date). Taxes were due on December 20, 2003 (due 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 Bleckley 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 $2,308,191. \r\n \r\nThe tax millage rate levied for the 2003 tax year (calendar year) for the Bleckley 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\n12.00 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 $972,451 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- 15 - \r\n \r\n BLECKLEY 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\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the District-wide 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 of assets 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\nAny Amount \r\n \r\n$ \r\n \r\n5,000 \r\n \r\n$ \r\n \r\n5,000 \r\n \r\n$ \r\n \r\n5,000 \r\n \r\nNIA 20 to 80 years \r\n80 years 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\nGENERAL OBLIGATION BONDS \r\n \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \r\n \r\n- 16 - \r\n \r\n BLECKLEY 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\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 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 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(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 $6,318,906. The amounts of the total bank balances are classified into three categories of credit risk: \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2004, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 300,953 \r\n \r\n2 \r\n \r\n5,907,325 \r\n \r\n3 \r\n \r\n110,628 \r\n \r\nTotal \r\n \r\n$ 6,318.906 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2004, the carrying value ofthe School District's total investments was $3,286,574 which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Extended Asset 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 Georgia Extended Asset Pool does not provide for investment in derivatives or similar investments. \r\n \r\nThe Extended Term Portfolios consist ofFund 3 \"Georgia Extended Asset Pool\", Fund 7 and Fund 8. The Georgia Extended Asset Pool is a variable net asset value investment pool which follows Standard and Poor's criteria for AAAfmoney market rated funds. The pool is not registered with the SEC as an investment company. The pool's primary objective is the prudent management ofpublic funds on behalf of the State of Georgia and local governments seeking income higher than money market rates. Net Asset Value (NAV) is calculated daily to determine current share price. NAV is calculated by taking the closing fair value of securities owned plus other assets and subtracting liabilities. The remainder is then divided by the total number ofshares outstanding to compute NAV per share (current share price). The pool distributes earnings (net of management fees) which are reinvested as shares in the pool on a monthly basis and determines participant's shares sold and redeemed based on the current share price, which at June 30, 2004, was at $1.99 per share. The Office of Treasury and Fiscal Services has hired a third party bank, Investors Bank and Trust, to perform custody and valuation services to include calculation ofthe NAV on a daily basis. Pooled cash and cash equivalents and investments are reported at fair value. The pool does not issue any \r\n \r\n- 18 - \r\n \r\n BLECKLEY 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\nlegally 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 State agencies, and current operating funds of the State's General Fund. \r\nInvestments in the Georgia Extended Asset Pool consist generally ofsecurities 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 duration at June 30, 2004, was 0.78 years. \r\nInvestments in Fund 7 consist generally of repurchase agreements and certain U. S. Government Securities. The average investment duration for Fund 7 on June 30, 2004, was 1.57 years. \r\nInvestments in Fund 8 consist generally ofmortgage-backed securities issued by U. S. Corporations (reported as Corporate Obligations in the disclosure of custodial risk), repurchase agreements and certain U.S. Government Securities, which include mortgage-backed securities such as collateralized mortgage obligations and adjustable rate mortgages. These mortgage-backed securities are reported as U. S. Government Securities in the disclosure of custodial risk. Investments in Fund 8 are transacted by an external investment management firm under direction of investment advisory agreements executed between the Office of Treasury and Fiscal Services and the investment management firm. \r\nThe agreement directs the investment firm to utilize the Merrill Lynch 1-3 year Treasury Index in managing the average duration of the overall portfolio, excluding cash, to within plus or minus 6 months ofthe duration ofthe Index. The average investment duration for Fund 8 on June 30, 2004, was 1.55 years. In addition, the investment advisory agreements place limitations on individual security purchases and holdings as follows: \r\n1) Limits the duration of any security at the time ofpurchase to a maximum of five (5) years. \r\n2) Requires any mortgage-backed security, at the time of purchase and periodically, thereafter, to pass a \"stress test\" which provides for a duration profile not to exceed 7 years given an instantaneous and permanent interest yield increase of 300 basis points. \r\n3) With the exception ofU. S. Treasury securities, limits individual security investments to no more than the greater of$5 million or 10% ofthe separate portfolio's total investments. \r\n4) Prohibits investments in interest only strips, principal only strips, inverse floaters, and Z tranche securities. \r\nNote 4: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2003 \r\n \r\nIncreases \r\n \r\nBalances Decreases June 30, 2004 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 263,770 1,798,756 $ 4,945,446 $ \r\n \r\n$ 263,770 \r\n \r\n982,492 \r\n \r\n5,761,710 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 2,062,526 $ 4,945,446 $ 982,492 $ 6,025,480 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment \r\n \r\n$ 8,822,000 $ 1,085,637 \r\n \r\n1,902,173 \r\n \r\n163,834 $ \r\n \r\n$ 9,907,637 \r\n \r\n309,051 \r\n \r\n1,756,956 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment \r\n \r\n3,346,722 980,565 \r\n \r\n187,492 126,967 \r\n \r\n2,500 114,942 \r\n \r\n3,531,714 992,590 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 6,396,886 $ 935,012 $ 191,609 $ 7,140,289 \r\n \r\nGovernmental Activity Capital Assets - Net $ 8,459.412 $ 5,880.458 $ 1.174.101 $ 13,165.769 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2004, are as follows: \r\n \r\nGovernmental Funds \r\n \r\nEquipment Less: Accumulated Depreciation \r\n \r\n$ 489,837 59,563 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nEducational Media Services \r\n \r\n$ \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nFood Services \r\n \r\n$=====4~30=,2=7==4 \r\n \r\n$ 2,000 \r\n82 105,523 \r\n$ \r\n \r\n185,397 \r\n107,605 21,457 314 459 \r\n \r\n- 20 - \r\n \r\n BLECKLEY 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\nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds and Georgia State Financing and Investment Commission (GSFIC) funds are reported as restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory prov1s1ons. Restricted assets at June 30, 2004, were as follows: \r\n \r\nDistrict-wide Capital Projects \r\n \r\nBond \r\n \r\nSPLOST \r\n \r\nProceeds \r\n \r\nDebt Service Funds \r\n \r\nRestricted Cash and Cash \r\n \r\nEquivalents: \r\n \r\nDebt Services \r\n \r\n$ 868,897 \r\n \r\n$ \r\n \r\n953 \r\n \r\nCapital Acquisitions \r\n \r\n$ 1,002,550 $ 248,734 \r\n \r\nRestricted Investments: \r\n \r\nDebt Services \r\n \r\n$ 3,286,574 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2004, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From General Fund \r\n \r\nDistrict-wide Capital Projects \r\n \r\n$====5==25-,8==0==2 \r\n \r\nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund as supplemental funding source for capital construction projects. \r\n \r\nNote 8: 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 ofloss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\n- 21 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 8: RISK MANAGEMENT \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. 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 $2,000,000. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ \r\n \r\n50,000 \r\n \r\n$ 100,000 \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Bleckley County Board of Education has entered into various lease agreements as lessee for purchase of school buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2002 \r\n \r\n3.50% \r\n \r\n$ 3,420.000 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2004, were as follows: \r\n \r\n- 22- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nGovernmental Funds \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nObligation \r\n \r\nLeases \r\n \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2003 \r\n \r\n$ 334,283 $ 4,200,000 $ 4,534,283 \r\n \r\nAdditions Capital Leases \r\n \r\n144,935 \r\n \r\n144,935 \r\n \r\nDeductions Debt Retired \r\n \r\n147,100 \r\n \r\n780,000 \r\n \r\n927,100 \r\n \r\nBalance June 30, 2004 \r\n \r\n$ 332,118 $ 3,420,000 $ 3,752,118 \r\n \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$ 163,603 $ 810,000 $ 973,603 \r\n \r\nAt June 30, 2004, 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\n2005 2006 2007 \r\n \r\n$ 163,603 $ 118,102 50 413 \r\n \r\n14,554 6,816 1 966 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 332,118 $ \r\n \r\n23.336 \r\n \r\nFiscal Year Ended June 30 \r\n \r\nGeneral Obligation \r\n \r\nDebt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2005 2006 2007 2008 \r\n \r\n$ 810,000 $ 105,525 \r\n \r\n835,000 \r\n \r\n76,737 \r\n \r\n870,000 \r\n \r\n46,900 \r\n \r\n905,000 \r\n \r\n15,838 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 3,420,000 $ 245.000 \r\n \r\n- 23 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 10: PRIOR YEAR DEFEASEMENT OF DEBT \r\n \r\nIn fiscal year 2003, the School District defeased certain general obligation bonds by placing Special Purpose Local Option Sales Tax proceeds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School District's basic financial statements. At June 30, 2004, $1,090,000 of bonds are outstanding and are considered defeased. \r\n \r\nNote 11: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $140,715 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 $138,839 \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 $1,876 \r\n \r\nNote 12: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2004, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n03/02S-612-005 SA0IS-612-348 \r\n \r\n$ 6,851,659 $ 1,148,595 308,260 \r\n \r\n$ 6!851!659 $ IA56!855 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \r\n- 24- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 13: 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 14: 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 9.24% 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$ 920,159 $ 905,329 $ 864,230 \r\n \r\n- 25 - \r\n \r\n BLECKLEY 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 Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \r\nCapital Outlay Debt Service \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 \r\nInventory - Net Change in Period \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\n2.257.981 $ \r\n \r\n2.257,981 $ \r\n \r\n2,313,770 \r\n \r\n5.000 \r\n \r\n5,000 \r\n \r\n39,861 \r\n \r\n11,762,959 \r\n \r\n12,261,677 \r\n \r\n12,222,948 \r\n \r\n1,858,708 \r\n \r\n2,054,867 \r\n \r\n2,004,965 \r\n \r\n442,000 \r\n \r\n442,000 \r\n \r\n662,052 \r\n \r\n36,400 \r\n \r\n36,400 \r\n \r\n56,667 \r\n \r\n99 700 \r\n \r\n131 691 \r\n \r\n259 803 \r\n \r\n$ \r\n \r\n16 462 748 $ \r\n \r\n17 189 616 $ \r\n \r\n17 560 066 \r\n \r\n$ \r\n \r\n10,587,755 $ \r\n \r\n10,865,377 $ \r\n \r\n10,980,291 \r\n \r\n627,711 303,406 306,890 438,561 865,397 125,250 1,060,767 822,589 \r\n9,569 85,663 \r\n1,124,893 125,000 \r\n \r\n662,636 338,635 304,940 412,830 865,427 131,150 1,196.217 822,449 \r\n9,569 104,899 \r\n1,124,693 \r\n \r\n678,096 254,306 309,741 383,245 843,082 \r\n98,372 1,033,246 \r\n820,858 9,755 \r\n129,720 55,996 41,889 \r\n1,207,548 \r\n162 741 \r\n \r\n$ \r\n \r\n16 483 451 $ \r\n \r\n16,838,822 $ \r\n \r\n17008886 \r\n \r\n$ \r\n \r\n-20 703 $ \r\n \r\n350 794 $ \r\n \r\n551 180 \r\n \r\n$ \r\n \r\n-8,696 $ \r\n \r\n144,935 \r\n \r\n8 696 \r\n \r\n-525 802 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n-380 867 \r\n \r\n$ \r\n \r\n-20,703 $ \r\n \r\n350,794 $ \r\n \r\n170,313 \r\n \r\n2,434,179 \r\n \r\n2,434,179 \r\n \r\n2,518,960 \r\n \r\n15 678 \r\n \r\n15 678 \r\n \r\n26 304 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n2 429 154 $ \r\n \r\n2,800,651 $ \r\n \r\n2 715 577 \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\nSee notes to the basic financial statements. \r\n-27- \r\n \r\n BLECKLEY 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 Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Improving Teacher Quality State Grants Rural Education 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\nJustice, U. S. Department of Pass-Through From Children and Youth Coordinating Council Juvenile Justice and Delinquency Prevention \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\nNIA N/A $ \r\n$ \r\n \r\n(2) 1 005 439 \r\n1,005,439 \r\n \r\n10.550 \r\n \r\nN/A $ \r\n \r\n84 137 1 089 576 \r\n \r\n84.027 84.173 \r\n \r\nN/A $ N/A \r\n$ \r\n \r\n328.750 19 588 \r\n348.338 \r\n \r\n84.318 84.367 84.358 84.186 84.298 84.010 84.048 \r\n \r\nN/A N/A N/A N/A N/A N/A NIA \r\n$ \r\n \r\n18,038 107,180 62,774 \r\n18,804 15,960 596.148 26 794 \r\n1 194 036 \r\n \r\n16.540 \r\n \r\nNIA $ \r\n \r\n32 003 \r\n \r\nTotal Federal Financial Assistance N/A = Not Available \r\n \r\n$ ===2\"=3=1=5\"=6=15= \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 non monetary 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 ($190,428) were not maintained separately and are included in the 2004 National School Lunch Program. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Bleckley County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2004 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\n \r\n$ \r\n \r\n691,301 \r\n \r\n$ \r\n \r\n691,301 \r\n \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 Gifted Student - Category VI 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 Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs Health Insurance K-3 Statewide Reading Program Mentor Teachers National Teacher Certification Preschool Handicapped Program Lottery Program Student Information System \r\n \r\n559,788 236,675 1,260,170 350,476 776,297 109,000 1,454,959 1,032,823 393,079 \r\n1,538,311 135,395 41,095 104,336 215,329 67,979 44,959 \r\n381,190 491,344 631,427 \r\n350,011 84,536 34,907 60,641 8,858 9,008 \r\n1,242,920 70,354 23,471 \r\n-498,984 \r\n138,839 33,072 5,885 6,147 35,782 \r\n18,144 \r\n \r\n559,788 236,675 1,260,170 350,476 776,297 109,000 1,454,959 1,032,823 393,079 \r\n1,538,311 135,395 41,095 104,336 215,329 67,979 44,959 \r\n381,190 491,344 631,427 \r\n350,011 84,536 34,907 60,641 8,858 9,008 \r\n1,242,920 70,354 23,471 \r\n-498,984 \r\n138,839 33,072 5,885 6,147 35,782 \r\n18,144 \r\n \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\n \r\n$ \r\n \r\n4,022,664 \r\n \r\n4,022,664 \r\n \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\n1,876 \r\n \r\n1,876 \r\n \r\n- 30 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\nOTHER Pass-Through Communities in Schools of Georgia, Inc. Communities in Schools Drop Out Program \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n59,548 \r\n \r\n$ \r\n \r\n59,548 \r\n \r\n22,000 \r\n \r\n22,000 \r\n \r\n$ 12,222,948 $ \r\n \r\n4,022,664 $ 16,245,612 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n BLECKLEY 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\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\nAcquisition, construction and equipping \r\n \r\nof improvements of a new high school, including \r\n \r\nthe acquisition of any property necessary or \r\n \r\ndesirable \r\n \r\n$ \r\n \r\n6,000,000 $ 6,293,053 $ \r\n \r\n5,088,696 $ 1,204,357 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 Bleckley County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. 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- 32 - \r\n \r\n BLECKLEY 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 School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV Gifted Student - Category VI 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\n600,992 $ \r\n \r\n598,837 $ \r\n \r\n11,796 $ \r\n \r\n610,633 \r\n \r\n252,716 \r\n \r\n201,569 \r\n \r\n2,351 \r\n \r\n203,920 \r\n \r\n1,394,926 \r\n \r\n1,259,695 \r\n \r\n32,263 \r\n \r\n1,291,958 \r\n \r\n381,954 \r\n \r\n366,967 \r\n \r\n1,590 \r\n \r\n368,557 \r\n \r\n841,772 \r\n \r\n844,330 \r\n \r\n20,963 \r\n \r\n865,293 \r\n \r\n130,421 1,578,709 1,118,832 \r\n423,177 1,645,401 \r\n150,950 58,283 \r\n113 032 \r\n \r\n120,429 1,575,453 1,555,041 \r\n372,985 \r\n188,566 1,180,643 \r\n74,770 249,703 \r\n47,633 51,098 \r\n \r\n874 29,433 53,473 32,162 \r\n1,863 9,443 \r\n4,104 725 \r\n47 749 \r\n \r\n121,303 1,604,886 1,608,514 \r\n405,147 \r\n190,429 1,190,086 \r\n74,770 253,807 \r\n48,358 98 847 \r\n \r\n$ \r\n \r\n8,691,165 $ 8,687,719 $ \r\n \r\n248,789 $ \r\n \r\n8,936,508 \r\n \r\n234,202 48 993 \r\n \r\n259,250 3,087 \r\n \r\n22,579 35100 \r\n \r\n281,829 38187 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n8 974,360 $ 8,950,056 $ \r\n \r\n306,468 $ ===9,=25=6=,5=2==4 \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- 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\nApril 6, 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 Bleckley 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 ofBleckley County Board ofEducation as ofand for the year ended June 30, 2004, which collectively comprise Bleckley County Board of Education's basic financial statements and have issued our report thereon dated April 6, 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 Bleckley County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Bleckley County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule of Findings and Questioned Costs as items FS-6121-04-01 and FS-6121-04-02. \r\n2004YB-30 \r\n \r\n A material weakness is a reportable condition in which the design or operation of one 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 none of the reportable conditions described above is a material weakness. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Bleckley 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\nThis report is intended solely for the information and use of the management and members of the Bleckley 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\nApril 6, 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 Bleckley 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 CIRCULARA-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Bleckley 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 ofits major Federal programs for the year ended June 30, 2004. Bleckley 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 Bleckley County Board of Education's management. Our responsibility is to express an opinion on Bleckley 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 Bleckley 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 Bleckley County Board ofEducation's compliance with those requirements. \r\n2004SA-10 \r\n \r\n In our opinion, the Bleckley 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, 2004. \r\nInternal Control Over Compliance \r\nThe management of Bleckley 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 Bleckley 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 Bleckley 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:as 2004SA-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 BLECKLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-6121-02-01 FS-6121-03-01 \r\n \r\nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nCASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-6121-03-01 \r\n \r\nWe concur with this finding, however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment of duties with the number of personnel available to perform the accounting functions. With stafflimitations this finding cannot be totally resolved. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY 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 Bleckley 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 Bleckley County Board of Education disclosed financial statement reportable conditions related to the following control categories. \r\n \r\nCash and Cash Equivalents Revenues/Receivables/Receipts \r\n \r\nExpenditures/Liabilities/Disbursements General Ledger \r\n \r\nNone ofthe reportable conditions described above are considered to be material weaknesses. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the Bleckley 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 Bleckley 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 Bleckley County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 The Bleckley County Board of Education'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 Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program \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 Bleckley 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 BLECKLEY 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 GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition Repeated from Prior Year Finding Control Number: FS-6121-04-01 \r\nThe School District did not provide for adequate separation of duties in the performance of accounting functions and related procedures related to cash and cash equivalents. The following deficiencies were noted: \r\n(1) The bank reconciliations for all accounts were not reviewed by an individual independent of cash operations. \r\n(2) The individual recording cash receipts and performing bank deposit functions had custody of the signature plate and also had access to the general ledger. \r\nThese conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-6121-04-02 \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.  The bank reconciliations did not agree to the amounts recorded in the general ledger. \r\nRevenues/Receivables/Receipts  Deposit preparation was not separated from the record keeping and cash custody functions.  No supporting documentation was available for fourteen of the twenty cash receipts tested. \r\n-2- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2004 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-6121-04-02 Expenditures/Liabilities/Disbursements \r\n The check writing function was not separated from record keeping or processing of signed checks. \r\n Our tests of twenty voucher packets revealed the following deficiencies: o Three voucher packets did not contain an invoice supporting the disbursement. o One voucher packet did not contain proper approval by appropriate personnel. \r\nThese deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible, at the various principal account sites, for the accounting functions and their failure to ensure established controls were functioning as designed. Management should implement additional procedures to ensure that the key accounting functions of custody, recordkeeping and authorization are segregated. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-3 - \r\n \r\n SECTIONV MANAGEMENT'S RESPONSES \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2004 \r\nFinding Control Number: FS-6121-04-01 \r\nWe concur with this finding; however, due to current budgetary constraints, the School District is unable to hire the additional staffrequired to clear this finding. The School District has worked with the audit team to develop a workable plan of action that should remove this finding in future years. The plan will include additional involvement of the Superintendent in the controls process. \r\nFinding Control Number: FS-6121-04-02 \r\nWe concur with this finding. Additional work and procedures will be put into place to better ensure that school level accounts are kept at accepted accounting standards. Additional supporting documentation will be generated to document cash receipts. The school system is also reviewing school accounting software to determine the most appropriate options for operational efficiency. \r\nContact Person: Dr. L. C. Evans, Superintendent Phone: (478) 934-2821 Fax Number: (478) 934-9595 E-mail Address: lcevans@bleckley.k12.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2002-h2003","title":"Bleckley County Board of Education, Cochran, Georgia, report on audit of 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, Bleckley County, 32.43444, -83.32784"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2003-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000.","Report year covers fiscal year.","Has supplements: Bleckley County Board of Education, Cochran, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Bleckley County Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Bleckley County Board of Education), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000, released 2001? (online surrogate); title from PDF cover (Georgia Government Publications database, viewed September 16, 2022).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed September 16, 2022)."],"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":["Bleckley County Board of Education--Appropriations and expenditures--Periodicals.","Bleckley County (Ga.). Board of Education","Education--Georgia--Bleckley County--Auditing--Periodicals.","Education--Georgia--Bleckley County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Georgia Government Documents--Serial"],"dcterms_title":["Bleckley County Board of Education, Cochran, Georgia, report on audit of 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-bb6-b2002-h2003"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-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":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS \r\nFOR 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 BLECKLEY 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\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \r\n \r\nPage \r\n3 4 6 7 8 9 11 12 \r\n29 \r\n30 32 \r\n \r\n BLECKLEY 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\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n34 \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\n35 \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 26, 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 Bleckley 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 Bleckley County Board of Education, as of and for the year ended June 30, 2003, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Bleckley 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 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 position ofthe governmental activities, each major fund, and the aggregate remaining fund information of the Bleckley County Board of Education, as of June 30, 2003, 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\n2003-34ARL-11 \r\n \r\n The Bleckley County Board ofEducation 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\nAs discussed in Note 2 to the basic financial statements, during fiscal year 2003, the Board completed a comprehensive inventory of its capital assets for inclusion in the basic financial statements, consolidated its individual school activity accounts for inclusion in the basic financial statements and changed its method of accounting for the salaries of certain ten-month employees from a cash basis to a basis that is generally accepted. These changes are in accordance with generally accepted accounting principles. \r\nAs described in Note 2, the Bleckley County Board of Education 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, 2003. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated February 26, 2004, on our consideration ofthe Bleckley County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 29, 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 Bleckley 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-13 3, 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\n2003-34ARL-11 \r\n \r\n A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated section 506-24. \r\nRespectfully submitted, \r\n~~-~ Russell W. Hinton State Auditor \r\nRWH:gp 2003-34ARL-11 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30. 2003 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues 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 Debt Service 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. -3 - \r\n \r\nEXHIBIT\"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n4,082,066 \r\n \r\n4,255,579 \r\n \r\n313,247 1,578,470 \r\n244,804 19,570 58,209 \r\n \r\n263,770 1,798,756 8,822,000 1,902,173 -4 327 287 \r\n \r\n$ ======19==!'=01=1=3, =5=7 \r\n \r\n$ \r\n \r\n531,801 \r\n \r\n1,604,560 \r\n \r\n295,095 \r\n \r\n152,679 \r\n \r\n24,235 \r\n \r\n927,100 3 607 183 \r\n \r\n$ \r\n \r\n7 142 653 \r\n \r\n$ \r\n \r\n7,391,206 \r\n \r\n434,011 132,028 \r\n943 2,013,333 1 897 183 \r\n \r\n$ \r\n \r\n11868704 \r\n \r\n$ ===19==1'=01=1=,3=5=7 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2003 \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\nGOVERNMENTAL ACTIVITIES \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 Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ \r\n \r\n11,509,821 \r\n \r\n734,087 333,326 326,496 546,612 930,645 \r\n60,628 952,777 883,481 \r\n11,108 140,710 \r\n \r\n25,066 34,339 1,097,837 $ 181,621 \r\n \r\n373,677 \r\n \r\nTotal Governmental Activities \r\n \r\n$ \r\n \r\n17,768,554 $====37=3:!:6=7=7 \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\nTotal General Revenues \r\n \r\nChange in Net Assets \r\n \r\nNet Assets - Beginning of Year \r\n \r\nNet Assets - Ending of Year \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4 - \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n9,226,513 $ \r\n \r\n406,380 174,633 212,812 560,215 502,464 \r\n2,674 640,860 519,436 \r\n \r\n71,803 \r\n \r\n670,327 \r\n \r\n$ \r\n \r\n12,988,117 $ \r\n \r\n735,746 $ 8,509 \r\n435,021 \r\n91,284 1,270,560 $ \r\n \r\n-1,547,562 \r\n-327,707 -158,693 -105,175 \r\n13,603 -428,181 \r\n-57,954 -311,917 \r\n70,976 -11,108 -68,907 \r\n-25,066 -34,339 37,451 -181,621 \r\n-3,136,200 \r\n \r\n$ \r\n \r\n2,180,552 \r\n \r\n1,037,742 35,824 5,765 \r\n1,268,249 268,613 486,430 \r\n \r\n$ \r\n \r\n5,283,175 \r\n \r\n$ \r\n \r\n2,146,975 \r\n \r\n9,721,729 \r\n \r\n$ \r\n \r\n11,868,704 \r\n \r\n-5- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30. 2003 \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\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,885,929 $ 1,000,000 \r\n67,981 1,403,063 \r\n244,804 19,570 58,209 \r\n \r\n2,195,194 $ 3,255,579 \r\n170,616 175,407 \r\n \r\n943 $ 4,082,066 4,255,579 \r\n238,597 1,578,470 \r\n244,804 19,570 58,209 \r\n \r\nTotal Assets \r\n \r\n$ 4,679,556 $ 5,796,796 $======9=43= $ 10,477,295 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories Capital Projects \r\nUnreserved Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\n \r\n$ 531,801 1,604,560 $ \r\n24,235 \r\n$ 2,160,596 $ \r\n \r\n295,095 152,679 \r\n447 774 \r\n \r\n$ 434,011 73,819 $ 58,209 $ 5,349,022 \r\n \r\n1,952,921 $ 2,518,960 $ \r\n \r\n5,349,022 $ \r\n \r\n$ 531,801 1,604,560 295,095 152,679 24,235 \r\n$ 2,608,370 \r\n \r\n$ 943 \r\n \r\n434,011 73,819 943 58,209 \r\n5,349,022 \r\n \r\n1,952,921 943 $ 7,868,925 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 4,679,556 $ 5,796,796 $===9=4=3 $ 10,477,295 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30. 2003 \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 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, including Bonds Payable, 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\nBonds and Notes Payable Capital Leases \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n7,868,925 \r\n \r\n$ \r\n \r\n263,770 \r\n \r\n1,798,756 \r\n \r\n8,822,000 \r\n \r\n1,902,173 \r\n \r\n-4,327,287 \r\n \r\n8,459,412 \r\n \r\n74,650 \r\n \r\n$ -4,200,000 -334,283 \r\n \r\n-4,534,283 \r\n \r\n$ 11,868.704 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30. 2003 \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 Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest Payment to Bond Refunding Escrow Agent \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nSale of Equipment Capital Leases Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nInventory - Net Change in Period \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 2,125,784 \r\n \r\n$ \r\n \r\n41,589 \r\n \r\n$ 1,037,742 \r\n \r\n12,299,044 $ 1,270,560 \r\n \r\n1,957,322 \r\n \r\n373,677 \r\n \r\n61,946 \r\n \r\n206,595 \r\n \r\n72 \r\n \r\n505,688 \r\n \r\n-29,886 \r\n \r\n$ 17.365,050 $ 1,447,269 $ 1,037,814 $ \r\n \r\n2,125,784 1,079,331 13,569,604 1,957,322 \r\n373,677 268,613 475,802 \r\n19,850,133 \r\n \r\n$ 11,150,309 \r\n \r\n$ \r\n \r\n734,087 333,326 322,338 416,224 930,645 \r\n60,628 952,777 870,883 \r\n11,108 140,710 \r\n25,066 34,339 1,111,441 11,669 $ \r\n \r\n$ 2,062,779 \r\n \r\n15,750 \r\n \r\n67,708 3,119 \r\n \r\n112,253 13,949 \r\n \r\n164,553 1,309,638 \r\n \r\n$ 17 176,377 $ 2,188,981 $ 1,489,941 $ \r\n \r\n$ \r\n \r\n188,673 $ \r\n \r\n-741,712 $ \r\n \r\n-452, 127 $ \r\n \r\n11,150,309 \r\n734,087 333,326 322,338 416,224 930,645 \r\n76,378 952,777 870,883 \r\n11,108 140,710 \r\n25,066 34,339 1,111,441 2,074,448 \r\n179,961 181,621 1,309,638 \r\n20,855,299 \r\n-1,005, 166 \r\n \r\n$ \r\n \r\n10,628 \r\n \r\n199,967 \r\n \r\n$ \r\n \r\n104,980 $ \r\n \r\n-104,980 \r\n \r\n-394,398 \r\n \r\n$ \r\n \r\n105,615 $ \r\n \r\n-289,418 $ \r\n \r\n$ \r\n \r\n294,288 $ -1,031, 130 $ \r\n \r\n2,217,722 \r\n \r\n6,380,152 \r\n \r\n6,950 \r\n \r\n$ 394,398 \r\n394,398 $ -57,729 $ 58,672 \r\n \r\n10,628 199,967 499,378 -499,378 \r\n210,595 \r\n-794,571 \r\n8,656,546 \r\n6,950 \r\n \r\n$ 2,518,960 $ 5,349,022 $ \r\n \r\n943 $ \r\n \r\n7,868,925 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n BLECKLEY 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. 2003 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \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 \r\n \r\n$ \r\n \r\nDepreciation Expense \r\n \r\nExcess of Capital Outlay over Depreciation Expense \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\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\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\nBond Principal Retirements \r\n \r\n$ \r\n \r\nCapital Lease Payments \r\n \r\nTotal Long-Term Debt Repayments \r\n \r\nFood Inventories are expensed on the District-Wide Statements using the consumption method while on the fund level Food Inventories are recorded as expenditures when purchased. In the current period this difference amounts to: \r\n \r\n$ \r\n1,952,225 -298,650 \r\n1,195,000 179,961 \r\n \r\n-794,571 \r\n1,653,575 54,768 \r\n-199,967 \r\n1,374,961 58,209 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ ===2'\"\"1=4==6!=9=75= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2003 \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\n54,073 \r\n \r\n12,063 \r\n \r\n$ ===6=6=1,=36= \r\n \r\n$ ===6=6=1,=36= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Bleckley 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\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 Bleckley County Board of Education. \r\nDistrict-wide Statements: The Statement ofNet Assets and the Statement of Activities 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 of goods 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\n \r\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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 Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation of major capital facilities. \r\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \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 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, except for principal and interest on general long-term debt, which are recognized \r\n- 13 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nas expenditures to the extent they have matured. 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\nFor fiscal year 2003, the School District changed its method of accounting for the final two payments 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 costs for salaries and fringe benefits earned by employees through June 30, 2003, (even though paid in July and August 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\nThe net effect of the above accounting treatment results in the accompanying financial statements reflecting costs for those salaries and benefits earned by employees during fiscal year 2003 and the related State revenue to fund these contracts. In addition, both the net assets and fund balance at July 1, 2002, have 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. This change is in accordance with generally accepted accounting principles. See Restatement of Prior Year Fund Balance. \r\nRESTATEMENT OF PRIOR YEAR FUND BALANCE - GENERAL FUND \r\nIn prior years, the financial activities of the School District's School Food Services Fund, Lottery Programs and Federal Programs were reported as Special Revenue Funds. These funds had a combined fund balance of $73,962 at July 1, 2002. For fiscal year 2003, these funds have been reported as part of the General Fund. In addition, governmental fund activity from the various school activity accounts, which were not reported in the prior year's financial statements, have been reported within the General Fund for fiscal year ended June 30, 2003. The governmental fund activity ofthe various school activity accounts had a fund balance of$67,863 at July 1, 2002. This change is in accordance with generally accepted accounting principles. \r\n \r\n- 14 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nGeneral Fund Balance July 1, 2002 \r\n \r\n$ 2,435,831 \r\n \r\nAdd Funds Consolidated with General Fund: School Food Services Fund School Activity Account - Governmental Activity \r\n \r\n73,962 67,863 \r\n \r\nAdd: State Revenue Related to July and August 2002 Salary Payments Earned by Employees in Fiscal Year 2002 \r\n \r\n1,338,041 \r\n \r\nDeduct: July and August 2002 Salary Payments Earned by Employees in Fiscal Year 2002 \r\n \r\n1,697,975 \r\n \r\nGeneral Fund Balance July 1, 2002 (Restated) \r\n \r\n$ 2,217.722 \r\n \r\nCHANGES IN ACCOUNTING PRINCIPLES \r\n \r\nThe Bleckley 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, 2003. \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, 2002 Capital Projects Fund Debt Service Fund \r\n \r\n$ 2,217,722 6,380,152 58,672 \r\n \r\nGovernmental Funds (Restated) July 1, 2002 Capital Assets Accumulated Depreciation Property Tax Revenue Timing Differences Bonds and Notes Payable Capital Leases Payable Food Inventories Costing Differences \r\n \r\n$ 8,656,546 10,834,474 -4,028,637 19,882 -5,395,000 -314,277 -51,259 \r\n \r\nNet Assets Beginning (See Exhibit \"B\") \r\n \r\n$ 9,721.729 \r\n \r\n- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \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 of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board 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 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 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\nRECEIVABLES \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 \r\n- 16 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\ndisclosed 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 Bleckley County Board of Commissioners fixed the property tax levy for the 2002 tax digest year (calendar year) on October 10, 2002 (levy date). Taxes were due on December 20, 2002 (due date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2002 tax digest are reported as revenue in the governmental funds for fiscal year 2003. The Bleckley 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, 2003, for maintenance and operations amounted to $2,125,784. \r\n \r\nThe tax millage rate levied for the 2002 tax year (calendar year) for the Bleckley 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\n12.25 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 $1,037,742 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 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 ofpurchase. On the District-wide financial statements, all purchased \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\ncapital 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 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 of assets 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\nAny Amount \r\n \r\n$ \r\n \r\n5,000 \r\n \r\n$ \r\n \r\n5,000 \r\n \r\n$ \r\n \r\n5,000 \r\n \r\nNIA 20 to 80 years Up to 80 years 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\nGENERAL OBLIGATION BONDS \r\n \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \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 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\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: 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 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, 2003, the bank balances were $6,202,753. The amounts of the total bank balances are classified into three categories of credit risk: \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\nThe School District's deposits are classified by risk category at June 30, 2003, as follows: \r\n \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 300,944 \r\n \r\n2 \r\n \r\n3,410,032 \r\n \r\n3 \r\n \r\n2,491,777 \r\n \r\nTotal \r\n \r\n$ 6,202,753 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2003, the carrying value ofthe School District's total investments was $3,255,579 which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Extended Asset 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 Georgia Extended Asset Pool does not provide for investment in derivatives or similar investments. \r\n \r\nThe Extended Term Portfolios consist of Fund 3 \"Georgia Extended Asset Pool\", Fund 7 and Fund 8. The Georgia Extended Asset Pool is a variable net asset value investment pool which follows Standard and Poor's criteria for AAAf rated funds. The pool is not registered with the SEC as an investment company. The pool's primary objective is the prudent management of public funds on behalf of the State of Georgia and local governments seeking income higher than money market rates. Net Asset Value (NAV) is calculated daily to determine current share price. NAV is calculated by taking the closing fair value of securities owned plus other assets and subtracting liabilities. The remainder is then divided by the total number ofshares outstanding to compute NAV per share (current share price). The pool distributes earnings (net ofmanagement fees) on a monthly basis and determines participant's shares sold and redeemed based on the current share price, which at June 30, 2003, was at $2.03 per share. The Office of Treasury and Fiscal Services has hired a third party bank, Investors Bank and Trust, to perform custody and valuation services to include calculation ofthe NAV. Pooled cash and cash equivalents and investments are reported at 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 offunds from local governments, operating and trust funds of State agencies, and current operating funds of the State's General Fund. \r\n \r\nInvestments in the Georgia Extended Asset Pool consist generally ofsecurities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities and repurchase agreements. The duration at June 30, 2003 was 0.70 years. \r\n \r\nInvestments in Fund 7 consist generally of repurchase agreements and certain U.S. Government Securities. The average investment duration for Fund 7 on June 30, 2003 was 1.17 years. \r\n \r\n- 20 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\nInvestments in Fund 8 consist generally of repurchase agreements and certain U.S. Government Securities, which include mortgage-backed securities such as collateralized mortgage obligations and adjustable rate mortgages. These mortgage-backed securities are reported as U. S. Government Securities in the disclosure of custodial risk. Investments in Fund 8 are transacted by an external investment management firm under direction ofinvestment advisory agreements executed between the Office and the investment management firm. \r\nThe agreement directs the investment firm to utilize the Merrill Lynch 1-3 year Treasury Index in managing the average duration of the overall portfolio, excluding cash, to within plus or minus 6 months of the duration of the Index. The average investment duration for Fund 8 on June 30, 2003 was 1.49 years. In addition, the investment advisory agreements place limitations on individual security purchases and holdings as follows: \r\n1) Limits the duration of any security at the time ofpurchase to a maximum offive (5) years. \r\n2) Requires any mortgage-backed security, at the time of purchase and periodically, thereafter, to pass a \"stress test\" which provides for a duration profile not to exceed 7 years given an instantaneous and permanent interest yield increase of 300 basis points. \r\n3) With the exception ofU. S. Treasury securities, limits individual security investments to no more than the greater of$5 million or 10% ofthe separate portfolio's total investments. \r\n4) Prohibits investments in interest only strips, principal only strips, inverse floaters, and Z tranche securities. \r\nNote 4: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\nNote 5: CAPITAL ASSETS \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\n- 21 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nBalances July 1, 2002 \r\n \r\nIncreases \r\n \r\nBalances Decreases June 30, 2003 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 257,200 $ \r\n \r\n6,570 $ \r\n \r\n53,068 \r\n \r\n1,745,688 \r\n \r\n0 $ 263,770 1,798,756 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 310,268 $ 1,752,258 $ \r\n \r\n0 $ 2,062,526 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment \r\n \r\n$ 8,822,000 1,702,206 $ \r\n \r\n$ 199,967 \r\n \r\n0 $ 8,822,000 1,902,173 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment \r\n \r\n3,167,782 860,855 \r\n \r\n178,940 119 710 \r\n \r\n3,346,722 980,565 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 6,495,569 $ \r\n \r\n-98,683 $ \r\n \r\n0 $ 6,396,886 \r\n \r\nGovernmental Activity Capital Assets - Net $ 6,805.837 $ 1,653.575 $ \r\n \r\n0 $ 8,459,412 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2003, are as follows: \r\n \r\nGovernmental Funds \r\n \r\nEquipment Less: Accumulated Depreciation \r\n \r\n$ 441,525 43,995 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\n$==3-97-,5==3==0 \r\n \r\nInstruction Support Services \r\nEducational Media Services Student Transportation Services \r\nFood Services \r\n \r\n$ 172,940 \r\n \r\n$ \r\n \r\n2,000 \r\n \r\n102,253 \r\n \r\n104,253 \r\n \r\n21,457 \r\n \r\n$ 298,650 \r\nNote 6: RESTRICTED ASSETS \r\nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds, Georgia State Financing and Investment Commission (GSFIC) funds and property tax levied specifically for retirement of outstanding bond principal, interest and paying agent's fees (Debt Service Funds) are \r\n \r\n-22- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nreported as restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2003, were as follows: \r\n \r\nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \r\nRestricted Investments: Capital Acquisitions \r\n \r\nDistrict-wide Capital Projects \r\n \r\nBond \r\n \r\nSPLOST \r\n \r\nProceeds \r\n \r\nGSFIC \r\n \r\nDebt Service Funds \r\n \r\n$ \r\n \r\n943 \r\n \r\n$ 1,313,370 $ \r\n \r\n248,734 $ \r\n \r\n633,090 \r\n \r\n$ 3,255,579 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2003, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From \r\n \r\nDistrict-wide \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nFund \r\n \r\nProjects \r\n \r\nDistrict-wide Capital Projects Debt Service Funds \r\n \r\n$ 104,980 $ 394 398 \r\n \r\nTotal \r\n \r\n$ 104 980 $ 394 398 \r\n \r\nTransfers are used to move property tax revenues collected by the General Fund to (1) the Districtwide Capital Projects Fund as required match or supplemental funding source for capital construction projects, and (2) to make capital lease payment. \r\n \r\nNote 8: 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 ofloss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board'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. