{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2007-h2008","title":"Effingham County Board of Education, Springfield, 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":["Fiscal year ended June 30, 2000-","Ceased with fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: Effingham County Board of Education, Springfield, 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 ... (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed February 3, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Effingham County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Effingham County--Auditing--Periodicals","Education--Georgia--Effingham County--Finance--Statistics--Periodicals"],"dcterms_title":["Effingham County Board of Education, Springfield, 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-be2-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2007-h2008"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodical","periodicals","state government audits","official reports","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"EFFINGHAM COUNTY BOARD OF EDUCATION \nSPRINGFIELD, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2008 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENTOFNETASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n8 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n9 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n27 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n3 SCHEDULE OF STATE REVENUE \n \n31 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n32 35 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \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 \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \n. STATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nSeptember 24, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members ofthe Effingham County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Effingham County Board ofEducation, 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 of the Effingham County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \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 Effingham 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. \n \n2008ARL-11 \n \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 Effingham 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. \nThe Effingham County Board of Education 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. \nIn accordance with Government Auditing Standards, we have also issued our report dated September 24, 2009, on our consideration ofthe Effingham 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. \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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Effingham County Board ofEducation'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. \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. \nRespectfully submitted, \n \nRWH:as 2008ARL-ll \n \n~-j)Q~~ \nRussell W. Hinton, CPA, CGFM State Auditor \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2008 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n26,100,963.65 \n \n6,928,324.02 \n \n3,115,275.89 7,194,152.68 \n46,567.91 26,240.07 47,632.76 6,607,066.00 90,206,621.00 \n \n$ ======1=40::!,~27~2,8, ~4~3-~9~8 \n \n$ \n \n2,585,990.84 \n \n11,025,524.69 \n \n4,179.46 \n \n1,629,662.54 \n \n301,794.94 \n \n331,849.00 \n \n4,716,011.99 24,520,899.06 \n \n$ \n \n45,115,912.52 \n \n$ \n \n82,435,476.95 \n \n7,005.42 7,083,572.01 1,389,393.74 4,241,483.34 \n \n$ \n \n95,156,931.46 \n \n$ ====1=4~0,~27;,,;2:;,;;,8;,;4~3=.9=8 \n \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2008 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n68,623,288.34 $ \n \n3,492,514.75 3,456,143.34 2,064,977.71 1,909,971.68 5,402,702.92 1,414,049.06 6,332,852.18 4,844,495.30 \n79,346.18 \n \n5,796,583.54 1,055,845.04 \n \n$ 104,472,770.04 $ \n \n304,274.04 \n2,014,627.91 2,318,901.95 \n \nNet Assets - End of Year \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n46,813,927.11 $ \n \n1,045,878.54 651,927.49 \n1,287,897.94 1,936,327.70 2,573,029.65 \n21,238.81 3,291,667.05 \n162,510.28 62,601.49 \n \n2,441,128.75 \n \n$ \n \n60,288,134.81 $ \n \n2,199,404.11 $ \n97,093.42 114,509.36 135,919.41 38,413.24 243,915.00 \n251,131.96 \n3,080,386.50 $ \n \n-19,305,683.08 \n-2,446,636.21 -2,804,215.85 \n-679,986.35 26,356.02 \n-2, 715,163.91 -1,256,890.84 -3,002,771.89 -4,438,070.02 \n-16,744.69 \n-1,089,694.92 -1,055,845.04 \n-38, 785,346.78 \n \n$ \n \n25,263,206.14 \n \n1,902,593.24 \n \n37,256.34 \n \n9,671,556.33 643,815.86 \n8,049,941.00 1,049,773.68 2,004,269.62 \n \n$ \n \n48,622,412.21 \n \n$ \n \n9,837,065.43 \n \n85,319,866.03 \n \n$ ===9=5='1=5=6=,9=3=1.=46= \n \n. 3. \n \n EFFINGHAM COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2008 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government lnterfund Other Inventories \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 9,462,480.91 $ 13,067,972.35 $ 3,570,510.39 $ 26,100,963.65 \n \n3,460,201.72 \n \n3,468,122.30 \n \n6,928,324.02 \n \n558,411.88 7,150,153.48 \n46,567.91 16,723.76 10,429.83 47,632.76 \n \n1,887,907.68 43,999.20 \n25,000.00 15,810.24 \n \n46,939.32 \n \n2,493,258.88 7,194,152.68 \n46,567.91 41,723.76 26,240.07 47,632.76 \n \nTotal Assets \n \n$ 17,292,400.53 $ 18,500,891.19 $ 7,085,572.01 $ 42,878,863.73 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Accounts Payable - lnterfund Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Capital Projects \nUnreserved Designated for Student Activities Undesignated Reported in: General Fund \nTotal Fund Balances \n \n$ 2,277,445.58 $ 25,000.00 \n11,025,524.69 4,179.46 \n331 849.00 \n \n306,545.26 $ 16,723.76 \n1,629,662.54 301,794.94 \n \n$ 13,663,998.73 $ 2,254,726.50 $ \n \n2,000.00 $ \n \n2,585,990.84 41,723.76 \n11,025,524.69 4,179.46 \n1,629,662.54 301,794.94 331,849.00 \n \n2,000.00 $ 15,920,725.23 \n \n$ \n \n7,005.42 \n \n$ \n \n7,005.42 \n \n$ 7,083,572.01 \n \n7,083,572.01 \n \n$ 16,246,164.69 \n \n16,246,164.69 \n \n358,422.80 \n \n358,422.80 \n \n3,262,973.58 \n \n3,262,973.58 \n \n$ 3,628,401.80 $ 16,246,164.69 $ 7,083,572.01 $ 26,958,138.50 \n \nTotal Liabilities and Fund Balances \n \n$ 17,292,400.53 $ 18,500,891.19 $ 7,085,572.01 $ 42,878,863.73 \n \nThe notes to the basic financial statements are an integral part of this statement. -4 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2008 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \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. \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: \nBonds Payable Capital Leases Unamortized Bond Premiums \nTotal Long-Term Liabilities \n \n$ 26,958,138.50 \n \n$ \n \n3,248,707.00 \n \n3,358,359.00 \n \n10,751,215.00 \n \n109,012,894.00 \n \n11,541,745.00 \n \n-41,099,233.00 \n \n96,813,687.00 \n \n622,017.01 \n \n$ -20,945,000.00 -7,903, 133.07 -388,777.98 \n \n-29,236,911.05 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 95,156,931.46 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008 \n \nEXHIBIT\"E\" \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \nREVENUES \n \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \n \n$ 25,014,086.95 598,533.68 $ \n62,538,060.50 6,043,930.31 2,318,901.95 269,525.98 1,923,519.62 \n \n$ 9,671,556.33 2,836,471.50 \n \n1,857,054.84 $ 45,282.18 \n \n583,049.72 80,750.00 \n \n197,197.98 \n \n26,871,141.79 10,315,372.19 65,374,532.00 \n6,043,930.31 2,318,901.95 1,049,773.68 2,004,269.62 \n \nTotal Revenues \n \n$ 98,706,558.99 $ 13,171,827.55 $ 2,099,535.00 $ 113,977,921.54 \n \nEXPENDITURES \n \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \n \n$ 64,043,175.61 $ \n \n475,549.72 \n \n$ 64,518,725.33 \n \n3,492,514.75 3,456,143.34 1,889,979.55 1,921,799.30 5,170,268.25 1,126,370.98 7,009,740.94 4,411,706.22 \n79,346.18 5,292,024.06 \n586,263.50 \n \n5,250.00 $ 382,988.70 \n11,996,330.27 \n \n6,534.63 \n \n3,492,514.75 3,456,143.34 1,889,979.55 1,921,799.30 5,170,268.25 1,138,155.61 7,009,740.94 4,794,694.92 \n79,346.18 5,292,024.06 12,582,593.77 \n \n557,191.91 342,502.65 \n \n1,660,000.00 799,737.50 \n \n2,217,191.91 1,142,240.15 \n \nTotal Expenditures \n \n$ 99,379,027.24 $ 12,860,118.69 $ 2,466,272.13 $ 114,705,418.06 \n \nExcess of Revenues over (under) Expenditures \n \n$ \n \n-672,468.25 $ \n \n311,708.86 $ -366,737.13 $ \n \n-727,496.52 \n \nOTHER FINANCING SOURCES (USES) \n \nTransfers In Transfers Out \n \n$ 2,909,109.04 $ 4,346,995.02 $ \n \n$ -2,909, 109.04 \n \n-4,346,995.02 \n \n7,256,104.06 -7,256,104.06 \n \nTotal Other Financing Sources (Uses) $ -2,909,109.04 $ -1,437,885.98 $ 4,346,995.02 $ \n \n0.00 \n \nNet Change in Fund Balances \n \n$ -3,581,577.29 $ -1,126,177.12 $ 3,980,257.89 $ \n \n-727,496.52 \n \nFund Balances - Beginning \n \n7,209,979.09 \n \n17,372,341.81 \n \n3,103,314.12 \n \n27,685,635.02 \n \nFund Balances - Ending \n \n$ 3,628,401.80 $ 16,246,164.69 $ 7,083,572.01 $ 26,958,138.50 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2008 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \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: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \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. \nRepayment of Long-Term Debi 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: \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \nThe amortization of the bond premium is reported in the Statement of Activities and does not require the use of current financial resources and therefore is not reported as an expenditure in Governmental Funds. \n \n$ \n \n-727,496.52 \n \n$ 11,634,305.00 -3,705,244.00 \n \n7,929,061.00 \n \n331,913.93 \n \n$ 1,660,000.00 557 191.91 \n \n2,217,191.91 \n \n86,395.11 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 9,837,065.43 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2008 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \nAGENCY FUNDS \n$ 323,070.86 \n$ 323,070.86 \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Effingham 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. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \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 Effingham County Board of Education. \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. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \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. \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. \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. \nThe School District reports the following major governmental funds: \n-9- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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. \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. \n Debt Service Fund accounts for taxes (property and sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \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. \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. \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. \n- 10 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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. \nCASH AND CASH EQUIVALENTS \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. \nINVESTMENTS \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: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n- 11 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \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. \n \nRECEIVABLES \n \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. \n \nPROPERTY TAXES \n \nThe Effingham County Board ofCommissioners fixed the property tax levy for the 2007 tax digest year (calendar year) on June 19, 2007 (levy date). Taxes were due on November 15, 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 Effingham 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 $24,976,830.60 and for school bonds amounted to $1,857,054.84. \n \nTax millage rates levied for the 2007 tax year (calendar year) for the Effingham County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n15.570 mills 1.178 mills \n \n16.748 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $9,671,556.33 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. \n \n- 12 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nINVENTORIES \n \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. \n \nCAPITAL ASSETS \n \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. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as fol.lows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAny Amount $ 50,000.00 $ 50,000.00 $ 5,000.00 \n \nNIA 15 years 20 to 40 years 5 to 10 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \n- 13 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. \nIn the District-wide and fund financial statements, the School District recognizes bond issuance costs during the fiscal year bonds are issued. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. To conform to generally accepted accounting principles, bond issuance costs should be deferred and amortized over the life of the bonds using the straight-line method. The effect ofthis deviation is deemed to be immaterial to the fair presentation of the basic financial statements. \nGeneral 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 ofNet Assets. \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \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. \nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \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. \nNote 3: DEPOSITS AND INVESTMENTS \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 \n \n- 14 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \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, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \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. \nCATEGORIZATION OF DEPOSITS At June 30, 2008, the bank balances were $27,496,183.73. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent but not in the School District's name. \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: \n- 15 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n7,474,367.72 \n \n3 \n \n19,464,528.10 \n \nTotal \n \n$ 26,938,895.82 \n \nCATEGORIZATION OF INVESTMENTS The School District's investments as of June 30, 2008, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \n \nInvestment Type \n \nFair Value \n \nInvestment Maturity Less than \n1 Year \n \nDebt Securities U.S. Agencies Implicitly Guaranteed Federal National Mortgage Association Discount Notes \n \n$ 3,468,122.30 $ 3,468,122.30 \n \nInvestment Pools Office of Treasury and Fiscal Services Georgia Fund 1 \n \n3,460,201.72 \n \nTotal Investments \n \n$ 6,928,324.02 \n \nThe Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of Treasury and Fiscal Services is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury 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. \n \n- 16 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nThe Primary Liquidity Portfolio consists of Georgia 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. \n \nInterest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value ofan investment. The School District does not have a formal policy for managing interest rate risk. \n \nCustodial Credit Risk Custodial credit risk for investments is the risk that, in the event ofthe failure ofthe counterparty to a transaction, the School District will not be able to recover the value ofthe investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. \n \nAt June 30, 2008, $3,468,122.30 ofthe School District's applicable investments were (1) uninsured and unregistered, with securities held by the counterparty's trust department or agent in the name of the School District and (2) uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the School District's name. \n \nCredit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing credit quality risk. \n \nThe investments subject to credit quality risk are reflected below: \n \nRated Debt Investments \n \nFair Value \n \nQuality Ratings Unrated \n \nDebt Securities U.S. Agencies Implicitly Guaranteed Federal National Mortgage Association Discount Notes \n \n$ 3,468,122.30 $ 3,468,122.30 \n \nConcentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in Federal National Mortgage Association Discount Notes. This investment is 50% of the School District's total investments. \n \n- 17 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 4: NON-MONETARY TRANSACTIONS \n \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 \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \nTotal Capital Assets Not Being Depreciated \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \nTotal Capital Assets, Being Depreciated, Net \nGovernmental Activity Capital Assets - Net \n \nBalances \nJuly 1. 2007 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2008 \n \n$ 3,248,707.00 \n \n$ 3,248,707.00 \n \n6,609,551.00 $ 9,775,108.00 $ 13.026.300.00 3.358.359.00 \n \n$ 9.858.258.00 $ 9,775,108.00 $ 13.026.300.00 $ 6.607.066.00 \n \n$ 95,953,038.00 $ 13,059,856.00 \n \n10,220,927.00 1,495,972.00 $ \n \n10,421,546.00 \n \n329,669.00 \n \n$109,012,894.00 175,154.00 11,541,745.00 \n10,751,215.00 \n \n22,583,538.00 6,382,587.00 8,603.018.00 \n \n2,512,546.00 810,472.00 382.226.00 \n \n175,154.00 \n \n25,096,084.00 7,017,905.00 8,985,244.00 \n \n$ 79.026.368.00 $11,180,253.00 $ \n \n0.00 $ 90,206,621.00 \n \n$ 88,884,626,QQ $ 20 255 361 QQ $ 13 Q26,3QQ,QQ $ 26,813,681.QQ \n \nCapital assets being acquired under capital leases as of June 30, 2008, are as follows: \n \nGovernmental Funds \n \nBuildings and Improvements Land Less: Accumulated Depreciation \n \n$ 9,728,973.00 275,000.00 851,284.33 \n \n$ 9.152,688.67 \n \n- 18 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 5: CAPITAL ASSETS \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 2,487,191.00 \n \n$ 114,326.00 134,832.00 160,043.00 45,231.00 467,917.00 \n \n922,349.00 295,704.00 \n \n$ 3,705,244.00 \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds, Qualified Zone Academy Bonds (QZAB) escrow account, and property tax levied specifically for retirement of outstanding bond principal, interest and paying agent's fees (Debt Service Funds) are restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2008, were as follows: \n \nDistrict-wide Capital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ 3,570,510.39 $ 13,067,972.35 \n$ 3,468,122.30 $ 1,671,403.12 $ 1,788,798.60 \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2008, consisted of the following: \n \n- 19 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund District-wide Capital Projects \n \n$ 16,723.76 $ 25,000.00 \n \n25,000.00 \n \n16,723.76 \n \n$ 41,723.76 $ 41)23.76 \n \nTransfers are used to reimburse the General Fund for Capital Projects expenditures and to transfer donations from the General Fund to the Capital Projects Fund. \n \nNote 8: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2008, consisted of the following: \n \nTransfer to \n \nTransfers From \n \nDistrict-wide \n \nGeneral \n \nCapital \n \nFund \n \nProjects \n \nDistrict-wide Capital Projects \nDebt Service Fund \n \n$ 2,909,109.04 $ 4,346,995.02 \n \nTotal \n \n$ 2,909,109.04 $ 4,346,995.02 \n \nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund as required match or supplemental funding source for capital construction projects, and to move funds collected by the Capital Projects Fund to the Debt Service Fund as needed for repayment of bond principal and interest. \n \nNote 9: RISK MANAGEMENT \n \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. \n \nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions,job related illness or injuries to employees and acts ofGod. 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. \n \n- 20 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 9: RISK MANAGEMENT \n \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 Effingham County Board of Education has not incurred any liabilities for unemployment compensation during the past two fiscal years. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Employee \n \n$ 100,000.00 $ 50,000.00 \n \nNote 10: LONG-TERM DEBT \n \nCAPITAL LEASES The Effingham County Board ofEducation entered into an agreement dated February 2003, with the Georgia School Board Association for the construction and subsequent lease of various school facilities. Under the terms ofthe agreement, the School District will make annual payments through August 15, 2018. This lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1994 General Government - QZAB - Series 2001B General Government - Series 2006A General Government - QZAB - Series 2006B \n \n4.20% - 6.25% 0.00% \n4.00%- 5.00% 0.00% \n \n$ 1,745,000.00 4,200,000.00 13,000,000.00 2.000.000.00 \n \n$ 20,945,000.00 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows: \n \n- 21 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 10: LONG-TERM DEBT \n \nBalance July 1, 2007 \n \nGovernmental Funds \n \nAdditions \n \nDeductions \n \nBalance June 30, 2008 \n \nDue Within One Year \n \nG.O. Bonds \n \n$ 22,605,000.00 $ \n \n0.00 $ 1,660,000.00 $20,945,000.00 $ 4,050,000.00 \n \nCapital Leases \n \n8,460,324.98 \n \n557,191.91 7,903,133.07 579,616.88 \n \nBondPremiumsAmortized \n \n475,173.09 _ _ __ \n \n86,395.11 388,777.98 \n \n86,395.11 \n \n$3J.540,49807 $.===o....,oo $ 2.303.587.02 $22,236,211.05 $ 4,716,011.22 \n \nAt June 30, 2008, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n2009 2010 2011 2012 2013 2014 - 2018 2019 \n \n$ 579,616.88 $ 604,794.20 630,119.12 656,504.48 683,371.51 \n3,873,902.63 874.824.25 \n \n319,604.32 293,895.54 268,036.04 241,093.71 213,659.55 601,604.94 \n18.165.48 \n \nTotal Principal and Interest \n \n$ 7,903,133.07 $ 1,956,059.58 \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \nUnamortized Bond \nPremium \n \n2009 2010 2011 2012 2013 2014 - 2018 2019 - 2022 \n \n$ 4,050,000.00 $ 2,445,000.00 2,590,000.00 2,750,000.00 2,910,000.00 4,200,000.00 2.000.000.00 \n \n649,887.00 $ 445,825.00 338,900.00 213,187.50 \n72,750.00 \n \n86,395.11 86,395.11 86,395.11 86,395.11 43,197.54 \n \nTotal Principal and Interest \n \n$ 20,245,000.00 $ 1,720,549.50 $ 388,777.98 \n \n-22 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 11: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $1,973,501.48 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $1,914,486.57 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $47,911.91 \n \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 $11,103.00 \n \nNote 12: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2008, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \nSandhill Elementary School South Effingham Middle School South Effingham High School Gym 0SG-651-009 08G-651-010 08G-651-011 08G-651-012 0SRA-651-008 \n \n$ \n \n6,537.82 \n \n1,500.00 \n \n1,000.00 \n \n22,618.00 \n \n25,041.24 \n \n600.00 \n \n600.00 \n \n15,342,165.10 \n \n$ 113,683.30 39,497.30 113,683.30 43,410.80 \n8,621,666.80 \n \n$ 15A001062.16 $ 8,931,941.50 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \n- 23 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \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. \n \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. \n \nNote 14: POSTEMPLOYMENT BENEFITS \n \nGeorgia Retiree Health Benefit Fund \n \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. \n \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. \n \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: \n \nTeachers Non-Certificated Employees \n \n18.534% of state-based salaries $162.72 per month \n \nThe School District's contribution to the health insurance plans for the fiscal year ended June 30, 2008, was $8,694,616.15, which equaled the required contribution. \n \n- 24- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 15: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2008 2007 2006 \n \n100% 100% 100% \n \n$ 5,031,068.18 $ 4,518,801.00 $ 3,979,176.00 \n \n- 25 - \n \n (This page left intentionally blank) \n \n EFFINGHAM COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING USES \nOther Uses \nNet Change in Fund Balances \nFund Balances - Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ 19,250,000.00 $ 24,000,000.00 $ 25,014,086.95 \n \n828,000.00 \n \n754,000.00 \n \n598,533.68 \n \n53,720,746.66 \n \n58,816,427.00 \n \n62,538,060.50 \n \n6,533,490.25 \n \n6,126,624.40 \n \n6,043,930.31 \n \n1,974,550.00 \n \n2,160,260.15 \n \n2,318,901.95 \n \n18,000.00 \n \n11,000.00 \n \n269,525.98 \n \n1,224,774.00 \n \n1 378 540.66 \n \n1,923,519.62 \n \n$ 83,549,560.91 $ 93,246,852.21 $ 98,706,558.99 \n \n$ 54,942,769.84 $ 60,329,201.32 $ 64,043,175.61 \n \n2,872,328.27 1,902,413.23 1,841,658.87 1,230,689.78 4,858,187.95 1,041,355.97 5,300,987.14 3,532,325.75 \n21,670.00 4,703,124.00 \n410,200.00 900 167.00 \n \n3,506,720.13 3,153,287.70 1,888,637.00 1,862,465.00 4,912,577.91 1,253,268.00 5,908,015.49 4,006,478.00 \n48,448.00 4,892,814.10 \n582,190.00 899,693.66 \n \n3,492,514.75 3,456,143.34 1,889,979.55 1,921,799.30 5,170,268.25 1,126,370.98 7,009,740.94 4,411,706.22 \n79,346.18 5,292,024.06 \n586,263.50 899 694.56 \n \n$ 83 557 877.80 $ 93,243,796.31 $ 99,379,027.24 \n \n$ \n \n-8,316.89 $ \n \n3,055.90 $ \n \n-672,468.25 \n \n$ \n \n-8,316.89 $ \n \n11 565 496.44 \n \n3,055.90 $ 7,760,046.09 \n \n-2,909, 109.04 -3,581,577.29 7,209,979.09 \n \nFund Balances - Ending \n \n$ 11 557 179.55 $ \n \n7,763,101.99 $ =====3=,6=28=,4=0=1=.8=0 \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \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. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U.S. Department of Agriculture \nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States English Language Acquisition Grants Even Start Improving Teacher Quality State Grants Safe and Drug-Free Schools and Communities - State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies \nTotal U.S. Department of Education \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Navy R.O.T.C. Program \nTotal U.S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n. 10.553 . 10.555 \n \nN/A N/A $ \n$ \n \n(2) 4,021,179.05 \n4,021,179.05 \n \n10.550 \n \nN/A $ \n \n181,024.87 4,202,203.92 \n \n84.027 84.173 \n \nN/A $ N/A \n$ \n \n1,617,244.93 65,220.53 \n1,682,465.46 \n \n84.048 84.365 \n. 84.213 84.367 84.186 84.298 84.010 \n \nN/A N/A \nN/A \nN/A N/A NIA NIA \n$ \n \n70,576.00 10,509.13 279,805.00 371,035.16 47,868.83 13,609.92 1,266,270.86 \n3,742,140.36 \n \n$ \n \n51,344.27 \n \n72 079.85 \n \n$ \n \n123,424.12 \n \nTotal Federal Financial Assistance \nNIA = Not Available \n \n$===8'=06=7=,7=6=8.=4=0 \n \n- 28 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \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. \n(2) Expenditures for the funds earned on the School Breakfast Program ($447,390.84) were not maintained separately and are included in the 2008 National School Lunch Program. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Effingham 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. \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n (This page left intentionally blank) \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \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 English Speakers of Other Languages (ESOL) 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 Nursing Services Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Drivers Education Grant Dropout Recovery and Prevention Graduation Coaches Health Insurance Middle School Summer Remedial Program National Teacher Certification Preschool Handicapped Program Teachers' Retirement Technology/Career Education Supervision Virtual Schools Grant \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 2,133,936.54 \n \n$ 2,133,936.54 \n \n2,629,140.00 927,648.00 \n6,964,821.00 1,360,365.00 3,476,553.00 \n776,229.00 6,352,653.00 5,331,686.00 2,404,704.00 \n6,835,871.00 1,941,992.00 \n382,167.00 520,727.00 122,895.00 1,105,646.00 339,208.00 219,479.00 \n1,381,722.00 2,101,126.00 2,799,807.00 \n1,263,513.00 243,915.00 191,726.00 \n8,049,941.00 262,040.00 389,633.70 -899,927.00 \n139,368.91 26,412.00 \n265,098.87 1,914,486.57 \n7,395.00 102,752.00 378,812.00 47,911.91 34,653.00 \n850.00 \n \n2,629,140.00 927,648.00 \n6,964,821.00 1,360,365.00 3,476,553.00 \n776,229.00 6,352,653.00 5,331,686.00 2,404,704.00 \n6,835,871.00 1,941,992.00 \n382,167.00 520,727.00 122,895.00 1,105,646.00 339,208.00 219,479.00 \n1,381,722.00 2,101,126.00 2,799,807.00 \n1,263,513.00 243,915.00 191,726.00 \n8,049,941.00 262,040.00 389,633.70 -899,927.00 \n139,368.91 26,412.00 265,098.87 1,914,486.57 \n7,395.00 102,752.00 378,812.00 47,911.91 34,653.00 \n850.00 \n \n$ 2,836,471.50 11103.00 \n \n2,836,471.50 11,103.00 \n \nSee notes to the basic financial statements. \n \n$ 62,538,060.50 $ 2,836,471.50 $ 65,374,532.00 - 31 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"4\" \n \nPROJECT SPLOST II \n \nORIGINAL ESTIMATED \nCOST(1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \nThe constructing, equipping and furnishing of \n \na new elementary school to replace the present \n \nSpringfield Central Elementary School; a new \n \nelementary school to replace the present Marlow \n \nElementary School; new classroom wings at \n \nGuyton and Sand Hill Elementary Schools, \n \nand Ebenezer Middle School; a new gymnasium \n \nand media center at Rincon Elementary School; \n \na new band room at South Effingham Middle \n \nSchool; outdoor physical education/sports \n \nfacilities at middle and high schools; a new \n \nmiddle school to replace the present Effingham \n \nCounty Middle School; replacing aged roofs \n \nand heating/air conditioning units, as necessary, \n \nat all School District buildings; renovating/ \n \nrelocating, furnishing and equipping Alternative \n \nSchool; installing air conditioning units in \n \ngymnasiums at Ebenezer, Guyton, Marlow and \n \nSand Hill Elementary Schools and at South \n \nEffingham Middle School; installing additional \n \nplayground equipment at all elementary schools; \n \nrenovating the Board of Education's Bus Shop, \n \ninstalling bus washing equipment, replacing \n \nmaintenance vehicles and purchasing new \n \nbuses; constructing an access road behind \n \nEffingham County Middle School; renovating and \n \nmodifying to the Board of Education's central \n \noffices in Springfield; purchasing new textbooks \n \nand instructional equipment, including band and \n \nvocational equipment; installing storage buildings \n \nat all schools; purchasing land for Effingham \n \nCounty School District operations, including future \n \nschool sites; adding to, remodeling, renovating, \n \nimproving, and equipping existing educational \n \nbuildings, properties, and facilities of the School \n \nDistrict, acquiring any necessary personal and \n \nreal property and equipment, including computers \n \nand related technology, copiers, energy management \n \nsystems, heating and air conditioning systems, \n \nlighting, fencing and paving, security and safety \n \nequipment, and similar equipment at all Effingham \n \nCounty District schools, including Ebenezer \n \nElementary, Effingham County High, Effingham \n \nCounty Middle, Guyton Elementary, Marlow \n \nElementary, Rincon Elementary, Sand Hill \n \nElementary, South Effingham Elementary, South \n \nEffingham High, South Effingham Middle, and \n \nSpringfield Central Elementary. \n \n$ \n \n35,000,000.00 $ \n \n53,833,432.54 $ \n \n736,793.66 $ 53,096,638.88 Completed \n \n- 32 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"4\" \n \nPROJECT SPLOST Ill \n \nORIGINAL ESTIMATED \nCOST(1l \n \nCURRENT ESTIMATED COSTS(2l \n \nAMOUNT EXPENDED IN CURRENT \nYEAR(3) \n \nThe constructing and equipping of a new Effingham \n \nCounty Middle School. The constructing and \n \nequipping of a new elementary school. Adding to, \n \nremodeling, renovating, improving, and equipping \n \nexisting, educational buildings, properties, and \n \nfacilities of the School District and acquiring any \n \nnecessary real or personal property therefor, \n \nincluding equipment, school buses and \n \nmaintenance vehicles, computers and related \n \ntechnology, copiers, energy management \n \nsystems, heating and air conditioning systems, \n \nlighting, and similar equipment, adding \n \nclassrooms, installing floor coverings, renovating \n \nbathrooms, installing fencing, upgrading, \n \nplaygrounds, landscaping, installing bus loading \n \ncanopies, constructing athletic facilities, replacing \n \ndoors and windows, renovating storage facilities, \n \npainting, acquiring instructional equipment and \n \nfurniture, paving, and/or otherwise adding to, \n \nremodeling, renovating, improving or equipping \n \nvarious schools and school related facilities, to \n \ninclude Ebenezer Elementary School, \n \nGuyton Elementary School, Marlow Elementary \n \nSchool (new), Marlow Elementary School (old), \n \nRincon Elementary School, Sandhill Elementary \n \nSchool, South Effingham Elementary School, \n \nSpringfield Elementary School, Blandford \n \nElementary School, Ebenezer Middle School, \n \nEffingham County Middle School (old), South \n \nEffingham Middle School, Effingham County High \n \nSchool, South Effingham County High School, the \n \nCentral Learning Center, the Board of Education \n \nbuilding and the bus shop. \n \n$ 50,000,000.00 $ \n \n50,000,000.00 $ 12,710,250.03 \n \nAMOUNT EXPENDED \nIN PRIOR YEARS(3l \n \nPROJECT STATUS \n \nOngoing \n \n$ 85,000,000.00 $ 103,833,432.54 $ 13,447,043.69 $ 53,096,638.88 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of Effingham 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. \n \nSee notes to the basic financial statements. \n \n-33- \n \n (This page left intentionally blank) \n \n EFFINGHAM COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle Grades (6-8) Program \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nCategoryV \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n2,926,046.00 $ 1,040,960.00 7,811,024.00 1;494,946.00 3,841,969.00 \n \n1,737,634.99 $ 2,518,434.21 9,088,897.29 3,944,172.21 3,301,498.56 \n \n889,902.00 \n7,127,526.00 5,963,680.00 2,662,409.00 7,664,851.00 \n \n1,571,263.08 120,047.53 \n8,110,884.58 8,019,593.11 2,041,364.48 \n46,174.48 958,817.65 6,113,621.15 \n8,771.56 \n \n2,126,990.00 411,464.00 581,566.00 130,600.00 \n \n1,339,158.17 140,994.92 285,995.53 118,804.85 \n \n162,464.22 $ \n342,739.46 \n99,839.31 \n227,526.94 \n171,803.30 432,061.96 \n10,203.89 11,831.61 105,185.51 35,370.99 52,658.28 25,280.79 12,614.39 476,861.93 \n2,443.28 \n \n1,900,099.21 2,518,434.21 9,431,636.75 3,944,172.21 3,401,337.87 \n1,571,263.08 347,574.47 \n8,110,884.58 8,191,396.41 2,473,426.44 \n56,378.37 970,649.26 6,218,806.66 \n44,142.55 52,658.28 1,364,438.96 153,609.31 762,857.46 121,248.13 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n44,673,933.00 $ 49,466,128.35 $ 2,168,885.86 $ 51,635,014.21 \n \nMedia Center Program Staff and Professional Development \n \n1,234,714.00 247 527.00 \n \n1,305,592.33 \n \n544,786.28 \n \n1,850,378.61 293,511.72 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n46,156,174.00 $ 50,771,720.68 $ 2,713,672.14 $ 53,778,904.54 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 35 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nSeptember 24, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \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 \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Effingham County Board of Education as of and for the year ended June 30, 2008, which collectively comprise Effingham County Board of Education's basic financial statements and have issued our report thereon dated September 24, 2009. 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. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Effingham County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose ofexpressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness ofthe Effingham County Board ofEducation's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Effingham County Board of Education's internal control over financial reporting. \nOur consideration ofinternal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified a certain deficiency in internal control over financial reporting that we consider to be a significant deficiency. \n2008YB-30 \n \n A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Effingham 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 Effingham County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Effingham County Board of Education's internal control. We consider item FS-6511-08-01 in the accompanying Schedule ofFindings and Questioned Costs to be a significant deficiency in internal control over financial reporting. \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 Effingham County Board of Education's internal control. \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 believe that the significant deficiency described above is not a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Effingham 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. \nWe noted certain matters that we have reported to management of Effingham County Board of Education in a separate letter dated September 24, 2009. \nEffingham County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit Effingham County Board of Education's response and, accordingly, we express no opinion on it. \n2008YB-30 \n \n This report is intended solely for the information and use ofmanagement, members ofthe Effingham 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. \nRespectfully submitted, \n-::Pp._,m__W~ \n~~sell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2008YB-30 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nSeptember 24, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Effingham 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. Effingham County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofEffingham County Board of Education's management. Our responsibility is to express an opinion on Effingham County Board of Education's compliance based on our audit. \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 Effingham County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the \n \n2008SA-65 \n \n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Effingham County Board ofEducation's compliance with those requirements. \nAs described in item FA-6511-08-01 in the accompanying Schedule of Findings and Questioned Costs, Effingham County Board ofEducation did not comply with requirements regarding Activities Allowed or Unallowed and Allowable Costs/Cost Principles that are applicable to its Child Nutrition Cluster (CFDA 10.553 and 10.555). Compliance with such requirements is necessary, in our opinion, for Effingham County Board ofEducation to comply with requirements applicable to those programs. \nIn our opinion, except for the noncompliance described in the preceding paragraph, the Effingham 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, 2008. \nInternal Control Over Compliance \nThe management of Effingham 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 Effingham 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 Effingham County Board of Education's internal control over compliance. \nOur consideration of the internal control over compliance was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the Board's internal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies and others we consider to be material weaknesses. \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 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. We consider the deficiencies in internal control over compliance described in the accompanying Schedule ofFindings and Questioned Costs as items FA-6511-08-01 and FA-6511-08-02 to be significant deficiencies. \n2008SA-65 \n \n A 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. Of the significant deficiencies in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs, we consider item FA-6511-08-01 to be a material weakness. \nEffingham County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit Effingham County Board of Education's response and, accordingly, we express no opinion on it. \nThis report is intended solely for the information and use ofmanagement, members ofthe Effingham 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. \nRespectfully submitted, \n~--m \\A)-~~ \n~~ell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2008SA-65 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nSEE AUDITOR'S COMMENTS \n \nFS-6511-04-03 Further Action Not Warranted \n \n(1) \n \nFS-6511-06-01 Further Action Not Warranted \n \nFS-6511-07-01 Partially Resolved - See Corrective Action/Responses \n \nFS-6511-07-02 Previously Reported Corrective Action Implemented \n \nFS-6511-07-03 Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Controls over School