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\n- 23 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 8: RISK MANAGEMENT \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\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2002 2003 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n534 $ \r\n \r\n534 $ \r\n \r\n0 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n0 $ \r\n \r\n0 $ \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 $400,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ \r\n \r\n50,000 \r\n \r\n$ 100,000 \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Bleckley County Board of Education has entered into various lease agreements as lessee for school buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \r\n \r\nDuring fiscal year 2003, the Bleckley County Board of Education defeased $1,195,000 of outstanding bonds. The School District utilized $1,309,638 of Special Purpose Local Option Sales Tax proceeds to fund this defeasance. These funds were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on the 1995 Bond issue. As a result, the 1995 Series Bonds is considered defeased, and the liability has been removed from the District-wide Statement of Net Assets. \r\n \r\n- 24 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2002 \r\n \r\n3.50% \r\n \r\n$ 4,200.000 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2003, were as follows: \r\n \r\nGovernmental Funds \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nObligation \r\n \r\nLeases \r\n \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2002 \r\n \r\n$ 314,277 $ 5,395,000 $ 5,709,277 \r\n \r\nAdditions Capital Leases \r\n \r\n199,967 \r\n \r\n199,967 \r\n \r\nDeductions Debt Retired \r\n \r\n179 961 \r\n \r\n1,195,000 \r\n \r\n1,374,961 \r\n \r\nBalance June 30, 2003 \r\n \r\n$ 334,283 $ 4,200.000 $ 4,534,283 \r\n \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$ 147,100 $ 780,000 $_ _9_27~,1_0_0 \r\n \r\nAt June 30, 2003, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2004 2005 2006 \r\n \r\n$ 147,100 $ 117,603 69,580 \r\n \r\n15,641 8,174 2 957 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 334,283 $ \r\n \r\n26,772 \r\n \r\n- 25 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nFiscal Year Ended June 30 \r\n \r\nGeneral Obligation \r\n \r\nDebt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2004 2005 2006 2007 2008 \r\n \r\n$ 780,000 $ 133,350 \r\n \r\n810,000 \r\n \r\n105,525 \r\n \r\n835,000 \r\n \r\n76,737 \r\n \r\n870,000 \r\n \r\n46,900 \r\n \r\n905,000 \r\n \r\n15,838 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 4,200,000 $ 378.350 \r\n \r\nNote 10: ON-BEHALF PAYMENTS \r\n \r\nThe Board has recognized revenues and costs in the amount of $162,836 for health insurance and retirement contributions paid on the Board'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 $130,361 \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 $32,475 \r\n \r\nNote 11: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2003, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n03/02S-612-005 SA0lS-612-163 SA0l S-612-162 \r\n \r\n$ 11,119,918 $ 5,171,259 138,836 33,830 \r\n \r\n$ 11,292,584 $ 5,171.259 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \r\n- 26 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 12: 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\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\n \r\nNote 13: 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 9.24% 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$ 905,329 $ 864,230 $ 1,015,509 \r\n \r\n-27 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30. 2003 \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 Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \r\nCapital Outlay Debt Service \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 Adjustments Inventory - Net Change in Period \r\nFund Balances - Ending \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\n2.174.375 $ \r\n \r\n2,174,375 $ \r\n \r\n2,125,784 \r\n \r\n5,000 \r\n \r\n55,000 \r\n \r\n41,589 \r\n \r\n11,986,026 \r\n \r\n12,077,113 \r\n \r\n12,299,044 \r\n \r\n627,000 \r\n \r\n906,803 \r\n \r\n1,957,322 \r\n \r\n442,000 \r\n \r\n442,000 \r\n \r\n373,677 \r\n \r\n36,400 \r\n \r\n36,400 \r\n \r\n61,946 \r\n \r\n99 700 \r\n \r\n128,077 \r\n \r\n505,688 \r\n \r\n$ \r\n \r\n15,370,501 $ \r\n \r\n15,819.768 $ \r\n \r\n17,365,050 \r\n \r\n$ \r\n \r\n10,008,904 $ \r\n \r\n10,420,106 $ \r\n \r\n11,150,309 \r\n \r\n487,226 176,066 300,778 265,676 867,755 123,139 1,044,626 759,955 \r\n9,568 41,640 \r\n1,113,780 160,000 \r\n \r\n572,985 252,870 301,628 370,478 872,855 123,139 1,072,641 762,168 \r\n9,568 59,232 \r\n1,133,407 160,000 \r\n \r\n734,087 333,326 322,338 416,224 930,645 \r\n60,628 952,777 870,883 \r\n11,108 140,710 \r\n25,066 34,339 1,111,441 11,669 70,827 \r\n \r\n$ \r\n \r\n15,359,113 $ \r\n \r\n16111 077 $ \r\n \r\n17 176,377 \r\n \r\n$ \r\n \r\n11 388 $ \r\n \r\n-291,309 $ \r\n \r\n188,673 \r\n \r\n$ \r\n \r\n7,455 $ \r\n \r\n210,595 \r\n \r\n-7 455 \r\n \r\n-104,980 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n105,615 \r\n \r\n$ \r\n \r\n11,388 $ \r\n \r\n-291,309 $ \r\n \r\n294,288 \r\n \r\n2,471,831 -357,309 \r\n \r\n2,471,831 -357,309 \r\n \r\n2,217,722 0 \r\n6,950 \r\n \r\n$ \r\n \r\n2,125,910 $ \r\n \r\n1,823,213 $ \r\n \r\n2,518,960 \r\n \r\nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual (1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2003 \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 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 Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies School Improvement Title II Enhancing Education Through Technology Improving Teacher Quality Technology Literacy Challenge Fund Grant Title VI Innovative Education Program Strategies Rural and Low Income Schools Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States High School Program Basic Grant \r\nTotal U. S. Department of Education \r\nJustice, U. S. Department of Pass-Through From Children and Youth Coordinating Council STAR Program \r\n \r\nCFDA NUMBER \r\n \r\nPASS- \r\nTHROUGH ENTITY ID NUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\nN/A N/A $ \r\n$ \r\n \r\n(2) 988,956 (3) \r\n988,956 \r\n \r\n10.550 \r\n \r\nN/A $ \r\n \r\n66 707 1,055,663 \r\n \r\n* 84.027 * 84.173 * 84.027 \r\n \r\nNIA $ N/A N/A \r\n$ \r\n \r\n352,094 28,168 10 528 \r\n390,790 \r\n \r\n* 84.010 * 84.010 \r\n84.318 84.367 84.318 \r\n84.298 84.358 84.186 \r\n84.048 \r\n \r\nN/A N/A \r\nN/A N/A N/A \r\nN/A N/A N/A \r\nNIA \r\n$ \r\n \r\n548,536 7,487 \r\n89,826 117,540 \r\n7,190 \r\n12,906 45,819 13,783 \r\n31 948 \r\n1,265,825 \r\n \r\n16.540 \r\n \r\nN/A $ \r\n \r\n34 978 \r\n \r\n- 30- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nTransportation, U. S. Department of Pass-Through From Georgia Department of Public Safety State and Community Highway Safety \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n20.600 \r\n \r\nN/A $ _ _ _ _8~,4~9~8 \r\n \r\nTotal Federal Financial Assistance N/A = Not Available \r\n \r\n$ ===2=,3=6==4'=96=4= \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 represent 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 ($155.536) 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 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 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 Bleckley 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 basic financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Community Affairs, Georgia Department of Local Assistance Grant \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 Gifted Student - Category VI 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 Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs Environmental Science Program Health Insurance K-3 Statewide Reading Program Mentor Teachers National Teacher Certification Pay for Performance Preschool Handicapped Program Special Education Low Incidence Grant Lottery Programs Assistive Technology Computers in the Classroom Student Information System \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n467,308 216,872 1,380,448 348,412 735,734 196,681 1,379,728 965,124 335,618 \r\n1,369,835 151,671 141,038 97,237 211,965 70,649 42,635 \r\n378,524 488,602 604,263 \r\n368,428 89,932 34,095 60,986 8,829 16,173 26,707 \r\n1,025,208 73,960 22,750 \r\n-263,414 \r\n1,000 130,361 \r\n32,684 4,814 3,874 \r\n83,600 35,782 16,042 \r\n5,561 41,030 26,909 \r\n \r\n467,308 216,872 1,380,448 348,412 735,734 196,681 1,379,728 965,124 335,618 \r\n1,369,835 151,671 141,038 97,237 211,965 70,649 42,635 \r\n378,524 488,602 604,263 \r\n368,428 89,932 34,095 60,986 8,829 16,173 26,707 \r\n1,025,208 73,960 22,750 \r\n-263,414 \r\n1,000 130,361 \r\n32,684 4,814 3,874 \r\n83,600 35,782 16,042 \r\n5,561 41,030 26,909 \r\n \r\n- 32 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"3\" \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\nCONTRACT Human Resources, Georgia Department of Family Connection \r\nOTHER Georgia Institute of Technology State Data and Research (OSIRIS) Grant \r\nPass-Through Communities in Schools of Georgia, Inc. Communities in Schools Drop Out Program \r\nCSB of Middle Georgia MHDDAD Grant \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n1,270,560 $ 1,270,560 \r\n \r\n$ \r\n \r\n720,001 \r\n \r\n720,001 \r\n \r\n32,475 \r\n \r\n32,475 \r\n \r\n50,523 \r\n \r\n50,523 \r\n \r\n22,424 24,000 11 966 \r\n \r\n22,424 24,000 11,966 \r\n \r\n$ \r\n \r\n12,299,044 $ \r\n \r\n1,270,560 $ 13,569,604 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 33 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30. 2003 \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 YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\nAcquisition, construction and equipping of improvements at the primary, middle and high school, the central offices and the bus maintenance shop and acquisition of school buses. \r\n \r\n$ 3,256,000 $ 3,256,000 $ \r\n \r\n857,681 $ 2,313,044 Completed \r\n \r\nPayment of the principal and interest due on the $1,400,000 Bleckley County School District General Obligation School Bonds, Series 1995 from February 1, 1998 through February 1, 2008 and redemption of all outstanding Bonds maturing on February 1, 2009 and thereafter on February 1, 2008. \r\n \r\n1,744,000 \r\n \r\n1,849,361 \r\n \r\n1,357,640 \r\n \r\n491,721 Completed \r\n \r\nAcquisition, construction and equipping of improvements of a new high school, including the acquisition of any property necessary or desirable therefor, the maximum cost of such capital outlay project. \r\n \r\n6,000,000 \r\n \r\n6,000,000 \r\n \r\n1,072,057 \r\n \r\nOngoing \r\n \r\n$ 11,000,000 $ 11,105,361 $ 3,287,378 $ 2,804,765 \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 \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 \r\n(3) The voters of Bleckley County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. 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\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ \r\n \r\n0 \r\n \r\nCurrent Year \r\n \r\n132,300 \r\n \r\nTotal \r\n \r\n$ =====1=32=,3=0=0 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 34 - \r\n \r\n BLECKLEY 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 \"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 School (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 Gifted Student - Category VI 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\n490,203 $ \r\n \r\n580,506 $ \r\n \r\n6,605 $ \r\n \r\n587,111 \r\n \r\n198,504 \r\n \r\n172,227 \r\n \r\n627 \r\n \r\n172,854 \r\n \r\n1,372,785 \r\n \r\n1,366,208 \r\n \r\n22,347 \r\n \r\n1,388,555 \r\n \r\n343,164 \r\n \r\n339,851 \r\n \r\n2,302 \r\n \r\n342,153 \r\n \r\n733,152 \r\n \r\n809,289 \r\n \r\n23,172 \r\n \r\n832,461 \r\n \r\n180,862 1,380,407 \r\n967,521 348,508 1,354,231 \r\n154,272 126,287 \r\n98,061 \r\n \r\n128,391 1,565,185 1,602,398 \r\n352,533 \r\n17,181 298,063 901,447 117,617 261,432 \r\n68,973 112,245 \r\n \r\n1,950 69,494 70,823 48,657 \r\n4,042 13,667 \r\n2,507 10,832 \r\n1,487 48,560 \r\n \r\n130,341 1,634,679 1,673,221 \r\n401,190 \r\n17,181 302,105 915,114 120,124 272,264 \r\n70,460 160,805 \r\n \r\n$ \r\n \r\n7,747,957 $ 8,693,546 $ \r\n \r\n327,072 $ \r\n \r\n9,020,618 \r\n \r\n211,223 42,635 \r\n \r\n269,146 13,190 \r\n \r\n18,459 33,299 \r\n \r\n287,605 46,489 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n8,001,815 $ 8,975,882 $ \r\n \r\n378,830 $ ===9,=35=4=,7=1=2 \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- 35 - \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 26, 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 Bleckley 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 the governmental activities, each major fund, and the aggregate remaining fund information ofBleckley County Board of Education as of and for the year ended June 30, 2003, which collectively comprise Bleckley County Board of Education's basic financial statements and have issued our report thereon dated February 26, 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 Bleckley County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results of our 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 Bleckley County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \r\n2003-34YB-30 \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 Bleckley County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6121-03-01. \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 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\nThis report is intended solely for the information and use of the management, members of the Bleckley 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~w-~.:j;__ \r\nRussell W. Hinton State Auditor \r\nRWH:gp 2003-34YB-30 \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 26, 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 Bleckley 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 CIRCULARA-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Bleckley 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. Bleckley County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Bleckley County Board of Education's management. Our responsibility is to express an opinion on Bleckley 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 o.f 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 Bleckley 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 Bleckley County Board of Education's compliance with those requirements. \r\n2003SA-10 \r\n \r\n In our opinion, the Bleckley County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2003. \r\nInternal Control Over Compliance \r\nThe management of Bleckley 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 Bleckley 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 Bleckley 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 2003SA-10 \r\n \r\n~li)-~ \r\nRussell W. Hinton State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY 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-6121-01-01 FS-6121-01-02 FS-6121-02-01 FS-6121-02-02 \r\n \r\nFurther Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nCASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-6121-02-01 \r\n \r\nWe concur with this finding, however, due to current budgetary constraints, the School District is unable to hire the additional staff required to clear this finding. The School District feels it has provided for the most appropriate assignment ofduties with the number of personnel available to perform the accounting functions. With staff limitations this finding cannot be totally resolved. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2003 \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 Bleckley 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 Bleckley County Board ofEducation disclosed a financial statement reportable condition related to the following control categories. \r\n \r\nCash and Cash Equivalents \r\n \r\nGeneral Ledger \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 Bleckley 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 Bleckley 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 Bleckley County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Bleckley County Board of Education'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 Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.010 Elementary and Secondary Education Act - Title I - School Improvement 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84.027 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement \r\n \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \r\n \r\n- 1- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2003 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n9. Low Risk Auditee The Bleckley 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\nCASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition Repeated From Prior Year Finding Control Number: FS-6121-03-01 \r\nThe School District did not provide for adequate separation of duties in the performance of accounting functions and related procedures related to cash and cash and equivalents. The following deficiencies were noted: \r\n(1) The bank reconciliations for all accounts were not reviewed by an individual independent of cash operations. \r\n(2) The individual recording cash receipts and performing bank deposit functions had custody of the signature plate and also had access to the general ledger. \r\nThese conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. \r\nManagement's Response: \r\nWe concur with this finding, however, due to current budgetary constraints, the School District is unable to hire the additional staff required to clear this finding. The School District feels it has provided for the most appropriate assignment of duties with the number of personnel available to perform the accounting functions. With staff limitations this finding cannot be totally resolved. \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n-2 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2001-h2002","title":"Bleckley County Board of Education, Cochran, Georgia, report on audit of 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, Bleckley County, 32.43444, -83.32784"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2002-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000.","Report year covers fiscal year.","Has supplements: Bleckley County Board of Education, Cochran, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-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":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"-: ,\" \r\n, i' \r\n \r\n,.' \r\n \r\n.' \"., \r\n \r\n. . , ''; \r\n \r\n, ~.' \r\n \r\n.' .. 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'\" J .~ '~. \r\n \r\n\"\" \r\n \r\n.... , c .. \r\n \r\n, ',' \r\n \r\n.. \r\n \r\n-, \r\n.' \r\n \r\n... ~ ,  .'. j':; \r\n \r\n, .,'.. ~ \r\n \r\n\" \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS- \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\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 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\n26 \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n28 \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n30 \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n31 \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\n32 \r\n \r\n5 \r\n \r\nBY SITE \r\n \r\n33 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \r\nSECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON CO~LIANCEAND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\nSECTIONID 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 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\nDecember 20, 2002 \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 Bleckley 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 Bleckley 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 of the Bleckley County Board of Education's management. Our responsibility is to express an opinion on these general-purpose fmancial 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 ofthe United States. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the fmancial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \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\n2002ARL-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* School activity accounts maintained at the individual schools are not included in the \r\ngeneral-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. \r\n* The Board of Education did not recognize as expenditures, in the year ended \r\nJune 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 received, 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\nIQ our opinion, except for the effects on the general-purpose financial statements of the matters \r\nreferred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Bleckley 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 December \r\n \r\n20,2002, on our consideration of the Bleckley 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\n. \r\n \r\nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Bleckley County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the \r\n \r\n2002ARL-13 \r\n \r\n general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \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\nRu ell W. Hinton State Auditor \r\nRWH:as 2002ARL-13 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \r\n \r\n The notes to the general-purpose finanCIal statements are an Integral part of this statement -2- \r\n \r\n EXtHBlT \"A\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nACCOUNT GROUP GENERAL \r\nLONGTERM PEBT \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\n58.61194 \r\n \r\n$ 4,297,36290 $ 2,287,02549 \r\n \r\n4,555,694 59 \r\n \r\n600,00000 \r\n \r\n435,22307 \r\n \r\n436,31697 \r\n \r\n35,76885 15,48969 \r\n \r\n31,22287 15.52564 \r\n \r\n$ \r\n \r\n58,67194 \r\n \r\n58.67194 \r\n \r\n5,336,328 06 314,277 07 \r\n \r\n5.336,32806 314,277 01 \r\n \r\n1.240,00000 327,206 92 \r\n \r\n$ \r\n \r\n58167194 $ \r\n \r\n5,709,277 07 $ 151048181617 $ 4,937,29789 \r\n \r\n$ \r\n \r\n176,92347 $ \r\n \r\n128.335,58 \r\n \r\n208,28736 \r\n \r\n183.07378 \r\n \r\n5,11039 \r\n \r\n$ \r\n \r\n314.27101 \r\n \r\n314,277 01 \r\n \r\n327,20692 \r\n \r\n51 395,000 00 \r\n \r\n5,395,00000 \r\n \r\n1,240.000 00 \r\n \r\n$ \r\n \r\n5,709,27707 $ 6,100,19829 $ 1,878,61628 \r\n \r\n$ \r\n \r\n58,67194 \r\n \r\n000 \r\n \r\n$ \r\n \r\n58,61194 \r\n \r\n$ \r\n \r\n338.38588 $ \r\n \r\n326,34380 \r\n \r\n58,67194 \r\n \r\n7382 \r\n \r\n2,215,320 77 \r\n \r\n1,328,17807 \r\n \r\n35,78885 15,48969 3.381.100 16 803,13205 \r\n2,'20,'4854 \r\n$ 6,948.61188 $ \r\n \r\n31,22281 15.52564 \r\n'.351,33141 3.058,681 6' \r\n \r\n$ \r\n \r\n56,61194 $ \r\n \r\n5,709127701 $ 15,048,81617 $ 4,937,29789 \r\n \r\n.3- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENPITURES 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 Admlnlstrallon BUSiness Admlnlstrabon Mamtenance and OperabOn of Plant Student Transportation serviceS Central Support SelVlC8s Other Support Services Food Services Operation Community selVlceS Operabons \r\nCapital Outlay Debt Service \r\nPnnopal Interest \r\nTotal Expendlturas \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds from General Obhgabon Bonds Par Value \r\nCapital Leases Operating Transfers In Operabng Transfers Out \r\nTotal Other FinanCing Sources (Uses) \r\nExcess of Revenues and Other FinanCing Sources over (under) ExpenditUres and Other FinanCing Uses \r\nFUNP BALANCE JULY 1 \r\nFood Inventory Net Change In Penod Donated Commodlbes Purchased Food \r\nFUND BALANCE JUNE 30 - \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ 11,326,452 27 $ 2,754 72 \r\n2,281,69706 225,00721 \r\n$ 13,835,911 26 $ \r\n \r\n852,56786 1,639,31954 \r\n384,00729 \r\n2,875,894 69 \r\n \r\n$ 9,278,68551 $ \r\n \r\n298,92728 207,27828 302,43291 235,51040 881,68814 \r\n56,06563 937,30274 656,817 05 \r\n9,217 40 44,19959 20,13903 35,45782 49,23036 \r\n \r\n158,52291 22,26750 \r\n \r\n$ 13,193,74255 $ \r\n \r\n$ \r\n \r\n642,16871 $ \r\n \r\n1,201,637 58 281,62420 117,76357 120,15860 \r\n4,83056 46,931 12 30,73954 1,084,53343 \r\n2,888,21860 -12,32391 \r\n \r\n$ \r\n \r\n144,934 59 \r\n \r\n$ \r\n \r\n144,934 59 \r\n \r\n$ \r\n \r\n787,10330 $ \r\n \r\n1,648,72812 \r\n \r\n-12,32391 81,n542 \r\n \r\n4,54598 -3595 \r\n \r\n$ \r\n \r\n21435183142 $ \r\n \r\n73 1961 54 \r\n \r\nThe notes to the general-purpose finanaal sta1ements ara an Integral part of thIS statement 4- \r\n \r\n EXHIBIT \"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \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 30, 2001 \r\n \r\n$ \r\n \r\n858,58726 $ \r\n \r\n174,134 67 \r\n \r\n$ 1,032,72193 $ \r\n \r\n$ \r\n111.50500 22238 \r\n \r\n12,179.02013 $ 1,642.07426 3,251,78932 783.37155 \r\n \r\n11.637,134 06 1,566.13565 3,149,691 78 668.34552 \r\n \r\n111,72738 $ 17,856,25526 $ 17,021.30701 \r\n \r\n$ 10,480,32309 $ 10,143,53661 \r\n \r\n$ \r\n \r\n39,71032 \r\n \r\n82,58714 \r\n \r\n580,55148 325,041 85 302,43291 355,66900 881.68814 \r\n95,77595 942,13330 703,74817 \r\n9,217 40 74,93913 1,104,67246 35,45782 131,817 50 \r\n \r\n535,68845 338,904 97 287,99582 353,11794 839.30911 \r\n48,72109 834.21954 695,811 89 \r\n7,964 74 57,02815 1,085,865,24 33,90844 204,27340 \r\n \r\n$ \r\n \r\n45.000 00 \r\n \r\n66,50500 \r\n \r\n203,522.91 88,77250 \r\n \r\n232,69565 96,67692 \r\n \r\n$ \r\n \r\n122,29746 $ \r\n \r\n111,50500 $ 16,315,76361 $ 15.795,717 96 \r\n \r\n$ \r\n \r\n910,42447 $ \r\n \r\n22238 $~0.49165 $ \r\n \r\n1.225,58905 \r\n \r\n$ 4,200,00000 $ \r\n-58,44956 $ 4,141,55044 $ \r\n$ 5,051,97491 $ 1.328,178 07 \r\n \r\n$ 58,44956 \r\n58,44956 $ \r\n \r\n4,200,000 00 144,934 59 $ 58,44956 -58.44956 \r\n4,344,934 59 $ \r\n \r\n96.623.06 96,62306 \r\n \r\n58,67194 $ 000 \r\n \r\n5,885,426 24 $ 3,058,681 61 \r\n \r\n1,322,212.11 1,736,87050 \r\n \r\n4,54598 -3595 \r\n \r\n-5,584 88 5,18388 \r\n \r\n$ 6,380.152 98 $ \r\n \r\n58,67194 $ 8,948.617 88 $ 3,058,681 61 \r\n \r\n-5- \r\n \r\n BbECKLEY COUNTY BOARp OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES ANP CHANGES IN FUNp BALANCES \r\nBUDGET AND ACTUAL - INON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNPS \r\nYEAR ENPEP JUNE 30 2002 \r\n \r\nEXHIBIT \"C\" \r\n \r\nGENERAL FUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nREVENUES \r\n \r\nState Funds Federal Funds Taxes Other Funds \r\n \r\n$ 11,175,086 00 $ 11.326.452 27 \r\n \r\n9.99454 \r\n \r\n2,754 72 \r\n \r\n2.148.75000 \r\n \r\n2,281,69706 \r\n \r\n132.20000 \r\n \r\n225.00721 \r\n \r\nTotal Revenues \r\n \r\n$ 13,466.030 54 $ 13,835,911 26 \r\n \r\nEXPENPITURES \r\n \r\nCurrent Instruction Support SeMces Pupil Services Improvement of Instructional SeMces Educational Media SeMces General Administration School AdminIstration BUSiness Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations \r\nCapital Outlay Debt Service \r\n \r\n$ 9,556,484 10 $ 9,278,68551 \r\n \r\n309,46044 187,134 00 303,171 00 225,84000 884,85700 114,56700 1,016,02600 711,13600 \r\n10,661 00 40,000 00 17,51200 \r\n145,000 00 \r\n \r\n298,92728 207,27828 302,43291 235,51040 881,68814 \r\n56,06563 937,302.74 656,817 05 \r\n9.217 40 44,19959 20,13903 35,45782 49.23036 180,79041 \r\n \r\nTotal ExpendllUras \r\n \r\n$ 13,521.848 54 $ 13.193.74255 \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\n$ \r\n \r\n-55,81800 $ \r\n \r\n642,16871 \r\n \r\nOTHER FINANCING SOURCES \r\n \r\nOther Sources \r\n \r\n144,934 59 \r\n \r\nExcess of Revenues and Other FinanCing Sources \r\n \r\nover (under) Expenditures \r\n \r\n$ \r\n \r\n-55,81800 $ \r\n \r\n787,10330 \r\n \r\nFUND BALANCE JULY 1 2001 \r\n \r\n1,037,35540 \r\n \r\n1,648.728 12 \r\n \r\nFood Inventory - Net Change In Penod Donated Commodities Purchased Food \r\n \r\nFUND BALANCE JUNE 30 2002 \r\n \r\n$ \r\n \r\n981 153740 $ 2A35183142 \r\n \r\nSPEC~LREVENUEFUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\n$ 839.89160 $ 852.56786 \r\n \r\n1,639,351 00 \r\n \r\n1.639,31954 \r\n \r\n342,10000 \r\n \r\n384.00729 \r\n \r\n$ 2,821,34260 $ 2,875.89469 \r\n \r\n$ 1,288.803 20 $ 1,201.637 58 \r\n \r\n289,33600 112,13300 \r\n \r\n281,62420 117,76357 \r\n \r\n131,88000 \r\n \r\n120,15860 \r\n \r\n8,30000 52,65000 \r\n31,62500 1,009,87440 \r\n \r\n4,83056 46,931 12 \r\n30,73954 1,084,533 43 \r\n \r\n$ 2.924.601 60 $ 2,888.21860 $ -103,25900 $ -12,32391 \r\n \r\n$ -103,25900 $ 75,73577 \r\n \r\n-12,32391 81,77542 \r\n \r\n4,54598 -3595 \r\n \r\n$ \r\n \r\nThe notes to the general-purpose finanCIal statements are an Integral part of thiS statement -6- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHffiIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2002 \r\n \r\nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe Bleckley 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\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 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\nAlthough \"school activity accounts\" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. \r\nThe general-purpose fmancial 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 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\n \r\n-7- \r\n \r\n -------------- \r\n \r\nBLECKLEY COUNTY BOARD OF EDUCAnON \r\n \r\nEXHffiIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2002 \r\n \r\nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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\nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. \r\nACCOUNT GROUP \r\nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. \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. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \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 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\n- 8- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHmrr \"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\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 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 compensation be paid in twelve equal monthly payments beginning in 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 in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002. 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\nBUDGET \r\nThe Bleckley 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 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\n-9- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \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\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-tenn investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \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 ofGeorgia, 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 infonnation available. Receivables \r\n- 10- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHffiIT \"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\nare 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 Bleckley County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 4,2001 (levy date). Taxes were due on December 20,2001 (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 Bleckley 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 $2,259,571.92. \r\n \r\nThe tax millage rate levied for the 2001 tax year (calendar year) for the Bleckley 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...2..5. mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax revenue during the year amounted to $970,092.26 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 reauthorized 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\n- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHffiIT \"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\nGENERAL OBLIGATION BONDS \r\n \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. \r\n \r\nINTERFUND TRANSACTIONS \r\n \r\nThe School District has the following types of interfund transactions: \r\n \r\nReimbursements of expenditures 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\n \r\nOperating transfers are recorded for all interfund transactions other than reimbursements. \r\n \r\nMEMORANDUM ONLY - TOTAL COLUMNS \r\n \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\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\nCOLLATERALIZATION OF DEPOSITS \r\n \r\n. \r\n \r\nOfficial Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on \r\n \r\ndeposit at any time in any depository for a time longer than ten days a sum ofmoney which has not \r\n \r\nbeen secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face \r\n \r\nvalue of such surety bond and the market value of securities pledged shall be equal to not less than \r\n \r\n110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. \r\n \r\nIf a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe \r\n \r\nsecurities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool \r\n \r\nbalance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, \r\n \r\nwaive the requirement for security in the case ofoperating funds placed in demand deposit checking \r\n \r\naccounts. \r\n \r\nAcceptable security for deposits consists of anyone of or any combination of the following: \r\n \r\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \r\n \r\nEXHffiIT \"D\" \r\n \r\nNOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2002 \r\n \r\nNote 2: 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, 2002, the bank balances were $6,074,545.73. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\nThe School District's deposits are classified by risk category at June 30, 2002, as follows: \r\n \r\n- 13- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \r\n \r\nEXHIDIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2002 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 458,671.94 \r\n \r\n2 \r\n \r\n5,615,873.79 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ 6,074.545.73 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $3,947,376.78 which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Extended Asset Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pooL The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Georgia Extended Asset Pool does not provide for investment in derivatives or similar investments. \r\n \r\nThe Extended Term Portfolios consist of Fund 3 \"Georgia Extended Asset Pool\", Fund 7, Fund 8 and Fund 9. The Georgia Extended Asset Pool is a variable net asset value investment pool which follows Standard and Poor's criteria for AAAfrated funds. The pool is not registered with the SEC as an investment company. The pool's primary objective is the prudent management ofpublic funds on behalfofthe State of Georgia and local governments seeking income higher than money market rates. Net Asset Value (NAV) is calculated daily to determine current share price. NAV is calculated by taking the closing fair value of securities owned plus other assets and subtracting liabilities, The remainder is then divided by the total number ofshares outstanding to compute NAV per share (current share price). The pool distributes earnings (net ofmanagement fees) on a monthly basis and determines participant's shares sold and redeemed based on the current share price, which at June 30, 2002, was at $2.02 per share. The Office of Treasury and Fiscal Services has hired a third party bank, Investors Bank and Trust, to perform custody and valuation services to include calculation ofthe NAV. Pooled cash and cash equivalents and investments are reported at 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 offunds from local governments, operating and trust funds of State agencies, and current operating funds of the State's General Fund. \r\n \r\nInvestments in the Georgia Extended Asset Pool consist generally ofsecurities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, bankers' acceptances and repU!chase agreements. The weighted average maturity at June 30, 2002 was 1.31 years. \r\n \r\nInvestments in Fund 7 consist generally of repurchase agreements and certain U. S. Government Securities. The average investment duration for Fund 7 on June 30, 2002 was 1.39 years. \r\n \r\n- 14- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHffiIT \"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\nInvestments in Fund 8 consist generally of repurchase agreements and certain U. S. Government Securities, which include mortgage-backed securities such as collateralized mortgage obligations and adjustable rate mortgages. Investments in Fund 8 are transacted by an external investment management finn under direction ofinvestment advisory agreements executed between the Office and the investment management finn. \r\nThe agreement directs the investment finn to utilize the Merrill Lynch 1-3 year Treasury Index in managing the average duration of the overall portfolio, excluding cash, to within plus or minus 6 months of the duration ofthe Index. The average investment duration for Fund 8 on June 30, 2002 was 1.59 years. In addition, the investment advisory agreements place limitations on individual security purchases and holdings as follows: \r\n1) Limits the duration of any security at the time ofpurchase to a maximum of five (5) years. \r\n2) Requires any mortgage-backed security, at the time of purchase and periodically, thereafter, to pass a \"stress test\" which provides for a duration profile not to exceed 7 years given an instantaneous and pennanent interest yield increase of 300 basis points. \r\n3) With the exception ofU. S. Treasury securities, limits individual security investments to no more than the greater of$5 million or 10% ofthe separate portfolio's total investments. \r\n4) Prohibits investments in interest only strips, principal only strips, inverse floaters, and Z tranche securities. \r\nInvestments in Fund 9 consist of repurchase agreements and certain U. S. Government securities with an average investment duration of 1.69 years at June 30, 2002. \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: RISK MANAGEMENT \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\nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets, and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \r\n \r\nEXHmIT \"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\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk 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. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\n2001 2002 \r\n \r\nBeginnmg 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\n$ \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\n0.00 $ \r\n \r\n534.00 $ \r\n \r\n534.00 $ \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 I, 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 $350,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ 50,000.00 $ 100,000.00 \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Bleckley County Board of Education has entered into various lease agreements as lessee for energy and lighting retrofit programs, school buses, and school electrical equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \r\n \r\n- 16- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \r\n \r\nEXHffiIT \"0\" \r\n \r\nNOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nGENERAL OBLIGAnON DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 1995 General Government - Series 2002 \r\n \r\n4.00% - 5.75% 3.50% \r\n \r\n$ 1,195,000.00 4,200,000.00 \r\n \r\n$ 5395.000.00 \r\n \r\nThe changes in General Long-Tenn Debt during the fiscal year ended June 30, 2002, were as follows: \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2001 \r\n \r\n$ 327,206.92 $ 1,240,000.00 $ 1,567,206.92 \r\n \r\nRetroactive Restatement of Prior Year Balances \r\n \r\n658.47 \r\n \r\n658.47 \r\n \r\nBalance July 1,2001 Restated \r\n \r\n$ 327,865.39 $ 1,240,000.00 $ 1,567,865.39 \r\n \r\nAdditions Capital Leases G.O. Bonds \r\n \r\n144,934.59 \r\n \r\n144,934.59 \r\n \r\n4,200,000.00 4,200,000.00 \r\n \r\nDeductions Debt Retired \r\n \r\n158,522.91 \r\n \r\n45,000.00 \r\n \r\n203,522.91 \r\n \r\nBalance June 30, 2002 \r\n \r\n$ 314.277.07 $ 5.395,000.00 $ 5.709.277.07 \r\n \r\nAt June 30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \r\n \r\nEXHffiIT liD\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal Debt \r\n \r\n2003 2004 2005 2006 2007 2008 - 2012 2013 - 2016 \r\n \r\n$ 194,326.54 $ 246,802.50 $ 441,129.04 \r\n \r\n87,501.22 1,030,577,50 1,118,078.72 \r\n \r\n50,537.28 1,040,195.00 1,090,732.28 \r\n \r\n1,033,287.50 1,033,287.50 \r\n \r\n1,040,265.00 1,040,265.00 \r\n \r\n1,558,197.50 1,558,197.50 \r\n \r\n528,137.50 \r\n \r\n528,137.50 \r\n \r\nTotal Principal and Interest $ 332,365.04 $ 6,477,462.50 $ 6.809.827.54 \r\n \r\nDeduct: Imputed Interest \r\n \r\n18.087.97 \r\n \r\nNet Present Value of Future Minimum Lease Payments $ 314.277.07 \r\n \r\nNote 6: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and expenditures in the amount of $178,229.21 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$151,543.21 \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 $26,686.00 \r\n \r\nNote 7: CONTINGENT LIABILITIES \r\n \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial \r\nstatements. \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EOUCAnON \r\n \r\nEXHIDIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 8: SUBSEQUENT EVENTS \r\n \r\nIn the subsequent fiscal year, the School District approved a Resolution of Bond Defeasance for its 1995 Series Bonds. \r\n \r\nNote 9: 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 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 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$ 864,230.18 $ 1,015,509.35 $ 980,380.17 \r\n \r\n- 19- \r\n \r\n BLECKLEY 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 \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\n71,840.24 $ \r\n \r\n124,27544 \r\n \r\n3,211.08 \r\n \r\n6,996,00 \r\n \r\n35,768.85 15,489,69 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n126,309.86 $ ==-===-=1..3.==:1.,2.:=.7.:.;1..4...4= \r\n \r\nLIABILITIES AND FUND EQUITY \r\nL1ABltlTIES \r\nCash Overdraft Accounts Payable Salaries Payable Deferred Revenue \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Continuation of Federal Programs 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\n2,628.78 $ \r\n \r\n46.950.02 \r\n \r\n49,719.54 \r\n \r\n84,321.42 \r\n \r\n$ \r\n \r\n52,348.32 $ \r\n \r\n131 ,271.44 \r\n \r\n$ \r\n \r\n35,768.85 \r\n \r\n15,489.69 \r\n \r\n22,703.00 $ \r\n \r\n$ \r\n \r\n73.961.54 $ \r\n \r\n0.00 0.00 \r\n \r\n$ \r\n \r\n126,309.86 $ =:::::=-::1..3.:.;,1\u0026;,2=7=1.4...4= \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\nTOTALS \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ \r\n \r\n196,115.68 $ \r\n \r\n156,300.15 \r\n \r\n$ \r\n \r\n159,848.15 \r\n \r\n170,055.23 \r\n \r\n132,476.67 \r\n \r\n35,768.85 15,489.69 \r\n \r\n31,222.87 15,525.64 \r\n \r\n$ \r\n \r\n159,848.15 $ \r\n \r\n417,429.45 $ =......:3=35iO!:,5;,;;2:;,;5.=:33= \r\n \r\n$ \r\n \r\n17,289.44 $ \r\n \r\n17,289.44 $ \r\n \r\n13,442.81 \r\n \r\n62,601.92 \r\n \r\n112,180.72 \r\n \r\n57,233.32 \r\n \r\n74,246.40 \r\n \r\n208,287.36 \r\n \r\n183,073.78 \r\n \r\n5,710.39 \r\n \r\n5,710.39 \r\n \r\n$ \r\n \r\n159,848.15 $ \r\n \r\n343,467.91 $ \r\n \r\n253,749.91 \r\n \r\n$ \r\n \r\n73.82 \r\n \r\n$ \r\n \r\n35,768.85 \r\n \r\n15,489.69 \r\n \r\n31,222.87 15,525.64 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n22,703.00 \r\n \r\n34,953.09 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n73,961.54 $ \r\n \r\n81,775.42 \r\n \r\n$ \r\n \r\n159,848.15 $ \r\n \r\n417 ,429.45 $ -==-\"\"\"\",,3::;;3iC5=,5=25=.3=3~ \r\n \r\n 21 - \r\n \r\n --------- -- - \r\n \r\n--- - ---- - -- - - - - - \r\n \r\nBLECKLEY 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 General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation \r\nDebt Service Principal Interest \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\nFUNp BALANCE JUNE 30 \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n76,174.00 $ \r\n \r\n622,936,59 \r\n \r\n3n,322.23 \r\n \r\n$ 1,076,432.82 $ \r\n \r\n727,300.60 727,300.60 \r\n \r\n$ $ 1.075,550.17 \r\n \r\n541,946,52 \r\n135,632.84 4,295.14 29,976.60 4,830.56 735.09 900,59 8,983.26 \r\n \r\n$ 1,075,550.17 $ \r\n \r\n$ \r\n \r\n882,65 $ \r\n \r\n68,568,86 \r\n \r\n727,300.60 0.00 0.00 \r\n \r\n4,545.98 -35.95 \r\n \r\n$ \r\n \r\n73,961.54 $==-==--===0'=00= \r\n \r\nSee notes to the general-purpose financial statements. - 22- \r\n \r\n EXHIBIT \"F\" \r\n \r\nFEDERAL \r\nPROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 3D, 2001 \r\n \r\n$ \r\n \r\n49,093.26 $ \r\n \r\n852,567.86 $ \r\n \r\n786,852.32 \r\n \r\n1,016,382.95 \r\n \r\n1,639,319.54 \r\n \r\n1,526,729.02 \r\n \r\n6,685.06 \r\n \r\n384,007.29 \r\n \r\n391,605.62 \r\n \r\n$ 1,072,161.27 $ 2,875,894.69 $ 2,705,186.96 \r\n \r\n$ \r\n \r\n659,691.06 $ 1,201,637.58 $ 1,138,527.20 \r\n \r\n145,991.36 113,468.43 90,182.00 \r\n46,196.03 29,838.95 \r\n \r\n281,624.20 117,763.57 120,158.60 \r\n4,830.56 46,931.12 30,739.54 1,084,533.43 \r\n \r\n225,571.22 124,575.97 116,707.90 \r\n9,522.68 26,541.37 23,418.08 1,065,598.12 \r\n \r\n20,139.28 1,163.72 \r\n \r\n$ 1,085,367.83 $ 2,888,218.60 $ 2,751,765.54 \r\n \r\n$ \r\n \r\n-13,206.56 $ \r\n \r\n-12,323.91 $ \r\n \r\n-46,578.58 \r\n \r\n13,206.56 \r\n \r\n81,775.42 \r\n \r\n128,755.00 \r\n \r\n4,545.98 -35.95 \r\n \r\n-5,584.88 5,183.88 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n73,961.54 $ -===-==8..1..:l:::::,7=75z.4:::i2= \r\n \r\n- 23- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002 \r\n \r\nASSETS Cash and Cash Equivalents Investments Accounts Receivable \r\n \r\nBOND PROCEEDS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\n$ \r\n \r\n803,132.05 \r\n \r\n$ 3,947,376.78 \r\n \r\nTotal Assets \r\n \r\n$ 3,947,376.78 $ =-==8:=0=3=1,=3;:;2.==05== \r\n \r\nLIABILITIES AND FUND EQUITY LIABILITIES \r\nCash Overdraft Accounts Payable \r\nTotal liabilities FUND EQUITY \r\nFund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects For SPLOST Projects Total Fund Equrty \r\nTotal liabilities and Fund Equity \r\n \r\n$ \r\n \r\n585,676.62 \r\n \r\n$ \r\n \r\n585,676.62 \r\n \r\n$ 3,361,700.16 $ \r\n \r\n803,132.05 \r\n \r\n$ 3,361,700.16 $ \r\n \r\n803,132.05 \r\n \r\n$ 3,947,376.78 $ =-==-==i8iiCO:;;3i!:::,1.3.=2.=05:=.. \r\n \r\nSee notes to the general-purpose financial statements. - 24- \r\n \r\n EXHIBIT\"G\" \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30. 2001 \r\n \r\n$ 2,067,193.36 $ 2,870,325.41 $ 1,192,758.52 \r\n \r\n3,947,376.78 \r\n \r\n154,280.41 \r\n \r\n154,280.41 \r\n \r\n156,268.73 \r\n \r\n$ 2,221,473.77 $ 6,971,982.60 $ 1,349,027.25 \r\n \r\n$ $ _ _---=6.o.:,1..::,53;:;..:..:;00=__ \r\n \r\n$ \r\n \r\n6,153.00 $ \r\n \r\n585,676.62 6,153.00 $ _ _-=2:.::.0I.:,84..:.;9::.:..1.:.:8~ \r\n591,829.62 $ _ _-=2:.=0J.::,84;..;.9;:;..:..:.:18:;... \r\n \r\n$ 3,361,700.16 \r\n \r\n803,132.05 \r\n \r\n$ 2,215,320.77 \r\n \r\n2,215,320.77 $ 1,328,178.07 \r\n \r\n$ 2,215,320.77 $ 6,380,152.98 $ 1,328,178.07 \r\n \r\n$ \r\n \r\n6,971,982.60 $ 1,349,027.25 \r\n \r\n- 25- \r\n \r\n BLECKLEY 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\nREVENUES \r\nTaxes Other Funds \r\nTotal Revenues EXPENDITURES \r\nCurrent Support Services Business Administration \r\nCapital Outlay Building and Building Improvements \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds from General Obligation Bonds Par Value \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\nFUND BALANCE JUNE 30 \r\n \r\nBOND PROCEEDS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n89.48604 \r\n \r\n$ \r\n \r\n89.486,04 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n39,710.32 \r\n \r\n$ \r\n \r\n$ \r\n \r\n39,710.32 $ \r\n \r\n$ \r\n \r\n49,775.72 $ \r\n \r\n26.493.95 26,493.95 -26.493.95 \r\n \r\n$ 4,200,000.00 $ \r\n-888,07556 $ 3,311,92444 $ \r\n$ 3,361,700.16 $ 0,00 \r\n \r\n829,626.00 829,626.00 803,132.05 \r\n0.00 \r\n \r\n$ 3,361,700.16 $ =======80;;,;;3~,1=3=2.0..5=- \r\n \r\nSee notes to the general-purpose financial statements. - 26- \r\n \r\n EXHIBIT\"H\" \r\n \r\nSPECIAL PURPOSE LOCAL OPTION \r\nSALES TAX \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ \r\n \r\n858,587.26 $ \r\n \r\n858,587.26 $ \r\n \r\n872,384.53 \r\n \r\n84,648.63 \r\n \r\n174,134.67 \r\n \r\n41,365.20 \r\n \r\n$ \r\n \r\n943,23589 $ 1,032,721.93 $ _---'9::...1...;;;;.3'\"'7-.,.;..49;;.;..7.;..;30- \r\n \r\n$ \r\n \r\n$ _ _-=5;.=.6z.:;,0.:.,:93;:...1.:..:9:... \r\n \r\n$ \r\n \r\n56,093.19 $ \r\n \r\n$ \r\n \r\n887,142.70 $ \r\n \r\n39,710.32 82,587.14 $ _ _1=.:::8;.=.51::,2=.;58::.:..4.;..1:... 122,297.46 $ _ _1=.:::8;.=.51::,2:::.;58;;.;..4.;..10910.424.47 $ _---'7;.,;;;2;.;;.8'-'.4..;;;.91.;.,;..3=2::... \r\n \r\n$ 4,200,000.00 $ \r\n \r\n0.00 \r\n \r\n829,626.00 \r\n \r\n-888,075.56 \r\n \r\n$ 4,141 ,550.44 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n887,142.70 $ 5,051,974.91 $ \r\n \r\n1,328,178.07 \r\n \r\n1,328,178.07 \r\n \r\n728,491.32 599,686.75 \r\n \r\n$ 2,215,320.77 $ 6,380,152.98 $ 1,328,178.07 \r\n \r\n- 27- \r\n \r\n BLECKLEY 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\nAgnculture, U S Department of Child Nutntlon Cluster Pass-Through From Georgia Department of EducalJon Food and NutrllJon Program Food SelVlceS School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of EducalJon Food and NutnlJon Program Food DlstnbuIJon 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 wrth Disablllbes Education Act Part B  Spadal Educabon Flow Through Preschool Capacity Building Improvement \r\nTotal Spadal Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Bementary and Secondary Education Act Tille I Grants to Local Educational Agendes Title II Eisenhower ProfeSSional Development Title III Technology Uteracy Challenge Fund Grants Title VI Innovabve EducalJon Program Strategies Class SIze Reduction Goals 2000 State and Local Educabon Systemic Improvement Grants VocalJonal Education - Basic Grants to States High School Program Basic Grant \r\nTotal U S. Department of Education \r\nTransportalJon, U. S. Department of Pass-Through From Georgia Department of PubliC Safety State and Community Highway Safety \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\n10553 10555 \r\n \r\nNlA $ 147,705,68 \r\n \r\n(2) \r\n \r\nNlA \r\n \r\n404,75642 $ 1,005,07568 (3) \r\n \r\n$ 552,462.10 $ 1,005,075,68 \r\n \r\n10,550 \r\n \r\nNlA \r\n \r\n70,47449 \r\n \r\n70,47449 \r\n \r\n$ 622,936 59 $ 1,075,550 17 \r\n \r\n84027 84,173 84,173 \r\n \r\nNlA $ 264,19812 $ \r\n \r\nNlA \r\n \r\n25,016,00 \r\n \r\nNlA \r\n \r\n5,21500 \r\n \r\n$ 294,42912 $ \r\n \r\n264,198 12 25,016,00 \r\n5,215.00 \r\n294,429,12 \r\n \r\n84.010 84.281 84,318 84,298 84,340 \r\n84.276 \r\n84.048 \r\n \r\nNlA \r\n \r\n412,241.36 \r\n \r\nNlA \r\n \r\n18,23858 \r\n \r\nNlA \r\n \r\n126,206,53 \r\n \r\nNlA \r\n \r\n19,157.00 \r\n \r\nNlA \r\n \r\n67,826.55 \r\n \r\n412,241.36 \r\n18,310 58 (3) \r\n126,206.54 19,157.00 67,826,88 \r\n \r\nNlA \r\n \r\n43,594,84 \r\n \r\n43,594.84 \r\n \r\nNlA \r\n \r\n34,68897 \r\n \r\n34,690 45 (3) \r\n \r\n$ 1,016,382 95 $ 1,016,456.77 \r\n \r\n20.600 \r\n \r\nNlA $ \r\n \r\n2,754,72 $ \r\n \r\n2,754,72 \r\n \r\nTotal Federal Flnanaal Assistance \r\nN/A = Not Available \r\n \r\n28 \r\n \r\n$ 11642,074.26 $ \r\n \r\n2,O94?6166 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 3D. 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 Dlstrlbubon Program represents the Federally assigned value of nonmonetary assistance for donated commodities receive\u003c! and/or consumed by the system during the current fiscal year \r\n(2) Expenditures for the School Breakfast Program were not mamtalned separately and are Induded In the 2002 NalJonal School Lunch Program. \r\n(3) Expenditures for ttus program mdude State. and/or Other Funds Expenditures are not maintained by fund source. \r\nMaJor Programs are identified by an astensk (*) m front of the CFDA number \r\nThe School Dlstrld did not proVIde Federal Assistance to any SubreCiplent \r\nThe accompanying schedule of expenditures of Federal awards Includes the Federal grant aclivrty of the Blackley County Board of Educabon and IS presented on the modified aeaual basis of accounbng which IS the basis of accounting used m the presentation of the general-purpose finanaal statements. \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 29- \r\n \r\n BLECKLEY COUNTY BOARP OF EPUCATION 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 Govemor's Emergency Funds (1) \r\nEducalJon, Georgia Department of Quality BasIC EducatIOn Direct Instructional Cost Kindergarten Program Kindergarten Program - Early IntervenlJon Program Pnmary Grades (1-3) Program Pnmary Grades - Early IntervenlJon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades Early ln1erventlon (4-5) Program Middle School (6-8) Program HlQh School General EducalJOn (9-12) Program VocalJonal Laboratory (9-12) Program Students wrth DlsabilltJes category II Category II! Category IV Gifted Student - Category VI Remedial EducalJOn Program Altemabve EducalJon Program Media canter Program Staff and Professlorl8l Development Indirect Cost 20 Days AddltJorl8l Instruction Categorical Grants Pupil Transportation Regular Bus Replacement Sparsrty Nursing Services PnnClpal Supplements Vocatlorl8lSupervisors MId-term Adjustment Hold-Harmless Education EquahzalJon Funding Grant Food Servu:es VocationmEducabon Other State Programs Health Insurance K-3 Statewide Readmg Program Men10r Teachers Outdoor Classrooms Preschool Handicapped Program Lottery Programs Asslsbve Technology Computers In the Classroom PoS1 Secondary Options \r\nOffice of School Readiness Pre-Kindergarten Program \r\nOffice of Treasury and FIScal Services PUblic School Employees Retirement \r\nCONTRACTS Human Resources, Georgia Department of Family Connection \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$ \r\n \r\n45,00000 \r\n \r\n$ \r\n \r\n45,00000 \r\n \r\n627,13200 88,82900 \r\n1,327,288 00 311,778.00 719,04100 86,53100 \r\n1,383,51000 981,76000 433,92400 \r\n243,66700 917,52900 100,40300 169,89800 \r\n38,177 00 102,91000 227,29300 \r\n41,371 00 1,469,27200 \r\n69,65900 \r\n \r\n381,86800 117,394 00 \r\n35,88900 60,988 00 \r\n9,494 00 18,17300 57,00700 989,93100 \r\n$ 23,12006 \r\n \r\n76,17400 \r\n \r\n151,543.21 29,812.00 4,696 00 750 00 34,23000 \r\n \r\n1,881.00 \r\n \r\n6,40000 63,72100 \r\n \r\n657,17960 \r\n \r\n26,88600 \r\n \r\n627,13200 88,82900 \r\n1,327,28800 311,77800 719,04100 86,53100 \r\n1,383,51000 981,76000 433,92400 \r\n243,66700 917,52900 100,40300 169,89800 \r\n38,177 00 102,91000 227,29300 \r\n41,371 00 1,469,272 00 \r\n69,65900 \r\n361,68800 117,394 00 \r\n35,68900 60,98600 \r\n9,494 00 16,17300 57,00700 989,93100 76,17400 23,12006 \r\n151,54321 29,81200 4,896 00 75000 34,230.00 \r\n6.40000 63,72100 \r\n1,88100 \r\n657,17960 \r\n26,68600 \r\n \r\n49,09326 \r\n \r\n49,09326 \r\n \r\n$ 11,326,452.27 $ 852,56786 $ 12,179,020 13 \r\n(1) The purpose of the funds are to make Improvements to the high school athletic facllrty. \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n- 30- \r\n \r\n BLECKLEY 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\nAcqulslbon. constructJon and equipping of Improvements at the pnmary, mIddle and high school, the central offices and the bus maintenance shop and acqulslbon of school buses \r\nPayment of the principal and Interest due on the $1,400,000.00 Bleckley County School Dlstnd General ObllgalJon School Bonds, Senes 1995 from February 1, 1998 through February 1, 2008 and redemption of all outstanding Bonds matunng on February 1, 2008 and thereafter on February 1, 2009 \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 3,256,00000 $ 3,256,000 00 $ \r\n \r\n56,093.19 $ 2,256,95092 Ongoing \r\n \r\n1,744,00000 \r\n \r\n1,744,000 00 \r\n \r\n111,505.00 \r\n \r\n380,21600 Ongoing \r\n \r\n$ 5,000,000.00 $ 5.000,000.00 $ 167,598.19 $ 2,637,166.92 \r\n \r\n(1) The School Drstnd's anginal cost eslJmate as speafied In the resolution calling for the ImposilJon of the Local OplJon Sales Tax \r\n(2) The School Drstnd's current estimate of total cost for the proJects. Includes all cost from project Inception to compJebon \r\n(3) The voters of Bleckley County approved the Imposlbon of a 1% sales tax to fund the above projects Amounts expended for these projeds 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 finanoal statements. \r\n \r\n- 31 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND - aUALlTY BASIC EDUCATION PROGRAM (gBEl \r\nALLOTMENTS AND EXPENPITURES - BY PROGRAM YEAR ENDED JUNE 30, 2002 \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 (4-5) Program Upper Elementary Grades-Ear1y Intervenllon (4-5) Program MIddle School (6-8) Program High School General Educallon (9-12) Program Vocallonal Laboratory (9-12) Program Students WIth Disabilities Category II Category III Category IV Gifted Student - Category VI Remedial Education Program A1tematlve 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 aBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n681,66900 $ 705,966,20 $ \r\n \r\n3,690,74 $ \r\n \r\n709,656,94 \r\n \r\n96,554 00 \r\n \r\n71,196,67 \r\n \r\n532,87 \r\n \r\n71,729.54 \r\n \r\n1,442,71300 1,216,258 57 \r\n \r\n22,277 14 \r\n \r\n1,238,535 71 \r\n \r\n338,891.00 \r\n \r\n327,130,68 \r\n \r\n2,79850 \r\n \r\n329,92918 \r\n \r\n781,57100 \r\n \r\n870,802.01 \r\n \r\n20,132.96 \r\n \r\n890,934 97 \r\n \r\n94,056.00 1,503,825.00 1,067,137.00 \r\n471,66000 1,371,31400 \r\n184,672.00 41,497.00 111 ,859.00 \r\n \r\n78,717,37 1,487,19009 1,471,79514 \r\n406,03800 \r\n242,298.98 950,695,81 \r\n66,700.85 241,36010 85,769,12 95,904.72 \r\n \r\n1,767.58 49,527,96 57,62651 51,092,10 \r\n4,354.49 12,061.01 \r\n1,972,60 7,336,69 2,82893 43,60305 \r\n \r\n80,484,95 1,536,71805 1,529,421 65 \r\n457,130,10 \r\n246,65347 962,756.82 \r\n68,673.45 248,696.79 88,598.05 139,507,77 \r\n \r\n$ \r\n \r\n8,187,41800 $ 8,317,824.31 $ 281,603,13 $ 8,599,427 44 \r\n \r\n247,058.00 44,96900 \r\n \r\n254,35904 7,621.58 \r\n \r\n42,478.55 37,94340 \r\n \r\n296,837,59 45,564 98 \r\n \r\nTOTAL aBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n8,479,44500 $ 8,579,804,93 $ 362,025.08 $ 8,941,830,01 \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- 32- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND - qUALITY BASIC EDUCATION PROGRAM (qBE) \r\nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 3D. 2002 \r\n \r\nSCHEDULE \"5\" \r\n \r\nBleckley County Elementary School Bleckley County Middle School Bleckley County High School Bleckley County Pnmary School 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\n1,798.068.00 $ \r\n \r\n1,817.933.91 \r\n \r\n2,061,446.00 \r\n \r\n2,116,149.04 \r\n \r\n1,955,938.00 \r\n \r\n2,437,404.96 \r\n \r\n2.260,107.00 \r\n \r\n2,227,939.53 \r\n \r\n111,859.00 \r\n \r\n$ \r\n \r\n8,187,418.00 $ ====8.,5.=.99::;,,4=2:=7:::.;.44= \r\n \r\nSee notes to the general-purpose financial statements. \r\n- 33- \r\n \r\n SECTIONll COMPLIANCE AND INTERNAL CONfROL REPORTS \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(4()4) 656 2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washmgton Street. S.W SUIte 214 Atlanta, Georgia 30334-8400 \r\nDecember 20, 2002 \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 Bleckley 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 fmancial statements of Bleckley County Board ofEducation as of and for the year ended June 30,2002, and have issued our report thereon dated December 20,2002. 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 reasonable assurance about whether Bleckley County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Bleckley 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-40 \r\n \r\n control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Bleckley County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6121-02-01 and FS-6121-02-02. \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 fmancial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FS-6121-0202 to be a material weakness. \r\nThis report is intended solely for the information and use of the management, members of the Bleckley 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\nR sell W. Hinton State Auditor \r\nRWH:as 2002YB-40 \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR (404\\6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washmgton Street. S. W Suite 214 Atlanta. Georgia 30334-8400 \r\nDecember 20, 2002 \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 Bleckley County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Bleckley County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. Bleckley 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 Bleckley County Board of Education's management. Our responsibility is to express an opinion on Bleckley 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 OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-I33 require that we plan and perfonn the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Bleckley County Board of Education's compliance with those requirements and perfonning such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal detennination on Bleckley County Board ofEducation's compliance with those requirements. \r\n2002SA-1O \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED 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-6121-00-0 1 FS-6121-00-02 FS-6121-01-01 FS-6121-0 1-02 \r\n \r\nFurther Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTIONIRESPONSES \r\n \r\nCASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-6121-01-01 \r\n \r\nWe concur with this finding, however, due to current budgetary constraints, the School District is unable to hire the additional staff required to clear this finding. The School District feels it has provided for the most appropriate assignment ofduties with the number of personnel available to perform the accounting functions. With staff limitations this finding cannot be totally resolved. \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6121-01-02 \r\n \r\nWe concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the School District has decided not to pursue the recording ofgeneral fixed assets on the financial statements. Weare looking into the implementation of this accounting standard for future implementation. \r\n \r\n In our opinion, the Bleckley 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, 2002. \r\nInternal Control Over Compliance \r\nThe management of Bleckley 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 Bleckley 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 OMB Circular A-B3. \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 Bleckley 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:as 2002SA-IO \r\n \r\n SECTIONID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTIONN FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2002 \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 Bleckley County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. \r\n \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Bleckley County Board of Education disclosed financial statement reportable conditions related to the following control categories. \r\n \r\nCash and Cash Equivalents General Ledger \r\n \r\nGeneral Fixed Assets \r\n \r\nOf the reportable conditions described above, General Fixed Assets is considered to be a material weakness. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the Bleckley 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 Bleckley 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 Bleckley County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .51O(a) ofOMB Circular A-133 The Bleckley County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n \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 \r\n \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n \r\n9. Low Risk Auditee The Bleckley County Board of Education did qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \r\n \r\n-I - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2002 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition Repeated from Prior Year Finding Control Number: FS-6121-02-01 \r\nThe School District did not provide for adequate separation of duties in the performance of accounting functions and related procedures related to cash and cash and equivalents and the general ledger. The following deficiencies were noted: \r\n(I) The bank reconciliations for all accounts were not reviewed by an individual independent of cash operations. \r\n(2) The individual recording cash receipts and performing bank deposit functions had custody of the signature plate and also had access to the general ledger. \r\nThese conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-6121-02-02 \r\nThe Bleckley County Board of Education failed to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owed 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\nill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n- 2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2000-h2001","title":"Bleckley County Board of Education, Cochran, Georgia, report on audit of 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, Bleckley County, 32.43444, -83.32784"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2001-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000.","Report year covers fiscal year.","Has supplements: Bleckley County Board of Education, Cochran, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Bleckley County Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Bleckley County Board of Education), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000, released 2001? (online surrogate); title from PDF cover (Georgia Government Publications database, viewed September 16, 2022).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed September 16, 2022)."],"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":["Bleckley County Board of Education--Appropriations and expenditures--Periodicals.","Bleckley County (Ga.). Board of Education","Education--Georgia--Bleckley County--Auditing--Periodicals.","Education--Georgia--Bleckley County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Georgia Government Documents--Serial"],"dcterms_title":["Bleckley County Board of Education, Cochran, Georgia, report on audit of 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-bb6-b2000-h2001"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-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":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":" BLECKLEY 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 INFORMATlONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHffilTS \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\nCBANGES 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 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\nSCHEDULES. \r\n \r\n1 SCHEDULE OF'EXPENDITURES OF F.EDERAL AWARDS \r\n \r\n24 \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n' \r\n \r\n26 \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n27 \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\n28 \r\n \r\n5 \r\n \r\nBY SITE \r\n \r\n29 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-l33 \r\nSECTIONlli 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 SECTION I FINANCIAL \r\n \r\n 'V. RIISSEI.I. \r\n \r\nHINTO/'\\ \r\n \r\nSTATE AUDITOR \r\n \r\n140416562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 WashinglOn Slreet. S.W.. Suite 214 Atlanta, Georgia 30334-X400 \r\n. February 11,2002 \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 Bleckley County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying general-purpose financial statements of the Bleckley 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 Bleckley 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 opmlOn. \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* School activity accounts maintained at the individual schools are not included in the \r\ngeneral-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. \r\n* The Board of Education did not recognize as expenditures, in the year ended \r\nJune 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 tha~ 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 Bleckley County Board of Education as ofJune 30,2001, 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\nIn accordance with Government Auditing Standards, we have also issue\u003c;l our report dated February 11, 2002, on our consideration of the Bleckley 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 Bleckley County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFeder~1 Awards as required by U. S. Office ofManagement and Budget Circular A-I33, Audits o/States. Local Governments. and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the \r\n \r\n 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\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\n \r\nRVVH:gp 200IARL-13 \r\n \r\nw~~ \r\nRu sell W. Hinton State Auditor \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \r\nALL FUND TYPES AND ACCOUNT GROUP JUNE 3D, 2001 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nInvestments \r\nAccounts Receivable \r\nInventories Food . Donated Commodities Purchased Food \r\nAmount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements \r\n \r\nGENERAL FUND \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ \r\n \r\n951,409.63 $ \r\n \r\n142.857.34 $ 1,192,758.52 \r\n \r\n600,000.00 \r\n \r\n147,571.57 \r\n \r\n132,476.67 \r\n \r\n156,268.73 \r\n \r\n31,222.87 15,525.64 \r\n \r\nTotal Assets \r\n \r\n$ 1,698,981.20 $ \r\n \r\n322,082.52 $ ===1=,3=4=9=,0=27=.:;;25= \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ 1,698,981.20 $ \r\n \r\n322,082.52 $ =~1,!,;;3,,;;49~,=02:=;7~.2~5~ \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\nDEBT SERVICE \r\nFUND \r\n \r\nACCOUNT GROUP GENERAL \r\nLONG-TERM DEBT \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ 2,287,025.49 $ 1,537,259.13 \r\n \r\n600,000.00 \r\n \r\n436,316.97 \r\n \r\n582,511.44 \r\n \r\n31,222.87 15,525.64 \r\n \r\n36,807.75 10,341.76 \r\n \r\n$' \r\n \r\n1,240,000.00 \r\n \r\n327,206.92 \r\n \r\n1,240,000.00 327,206.92 \r\n \r\n1,280,000.00 423,279.51 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n1,567;206.92 $ 4,937,297.89 $ 3,870,199.59 \r\n \r\n$ \r\n \r\n128,253.14 $ \r\n \r\n235,715.09 \r\n \r\n183,156.22 \r\n \r\n194,334.49 \r\n \r\n$ \r\n \r\n327,206.92 \r\n \r\n327,206.92 \r\n \r\n423,279.51 \r\n \r\n1,240,000.00 \r\n \r\n1,240,000.00 \r\n \r\n1,280,000.00 \r\n \r\n$ \r\n \r\n1,567,206.92 $ 1,878,616.28 $ 2,133,329.09 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n326,343.80 $ \r\n \r\n73.82 \r\n \r\n1,328,178.07 \r\n \r\n301,516.82 25,607.72 \r\n599,686.75 \r\n \r\n31,222.87 15,525.64 \r\n \r\n36,807.75 10,341.76 \r\n \r\n1,357;337.41 \r\n \r\n762,909.70 \r\n \r\n$ 3,058,681.61 $. 