Activity Accounts Finding Control Number: FS-6511-07-01 \n \nThe School Principal Accounts will be reviewed for job task relationships, technical use of software and Policy as stated in the School District's Fiscal Management Handbook. This review will focus on bank statement reconciliations, cash receipt procedures, check writing procedures and Purchase Order preparation. The elimination of incompatible relationships, implementation ofcompensating controls, and compliance with established Policy will result in these accounts having adequate policy and procedural control resulting in increase financial compliance. \n \nAUDITOR'S COMMENTS \n \n(1) The final resolution of this finding rests with the Georgia Department of Community Health. \n \n- 1- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6511-06-01 FA-6511-07-01 FA-6511-07-02 FA-6511-07-03 \n \nPreviously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nACTIVITIES ALLOWED OR UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Catering Activities U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-07-01 \n \nThe School District is ensuring that catering for profit services have been eliminated. Procedures have been developed and implemented to ensure these activities will not continue. The School District has established a separate bank account for all catering services performed by the Nutrition Program. The catering services will be recorded in a separate fund on the School District's records. This will include all revenues and expenses associated with the catering activity and will be recorded in the catering fund. These activities will occur only when the full cost ofcommodities is recovered, the revenues are posted to the nonprofit school nutrition account and when students are the primary beneficiaries of the food service. All supplies, commodities and labor will be purchased apart from School Food Service accounts. The School District's Federal Employment Identification (FEI) number has been eliminated from the unallowable bank account and that account has been closed. The catering services and all other activities not related to the School Food Service (SFS) Program will be recorded on separate timesheets. These unrelated activities will not be included in the cost ofthe SFS Program nor will these costs be included in any Federal or State cost reimbursement reports. The School District will monitor the SFS Program to ensure compliance. \n \n-2 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-07-03 The School District procedures will require supervisory personnel to perform semi-annual certifications and PAR documentations to support time and effort ofpersonnel who work on multiple Federal and/or non-Federal Programs. This will include written documentation and appropriate timesheets. This will allow the School District to ensure that all salaries are charged to a Federal Program are commensurate with the actual time devoted to that program. \n-3- \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Effingham County Board of Education's financial statements was unqualified. \n \n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Effingham County Board of Education disclosed a financial statement significant deficiency related to the following control categories. \n \nCash and Cash Equivalents Revenues/Receivables/Receipts \n \nExpenditures/Liabilities/Disbursements \n \nThe significant deficiency described above is not considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit of the Effingham County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Effingham County Board of Education disclosed significant deficiencies in internal control over major programs for the following compliance requirements. \n \nActivities Allowed or Unallowed \n \nAllowable Costs/Cost Principles \n \nAll ofthe significant deficiencies described above are considered to be material weaknesses. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Effingham County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified, except for Child Nutrition Cluster (CFDA 10.553 and 10.555), which was qualified. \n \n6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 The Effingham County Board of Education's audit disclosed audit findings required to be reported by section .510(a) ofOMB Circular A-133. These audit findings are included in section IV of this report. \n \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 84.367 Improving Teacher Quality State Grants \n \n- 1- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n \n9. Low Risk Auditee The Effingham County Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-6511-08-01 \n \nCondition: \n \nThis is a repeat finding (FS-6511-07-01, FS-6511-06-01 and FS-6511-05-01) from the years ended June 30, 2007, June 30, 2006, and June 30, 2005, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCriteria: \n \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. \n \nQuestioned Cost: NIA \n \nInformation: \n \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and cash custody functions. \n \nRevenues/Receivables/Receipts  The cash receipts and deposit preparation functions were not separated from the record keeping functions.  Deposit reports required by the School District's accounting procedures were not properly completed by those collecting the funds.  Cash collections were not deposited into the bank accounts in a timely manner. \n \n-2 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-6511-08-01 \n \nExpenditures/Liabilities/Disbursements \n The check writing function was not separated from the record keeping function. \n Several voucher packages were noted as incomplete and did not \ncontain invoices, evidence of receipt of items purchased, or other \nproper documentation. \n \nCause: \n \nThese deficiencies were a result ofmanagement's failure to properly establish internal controls at the school level by limiting the number ofadministrative staff made responsible for accounting functions. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that the key accounting functions of custody, record keeping, and authorization are separated and/or utilize management oversight for these incomparable activities. In addition, management should monitor controls to provide reasonable assurance that transactions are processed according to established procedures and implement procedures deemed necessary to strengthen internal controls over accounting functions. \n \n-3 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED OR UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Catering Activities Material Weakness Material Noncompliance U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-08-01 \n \nCondition: \n \nThis is a repeat finding (FA-6511-07-01) from the year ended June 30, 2007. The School Food Service Program's management and personnel participated in unallowable catering and retail sales for profit, utilizing Child Nutrition Cluster resources. This activity was not maintained on the School District's accounting records. \n \nCriteria: \n \nProvisions of the 0MB Circular A-87, Cost Principles for Determining Allowable Costs, require that \"to be allowable under Federal awards, cost must be ... authorized or not prohibited under state or local laws or regulations and supported by underlying documentation\". \n \n7 CFR Part 210.14(a) requires that \"Revenues received by the nonprofit school food service be used only for the operation or improvement of such food service ... \" Additionally, regulations require that \"Expenditures of nonprofit school food service revenues shall be in accordance with the financial management system established by the State Agency under 210.19(a)(2) of this part\". \n \nGeorgia Department of Education School Nutrition Financial Management System Criteria and Procedure No: FM-07-02 states in part: \n \"Ifa School Food Authority (SFA) decides to cater food services, it is recommended they consider three goals: 1. To provide a service to the School District, 2. to generate revenue over expenditures that can be used to enhance the SFA's non-profit school food service program, and 3. to promote positive public relations between the School Nutrition Program (SNP), the school community and schoolrelated organizations... \n \n-4- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nACTIVITIES ALLOWED OR UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Catering Activities Material Weakness Material Noncompliance U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-08-01 \n Criteria and/or Procedures o A separate bank account must be used for the catering account in Enterprise Fund 693. This account will track expenditures and income separately so that associated expenses and revenues of catering are purged from costs attributable to the school nutrition program and so potential and actual revenues may be tracked... o The full cost of all catering functions must be identified and recovered including clearly identifiable costs of food, labor, small and large equipment, and supplies and indirect costs ... o Co-mingling of labor or food costs must be minimized in an effort to separate the two activities as much as possible ... o Any payment due to a school nutrition program employee for work performed, including catering functions, must be processed through the payroll department, so that the appropriate withholdings are made and the gross income earned is recorded and reported correctly. Time records must be available to demonstrate that the SNP has not compensated employees for work done on catering functions ... o Calculate the cost of all food and supplies used; be sure to include the cost of packaging used for catered items. Foods used for catering events should be ordered and inventoried separately from foods used for the service of reimbursable meals and should NOT be reported on the School Nutrition Form DE 106 Financial Data... o Purchase orders must reflect applicable purchase of goods, time sheets must reflect applicable personnel charges and invoices must reflect charges for events; these expenditures and revenue will be tracked in the appropriate accounts in the catering fund ... \n-5- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED OR UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Catering Activities Material Weakness Material Noncompliance U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-08-01 \n \no USDA commodities can only be used (1) when the full cost of commodities are recovered and accrue back to the nonprofit school nutrition account and (2) when students are the primary beneficiaries of the food service... \" \n \nQuestioned Cost: $55,800.97 \n \nInformation: \n \nThe School Food Service (SFS) Program's management and. personnel participated in unallowable catering and retail sales for profit activities that failed to meet the required Federal and State regulations. The following unallowable activities and deficiencies were noted: \n \n Food sales, school related catering activities and private event catering activities were performed by a private, for profit organization comprised of SFS Nutrition Program management and employees. \n $55,800.97 in revenue generated from this venture was not recorded on the School District's general ledger. \n Compensation payments, based on a percentage of sales, totaling $15,357.45 were made to the SFS Director, lunchroom managers and other SFS employees by this organization. Payroll taxes were not withheld by the organization for these payments. \n SFS Program's management ordered food items from vendors in the name of the SFS Program for these catering activities and resale to the public. \n Food used for catering events and resale was inventoried with food used for the SFS program. \n SFS employees used SFS equipment and facilities to cater events, bake goods and resale food for this organization. \n Time records were not available to separate work performed for the SFS Program from activity performed for this organization. \n \n-6- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED OR UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Catering Activities Material Weakness Material Noncompliance U.S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-08-01 \n \n Documentation provided by the organization did not reveal any labor, equipment, supply or indirect cost reimbursements to the School Food Service Program. The full cost of the catering and resale activities was not identifiable. \n The School District's Federal Employee Identification (PEI) number was used by this unauthorized organization for their bank account. \n \nCause: \n \nThese deficiencies were a result of the School District's failure to properly manage the Child Nutrition Program and to ensure that activities and expenditures related to this program were allowable. \n \nEffect: \n \nThe School District's failure to ensure that the program was properly managed resulted in unallowable and inappropriate usage ofChild Nutrition Program resources, lost program revenue and material noncompliance with the requirements of the Federal Program. \n \nRecommendation: \n \nThe School District should take the necessary steps to ensure that current catering service practices cease. Ifmanagement decides to continue catering services they should implement procedures to ensure that this activity is recorded on the School District's general ledger and that, in line with Federal regulations, the Georgia Department ofEducation School Nutrition Financial Management System Criteria and Procedure No: FM-07-02 is followed. In addition, the School District should monitor the Child Nutrition Program to ensure that employees are not involved in activities that conflict with this Federal Program and that all salaries charged to the Child Nutrition Program are commensurate with actual time devoted to the program. The Georgia Department of Education should further review this matter to determine if a reclaim of funds is necessary. \n \n-7- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FI,NDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nALLOWABLE COSTS/COSTS PRINCIPLES Time and Attendance Records Not Utilized Significant Deficiency U.S. Department ofAgriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding control Number: FA-6511-08-02 \n \nCondition: \n \nThis is a repeat finding (FA-6511-07-03) from the year ended June 30, 2007. Semi-Annual Certifications and/or Personnel Activity Reports based on time distribution records, as required by Federal guidelines, were not utilized for School District employees paid from the Child Nutrition Cluster - Food Service Program (CFDA 10.553 and 10.555). \n \nCriteria: \n \nProvisions of the 0MB Circular A-87, Cost Principles for Determining Allowable Costs, require that salaries be documented as follows with: \n Semi-Annual Certifications for personnel who work on one Federal program. 0MB Circular A-87-B states in part: \"Where employees are expected to work solely on a single Federal award or cost object, charges for their salaries and wages will be supported by periodic certifications that the employees worked solely on that program for the period covered by the certification. These certifications will be prepared at least semi-annually and will be signed by the employee or supervisory official having first hand knowledge of the work performed by the employee\". \n Personnel Activity Reports (PARs) for those personnel who work on multiple Federal programs or Federal and non-Federal activity. Provisions of the 0MB Circular A-87, Cost Principles for Determining Allowable Costs, require that \"to be allowable under Federal awards, cost must be... adequately documented\" and charges to Federal awards for salaries and wages ... \"will be based on payrolls documented in accordance with generally accepted practice of the governmental unit and approved by a responsible official of the governmental unit\". \n \nQuestioned Cost: NIA \n \nInformation: \n \nBased on a review employee's payroll records, the following deficiencies were noted: \n Employees whose salaries were charged solely to the Federal program were not supported with the required semi-annual certifications. \n \n-8- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nALLOWABLE COSTS/COSTS PRINCIPLES Time and Attendance Records Not Utilized Significant Deficiency U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding control Number: FA-6511-08-02 \n \n Employees whose salaries were paid from multiple Federal programs did not have the required personnel activity reports (PARs) supporting time and effort. \n \nCause: \n \nThe School Food Service Director and employees failed to comply with the Federal requirements for certifying and documenting actual time and effort for Federal personnel and, as a result, the required certifications and PARs were not completed and utilized as a basis for documenting salary and wages charged to the Child Nutrition Cluster - Food Service Program. \n \nEffect: \n \nBecause ofthe School District's failure to maintain the required semi-annual certifications and PARs supporting time and effort, it could not be determined if the appropriate amount of salaries for these employees were charged to the Child Nutrition Cluster - Food Service Program. Federal program funding could be lost ifthe School District does not follow Federal requirements. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that employee compensation expenses paid from Federal award programs are allowable and properly documented in accordance with 0MB Circular A-87. Management should ensure that all salaries charged to a Federal program are commensurate with actual time devoted to that Federal program. Georgia Department of Education should review documentation to determine if refunds are appropriate. \n \n-9- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2008 \n \nFinding Control Number: FS-6511-08-01 \n \nThe School Principal Accounts will be reviewed for job task relationships, technical use ofsoftware and Policy as stated in the School District's Fiscal Management Handbook. This review will focus on bank statement reconciliations, cash receipt procedures, check writing procedures and Purchase Order preparation. The elimination ofincompatible relationships, implementation ofcompensating controls and transaction compliance with established Policy will result in these accounts having adequate policy and procedural control resulting in increased financial compliance. \n \nFinding Control Number: FA-6511-08-01 \n \nThe School District is ensuring that catering for profit services have been eliminated. Procedures have been developed and implemented to ensure these activities will not continue. The School District has established a separate bank account for all catering services performed by the Nutrition Program. The catering services will be recorded in a separate fund on the School District's records. This will include all revenues and expenses associated with the catering activity and will be recorded in the catering fund. These activities will occur only when the full cost ofcommodities is recovered, the revenues are posted to the nonprofit school nutrition account and when students are the primary beneficiaries ofthe food service. All supplies, commodities and labor will be purchased apart from School Food Service accounts. The School District's Federal Employment Identification (FEI) number has been eliminated from the unallowable bank account and that account has been closed. \n \nThe catering services and all other activities not related to the SFS Program will be recorded on separate timesheets. These unrelated activities will not be included in the cost ofthe SFS Program nor will these costs be included in any Federal or State cost reimbursement reports. The School District will monitor the SFS Program to insure compliance. \n \nFinding Control Number: FA-6511-08-02 \n \nThe School District procedures will require supervisory personnel to perform semi-annual certifications and PAR documentations to support time and effort ofpersonnel who work on multiple Federal and/or non Federal Programs. This will include written documentation and appropriate timesheets. This will allow the School District to ensure that all salaries charged to a Federal Program are commensurate with the actual time devoted to that program. \n \nContact Person: Telephone: Fax: Email: \n \nRonald Wilson, CPA, Director of Finance (912) 754-5885 (912) 754-3489 rlwilson@effingham.kl2.ga.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2006-h2007","title":"Effingham County Board of Education, Springfield, 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":["Fiscal year ended June 30, 2000-","Ceased with fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: Effingham County Board of Education, Springfield, 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 ... (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed February 3, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Effingham County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Effingham County--Auditing--Periodicals","Education--Georgia--Effingham County--Finance--Statistics--Periodicals"],"dcterms_title":["Effingham County Board of Education, Springfield, 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-be2-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2006-h2007"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodical","periodicals","state government audits","official reports","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"EFFINGHAM COUNTY BOARD OF EDUCATION SPRINGFIELD, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n9 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n27 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n3 SCHEDULE OF STATE REVENUE \n \n29 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n30 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \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 \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 6, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members ofthe State Board of Education \nand Superintendent and Members ofthe Effingham County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Effingham County Board ofEducation, 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 of the Effingham County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \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 Effingham 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. \n \n2007ARL-11 \n \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 Effingham County Board of Education, 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. \nThe Effingham County Board of Education 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. \nIn accordance with Government Auditing Standards, we have also issued our report dated October 6, 2008, on our consideration of the Effingham 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. \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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Effingham 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. \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. \nRespectfully submitted, \n..J\u0026 ~\"' ...J)Q, lD. \n~uJell W. Hinton, CPA, CGFM State Auditor \nRWH:gp 2007ARL-l 1 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2007 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n$ 20,715,305.44 10, 166,560.43 \n2,714,111.30 6,860,382.20 1,279,331.98 \n39,971.38 59,221.53 \n3,248,707.00 6,609,551.00 10,421,546.00 95,953,038.00 10,220,927.00 -37,569, 143.00 \n$ 130,719,510.26 \n \n$ \n \n1,985,954.44 \n \n10,075,409.46 \n \n1,161,937.56 \n \n635,844.70 \n \n2,303,587.11 29,236,910.96 \n \n$ 45,399,644.23 \n \n$ 72,344,127.93 \n59,221.53 3,132,371.35 2,372,341.81 7 411 803.41 \n$ 85,319,866.03 \n \n$ 130,719,510.26 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2007 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 60,299,797.49 \n3,059,421.19 2,904,572.42 2,035,841.76 1,691,801.32 5,001,232.56 1,161,424.63 5,919,765.43 4,333,190.86 \n22,659.93 \n725,681.91 $ 5,417,894.16 \n975,060.04 \n$ 93,548,343.70 $ \n \n788,685.14 1,868,998.51 \n2,657,683.65 \n \nNet Assets - End of Year \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ 44,090,238.51 $ \n917,691.77 450,121.13 1,188,145.09 1,877,976.66 2,405,349.77 \n17,916.88 3,174,128.55 \n143,338.91 22,688.40 \n2,236,107.62 \n$ 56,523,703.29 $ \n \n242,677.16 $ \n9,408.26 12,060.77 12,313.54 3,769.17 444,818.00 \n24,281.62 \n749,328.52 $ \n \n-15,966,881.82 \n-2,141,729.42 -2,454,451.29 \n-838,288.41 186,175.34 -2,583,822.02 -1,131,194.21 -2,741,867.71 -3,745,033.95 \n28.47 \n63,003.23 -1,288,506.41 \n-975,060.04 \n-33,617,628.24 \n \n$ \n \n21,411,928.84 \n \n1,599,412.85 \n \n35,532.83 \n \n10,205,182.55 698,974.72 237,444.47 \n7,645,894.00 1,161,732.98 1 571 731.37 \n \n$ \n \n44,567,834.61 \n \n$ \n \n10,950,206.37 \n \n74,369,659.66 \n \n$ ==8=5=,3=19=,8=6=6=.0=3 \n \n-3- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2007 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Due From Other Funds \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 10,310,664.03 $ 10,072,056.07 $ \n \n332,585.34 $ \n \n7,441,280.13 \n \n2,725,280.30 \n \n815,253.37 6,581,013.00 1,279,331.98 \n13,561.14 59,221.53 21,700.00 \n \n1,541,606.37 279,369.20 \n26,410.24 \n \n67,148.48 \n \n20,715,305.44 10,166,560.43 \n2,424,008.22 6,860,382.20 1,279,331.98 \n39,971.38 59,221.53 21,700.00 \n \nTotal Assets \n \n$ 19,080,745.05 $ 19,360,722.01 $ 3,125,014.12 $==4,,,,1,=56=6=,4=8=1.=18= \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Due To Other Funds \nTotal Liabilities \nFUND BALANCES \nReserved for: Inventories Debt Service Capital Projects \nUnreserved Designated for Student Activities Undesignated Reported in: General Fund \nTotal Fund Balances \n \n$ 1,795,356.50 $ 10,075,409.46 \n \n190,597.94 \n1,161,937.56 635,844.70 $ \n \n$ 11,870,765.96 $ 1,988,380.20 $ \n \n$ \n21,700.00 21,700.00 $ \n \n1,985,954.44 10,075,409.46 \n1,161,937.56 635,844.70 21,700.00 \n13,880,846.16 \n \n$ \n \n59,221.53 \n \n$ \n \n$ 3,103,314.12 \n \n$ 17,372,341.81 \n \n361,023.55 \n \n6,789,734.01 \n \n$ 7,209,979.09 $ 17,372,341.81 $ 3,103,314.12 $ \n \n59,221.53 3,103,314.12 17,372,341.81 \n361,023.55 \n6,789,734.01 \n27,685,635.02 \n \nTotal Liabilities and Fund Balances \n \n$ 19,080,745.05 $ 19,360,722.01 $ 3,125,014.12 $==4=1,=56=6=,4=8=1.