1,736,870.50 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n1,567,206.92 . $ 4,937,297.89 $ 3,870,199.59 \r\n \r\n-3- \r\n \r\n BLECKLEY 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 Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations \r\nCapital Outlay Debt Service \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures. \r\nOTHER FINANCING SOURCES \r\nCapital Leases \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\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ 10,850,281.74 $ 39,406.63 \r\n2,169,062.25 235,374.70 \r\n$. 13,294,125.32 $ \r\n \r\n786,852.32 1,526,729.02 \r\n391,605.62 \r\n2,705,186.96 \r\n \r\n$ 9,005,009.41 $ \r\n \r\n310,117.23 214,329.00 287,995.82 236,410.04 839,309.11 \r\n48,721.09 824,696.86 669,270.52 \r\n7,964.74 33,610.07 20,267.12 33,908.44 19,014.99 \r\n \r\n172,556.37 27,268.20 \r\n \r\n$ 12,750,449.01 $ \r\n \r\n$ \r\n \r\n543,676.31 $ \r\n \r\n1,138.527.20 225,571.22 124,575.97 116,707.90 \r\n9,522.68 26,541.37 23,418.08 1,065,598.12 \r\n20,139.28 1,163.72 \r\n2,751,765.54 -46,578.58 \r\n \r\n96,623.06 \r\n \r\n$ \r\n \r\n640,299.37 $ \r\n \r\n1,008,428.75 \r\n \r\n-46,578.58 128,755.00 \r\n \r\n-5,584.88 5,183.88 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ 1,648,728.12 $ ===8=1:;,,7=7=5.=42== \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\nDEBT SERVICE \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$ 11,637,134.06 $ 10,952,105.90 \r\n \r\n1,566,135.65 \r\n \r\n1,467,936.95 \r\n \r\n$ \r\n \r\n872,384.53 $ \r\n \r\n108,245.00 \r\n \r\n3,149,691.78 \r\n \r\n3,057,865.01 \r\n \r\n41,365.20 \r\n \r\n668,345.52 \r\n \r\n532,108.55 \r\n \r\n$ \r\n \r\n913,749.73 $ \r\n \r\n108,245.00 $ 17,021,307.01 $ 16,010,016.41 \r\n \r\n$ 10,143,536.61 $ 9,383,352.64 \r\n \r\n$ \r\n \r\n185,258.41 \r\n \r\n535,688.45 338,904.97 287,995.82 353,117.94 839,309.11 \r\n48,721.09 834,219.54 695,811.89 \r\n7,964.74 57,028.15 1,085,865.24 33,908.44 204,273.40 \r\n \r\n807,016.73 389,579.24 . 269,391.81 293,764.76 806,695.00 \r\n52,475.99 788,743.91 769,363.88 \r\n7,592.62 44,501.62 1,045,782.58 28,629.00 492,002.82 \r\n \r\n$ \r\n \r\n40,000.00 \r\n \r\n68,245.00 \r\n \r\n232,695.65 96,676.92 \r\n \r\n177,865.60 101,362.21 \r\n \r\n$ \r\n \r\n185,258.41 $ \r\n \r\n108,245.00 $ 15,795,717.96 $ 15,458,120.41 \r\n \r\n$ \r\n \r\n728,491.32 $ \r\n \r\n0.00 $ 1,225,589.05 $ \r\n \r\n551,896.00 \r\n \r\n$ \r\n \r\n728,491.32 $ \r\n \r\n599,686,75 \r\n \r\n96,623.06 \r\n \r\n216,849.04 \r\n \r\n0.00 $ \r\n0.00 \r\n \r\n1,322,212.11 $ \r\n1,736,870.50 \r\n \r\n768,745.04 980,955.08 \r\n \r\n-5,584.88 5,183.88 \r\n \r\n-9,579.26 -3,250.36 \r\n \r\n$ 1,328,178.07 $ \r\n \r\n0.00 $ 3,058,681.61 $ 1,736,870.50 - 5- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nBUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \r\nYEAR ENDED JUNE 30, 2001 \r\n \r\nEXHIBIT \"COO \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$ 10.672.728.11 9.082.00 \r\n2.193,891.00 146.739.00 \r\n \r\n$ 10.850.281.74 39,406,63 \r\n2.169,062.25 235.374.70 \r\n \r\nTotal Revenues \r\n \r\n$ 13.022,440.11 $ 13.294.125.32 \r\n \r\nEXPENDITURES \r\n \r\nCurrent Instruction Support Services Pup)1 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 Community Services Operations \r\nCapital Outlay Debt Service \r\n \r\n$ 9.075.089.15 $ 9.005.009.41 \r\n \r\n36'8.587.00 282,422.96 282.637.00 222.937.00 841.277.00 111.134.00 915.502.00 729.105.00 \r\n7,778.00 40.000.00 16,861.00 \r\n48.800.00 \r\n \r\n310.117.23 214.329.00 287.995.82 236,410.04 839.309.11 \r\n48.721.09 824.696.86 669.270.52 \r\n7.964.74 33,610.07 20.267.12 33,908.44 19.014.99 199.824.57 \r\n \r\nTotal Expenditures \r\n \r\n$ 12,942,130.11 $ 12,750,449.01 \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\n$ 80,310.00 $ 543.676.31 \r\n \r\nOTHER FINANCING SOURCES \r\n \r\nOther Sources \r\n \r\n96.623.06 \r\n \r\nExcess of Revenues and Other Financing Sources \r\n \r\nover (under) Expenditures \r\n \r\n$ \r\n \r\n80,310.00 $ 640.299.37 \r\n \r\nFUND BALANCE JULY 1, 2000 \r\n \r\n930.084.80 \r\n \r\n1,008,428.75 \r\n \r\nAdjustments Food Inventory - Net Change in Period \r\nDonated Commodities Purchased Food \r\n \r\n26,960.69 \r\n \r\nFUND BALANCE JUNE 30, 2001 \r\n \r\n$ 1,037,355.49 $ 1,648,728.12 \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$ 729,688.32 $ 786.852.32 1.590.361.00 1.526.729.02 \r\n \r\n337.000.00 \r\n \r\n391.605.62 \r\n \r\n$ 2,657.049.32 $ 2.705,186.96 \r\n \r\n$ 1.213.193.00 $ 1.138.527.20 \r\n \r\n235,402.32 113,140.00 \r\n \r\n225.571.22 124.575.97 \r\n \r\n122.592.00 \r\n \r\n116.707.90 \r\n \r\n8.900.00 24.833.00 \r\n29.964.00 988.279.00 \r\n \r\n9.522.68 26.541.37 \r\n23,418.08 1.065.598.12 \r\n \r\n21.303.00 $ 2,736,303.32 $ 2,751.765.54 $ -79.254.00 $ -46,578.58 \r\n \r\n$ -79.254.00 $ -46.578.58 \r\n \r\n132.277.39 \r\n \r\n128.755.00 \r\n \r\n22.712.38 \r\n \r\n-5.584.88 5,183.88 \r\n \r\n$ 75.735.77 $ 81,775.42 \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement. - 7- \r\n \r\n -------------------~--------- \r\n \r\nBLECKLEY COUNTY BOARD OF EDUCAnON \r\n \r\nEXHffiIT \"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 Bleckley 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\n, FUND ACCOUNTING \r\nThe School District uses funds and an account group to report on its fihancial'position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recon;led in the funds because they do not directly affect expendable available financial resources. \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\nAlthough \"school activity accounts\" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. \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 of a School District's educational activiti'es. 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. The~e transactions relate to resources obtained and used for services provided by a board of education. \r\n \r\n-8- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"0\" \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\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\nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. \r\nACCOUNT GROUP \r\nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. \r\nBASIS OF ACCOUNTING \r\nThe accounting and financial.reporting treatment applied to a fund is determined by its m'easurement 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. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \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\n-9- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHffiIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\n. JUNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES \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 of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As 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\nBUDGET \r\nThe Bleckley 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 of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \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\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash oJ}. hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial \r\n- 10- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON . \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\ninstitutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Fed~ral 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\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\n \r\n- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \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\nPROPERTY TAXES \r\n \r\nThe Bleckley County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) onNovember 22,2000 (levy date). Taxes were due on February 10,2001 (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 Bleckley County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $2,157,310.50. \r\n \r\nThe tax millage rate levied for the 2000 tax year (calendar year) for the Bleckley 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\n12.25 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 $980,629.53 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $1,341,530.73 has been collected or on June 30, 2002, 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 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 OBLIGATION BONDS \r\n \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. \r\n \r\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHffiIT \"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\nINTERFUND TRANSACTIONS \r\n \r\nThe School District has the following types of interfund transactions: \r\n \r\nReimbursements of expenditures initially made from a fund that are properly applicable to another \r\nfund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the \r\nfund that IS reimbursed. \r\n \r\nMEMORANDUM ONLY - TOTAL COLUMNS \r\n \r\nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to \r\n \r\nindicate that they are presented only to facilitate financial analysis. Data in these columns do not \r\n \r\npresent finan~ial position or results ofoperations in conformity with generally accepted accounting \r\n \r\nprinciples. Neither are such data comparable to a consolidation. Interfund eliminations have not \r\n \r\nbeen made in the aggregation of this data. \r\n \r\n. \r\n \r\nNote 2: DEPOSITS \r\n \r\nCOLLATERALIZATION OF DEPOSITS \r\n \r\nOfficial Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on \r\n \r\ndeposit at any time in any depository for a time longer than ten days a sum of money which has not \r\n \r\nbeen secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face \r\n \r\nvalue of such surety bond and the market value of securities pledged shall be equal to not less than \r\n \r\n110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. \r\n \r\nIf a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe \r\n \r\nsecurities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool \r\n \r\nbalance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, \r\n \r\nwaive the !equirement for security in the case ofoperating funds placed in demand deposit checking \r\n \r\naccounts. \r\n \r\n. \r\n \r\nAcceptable security for deposits consists of anyone 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(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- 13 - \r\n \r\n ------------------------------------------~--~ \r\n \r\nBLECKLEY 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 \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\nCATEGORIZAnON OF DEPOSITS At June 30, 2001, the bank balances were $3,974,033.76. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2001, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 400,000.00 \r\n \r\n2 \r\n \r\n2,994,946.50 \r\n \r\n3 \r\n \r\n579,087.26 \r\n \r\nTotal \r\n \r\n$ 3,974,033.76 \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\n- 14- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \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 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 School District has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The ScHool District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk 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. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\n2000 2001 \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n2,091.00 $ \r\n \r\n2,091.00 $ \r\n \r\n0.00 \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\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 $2,000,000.00. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ 50,000.00 $ 100,000.00 \r\n \r\n- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 200] \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Bleckley County Board of Education has entered into various lease agreements as lessee for energy and lighting retrofit programs, school buses and school electrical equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as ofthe date of their inception. \r\n \r\nGENERAL OBLIGAnON DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPumose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 1995 \r\n \r\n4.00% - 5.75% $ 1.240,000.00 \r\n \r\nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1,2000 \r\n \r\n$ 423,279.51 $ 1,280,000.00 $ 1,703,279.51 \r\n \r\nAdditions Capital Leases \r\n \r\n96,623.06 \r\n \r\n96,623.06 \r\n \r\nDeductions Payments Debt Retired \r\n \r\n192,695.65 \r\n \r\n40,000.00 \r\n \r\n192,695.65 40,000.00 \r\n \r\nBalance June 30, 2001 \r\n \r\n$ 327.206.92 $.lJ40,000.00 $ 1.567,206.92 \r\n \r\nAt June 30,2001, payments due by fiscal year which includes principal and interest for these items \r\n \r\nare as follows: \r\n \r\n. \r\n \r\n- 16- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \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 5: GENERAL LONG-TERM DEBT \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal Debt \r\n \r\n2002 2003 . 2004 2005 2006 2007 - 2011 2012 - 2016 \r\n \r\n$ 181,636.43 $ 11.1,505.00 .$ 293,141.43 \r\n \r\n142,244.24 \r\n \r\n114,502.50 \r\n \r\n256,746.74 \r\n \r\n36,963.94 \r\n \r\n117,227.50 \r\n \r\n154,191.44 \r\n \r\n124,670.00 \r\n \r\n124,670.00 \r\n \r\n121,550.00 \r\n \r\n121,550.00 \r\n \r\n628,525.00 \r\n \r\n628,525.00 \r\n \r\n660,337.50 \r\n \r\n660,337.50 \r\n \r\nTotal Principal and Interest $ 360,844.61 $ 1.878.317.50 $ 2.239.162.11 \r\n \r\nDeduct: Imputed Interest \r\n \r\n33,637.69 \r\n \r\nNet Present Value of Future Minimum Lease Payments $ 327,206..92 \r\n \r\nNote 6: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and expenditures in the amount of $202,553.63 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$157,610.78 \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $9,549.85 \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 $35,393.00 \r\n \r\n- 17 - \r\n \r\n BLECKLEY 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\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\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements. \r\nNote 8: SUBSEQUENT EVENTS \r\nOn September 18, 2001, the voters of Bleckley County voted in favor of a Special Purpose Local Option Sales Tax referendum for educational purposes. This imposition ofthe tax approved by the voters, as stated on the Official Ballot Bleckley County is as follows: \r\n\"Shall a special one percent sales and use tax be imposed in Bleckley County for a period of time not to exceed 20 calendar quarters, commencing upon the expiration of the special one percent sales and use tax currently being levied in Bleckley County, and for the raising ofnot ' more than $6,000,000 for the purposes of providing funds to payor to be applied toward the cost ofthe acquisition, construction, furnishing and equipping ofa new high school, including the acquisition of any property necessary or desirable therefore, the maximum cost of such capital outlay project not to exceed $6,000,0001 \r\nIf imposition of the tax is approved by the voters, such vote shall also constitute approval of the issuance of general obligation debt of Bleckley County School District in the principal amount of$4,200,000 to pay a portion ofthe above-described capital outlay project, including capitalized interest through,August 1,2002.\" \r\nNote 9: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 9: RETIREMENT PLANS \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2001 2000 1999 \r\n \r\n100% 100% 100% \r\n \r\n$ 1,015,509.35 $ 980,380.17 $ 966,218.54 \r\n \r\n- 19- \r\n \r\n BLECKLEY 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\nTotal Assets \r\nLIABILITIES AND FUND EQUITY LIABILITIES \r\nCash Overdraft Accounts Payable Salaries Payable \r\nTotal Liabilities FUND EQUITY \r\nFund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity \r\nTotal Liabilities and Fund Equity \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n69,395.36 $ \r\n \r\n86,904.79 \r\n \r\n2,452.99 \r\n \r\n31,222.87 15,525.64 \r\n \r\n$ \r\n \r\n118,596.86 $ ===8;;;;;6~,9=0=4':;,,;79~ \r\n \r\n$ \r\n \r\n1,724.49 $ \r\n \r\n16,916.35 \r\n \r\n48,303.51 \r\n \r\n69,988.44 \r\n \r\n$ \r\n \r\n50,028.00 $ \r\n \r\n86,904.79 \r\n \r\n$ \r\n \r\n31,222.87 \r\n \r\n15,525.64 \r\n \r\n21,820.35 $ \r\n \r\n$ \r\n \r\n68,568.86 $ \r\n \r\n0.00 0.00 \r\n \r\n$ \r\n \r\n118,596.86 $ ===8=61,;;,9=04';';\",;,,;79= \r\n \r\nSee notes to the general-purpose financial statements. - 20- \r\n \r\n EXHIBIT IIE\" \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\n156,300.15 $ \r\n \r\n221,238.44 \r\n \r\n$ \r\n \r\n130,023.68 \r\n \r\n132,476.67 \r\n \r\n188,511.83 \r\n \r\n31,222.87 15,525.64 \r\n \r\n36,807.75 10,341.76 \r\n \r\n$ \r\n \r\n130,023.68 $ \r\n \r\n335,525.33 $ ==4=5=6.,8.,.;;;,;99=.7=8= \r\n \r\n$ \r\n \r\n13,442.81 $ \r\n \r\n13,442.81 \r\n \r\n38,510.04 \r\n \r\n57,150.88 $ \r\n \r\n133,810.29 \r\n \r\n64,864.27 \r\n \r\n183,156.22 \r\n \r\n194,334.49 \r\n \r\n$ \r\n \r\n116,817.12 $ \r\n \r\n253,749.91 . $ \r\n \r\n328,144.78 \r\n \r\n.$ \r\n \r\n73.82 $ \r\n \r\n73.82 $ \r\n \r\n25,607.72 \r\n \r\n31,222.87 15,525.64 \r\n \r\n36,807.75 10,341.76 \r\n \r\n13,132.74 \r\n \r\n34,953.09 \r\n \r\n55,997.77 \r\n \r\n$ \r\n \r\n13,206.56 $ \r\n \r\n81,775.42 $ \r\n \r\n128,755.00 \r\n \r\n$ \r\n \r\n130,023.68 $ \r\n \r\n335,525.33 $ ==4=5=6.,8.,.;;;,;99=.7=8= \r\n \r\n- 21 - \r\n \r\n BLECKLEYCOUNTY 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\nFUND BALANCE JUNE 30 \r\nSee notes to the general-purpose financial statements. - 22- \r\n \r\n$ \r\n \r\n68,568,86 $ ====0;;;,;,=00,,= \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\n50,000.00 $ \r\n \r\n786,852.32 $ \r\n \r\n919,036.09 \r\n \r\n922,867.29 \r\n \r\n1,526,729.02 \r\n \r\n1,467,936.95 \r\n \r\n20,344.60 \r\n \r\n391,605.62 \r\n \r\n356,191.33 \r\n \r\n$ \r\n \r\n993,211.89 $ 2,705,186.96 $ 2,743,164.37 \r\n \r\n$ \r\n \r\n641,974.69 $ 1,138,527.20 $ 1,083,163.65 \r\n \r\n107,292.24 122,566.14 93,103.01 \r\n25,625.03 22,995.19 \r\n \r\n225,571.22 124,575.97 116,707.90 \r\n9,522.68 26,541.37 23,418.08 1,065,598.12 \r\n \r\n392,710.97 67,307.60 117,310.71 33,006.89 33,453.03 30,680.62 \r\n1,015,495.64 \r\n \r\n20,139.28 U63.72 \r\n \r\n9,307.08 1,344.42 \r\n \r\n$ 1,013,556.30 $ 2,751 ,765.54 $ 2,783,780.61 \r\n \r\n$ \r\n \r\n-20,344.41 $ \r\n \r\n-46,578.58 $ \r\n \r\n-40,616.24 \r\n \r\n29,446.36 \r\n \r\n$ \r\n \r\n-20,344.41 $ \r\n \r\n-46,578.58 $ \r\n \r\n-11,169.88 \r\n \r\n33,550.97 \r\n \r\n128,755.00 \r\n \r\n152,754.50 \r\n \r\n-5,584.88 5,183.88 \r\n \r\n-9,579.26 -3,250.36 \r\n \r\n$ \r\n \r\n13,206.56 $ \r\n \r\n81,775.42 $ ==1=2=8=,7=55=.0:=0= \r\n \r\n- 23- \r\n \r\n BLECKLEY 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\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\nCorporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs \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 Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants 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 10 \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\nN/A \r\n \r\n$ 143.950.83 \r\n \r\n(2) \r\n \r\nN/A \r\n \r\n397,163.19 $ \r\n \r\n1,011,773.21 (3) \r\n \r\n$ 541,114.02 $ \r\n \r\n1,011,773.21 \r\n \r\n10.550 \r\n \r\nN/A \r\n \r\n62.747.71 \r\n \r\n62,747.71 \r\n \r\n$ 603.861.73 $ \r\n \r\n1.074.520.92 \r\n \r\n94.004 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n3,803.24 \r\n \r\n84.027 84.173 84.173 \r\n \r\nN/A \r\n \r\n$ 217,826.14 $ \r\n \r\nN/A \r\n \r\n27,117.00 \r\n \r\nN/A \r\n \r\n6,306.38 \r\n \r\n$ 251.249.52 $ \r\n \r\n217,826.14 27,117.00 6.306.38 \r\n251.249.52 \r\n \r\n84.010 84.281 84.318 84.298 84.340 \r\n84.276 \r\n84.048 \r\n \r\nN/A N/A . \r\nN/A N/A \r\nN/A \r\n \r\n344,269.88 14,665.59 90,975.00 10,401.29 54,498.00 \r\n \r\n344.269.88 \r\n14.593.59 98,216.70 16,792.67 54,498.00 \r\n \r\nNlA \r\n \r\n126,405.16 \r\n \r\n134,466.07 \r\n \r\nN/A \r\n \r\n30,402.85 \r\n \r\n$ 922,867.29 $ \r\n \r\n30,511.52 944.597.95 \r\n \r\n24 \r\n \r\n BLECKLEY 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\nJustice, U. S. Department of Pass-Through From Bleckley, County Board of Commissioners Title V Delinquency Prevention Program \r\nTransportation, U. S. Department of Pass-Through From Georgia Department of Public Safety State and Community Highway Safety \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY 10 \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n16.548 \r\n \r\nN/A \r\n \r\n$ 31,221.36 $ \r\n \r\n31,221.36 \r\n \r\n20,600 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n8,185.27 $ \r\n \r\n8,530.11 \r\n \r\nTotal Federal Financial Assistance \r\n= N/A Not Available \r\n \r\n$ 1,566,135.65 $==2=-,0=6=2\"\",6=73;';';;:,;58= \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 School Breakfast Program were not maintained separately and are included in th~ 2001 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 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 Bleckley 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- 25- \r\n \r\n BLECKLEY 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 Governor's Emergency Funds (1) \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 School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category III Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program . Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funaing Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Mentor Teachers Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Computers in the Classroom \r\nOffice of School Readiness Pre-Kindergarten Program \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nCONTRACTS Education, Georgia Department of Reading First Program \r\nHuman Resources, Georgia Department of Family Connection \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$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000,00 \r\n \r\n537,651,00 48,852,00 1,337,542,00 248,957,00 780,299.00 1,297,890.00 987,362,00 427,653.00 \r\n228,459.00 900,941.00 113,149.00 156,636,00 123,126.00 100,089,00 223,822.00 60,132,00 1,482,358,00 \r\n \r\n342,925.00 111.245.00 61.987,00 \r\n9,685.00 15,307,00 18,090.00 930,822.00 \r\n$ 22,551.00 \r\n \r\n73,164,00 \r\n \r\n1,942.97 157,610,78 \r\n5,053.00 30.273.00 2,841.14 9,549.85 \r\n \r\n47,469.00 \r\n \r\n616,219.32 \r\n \r\n35,393.00 \r\n \r\n537,651.00 48,852,00 1,337,542,00 248,957,00 780,299.00 1,297,890,00 987,362,00 427,653.00 \r\n228,459.00 900,941.00 113,149.00 156.636.00 123,126.00 100.089.00 223,822.00 60,132.00 1,482,358.00 \r\n342,925.00 111,245.00 61,987,00 \r\n9,685.00 15,307.00 18,090,00 930,822,00 73,164.00 22.551,00 \r\n1.942.97 157,610.78 \r\n5,053.00 30,273,00 2,841.14 9,549.85 \r\n47,469.00 \r\n616,219.32 \r\n35,393,00 \r\n \r\n30,088.00 \r\n \r\n50,000.00 \r\n \r\n30.088.00 50,000.00 \r\n \r\n$ 10,850,281.74 $ 786,852.32 $ 11,637,134.06 (1) The purpose of the funds are to purchaselinstalilighting for Bleckley County Schools. See notes to the general-purpose financial statements. \r\n- 26 \r\n \r\n BLECKLEY 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\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\nAcquisition, construction and equipping \r\n \r\nof improvements at the primary, middle \r\n \r\nand high school, the central offices and \r\n \r\nthe bus maintenance shop and acquisition \r\n \r\nof school buses \r\n \r\n' \r\n \r\n$ 3,256,000.00 $ 3,256,000.00 $ 185,258.41 $ 2,071,692.51 Ongoing \r\n \r\nPayment of the principal and interest due on the $1,400,000,00 Bleckley County School District General Obligation School Bonds, Series 1995. from February 1, 1998 through February 1, 2008 and redemption of all outstanding Bonds maturing on February 1, 2008 and thereafter on February 1, 2009 \r\n \r\n1,744,000.00 1,744,000.00 \r\n \r\n108,245.00 \r\n \r\n271,971.00 Ongoing , \r\n \r\n$ 5,000,000.00 $ 5,000,000.00 $ 293,503.41 $ 2,343,663.51 \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 iotal cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Bleckley County approved the imposition of a 1% sales tax to fund the above projects. Aniounts 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 general-purpose financial statements. \r\n \r\n- 27- \r\n \r\n BLECKLEY 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\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n8,180,118.00 $ 8,380,442.77 $ 366,981.09 $ 8.747,423,86 \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- 28- \r\n \r\n BLECKLEY 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\nBleckley County Elementary School Bleckley County Middle School Bleckley County High School Bleckley.County Primary School 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\n1,800,886.00 $ \r\n \r\n1,730,489.07 \r\n \r\n1,884,773.00 \r\n \r\n2,087,945.20 \r\n \r\n2,001,777.00 \r\n \r\n2,386,171.75 \r\n \r\n2,077,827.00 \r\n \r\n2,196,158.48 \r\n \r\n108,119.00 \r\n \r\n$ \r\n \r\n7,873,382.00 $ ====8:=,4=0=0,,=,7..6.