=18= \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Capital Leases Unamortized Bond Premiums \nTotal Long-Term Liabilities \n \n$ 27,685,635.02 \n \n$ 3,248,707.00 6,609,551.00 10,421,546.00 \n95,953,038.00 10,220,927.00 -37,569, 143.00 \n \n88,884,626.00 \n \n290,103.08 \n \n$ -22,605,000.00 -8,460,324.98 -475, 173.09 \n \n-31,540,498.07 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 85,319,866.03 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2007 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds from the Sale of Bonds Premiums on Bonds Sold Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 20,574,751.82 \n \n$ 1,581,909.62 $ \n \n870,567.37 $ 10,205,182.55 \n \n65,851.82 \n \n58,494,952.45 \n \n304,510.52 \n \n6,119,462.84 \n \n2,657,683.65 \n \n243,449.30 \n \n746,896.80 \n \n171,386.88 \n \n1,357,380.10 \n \n214,351.27 \n \n22,156,661.44 11,141,601.74 58,799,462.97 6,119,462.84 2,657,683.65 \n1,161,732.98 1,571,731.37 \n \n$ 90,318,247.53 $ 11,470,941.14 $ 1,819,148.32 $ 103,608,336.99 \n \n$ 56,045,987.29 $ 341,660.84 \n \n$ 56,387,648.13 \n \n3,066,024.12 2,904,627.42 1,857,980.05 1,710,835.01 4,757,058.47 \n915,613.29 5,847,523.30 3,589,014.28 \n22,659.93 725,681.91 4,937,475.96 521,027.15 \n \n175,094.10 $ 782,032.12 \n12,810,920.28 \n \n2,184.70 \n \n3,066,024.12 2,904,627.42 1,857,980.05 1,710,835.01 4,757,058.47 1,092,892.09 5,847,523.30 4,371,046.40 \n22,659.93 725,681.91 4,937,475.96 13,331,947.43 \n \n534,797.99 365,369.00 \n \n1,590,000.00 609,691.04 \n \n2,124,797.99 975,060.04 \n \n$ 87,801,675.17 $ 14,109,707.34 $ 2,201,875.74 $ 104,113,258.25 \n \n$ 2,516,572.36 $ -2,638, 766.20 $ -382,727.42 $ \n \n-504,921.26 \n \n$ 14,701,646.46 $ 518,370.65 \n6,819,326.27 $ -6,819,326.27 \n \n298,353.54 $ \n \n15,000,000.00 518,370.65 \n6,819,326.27 -6,819,326.27 \n \n$ -6,819,326.27 $ 22,039,343.38 $ 298,353.54 $ 15,518,370.65 \n \n$ -4,302,753.91 $ 19,400,577.18 $ -84,373.88 $ 15,013,449.39 \n \n11,512,733.00 -2,028,235.37 3,187,688.00 \n \n12,672,185.63 \n \nFund Balances - Ending \n \n$ 7,209,979.09 $ 17,372,341.81 $ 3,103,314.12 $ 27,685,635.02 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n-6- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \n \n$ 15,013,449.39 \n \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \n \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: \n \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \n \n$ 11,636,266.00 -3,239,347.00 \n \n8,396,919.00 \n \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. \n \n890,213.08 \n \nBond proceeds provide current financial resources to Governmental Funds; however, issuing debt increases Long-Term Liabilities in the Statement of Net Assets. In the current period, proceeds were received from: \n \nGeneral Obligation Bonds Issued, including a premium of $518,370.65 \n \n-15,518,370.65 \n \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \n \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \n \n$ 1,590,000.00 534,797.99 \n \n2,124,797.99 \n \nThe amortization of the bond premium is reported in the Statement of Activities and does not require the use of current financial resources and therefore is not reported as an expenditure in Governmental Funds. \n \n43,197.56 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 10,950,206.37 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n (This page left intentionally blank) \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2007 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \nAGENCY FUNDS \n$ 361,623.55 \n$ 361,623.55 \n \nThe notes to the basic financial statements are an integral part of this statement. -9 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Effingham County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \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 Effingham County Board of Education. \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. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \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. \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. \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. \n \n- 10 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \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. \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. \n Debt Service Fund accounts for taxes (property and sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments and individuals. \nBASIS OF ACCOUNTING \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. \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. \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 \n- 11 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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. \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. \nCASH AND CASH EQUIVALENTS \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. \nINVESTMENTS \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: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n \n- 12 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \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. \n \nRECEIVABLES \n \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. \n \nPROPERTY TAXES \n \nThe Effingham County Board ofCommissioners fixed the property tax levy for the 2006 tax digest year (calendar year) on June 27, 2006 (levy date). Taxes were due on September 15, 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 Effingham 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 $20,539,218.99 and for school bonds amounted to $1,581,909.62. \n \nTax millage rates levied for the 2006 tax year (calendar year) for the Effingham County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n15.570 mills 1.178 mills \n \n16.748 mills \n \n- 13 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $10,205,182.55 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. \n \nINVENTORIES \n \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. \n \nCAPITAL ASSETS \n \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. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAny Amount $ 50,000.00 $ 50,000.00 $ 5,000.00 \n \nNIA 15 years 20 to 40 years 5 to 10 years \n \n- 14 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \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. \n \nNET ASSETS \n \nThe School District's net assets in the District-wide Statements are classified as follows: \n \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. \n \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. \n \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. \n \nDEFICIT FUND BALANCES \n \nThe individual nonmajor fund reporting a deficit fund balance at June 30, 2007, is as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGeneral Fund School Food Service Fund \n \n$ \n \n30.60 \n \nThe Effingham County Board of Education plans to alleviate the School Food Service Fund deficit through an increase in meal prices and a reduction in spending. \n \n- 15 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \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 ofsuch 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. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \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, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \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. \nCATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $21,914,783.36. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or \n \n- 16 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCategory 3 - Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n5,330,942.67 \n \n3 \n \n16,058.017.50 \n \nTotal \n \n$21,388,960.17 \n \nCATEGORIZATION OF INVESTMENTS The School District's investments as of June 30, 2007, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \n \nInvestment Type \n \nFair Value \n \nInvestment Maturity Less Than 1 Year \n \nDebt Securities Federal National Mortgage Association Discount Notes \n \n$ 2,725,280.30 $ 2,725,280.30 \n \nInvestment Pools Office of Treasury and Fiscal Services Georgia Fund 1 \n \n7.441.280.13 \n \nTotal Investments \n \n$10,166,560.43 \n \nThe Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Local Government Investment Pool is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department ofAudits and Accounts at http://www.audits.state.ga.us/internet/searchRpts.html. \n \n- 17 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nThe Primary Liquidity Portfolio consists of Georgia 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, 2007, was 15 days. \n \nInterest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value ofan investment. The School District does not have a formal policy for managing interest rate risk. \n \nCustodial Credit Risk Custodial credit risk for investments is the risk that, in the event ofthe failure ofthe counterparty to a transaction, the School District will not be able to recover the value ofthe investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. \n \nAt June 30, 2007, $2,725,280.30 ofthe School District's applicable investments were uninsured, are not registered in the name of the School District and are held by either the counterparty or the counterparty's trust department or agent, but not in the School District's name. \n \nCredit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing credit quality risk. \n \nThe investments subject to credit quality risk are reflected below: \n \nRated Debt Investments \n \nFair Value \n \nQuality Ratings Unrated \n \nDebt Securities Federal National Mortgage Association Discount Notes \n \n$2,725,280.30 $2,725,280.30 \n \nConcentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in FNMA Discount Notes. This investment is 27% of the School District's total investments. \n \n- 18 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2006 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2007 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 3,248,707.00 \n \n$ 3,248,707.00 \n \n10,144,536.00 $ 6,589,172.00 $10,124,157.00 6,609,551.00 \n \nTotal Capital Assets Not Being Depreciated $13,393,243.00 $ 6,589,172.00 $10,124,157.00 $ 9,858,258.00 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$82,391,875.00 $13,561,163.00 \n \n$95,953,038.00 \n \n9,574,484.00 1,187,542.00 $ 541,099.00 10,220,927.00 \n \n9,999,000.00 422,546.00 \n \n10,421,546.00 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n20,404,687.00 6,227,009.00 8,239,199.00 \n \n2,178,851.00 696,677.00 363,819.00 \n \n541,099.00 \n \n22,583,538.00 6,382,587.00 8,603,018.00 \n \nTotal Capital Assets, Being Depreciated, Net $67,094,464.00 $11,931,904.00 $_ ___,O=.O=O $79,026,368.00 \n \nGovernmental Activity Capital Assets - Net $80.487.707.00 $18.521.076.00 $10.124, 157.00 $88.884.626.00 \n \nCapital assets being acquired under capital leases as of June 30, 2007, are as follows: \n \nGovernmental Funds \n \nBuildings and Improvements Land Less: Accumulated Depreciation \n \n$9,728,973.00 275,000.00 608,060.00 \n \n$ 9,395,913.00 \n \n- 19 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$2,153,759.00 \n \n$ 100,084.00 128,301.00 130,990.00 40,096.00 427,813.00 \n \n827,284.00 258,304.00 \n \n$ 3,239,347.00 \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds, Qualified Zone Academy Bonds (QZAB) escrow account, and property tax levied specifically for retirement of outstanding bond principal, interest and paying agent's fees (Debt Service Funds) are restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory prov1s1ons. Restricted assets at June 30, 2007, were as follows: \n \nDistrict-wide Ca,Qital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ 332,585.34 $10,072,056.07 \n$ 2,725,280.30 $2,027,130.13 $ 5,414,150.00 \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2007, consisted of the following: \n \n- 20 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund Debt Service Fund \n \n$ 21,700.00 $ 21,700.00 \n \n$ 211700.00 $ 211700.00 \n \nThis represents an amount due to reimburse the General Fund for Debt Service expenditures. \n \nNote 8: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2007, consisted of the following: \n \nTransfer to \n \nTransfers From General Fund \n \nDistrict-wide Capital Projects \n \n$ 61819326.27 \n \nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund as required match or supplemental funding source for capital construction projects. \n \nNote 9: RISK MANAGEMENT \n \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. \n \nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions,job related illness or injuries to employees and acts ofGod. 