=4..5..=0 \r\n \r\nSee notes to the general-purpose financial statements. - 29- \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n RUSSELl. \\V. HINTON \r\nSTATE AUDITOR 1404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washingtoll Street. S.W.. Suile 214 \r\nAtl:mla. Georgia :1o:n-l-X.lOO \r\nFebruary 11, 2002 \r\n \r\nHo~orab!e Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation \r\nand Superintendent and Members of the B1eckley 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 Bleckley County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated February 11, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in .the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nCompliance \r\nAs part of obtaining reasonable assurance about whether B1eckley County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Bleckley County Board of Education's internal control over financial reporting,in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \r\n2001YB-40 \r\n \r\n control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation, of the internal control over financial reporting that, in ourjudgment, could adversely affect Bleckley County Board ofEducati~n's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6121-0 1-01 and FS-6121-01-02. \r\n \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, ofthe reportable conditions described above, we consider item FS-6121-,O 102 to be a material weakness. \r\n \r\nThis report is intended solely for the infornlation and use of the management, members of the \r\n \r\nBleckley County Board of Education, Federal awarding agencies and pass-through entities and is not \r\n \r\nintended to be and should not be used by anyone other than these specified parties. \r\n \r\n. \r\n \r\nRespectfully su~ \r\n \r\nRWH:gp 2001YB-40 \r\n \r\nR sell W. Hinton State Auditor \r\n \r\n RUSSEll. \\V. HINTOIlo: \r\nSTATE AUDITOR (404) 6562174 \r\n \r\n~tK\\JYl\"\\~ '~9['~.d...u~. .j.',.'\".5.f;.:~ o.:~./',i\\:-/ \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washilll:!toll Street. S.W.. Suile 214 Atlanta. Georgia 3W34-X4()() \r\nFebruary 11,2002 \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 Bleckley County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Bleckley County Board of Education with the types of compliance requirements described in the Us. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2001. Bleckley County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Bleckley County Board of Education's management. Our responsibility is to express an opinion on Bleckley 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 ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and 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 Bleckley 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 Bleckley County Board of Education's compliance with those requirements. \r\n2001SA-IO \r\n \r\n In our opinion, the Bleckley 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 Bleckley 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 Bleckley 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 detern1ine our auditinOg procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. \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 jn 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\nThis report is intended solely for the information and use of the management, members of the Bleckley 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\nJJ l\\ ~ ~ \r\nRu ell W. Hinton State Auditor \r\nRWH:gp 200ISA-IO \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE ' \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 200 I \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-6121-99-0 I FS-6121-99-02 FS-6121-00-0 I FS-6121-00-02 \r\n \r\nFurther Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nCASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-6121-00-01 \r\n \r\nDue to current budgetary constraints, the School District is unable to hire the additional staff required to clear this finding. The School District feels it has provided for the most appropriate assignment of duties with the number of personnel available to perform the accounting functions. With staff limitations this finding cannot be totally resolved. \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6121-00-02 \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. In Fiscal Year 2003, our School District will begin to resolve this finding. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2001 \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 Bleckley COl;lnty Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. \r\n \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Bleckley County Board of Education disclosed financiiil statement reportable conditions related to the following control categories. \r\n \r\nCash and Cash Equivalents \r\n \r\nGeneral Fixed Assets \r\n \r\nOf the reportable conditions described above, General Fixed Assets is considered to be a material weakness. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the Bleckley 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 Bleckley 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 Bleckley County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .51 O(a) of OMB Circular A-I33 The Bleckley County Board of Education's audit did not disclose audit findings required to be reported by section .5IO(a) ofOMB Circular A-l33. \r\n \r\n7. Major Programs Federal awards audited as major programs are as follows: 10.550 Food and Nutrition Program - Food Distribution Program 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program \r\n \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n \r\n9. Low Risk Auditee The Bleckley County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education. \r\n \r\n- 1- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2001 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition Repeated From Prior Year Finding Control Number: FS-6l21-01-01 \r\n \r\nThe School District did not provide for adequate separation of duties in the performance of accounting functions and related procedures related to cash and cash and equivalents. The following deficiencies were noted: \r\n \r\n1) The bank reconciliations for all accounts were not reviewed by an individu,al independent \r\n \r\nI' \r\n \r\n,of cash operations. \r\n \r\nI \r\n \r\n2) The individual recording cash receipts also performed bank deposit functions. Additionally, this individual had custody ofthe signature plate and also had access to the general ledger. \r\n \r\nThese conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. \r\n \r\nManagement's Response: \r\n \r\nWe concur with this finding, however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment of duties with the number of personnel available to perform the accounting functions. With staff limitations this finding cannot be totally resolved. Date inapplicable. \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6121-01-02 \r\n \r\nThe Bleckley County Board of Education failed to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should \r\n \r\n-2- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 200 I \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nGENERAL FIXED ASSETS \r\n \r\nFailure to Maintain General Fixed Assets Account Group \r\n \r\nReportable Condition - Material Weakness \r\n \r\nRepeated From Prior Year \r\n \r\n. \r\n \r\nFinding Control Number: FS-6121-01-02 \r\n \r\ninclude an inventory of land, 'buildings and equipment owned by the School District and should \r\n \r\ninclude, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, \r\n \r\nlocation, and description. Detailed records should be maintained ofall additions and deletions to the \r\n \r\nGeneral Fixed Assets Account Group. \r\n \r\n. \r\n \r\nManagement's Response: \r\n \r\nWe concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. Weare looking into the implementation of this accounting standard for future implementation. Date inapplicable. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n-3- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b1999-h2000","title":"Bleckley County Board of Education, Cochran, Georgia, report on audit of the fiscal 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, Bleckley County, 32.43444, -83.32784"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2000-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000.","Report year covers fiscal year.","Has supplements: Bleckley County Board of Education, Cochran, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Bleckley County Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Bleckley County Board of Education), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000, released 2001? (online surrogate); title from PDF cover (Georgia Government Publications database, viewed September 16, 2022).","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed September 16, 2022)."],"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":["Bleckley County Board of Education--Appropriations and expenditures--Periodicals.","Bleckley County (Ga.). Board of Education","Education--Georgia--Bleckley County--Auditing--Periodicals.","Education--Georgia--Bleckley County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Georgia Government Documents--Serial"],"dcterms_title":["Bleckley County Board of Education, Cochran, Georgia, report on audit of the fiscal 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-bb6-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-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":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"STAlE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\nGtA \r\n.A8oo ,1\u003c 1 \r\n26 136 \r\n)99\u003c1- 2 DOO \r\nI \r\nSLECKLEYCOUNTYBOARD OF EDUCATION \r\nCOCHRAN, GEORGIA \r\nREPORT ON AUDfT OF THE FINANCIAL STATEMENTS FOR THEFISCAL YEAR ENDED JUNE30, 2000 \r\nRussellW. Hinton . State Auditor \r\n \r\n BLECKLEY 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 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\nSCHEDULES \r\n \r\n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n22 \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n24 \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n25 \r\n \r\nANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \r\n \r\n4 \r\n \r\nOVERALL \r\n \r\n27 \r\n \r\n5 \r\n \r\nBY PROGRAM \r\n \r\n28 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\nSECTION ill 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 SECTION I FINANCIAL \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR (404) 6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta. Georgia 30334-8400 \r\nFebruary 8, 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 Bleckley 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 Bleckley County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the Bleckley 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 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 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 conform to generally accepted accounting principles. \r\n2000ARL-13 \r\n \r\n * School activity accounts maintained at the individual schools are not included in the \r\ngeneral purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. \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 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 Bleckley County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated February 8,2001, on our consideration of the Bleckley 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 Bleckley County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S. Office ofManagement and Budget Circular A-133, Audits o/States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit 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\n2000ARL-13 \r\n \r\n A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \r\nRespectfully submitted, \r\n-~IIU(,.... ~.4l. \r\nRu ell W. Hinton State Auditor \r\nRWH:gp 2000ARL-13 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \r\nALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2000 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\nAmount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements \r\n \r\nGENERAL FUND \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ \r\n \r\n850,721.54 $ \r\n \r\n221,238.44 $ \r\n \r\n465,299.15 \r\n \r\n234,581.42 \r\n \r\n188,511.83 \r\n \r\n159,418.19 \r\n \r\n36,807.75 10,341.76 \r\n \r\nTotal Assets \r\n \r\n$ 1,085.302.96 $ \r\n \r\n456,899.78 $ ==6=2=4=,7=1=7.=34== \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ 1,085,302.96 $ \r\n \r\n456,899.78 $==6;;2;,,;4,!,;,,7,,;.17;,,;.34~ \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. -2- \r\n \r\n EXHIBIT \"A\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\n$ \r\n \r\n0.00 \r\n \r\nACCOUNT GROUP GENERAL \r\nLONG-TERM DEBT \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$ 1,537,259.13 $ 1,002,928.69 \r\n \r\n582,511.44 \r\n \r\n306,316.45 \r\n \r\n36,807.75 10,341.76 \r\n \r\n46,387.01 13,592.12 \r\n \r\n$ \r\n \r\n1,280,000.00 \r\n \r\n423,279.51 \r\n \r\n1,280,000.00 423,279.51 \r\n \r\n1,315,000.00 349,296.07 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n1,703,279.51 $ 3,870,199.59 $ 3,033,520.34 \r\n \r\n$ \r\n \r\n235,715.09 $ \r\n \r\n218,067.59 \r\n \r\n194,334.49 \r\n \r\n170,201.60 \r\n \r\n$ \r\n \r\n423,279.51 \r\n \r\n423,279.51 \r\n \r\n349,296.07 \r\n \r\n1,280,000.00 \r\n \r\n1,280,000.00 \r\n \r\n1,315,000.00 \r\n \r\n$ \r\n \r\n1,703,279.51 $ 2,133,329.09 $ 2,052,565.26 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n301,516.82 $ \r\n \r\n218,548.27 \r\n \r\n25,607.72 \r\n \r\n26,293.70 \r\n \r\n599,686.75 \r\n \r\n296,604.48 \r\n \r\n36,807.75 10,341.76 \r\n762,909.70 \r\n$ 1,736,870.50 $ \r\n \r\n46,387.01 13,592.12 \r\n379,529.50 \r\n980,955.08 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n1,703,279.51 $ 3,870,199.59 $ 3,033,520.34 \r\n \r\n-3- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2000 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ 1,008,428.75 $===12=8.,;,,7=5=5.=00::;.. \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. -4- \r\n \r\n EXHIBIT\"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30,1999 \r\n \r\n$ \r\n$ 851,244.20 $ 104,750.00 14,304.71 \r\n \r\n10,952,105.90 $ 1,467,936.95 3,057,865.01 532,108.55 \r\n \r\n10,298,392.91 1,365,575.56 2,703,988.87 510,660.53 \r\n \r\n$ 865,548.91 $ 104,750.00 $ 16,010,016.41 $ 14,878,617.87 \r\n \r\n$ 9,383,352.64 $ 8,583,190.88 \r\n \r\n$ 92,967.80 490,131.85 \r\n \r\n807,016.73 389,579.24 269,391.81 293,764.76 806,695.00 \r\n52,475.99 788,743.91 769,363.88 \r\n7,592.62 44,501.62 1,045,782.58 28,629.00 492,002.82 \r\n \r\n725,696.71 358,820.59 272,511.08 291,225.09 712,900.27 50,453.02 719,346.19 617,349.92 \r\n6,761.12 47,796.69 983,225.64 26,180.79 1,267,393.43 \r\n \r\n62,923.18 $ 35,000.00 \r\n \r\n9,411.61 \r\n \r\n69,750.00 \r\n \r\n177,865.60 101,362.21 \r\n \r\n186,045.74 107,047.44 \r\n \r\n$ 655,434.44 $ 104,750.00 $ 15,458,120.41 $ 14,955,944.60 \r\n \r\n$ 210,114.47 $ \r\n \r\n0.00 $ \r\n \r\n551,896.00 $ \r\n \r\n-77,326.73 \r\n \r\n92,967.80 \r\n$ 303,082.27 $ 296,604.48 \r\n \r\n216,849.04 \r\n \r\n43,220.08 \r\n \r\n0.00 $ 0.00 \r\n \r\n768,745.04 $ 980,955.08 \r\n \r\n-34,106.65 1,011,152.76 \r\n \r\n-9,579.26 -3,250.36 \r\n \r\n1,931.61 1,977.36 \r\n \r\n$ 599,686.75 $ \r\n \r\n0.00 $ 1,736,870.50 $ =====9=8:=01:,9=55=.0;:,;;8... -5- \r\n \r\n BLECKLEY 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\nEXHIBIT\"C\" \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$ 9,612,730.45 $ 10,033,069,81 \r\n \r\n2,350,000.00 103,000.00 \r\n \r\n2,101,870.81 161,612.51 \r\n \r\nTotal Revenues \r\n \r\n$ 12,065,730.45 $ 12,296,553.13 \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 Central Support Services Other Support Services Food Services Operation Community Services Operations \r\nCapital Outlay Debt Service \r\n \r\n$ 8,127,017.27 $ 8,300,188.99 \r\n \r\n419,507.00 292,242.00 269,549.00 183,288,00 815,467.00 108,121.00 835,138.00 598,186.00 \r\n15,800.00 30,657.00 \r\n500,000.00 \r\n \r\n414,305.76 322,271.64 269,391.81 176,454,05 806,695.00 \r\n52,475.99 755,737.02 642,943.05 \r\n7,592.62 13,821.00 30,286.94 28,629.00 \r\n1,870.97 91,491.52 \r\n \r\nTotal Expenditures \r\n \r\n$ 12,194,972.27 $ 11,914,155.36 \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\n$ -129,241.82 $ 382,397.77 \r\n \r\nOTHER FINANCING SOURCES \r\n \r\nOther Sources \r\n \r\n94,434.88 \r\n \r\nExcess of Revenues and Other Financing Sources \r\n \r\nover (under) Expenditures \r\n \r\n$ \r\n \r\n-129,241.82 $ \r\n \r\n476,832.65 \r\n \r\nFUND BALANCE JULY 1.1999 \r\n \r\n530,267.23 \r\n \r\n531,596.10 \r\n \r\nAdjustments Food Inventory Net Change in Period \r\nDonated Commodities Purchased Food \r\n \r\n55,960.18 \r\n \r\nFUND BALANCE JUNE 30, 2000 \r\n \r\n$ 456,985.59 $ 1,008,428.75 \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$ 767,152.39 $ 919,036.09 \r\n \r\n1,422,791.74 \r\n \r\n1,467,936.95 \r\n \r\n351,303.00 \r\n \r\n356,191.33 \r\n \r\n$ 2,541,247.13 $ 2,743,164.37 \r\n \r\n$ 1,123,768.49 $ 1,083,163.65 \r\n \r\n412,807.00 117,626.00 \r\n \r\n392,710.97 67,307.60 \r\n \r\n126,324,00 \r\n \r\n117,310,71 \r\n \r\n40,675,39 17,070.00 \r\n32,508.00 989,482.00 \r\n \r\n33,006.89 33,453,03 \r\n30,680,62 1,015,495.64 \r\n \r\n10,651.50 $ 2,860,260.88 $ 2,783,780.61 $ -319,013.75 $ -40,616.24 \r\n \r\n29,446.36 \r\n \r\n$ -319,013.75 $ -11,169.88 \r\n \r\n154,975.66 \r\n \r\n152,754.50 \r\n \r\n-16,285.31 \r\n \r\n-9,579.26 -3,250.36 \r\n \r\n$ -180,323.40 $ 128,755.00 \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. -7- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHffiIT \"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 Bleckley 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 of all the organizations that compose its legal entity. \r\nFUND ACCOUNTING \r\nThe Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \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\nAlthough \"school activity accounts\" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general pwpose financial statements. . \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 and the account group 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 fmancial 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\n \r\n-8- \r\n \r\n BLECKLEY 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\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\nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. \r\nACCOUNT GROUP \r\nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. \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 governmentalfunds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \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 determined 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 \r\n-9- \r\n \r\n BLECKLEY 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\nperiod beginning in early August 1999 and ending in late May 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in August 1999 and ending in July 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board beginning in September 1999 and ending in August 2000. As of June 30, 2000, compensation under these employment contracts had been earned, but one ofthe twelve monthly payments; due for July 2000, had not been made. Payments for this month were made and recorded as expenditures by theBoard subsequent to June 30, 2000. Also, the State's portion of the compensation paid in June and July 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\nBUDGET \r\nThe Bleckley 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. 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\nCASH AND CASH EQUIVALENTS \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\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 \r\n- 10- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHIDIT \"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\nare 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 Bleckley County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on December 10,1999 (levy date). Taxes were due on February 10,2000. 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 Bleckley County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% 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 Bleckley 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\n12.25 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 $955,994.20 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $2,322,160.26 has been collected or on June 30, 2002, 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 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 OBLIGATION BONDS \r\n \r\nThe Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in \r\n \r\n- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHffiIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNotel: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nthe financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group. \r\n \r\nINTERFUND TRANSACTIONS \r\n \r\nThe Board has the following types of interfund transactions: \r\n \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\n \r\nMEMORANDUM ONLY - TOTAL COLUMNS \r\n \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\n \r\nNote 2: 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 ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \r\n \r\nAcceptable security for deposits consists of anyone 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(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 \r\n \r\nStates or of the State of Georgia, \r\n \r\n. \r\n \r\n- 12- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO TIlE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 2: DEPOSITS \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 ofthe 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, 2000, the bank balances were $2,496,113.71. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) \r\n \r\nThe Board's deposits are classified by risk category at June 30, 2000, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 300,000.00 \r\n \r\n2 \r\n \r\n1,500,836.05 \r\n \r\n3 \r\n \r\n695,277.66 \r\n \r\nTotal \r\n \r\n$ 2.496.113.71 \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 value. See Note 1 - Inventories \r\n \r\n- 13- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCAnON \r\n \r\nEXHIBIT liD\" \r\n \r\nNOTES TO TIlE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \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, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years. \r\n \r\nThe Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk 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 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\n1999 2000 \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n2,091.00 $ \r\n \r\nClaims Paid \r\n \r\nEnd ofYear Liability \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n2,091.00 $ \r\n \r\n0.00 \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 $2,000,000.00. \r\n \r\nThe Board has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ 50,000.00 $ 100,000.00 \r\n \r\n- 14- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FmANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Bleckley County Board of Education has entered into various lease agreements as lessee for energy and lighting retrofit programs, school buses, school electrical equipment and school lunchroom equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as ofthe date of their inception. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 1995 \r\n \r\n4.00% - 5.75% $ 1.280,000.00 \r\n \r\nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows: \r\n \r\nBa~ance July 1, 1999 \r\nAdditions Capital Leases \r\nDeductions Payments Debt Retired \r\nBalance June 30, 2000 \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal \r\n \r\n$ 349,296.07 $ 1,315,000.00 $ 1,664,296.07 \r\n \r\n216,849.04 \r\n \r\n216,849.04 \r\n \r\n142,865.60 \r\n \r\n35,000.00 \r\n \r\n142,865.60 35,000.00 \r\n \r\n$ 423,279.51 $ 1.280,000.00 $ 1.703,279.51 \r\n \r\nAt June 30, 2000, payments due by fiscal year which includes principal and interest for these items \r\n \r\nare as follows: \r\n \r\n. \r\n \r\n- 15 - \r\n \r\n BLECKLEY 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 5: GENERAL LONG-TERM DEBT \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal Debt \r\n \r\n2001 2002 2003 2004 2005 2006 - 2010 2011 - 2015 2016 - 2020 \r\n \r\n$ 221,127.57 $ 108,245.00 $ 329,372.57 \r\n \r\n144,672.49 \r\n \r\n111,505.00 \r\n \r\n256,177.49 \r\n \r\n105,280.30 \r\n \r\n114,502.50 \r\n \r\n219,782.80 \r\n \r\n117,227.50 \r\n \r\n117,227.50 \r\n \r\n124,670.00 \r\n \r\n124,670.00 \r\n \r\n622,700.00 \r\n \r\n622,700.00 \r\n \r\n655,525.00 \r\n \r\n655,525.00 \r\n \r\n132,187.50 \r\n \r\n132,187.50 \r\n \r\nTotal Principal and Interest $ 471,080.36 $ 1,986,562.50 $ 2.457,642.86 \r\n \r\nDeduct: Imputed Interest \r\n \r\n47,800.85 \r\n \r\nNet Present Value of Future Minimum Lease Payments $ 423.279.51 \r\n \r\nNote 6: ON-BEHALF PAYMENTS \r\n \r\nThe Board has recognized revenues and expenditures in the amount of $180,830.54 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 of Non-Certified Personnel In the amount of $137,439.55 \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $9,406.99 \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 $33,984.00 \r\n \r\nNote 7: CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position, \r\n \r\n- 16- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 8: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS)~ which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2000 1999 1998 \r\n \r\n100% 100% 100% \r\n \r\n$ 980,380.17 $ 966,218.54 $ 868,708.00 \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 \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\n92,191.67 $ \r\n \r\n121,426.19 \r\n \r\n7,130.75 \r\n \r\n36,807.75 10,341.76 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n139,341.18 $ ==1=2:=8:!::,5:=5=:6.::::94== \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nAccounts Payable Salaries Payable \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Continuation of Federal Programs 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\n283.42 $ \r\n \r\n46,111.96 \r\n \r\n43,853.73 \r\n \r\n82,444.98 \r\n \r\n$ \r\n \r\n44,137.15 $ \r\n \r\n128,556.94 \r\n \r\n$ \r\n \r\n36,807.75 \r\n \r\n10,341.76 \r\n \r\n48,054.52 $ \r\n \r\n$ \r\n \r\n95,204.03 $ \r\n \r\n0.00 0.00 \r\n \r\n$ \r\n \r\n139,341.18 $==1=2=8=,5::::56=.9=4= \r\n \r\nSee notes to the general purpose financial statements. - 18- \r\n \r\n EXHIBIT\"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n7,620.58 $ \r\n \r\n221,238.44 $ \r\n \r\n250,089.33 \r\n \r\n181,381.08 \r\n \r\n188,511.83 \r\n \r\n108,804.84 \r\n \r\n36,807.75 10,341.76 \r\n \r\n46,387.01 13,592.12 \r\n \r\n$ \r\n \r\n189,001.66 $ \r\n \r\n456,899.78 $ ==4...1=8=,8=7==:3.=:30== \r\n \r\n$ \r\n \r\n87,414.91 $ \r\n \r\n133,810.29 $ \r\n \r\n95,917.20 \r\n \r\n68,035.78 \r\n \r\n194,334.49 \r\n \r\n170,201.60 \r\n \r\n$ \r\n \r\n155,450.69 $ \r\n \r\n328,144.78 $ _----=2::.;:6;.;;6J,..;,1..:,.18::;.:..:::.;80::.. \r\n \r\n$ \r\n \r\n25,607.72 $ \r\n \r\n25,607.72 $ \r\n \r\n26,293.70 \r\n \r\n36,807.75 10,341.76 \r\n \r\n46,387.01 13,592.12 \r\n \r\n7,943.25 \r\n \r\n55,997.77 \r\n \r\n66,481.67 \r\n \r\n$ \r\n \r\n33,550.97 $ \r\n \r\n128,755.00 $ \r\n \r\n152,754.50 \r\n \r\n$ \r\n \r\n189,001.66 $ \r\n \r\n456,899.78 $==4=1=8:!::,8.7..=:3.:=30,,= \r\n \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000 \r\n \r\nFUND BALANCE JUNE 30 \r\nSee notes to the general purpose financial statements. - 20- \r\n \r\n$ \r\n \r\n95,204.03 $=======,0=.0=:0,= \r\n \r\n EXHIBIT \"F\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n146,270.95 $ \r\n \r\n919,036.09 $ \r\n \r\n772,656.97 \r\n \r\n898,547.50 \r\n \r\n1,467,936.95 \r\n \r\n1,360,826.14 \r\n \r\n17,303.00 \r\n \r\n356,191.33 \r\n \r\n346,072.64 \r\n \r\n$ 1,062,121.45 $ 2,743,164.37 $ 2,479,555.75 \r\n \r\n$ \r\n \r\n590,793.96 $ 1,083,163.65 $ \r\n \r\n991,733.72 \r\n \r\n275,745.68 61,332.82 \r\n79,089.71 \r\n17,534.28 30,367.73 \r\n \r\n392,710.97 67,307.60 \r\n117,310.71 33,006.89 33,453.03 30,680.62 1,015,495.64 \r\n \r\n291,406.85 47,844.54 3,994.83 117,313.71 22,584.73 4,144.41 18,667.26 \r\n958,095.73 \r\n \r\n9,307.08 1,344.42 \r\n \r\n20,136.83 576.49 \r\n \r\n$ 1,054,864.18 $ 2,783,780.61 $ 2,476,499.10 \r\n \r\n$ \r\n \r\n7,257.27 $ \r\n \r\n-40,616.24 $ \r\n \r\n3,056.65 \r\n \r\n29,446.36 \r\n \r\n$ \r\n \r\n7,257.27 $ \r\n \r\n-11,169.88 $ \r\n \r\n3,056.65 \r\n \r\n26,293.70 \r\n \r\n152,754.50 \r\n \r\n145,788.88 \r\n \r\n-9,579.26 -3,250.36 \r\n \r\n1,931.61 1,977.36 \r\n \r\n$ \r\n \r\n33,550.97 $ \r\n \r\n128,755.00 $===15=:2==:,7=5=4.=50== \r\n \r\n- 21 - \r\n \r\n BLECKLEY 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\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\nCorporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs \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 \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Vocational Education - Basic Grants to States High School Program Basic Grant Tech-Prep Education \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\n10.553 \r\n 10.555 \r\n \r\nN/A $ 136.063.32 \r\n \r\nN/A \r\n \r\n371,539.78 $ \r\n \r\n$ 507.603.10 $ \r\n \r\n(2) 933,400.58 (4)(3) \r\n933,400.58 \r\n \r\n10.550 \r\n \r\nN/A \r\n \r\n61.786.35 \r\n \r\n$ 569.389.45 $ \r\n \r\n61,786.35 995,186.93 \r\n \r\n94.004 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n4,000.00 $ \r\n \r\n196.76 \r\n \r\n84.027 84.173 \r\n \r\nN/A \r\n \r\n$ 185.505.27 $ \r\n \r\nN/A \r\n \r\n26.686.00 \r\n \r\n$ 212,191.27 $ \r\n \r\n185.505.27 26,686.00 \r\n212.191.27 \r\n \r\n 84.010 \r\n84.281 84.318 84.298 84.340 \r\n84.276 \r\n84.048 84.243 \r\n \r\nNJA \r\n \r\n378.340.85 \r\n \r\n378,340.85 \r\n \r\nN/A \r\n \r\n15,998.84 \r\n \r\n15,998.84 \r\n \r\nN/A \r\n \r\n120.000.00 \r\n \r\n119,826.71 \r\n \r\nN/A \r\n \r\n14.763.90 \r\n \r\n8.373.29 \r\n \r\nNJA \r\n \r\n50,398.00 \r\n \r\n50,398.00 \r\n \r\nNJA \r\n \r\n49,705.00 \r\n \r\n41.644.09 \r\n \r\nNJA \r\n \r\n26.899.64 \r\n \r\nN/A \r\n \r\n12,500.00 \r\n \r\n$ 880.797.50 $ \r\n \r\n26.838.70 12,498.15 \r\n866,109.90 \r\n \r\n- 22- \r\n \r\n BLECKLEY 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\nHealth and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Family Connection \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\n93.778 \r\n \r\nN/A \r\n \r\n$ 13,750.00 $ \r\n \r\n188,557.52 (3) \r\n \r\nTotal Federal Financial Assistance \r\n= N/A Not Available \r\n \r\n$ 1,467,936.95 $ ===:2':,;;,05=0~,0~5~1.~1,;;1 \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 School Breakfast Program were not maintained separately and are included in the 2000 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(4) Expenditures in the amount of $29,446.36 associated with the inception of a capital lease have been excluded from this schedule. \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 Bleckley 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- 23- \r\n \r\n BLECKLEY 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 Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Mentor Teachers Pay for Performance Preschool Handicapped Program Remedial Summer School Teachers'Retirement Year 2000 Project Funding Lottery Programs Assistive Technology Computers in the Classroom \r\nGeorgia Department of Community Affairs Governor's Emergency Funds (1) \r\nGeorgia Department of Human Resources Family Connection \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 Georgia's Reading Challenge \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$ 5,079,275.00 \r\n1,502,110.00 239,494.00 222,675.00 63,281.00 \r\n1,420,432.00 \r\n \r\n$ 5,079,275.00 \r\n1,502,110.00 239,494.00 222,675.00 63,281.00 \r\n1,420,432.00 \r\n \r\n299,797.00 96,287.00 \r\n162,211.00 122,384.00 \r\n69,950.00 21,644.00 28,842,00 -680,196.00 879,663,00 \r\n$ 68,482.00 \r\n5,900.00 \r\n \r\n299,797.00 96,287.00 \r\n162,211.00 122,384.00 \r\n69,950.00 21,644.00 28,842.00 -680,196.00 879,663.00 68,482.00 \r\n5,900.00 \r\n \r\n2,000.00 5,859.45 \r\n750.00 137,439.55 \r\n5,346.00 186,000.00 \r\n27,902.00 4,265.82 9,406.99 1,279.00 \r\n \r\n2,000.00 5,859.45 \r\n750.00 137,439.55 \r\n5,346.00 186,000.00 \r\n27,902.00 4,265.82 9,406.99 1,279.00 \r\n \r\n14,261.75 53,000.00 \r\n \r\n14,261.75 53,000.00 \r\n \r\n10,000.00 \r\n \r\n10,000.00 \r\n \r\n146,270.95 \r\n \r\n146,270.95 \r\n \r\n637,021.39 \r\n \r\n637,021.39 \r\n \r\n33,984.00 \r\n \r\n33,984.00 \r\n \r\n75,088.00 \r\n \r\n75,088.00 \r\n \r\n$ 10,033,069.81 $ 919,036.09 $ 10,952,105.90 \r\n(1) The purpose of the funds are to make improvements to the high school athletic facility. \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n-24- \r\n \r\n BLECKLEY 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\nAcquisition, construction and equipping of improvements at the primary, middle and high school, the central offices and the bus maintenance shop and acquisition of school buses \r\nPayment of the principal and interest due on the $1,400,000.00 Bleckley County School District General Obligation School Bonds, Series 1995 from February 1, 1998 through February 1, 2008 and redemption of all outstanding Bonds maturing on February 1, 2008 and thereafter on February 1, 2009 \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS \r\n \r\n$ 3,256,000.00 $ 3,256,000.00 $ 655,434.44 $ 1,416,258.07 \r\n \r\n1,744,000.00 \r\n \r\n1,744,000.00 \r\n \r\n104,750.00 \r\n \r\n167,221.00 \r\n \r\n$ 5,000,000.00 $ 5,000,000.00 $ 760,184.44 $ 1,583,479.07 \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(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Bleckley 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 general purpose financial statements. \r\n \r\n- 25- \r\n \r\n BLECKLEY 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) 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 OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \r\n \r\n$ \r\n \r\n7,043,554.00 $ _ _-=.;20:..:8~,5:..:4.;;.3.:.=.0.;:..0 \r\n \r\n$ \r\n \r\n7,406,862.20 \r\n \r\n323,517.70 $ _ _--=.;27:...::9~,8::.=5.;;.3.:.=.0.;:..6 \r\n \r\n$ \r\n \r\n7,730,379.90 \r\n \r\n-34,749.88 $ _ _...:7..,!.;,6:.:9:,.=5J.:,6:,.=3.:.;0.:.:,02=- \r\n \r\n$ \r\n \r\n0.00 $====,.;;;,0;,;;.0;;;.0 \r\n \r\nSee notes to the general purpose financial statements. - 27 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000 \r\n \r\nGENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total- K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9  12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs \r\nSPECIAL EDUCATION PROGRAMS RegUlar Programs Category I (*) Category II (*) Category III (*) Category IV (*) Sub-Total- Regular Category VI (Gifted) (*) Total Special Education Programs \r\nREMEDIAL EDUCATION PROGRAM (*j Total Fourteen Weighted Programs \r\nMEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF \r\n \r\nREQUIRED \r\n \r\nORIGINAL \r\n \r\n~ \r\n \r\nORIGINAL \r\n \r\nMID-TERM \r\n \r\n$ \r\n \r\n586,877.00 \r\n \r\n$ \r\n \r\n528,189.30 $ \r\n \r\n1,449,913.00 \r\n \r\n1,304,921.70 \r\n \r\n$ 2,036,790.00 90 $ 1,833,111.00 $ \r\n \r\n645,459.00 90 \r\n \r\n580,913.10 \r\n \r\n988,043.00 90 \r\n \r\n889,238.70 \r\n \r\n713,395.00 90 \r\n \r\n642,055.50 \r\n \r\n246,655.00 90 \r\n \r\n221,989.50 \r\n \r\n448,933.00 '90 \r\n \r\n404,039.70 \r\n \r\n$ 5,079,275.00 \r\n \r\n$ 4,571,347.50 $ \r\n \r\n0.00 0.00 \r\n0.00 \r\n \r\n$ 1,327,244.00 \r\n \r\n$ 1,194,519.60 $ \r\n \r\n0.00 \r\n \r\n$ 1,327,244.00 90 $ 1,194,519.60 $ \r\n \r\n174,866.00 90 \r\n \r\n157,379.40 \r\n \r\n$ 1,502,110.00 \r\n \r\n$ 1,351,899.00 $ \r\n \r\n$ \r\n \r\n239,494.00 90 $ \r\n \r\n215,544.60 $ \r\n \r\n$ 6,820,879.00 \r\n \r\n$ 6,138,791.10 $ \r\n \r\n$ \r\n \r\n179,023.00 90 $ \r\n \r\n161,120.70 $ \r\n \r\n43,652.00 100 \r\n \r\n43,652.00 \r\n \r\n$ \r\n \r\n222,675.00 \r\n \r\n$ \r\n \r\n204,772.70 $ \r\n \r\n0.00 \r\n0.00 0.00 0.00 \r\n0.00 0.00 \r\n \r\nTotal Fourteen Weighted and Media Center Programs $ 7,043,554.00 \r\n \r\n$ 6,343,563.80 $ \r\n \r\n0.00 \r\n \r\nSTAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development \r\nTotal Staff Development Programs (*) Identifies Fourteen Weighted Programs. \r\n \r\n$ \r\n \r\n20,516.00 \r\n \r\n42,765.00 \r\n \r\n$ \r\n \r\n20,516.00 $ \r\n \r\n42,765.00 \r\n \r\n0.00 0.00 \r\n \r\n$ \r\n \r\n63,281.00 100 $ \r\n \r\n63,281.00 $======0;,;;.00= \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n- 28 - \r\n \r\n SCHEDULE \"5\" \r\n \r\nEDUCATION TOTAL \r\nREQUIRED \r\n \r\nACTUAL EXPENDITURES \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nAMOUNT OF UNDEREXPENDITURE \r\nFOR REQUIRED ALLOTMENT \r\n \r\n$ \r\n \r\n528,189.30 $ \r\n \r\n553,210.97 $ \r\n \r\n6,305.51 $ \r\n \r\n559,516.48 \r\n \r\n1,304,921.70 \r\n \r\n1,259,316.57 \r\n \r\n46,043.55 \r\n \r\n1,305,360.12 \r\n \r\n$ 1,833,111.00 $ 1,812,527.54 $ \r\n \r\n52,349.06 $ 1,864,876.60 $ \r\n \r\n0.00 \r\n \r\n580,913.10 \r\n \r\n674,461.87 \r\n \r\n17,807.37 \r\n \r\n692,269.24 \r\n \r\n0.00 \r\n \r\n889,238.70 \r\n \r\n1,223,288.40 \r\n \r\n51,945.62 \r\n \r\n1,275,234.02 \r\n \r\n0.00 \r\n \r\n642,055.50 \r\n \r\n1,065,098.10 \r\n \r\n65,772.90 \r\n \r\n1,130,871.00 \r\n \r\n0.00 \r\n \r\n221,989.50 \r\n \r\n249,007.55 \r\n \r\n14,171.51 \r\n \r\n263,179.06 \r\n \r\n0.00 \r\n \r\n404,039.70 \r\n \r\n431,580.32 \r\n \r\n47,914.45 \r\n \r\n479,494.77 \r\n \r\n0.00 \r\n \r\n$ 4,571,347.50 $ 5,455,963.78 $ \r\n \r\n249,960.91 $ 5,705,924.69 \r\n \r\n$ 1,194,519.60 $ \r\n \r\n7,465.80 233,693.12 $ 891,056.48 \r\n82,243.67 \r\n \r\n$ 5,882.00 9,621.79 \r\n403.43 \r\n \r\n7,465.80 239,575.12 900,678.27 \r\n82,647.10 \r\n \r\n$ 1,194,519.60 $ 1,214,459.07 $ \r\n \r\n15,907.22 $ 1,230,366.29 \r\n \r\n0.00 \r\n \r\n157,379.40 \r\n \r\n268,537.19 \r\n \r\n6,089.29 \r\n \r\n274,626.48 \r\n \r\n0.00 \r\n \r\n$ 1,351,899.00 $ 1,482,996.26 $ \r\n \r\n21,996.51 $ 1,504,992.77 \r\n \r\n$ \r\n \r\n215,544.60 $ \r\n \r\n254,141.92 $ \r\n \r\n7,895.64 $ \r\n \r\n262,037.56 \r\n \r\n0.00 \r\n \r\n$ 6,138,791.10 $ 7,193,101.96 $ \r\n \r\n279,853.06 $ 7,472,955.02 \r\n \r\n$ \r\n \r\n161,120.70 $ \r\n \r\n213,760.24 \r\n \r\n$ \r\n \r\n213,760.24 \r\n \r\n0.00 \r\n \r\n43,652.00 \r\n \r\n$ \r\n \r\n43,664.64 \r\n \r\n43,664.64 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n204,772.70 $ \r\n \r\n213,760.24 $ \r\n \r\n43,664.64 $ \r\n \r\n257,424.88 \r\n \r\n$ 6,343,563.80 $ 7,406,862.20 $ \r\n \r\n323,517.70 $ 7,730,379.90 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n20,516.00 \r\n \r\n42,765.00 \r\n \r\n$ ===63..,.2=8=1;,;;.0,;:0 \r\n \r\n$ \r\n \r\n45,643.27 $ \r\n \r\n45,643.27 \r\n \r\n17,637.73 \r\n \r\n17,637.73 \r\n \r\n$ \r\n \r\n63,281.00 $ \r\n \r\n63,281.00 $=======0;,;;.0,;:0 \r\n \r\n- 29 - \r\n \r\n SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR (404) 6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \r\nFebruary 8, 2001 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members of the Bleckley 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 Bleckley County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated February 8, 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 Bleckley 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\nIn planning and performing our audit, we considered Bleckley 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\n2000YB-40 \r\n \r\n control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Bleckley County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6121-00-01 and FS-6121-00-02. \r\nA 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 the risk that misstatements in amounts that wou~d be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions noted above, we consider item FS-6121-00-02 to be a material weakness. \r\nThis report is intended solely for the information and use ofmanagement, members ofthe Bleckley 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~~LU~ \r\nRu ell W. Hinton State Auditor \r\nRWH:gp 2000YB-40 \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \r\nFebruary 8,2001 \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 ofthe Bleckley County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Bleckley County Board of Education with the types of \r\nu.s. compliance requirements described in the Office ofManagement and Budget (OMB) Circular \r\nA-i33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Bleckley County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings 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 Bleckley County Board of Education's management. Our responsibility is to express an opinion on Bleckley 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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types 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 Bleckley 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 Bleckley County Board of Education's compliance with those requirements. \r\n2000SA-I0 \r\n \r\n In our opinion, the Bleckley 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, 2000. \r\nInternal Control Over Compliance \r\nThe management of Bleckley 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 Bleckley 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 OMB 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 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\nThis report is intended solely for the information and use ofmanagement, members ofthe Bleckley 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\nL(j.~~ \r\nRu sell W. Hinton State Auditor \r\nRWH:gp 2000SA-1O \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY 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\nFS-6121-98-01 FS-6121-98-02 FS-6121-99-0 1 FS-6121-99-02 \r\n \r\nFurther Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTIONIRESPONSES \r\n \r\nCASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-6121-99-01 \r\n \r\nWe concur with this finding, however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment of duties with the number of personnel available to perfonn the accounting functions. With stafflimitations this finding cannot be totally resolved. \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6121-99-02 \r\n \r\nWe concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording ofgeneral fixed assets on the financial statements. We would add that we will be reviewing any new software programs which may be conducive for us beginning the process. \r\n \r\n SECTIONN FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2000 \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 Bleckley County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. \r\n \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Bleckley County Board of Education disclosed financial statement reportable conditions related to the following control categories. \r\n \r\nCash and Cash Equivalents \r\n \r\nGeneral Fixed Assets \r\n \r\nOf the reportable conditions described above, General Fixed Assets is considered to be a material weakness. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the Bleckley 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 Bleckley 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 Bleckley County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .51O(a) ofOMB Circular A-l33 The Bleckley County Board ofEducation's audit did not disclose audit findings required to be reported by section .51O(a) ofOMB Circular A-l33. \r\n \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\n \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n \r\n9. Low Risk Auditee The Bleckley County Board ofEducation did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-l33. \r\n \r\n- 1- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2000 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCASH AND CASH EQUIVALENTS Inadequate Internal Control Procedures Reportable Condition Repeated From Prior Year Finding Control Number: FS-6121-00-01 \r\nThe Board did not provide for adequate separation of duties in the performance of accounting functions and related procedures related to cash and cash equivalents. The following deficiencies were noted: \r\n1) The bank reconciliations for all accounts were not reviewed by an individual independent of cash operations. \r\n2) The individual recording cash receipts and performing bank deposit functions had custody of the signature plate and also had access to the general ledger. \r\nThese conditions were a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. \r\nManagement's Response: \r\nWe concur with this finding, however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this fmding. The Board feels it has provided for the most appropriate assignment ofduties with the number ofpersonnel available to perform the accounting functions. With stafflimitations this finding cannot be totally resolved. Date inapplicable. \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6121-00-02 \r\nThe Bleckley County Board of Education failed to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements 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 owed by the Board and should include, but may not be \r\n- 2- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2000 \r\nIT FINANCIAL STATEMENT FINDINGS AND QUESTIONED CQSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6121-00-02 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: We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. Date inapplicable. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-3- \r\n \r\n "}],"pages":{"current_page":1,"next_page":null,"prev_page":null,"total_pages":1,"limit_value":10,"offset_value":0,"total_count":9,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":9}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. Department of Audits and Accounts","hits":5},{"value":"Georgia. Department of Audits","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"subject_facet","items":[{"value":"Bleckley County (Ga.). 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