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. \n \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. \n \n- 21 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 9: RISK MANAGEMENT \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n2006 2007 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear Liability \n \n$ \n \n0.00 $ \n \n106.00 $ \n \n106.00 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Employee \n \n$ 100,000.00 $ 50,000.00 \n \nNote 10: LONG-TERM DEBT \n \nCAPITAL LEASES The Effingham County Board ofEducation entered into an agreement dated February 2003, with the Georgia School Board Association for the construction and subsequent lease of various school facilities. Under the terms ofthe agreement, the School District will make annual payments through August 15, 2018. This lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1994 General Government- QZAB - Series 2001B General Government - Series 2006A General Government - QZAB - Series 2006B \n \n4.20% - 6.25% 0.00% \n4.00% - 5.00% 0.00% \n \n$ 3,405,000.00 4,200,000.00 13,000,000.00 2,000,000.00 \n \n$22,605,000.00 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: \n \n- 22 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 10: LONG-TERM DEBT \n \nBalance July l, 2006 \nAdditions G.O.Bonds Unamortized Bonds \nDeductions Debt Retired Bond Premiums Amortized \nBalance June 30, 2007 \nPortion of Long-Term Debt Due within One Year \n \nCapital Leases \n \nGovernmental Funds \n \nGeneral \n \nUnamortized \n \nObligation \n \nBonds \n \nBonds \n \nPremium \n \nTotal \n \n$ 8,995,122.97 $ 9,195,000.00 $ \n \n0.00 $ 18,190,122.97 \n \n15,000,000.00 \n \n15,000,000.00 \n \n518,370.65 \n \n518,370.65 \n \n534,797.99 1,590,000.00 \n \n43,197.56 \n \n2,124,797.99 43,197.56 \n \n$ 8 460 324.98 $ 22 605 000.00 $ 415 113.02 $ 31,540,428.01 \n \n$ 557,192.98 $ 1,660,000.00 $ 86,395.11 $ 2,303,588.09 \n \nAt June 30, 2007, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n2008 2009 2010 2011 2012 2013 - 2017 2018 - 2019 \n \n$ 557,192.98 $ 342,503.00 \n \n579,617.00 \n \n319,604.00 \n \n604,794.00 \n \n293,896.00 \n \n630,119.00 \n \n268,036.00 \n \n656,504.00 \n \n241,094.00 \n \n3,717,611.00 \n \n761,198.00 \n \n1,714,487.00 \n \n72,232.00 \n \nTotal Principal and Interest \n \n$ 8,460,324.98 $2,298,563.00 \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \nUnamortized Bond \nPremium \n \n2008 2009 2010 2011 2012 2013 - 2017 2018 - 2021 \nTotal Principal and Interest \n \n$ 1,660,000.00 $ 799,738.00 $ \n \n4,050,000.00 \n \n649,887.00 \n \n2,445,000.00 \n \n445,825.00 \n \n2,590,000.00 \n \n338,900.00 \n \n2,750,000.00 \n \n213,187.50 \n \n7,110,000.00 \n \n72,750.00 \n \n2.000.000.00 \n \n86,395.11 86,395.11 86,395.11 86,395.11 86,395.11 43,197.54 \n \n$22,605,000.00 $2,520,287.50 $ 475,173.09 \n \n- 23 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 11: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $1,550,057.00 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $1,494,491.00 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $44,573.00 \n \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 $10,993.00 \n \nNote 12: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2007, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \nSandhill Elementary School South Effingham Middle School South Effingham High School Gym 0SG-651-009 0SG-651-010 0SG-651-011 0SG-651-012 \n \n$ 1,577,166.41 154,851.50 317,367.41 724,745.40 676,211.69 \n2,025,861.98 711,207.79 \n \n1,136,833.00 $ 394,973.00 \n1,136,833.00 434,108.00 \n \n$6,187,412.18 $3,102,747.00 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \n- 24 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \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. \n \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. \n \nNote 14: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \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. \n \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: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2007 2006 2005 \n \n100% 100% 100% \n \n$ 4,518,800.60 $ 3,979,176.00 $ 3,578,723.00 \n \n- 25 - \n \n (This page left intentionally blank) \n \n EFFINGHAM COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING USES \nOther Uses \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGET \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ 16,500,000.00 $ 19,250,000.00 $ 20,574,751.82 \n \n700,000.00 \n \n828,000.00 \n \n870,567.37 \n \n47,301,698.07 \n \n53,720,746.66 \n \n58,494,952.45 \n \n5,837,088.00 \n \n6,533,490.25 \n \n6,119,462.84 \n \n1,672,800.00 \n \n1,974,550.00 \n \n2,657,683.65 \n \n11,000.00 \n \n18,000.00 \n \n243,449.30 \n \n758,040.00 \n \n1,224,774.00 \n \n1,357,380.10 \n \n$ 72,780,626.07 $ 83,549,560.91 $ 90,318,247.53 \n \n$ 47,296,689.06 $ 54,942,769.84 $ 56,045,987.29 \n \n2,112,006.60 1,960,697.88 1,689,044.44 1,063,966.00 4,640,527.36 \n556,164.00 4,593,581.00 3,781,276.50 \n22,646.00 \n3,855,470.00 314,300.00 900,622.00 \n \n2,872,328.27 1,902,413.23 1,841,658.87 1,230,689.78 4,858,187.95 1,041,355.97 5,300,987.14 3,532,325.75 \n21,670.00 \n4,703,124.00 410,200.00 900,167.00 \n \n3,066,024.12 2,904,627.42 1,857,980.05 1,710,835.01 4,757,058.47 \n915,613.29 5,847,523.30 3,589,014.28 \n22,659.93 725,681.91 4,937,475.96 521,027.15 900,166.99 \n \n$ 72,786,990.84 $ 83,557,877.80 $ 87,801,675.17 \n \n$ \n \n-6,364.77 $ \n \n-8,316.89 $ 2,516,572.36 \n \n-6,819,326.27 \n \n$ \n \n-6,364.77 $ \n \n-8,316.89 $ -4,302,753.91 \n \n11,511,657.16 \n \n11,511,657.16 \n \n11,512,733.00 \n \n6,328.39 \n \n6,328.39 \n \nFund Balances - Ending \n \n$ 11,511,620.78 $ 11,509,668.66 $ ==7'=2=09=,9=7=9=.0=9 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \n \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. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Even Start Improving Teacher Quality State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Navy R.O.T.C. Program \nTotal U.S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A \n \n(2) \n \nN/A $ 4,568,229.52 \n \n$ 4,568,229.52 \n \n10.550 \n \nN/A \n \n121 557.44 \n \n$ 4,689,786.96 \n \n84.027 84.173 \n \nN/A $ 1,989,972.38 \n \nN/A \n \n84 782.08 \n \n$ 2,074,754.46 \n \n84.318 84.213 84.367 84.298 84.010 84.048 \n \nN/A \n \n55.00 \n \nN/A \n \n270,378.00 \n \nN/A \n \n285,713.22 \n \nN/A \n \n12,595.00 \n \nNIA \n \n1,292,808.13 \n \nNIA \n \n92,927.00 \n \n$ 4,029,230.81 \n \n$ \n \n39,933.49 \n \n61,880.52 \n \n$ _ _.:_1;::_01'--'-8=--1:..:4.a.:.0;.:.1 \n \nTotal Federal Financial Assistance \n \n$ ==\"\"8,e:82=0=-,8=3=1=7.===8 \n \nN/A = Not Available \n \nNotes to the Schedule of Expenditures of Federal Awards \n \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. \n(2) Expenditures for the funds earned on the School Breakfast Program ($398,271.01) were not maintained separately and are included in the 2007 National School Lunch Program. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Effingham 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. \n \nSee notes to the basic financial statements. \n \n- 28 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \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 Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) 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 Nursing Services Principal Supplements Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Comprehensive Academic Performance Health Insurance K-8 Reading and Math Program Middle School Remedial Program National Teacher Certification Preschool Handicapped Program Pupil Transportation - State School Bonds Teachers' Retirement Technology/Career Education Supervision Virtual School State Grant \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n2,021,050.00 \n \n$ \n \n2,021,050.00 \n \n2,462,240.00 874,977.00 \n6,814,475.00 1,098,736.00 3,008,635.00 \n886,072.00 6,175,039.00 5,080,054.00 2,099,151.00 6,525,461.00 1,645,099.00 \n290,037.00 490,347.00 \n75,678.00 1,032,436.00 \n318,333.00 208,912.00 \n1,306,694.00 1,998,184.00 2,751,922.00 \n1,323,308.00 144,818.00 189,456.00 34,885.00 \n7,645,894.00 247,689.00 177,927.66 -946,271.00 \n120,225.00 1,494,491.00 \n121,395.79 4,826.00 \n83,478.00 295,240.00 300,000.00 \n44,573.00 37,717.00 \n775.00 \n \n2,462,240.00 874,977.00 \n6,814,475.00 1,098,736.00 3,008,635.00 \n886,072.00 6, 175,039.00 5,080,054.00 2,099,151.00 6,525,461.00 1,645,099.00 \n290,037.00 490,347.00 \n75,678.00 1,032,436.00 \n318,333.00 208,912.00 \n1,306,694.00 1,998,184.00 2,751,922.00 \n1,323,308.00 144,818.00 189,456.00 34,885.00 \n7,645,894.00 247,689.00 177,927.66 -946,271.00 \n120,225.00 1,494,491.00 \n121,395.79 4,826.00 \n83,478.00 295,240.00 300,000.00 \n44,573.00 37,717.00 \n775.00 \n \n$ \n \n304,510.52 \n \n10,993.00 \n \n304,510.52 10,993.00 \n \nSee notes to the basic financial statements. \n \n$ 58,494,952.45 $ \n \n304,510.52 $ 58,799,462.97 \n \n- 29- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \nThe constructing, equipping and furnishing of \n \na new elementary school to replace the present \n \nSpringfield Central Elementary School; a new \n \nelementary school to replace the present Marlow \n \nElementary School; new classroom wings at \n \nGuyton and Sand Hill Elementary Schools, \n \nand Ebenezer Middle School; a new gymnasium \n \nand media center at Rincon Elementary School; \n \na new band room at South Effingham Middle \n \nSchool; outdoor physical education/sports \n \nfacilities at middle and high schools; a new \n \nmiddle school to replace the present Effingham \n \nCounty Middle School; replacing aged roofs \n \nand heating/air conditioning units, as necessary, \n \nat all School District buildings; renovating/ \n \nrelocating, furnishing and equipping Alternative \n \nSchool; installing air conditioning units in \n \ngymnasiums at Ebenezer, Guyton, Marlow and \n \nSand Hill Elementary Schools and at South \n \nEffingham Middle School; installing additional \n \nplayground equipment at all elementary schools; \n \nrenovating the Board of Education's Bus Shop, \n \ninstalling bus washing equipment, replacing \n \nmaintenance vehicles and purchasing new \n \nbuses; constructing an access road behind \n \nEffingham County Middle School; renovating and \n \nmodifying to the Board of Education's central \n \noffices in Springfield; purchasing new textbooks \n \nand instructional equipment, including band and \n \nvocational equipment; installing storage buildings \n \nat all schools; purchasing land for Effingham \n \nCounty School District operations, including future \n \nschool sites; adding to, remodeling, renovating, \n \nimproving, and equipping existing educational \n \nbuildings, properties, and facilities of the School \n \nDistrict, acquiring any necessary personal and \n \nreal property and equipment, including computers \n \nand related technology, copiers, energy management \n \nsystems, heating and air conditioning systems, \n \nlighting, fencing and paving, security and safety \n \nequipment, and similar equipment at all Effingham \n \nCounty District schools, including Ebenezer \n \nElementary, Effingham County High, Effingham \n \nCounty Middle, Guyton Elementary, Marlow \n \nElementary, Rincon Elementary, Sand Hill \n \nElementary, South Effingham Elementary, South \n \nEffingham High, South Effingham Middle, and \n \nSpringfield Central Elementary. \n \n$ 35,000,000.00 $ 54,297,885.34 $ 14,408,460.88 $ 38,688,178.00 \n \nOngoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Effingham 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. \n \nSee notes to the basic financial statements. \n \n- 30 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program 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 English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n2,667,800.00 $ 1,682,496.73 $ \n \n73,306.80 $ 1,755,803.53 \n \n1,000,174.00 \n \n2,237,987.74 \n \n2,237,987.74 \n \n7,479,505.00 \n \n8,211,699.82 \n \n217,811.04 \n \n8,429,510.86 \n \n1,249,270.00 \n \n3,223,324.05 \n \n3,223,324.05 \n \n3,332,903.00 \n \n3,622,758.41 \n \n106,907.15 \n \n3,729,665.56 \n \n966,486.00 6,839,509.00 5,616,411.00 2,329,809.00 7,162,135.00 \n1,733,128.00 292,550.00 542,389.00 82 514.00 \n \n1,172,502.84 120,146.79 \n7,727,054.83 7,139,396.91 1,723,447.32 \n46,084.90 1,276,456.93 4,504,770.52 \n655.74 \n1,085,434.54 89,119.66 \n371,220.09 97191.19 \n \n216,680.21 \n204,366.99 201,137.00 \n9,966.60 13,975.52 88,691.87 48,018.00 39,244.10 24,623.90 \n1,815.82 30,954.51 \n4 635.56 \n \n1,172,502.84 336,827.00 \n7,727,054.83 7,343,763.90 1,924,584.32 \n56,051.50 1,290,432.45 4,593,462.39 \n48,673.74 39,244.10 1,110,058.44 90,935.48 402,174.60 101 826.75 \n \n$ \n \n41,294,583.00 $ 44,331,749.01 $ 1,282,135.07 $ 45,613,884.08 \n \n1,138,690.00 233 828.00 \n \n1,286,815.56 155,347.00 \n \n538,893.40 234,251.75 \n \n1,825,708.96 389,598.75 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n42,667,101.00 $ 45,773,911.57 $ 2,055,280.22 $ 47,829,191.79 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 6, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \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 \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Effingham County Board of Education as of and for the year ended June 30, 2007, which collectively comprise Effingham County Board of Education's basic financial statements and have issued our report thereon dated October 6, 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. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Effingham 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 ofthe Effingham County Board ofEducation's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Effingham County Board of Education's internal control over financial reporting. \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. \n2007YB-40 \n \n A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the Effingham 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 Effingham County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Effingham County Board of Education's internal control. We consider items FS-6511-07-01, FS-6511-07-02 and FS-6511-07-03 in the accompanying Schedule of Findings and Questioned Costs to be significant deficiencies in internal control over financial reporting. \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 Effingham County Board of Education's internal control. \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, of the significant deficiencies described above, we consider item FS-6511-07-03 to be a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Effingham 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. \nWe noted certain matters that we have reported to management of Effingham County Board of Education in a separate letter dated October 6, 2008. \nEffingham County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit Effingham County Board of Education's response and, accordingly, we express no opinion on it. \n2007YB-40 \n \n This report is intended solely for the information and use of the management, members of the Effingham 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. \nRespectfully submitted, \n~u\\~~ \nRussell W. Hinton, CPA, CGFM State Auditor \nRWH:gp 2007YB-40 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 6, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Effingham County Board of Education with the types of compliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2007. Effingham 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 ofEffingham County Board of Education's management. Our responsibility is to express an opinion on Effingham County Board of Education's compliance based on our audit. \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 Effingham 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 Effingham County Board of Education's compliance with those requirements. \n2007SA-65 \n \n As described in item FA-6511-07-01 in the accompanying Schedule of Findings and Questioned Costs, Effingham County Board ofEducation did not comply with requirements regarding Activities Allowed or Unallowed and Allowable Costs/Cost Principles that are applicable to its Child Nutrition Cluster (CFDA 10.553 and 10.555). Compliance with such requirements is necessary, in our opinion, for Effingham County Board ofEducation to comply with requirements applicable to those programs. \nIn our opinion, except for the noncompliance described in the preceding paragraph, the Effingham 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, 2007. \nInternal Control Over Compliance \nThe management of Effingham 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 Effingham 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 Effingham County Board of Education's internal control over compliance. \nOur consideration ofthe internal control over compliance was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the Board's internal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies and others we consider to be material weaknesses. \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 ofcompliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. We consider the deficiencies in internal control over compliance described in the accompanying Schedule ofFindings and Questioned Costs as items FA-6511-07-01, FA-6511-07-02 and FA-6511-07-03 to be significant deficiencies. \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. Of the significant deficiencies in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs, we consider item FA-6511-07-01 to be a material weakness. \n2007SA-65 \n \n Effingham County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit Effingham County Board of Education's response and, accordingly, we express no opinion on it. \nThis report is intended solely for the information and use of the management, members of the Effingham 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. \nRespectfully submitted, \n?~w-~ \n~us1en W. Hinton, CPA, CGFM State Auditor \nRWH:gp 2007SA-65 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nSEE AUDITOR'S COMMENTS \n \nFS-6511-04-03 Unresolved - See Corrective Action/Responses \n \nFS-6511-05-01 Further Action Not Warranted \n \nFS-6511-05-03 Further Action Not Warranted \n \nFS-6511-05-04 Further Action Not Warranted \n \nFS-6511-06-01 Unresolved - See Corrective Action/Responses \n \nFS-6511-06-02 Previously Reported Corrective Action Implemented \n \nFS-6511-06-03 Previously Reported Corrective Action Implemented \n \nFS-6511-06-04 Further Action Not Warranted \n \n(1) \n \nCORRECTIVE ACTION/RESPONSES \n \nEXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION Inadequate Internal Control Procedures Finding Control Number: FS-6511-04-03 \n \nThe old rules have been reinterpreted requiring reclassification of some of these employees. We are in discussion with the Georgia Department of Community Health; however, no resolution has been determined with the Georgia Department ofCommunity Health. Effingham County Board of Education has corrected the classification of these employees and will continue to adhere to these rules as they apply to these circumstances. \n \nREVENUES/RECEIVABLES/RECEIPTS Inadequate Internal Controls over School Activity Accounts Finding Control Number: FS-6511-06-01 \n \nThe School Principal Accounts have been reviewed and job tasks have been reassigned to address needed separation ofduties. Reassignment ofduties includes cash deposit receipt preparation and record keeping function preformed by different persons allowing for better separation of duties. Management has also purchased and implemented new accounting software. This new software created by Star Software Systems is web based allowing all schools common functionality. Management has a program of monthly review of all school records and will continue the review of functional processes to complete the separation process. The monthly review process will continue to make adjustments to those procedures required for better control and review allowing management the mechanism to find and change procedures as required. \n \n- 1- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nAUDITOR'S COMMENTS \n \n(1) Findings/internal control deficiencies ofthis 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. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6511-06-01 \n \nUnresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nALLOWABLE COSTS/COST PRINCIPLES U.S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Inadequate Internal Control Procedures Finding Control Number: FA-6511-06-01 \n \nManagement has taken steps to implement control procedures to insure authorization of transactions and oversight ofprocedures. These controls have been implemented to ensure record keeping accuracy, separation of key duties and approvals, as well as, strengthen internal controls at the individual cafeteria locations. \n \n-2 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Effingham County Board of Education's financial statements was unqualified. \n \n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Effingham County Board ofEducation disclosed financial statement significant deficiencies related to the following control categories. \n \nCash and Cash Equivalents Revenues/Receivables/Receipts Financial Reporting \n \nExpenditures/Liabilities/Disbursements General Ledger \n \nOf the significant deficiencies described above, Financial Reporting is considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit of the Effingham County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Effingham County Board of Education disclosed significant deficiencies in internal control over major programs for the following compliance requirements. \n \nActivities Allowed or Unallowed \n \nAllowable Costs/Cost Principles \n \nAll ofthe significant deficiencies described above are considered to be material weaknesses. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Effingham County Board of Education's report on compliance with requirements applicable to major programs was qualified. \n \n6. Audit Findings Required to be Reported by Section .510{a) ofOMB Circular A-133 The Effingham County Board of Education's audit disclosed audit findings required to be reported by section .510(a) ofOMB Circular A-133. These audit findings are included in section IV of this report. \n \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 \n \n- 1- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n \n9. Low Risk Auditee The Effingham County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-6511-07-01 \n \nCondition: \n \nThis is a repeat finding (FS-6511-06-01 and FS-6511-05-03) from the years ended June 30, 2006, and June 30, 2005, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCriteria: \n \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. \n \nQuestioned Cost: NIA \n \nInformation: \n \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and cash custody functions. \n \nRevenues/Receivables/Receipts  The cash receipts and deposit preparation functions were not separated from the record keeping function.  All athletic receipts and supporting documentation for Effingham County High School could not be located and were not available for testing.  Based on a review of thirty items, the following deficiencies were noted: 1. One receipt's date was subsequent to the actual deposit date. 2. Fourteen receipts were not deposited in a timely manner. \n \n-2- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-6511-07-01 \n3. Seventeen receipts lacked adequate supporting documentation. 4. Two gate receipts were not properly reconciled to the deposits. \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping function.  Two employees were paid for personal services from the School Activity Accounts rather than through the Central Office Payroll System.  Numerous checks, for amounts ranging from $2,500.00 to $4,000.00 were made out to \"Cash\" to establish petty cash for athletic events. These checks were erroneously charged to expenditure accounts rather than petty cash.  Based on a review ofsixty vouchers, the following deficiencies were noted: 1. Thirty-two vouchers had purchase orders dated after the invoice dates. 2. Twenty check requests were hand written by the bookkeeper and were not approved. 3. One purchase of an item over $5,000.00 was not bid and did not have the proper approval. 4. Two voucher packages did not contain original invoices. 5. One voucher was charged to an incorrect fund. 6. Two voucher packages did not have approved purchase orders or requisitions. 7. Supporting documentation for one voucher did not adequately support the amount on the voucher. \nGeneral Ledger  The School District incorrectly classified governmental and agency funds for the School Activity accounts. Audit entries were proposed and made to properly classify these funds. \n-3 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-6511-07-01 \n \nCause: \n \nThese deficiencies were a result ofmanagement's failure to properly establish internal controls at the school level by limiting the number ofadministrative staff made responsible for accounting functions. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization are separated and/or utilize management oversight for these incompatible activities. In addition, management should monitor controls to provide reasonable assurance that transactions are processed according to established procedures and implement procedures deemed necessary to strengthen internal controls over the accounting functions. \n \nREVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls at the Central Office Significant Deficiency Finding Control Number: FS-6511-07-02 \n \nCondition: \n \nThe accounting procedures ofthe School District were insufficient to provide for adequate internal controls at the Central Office. \n \nCriteria: \n \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. \n \nQuestioned Cost: NIA \n \n-4 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nREVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls at the Central Office Significant Deficiency Finding Control Number: FS-6511-07-02 \n \nInformation: \n \nRevenues/Receivables/Receipts  The deposit preparation function was not separated from the record keeping and the cash custody functions.  The School District failed to post receipts to the general ledger in a timely manner. \n \nExpenditures/Liabilities/Disbursements  The purchasing function was not separated from the approval process and the receiving of goods function for maintenance and transportation.  Maintenance and transportation requisitions and purchase orders were completed after the actual orders were placed.  Based on a review of one hundred forty-two vouchers, the following deficiencies were noted: 1. Eleven vouchers failed to include either a purchase order or an approved requisition. 2. Three transactions lacked receipt of goods evidence. 3. Three vouchers did not contain an invoice or receiving evidence. \n \nCause: \n \nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the Central Office. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nManagement should review the accounting procedures in place, design procedures which would enhance internal controls relative to the above control categories and implement those procedures to strengthen the internal control over these accounting functions. \n \n-5- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-6511-07-03 \n \nCondition: \n \nThe School District did not have adequate controls in place over the financial statement reporting process. \n \nCriteria: \n \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. \n \nQuestioned Cost: NIA \n \nInformation: \n \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 correcting entries were proposed by the auditor and accepted by the client to properly present the entity's fund level and entity-wide level financial statements. \n \nCause: \n \nThe School District did not implement an adequate system ofinternal control over the financial statement reporting process. \n \nEffect: \n \nThe School District did not have adequate controls in place to ensure that the financial statements were properly prepared in accordance with generally accepted accounting principles. \n \nRecommendation: \n \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. \n \n-6- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED OR UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Catering Activities Material Weakness Material Noncompliance U.S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-07-01 \n \nCondition: \n \nThe School Food Service Program's management and personnel participated in unallowable catering and retail sales for profit, utilizing Child Nutrition Cluster resources. This activity was not maintained on the School District's accounting records. \n \nCriteria: \n \nProvisions of the 0MB Circular A-87, Cost Principles for Determining Allowable Costs, require that \"to be allowable under Federal awards, costs must be... authorized or not prohibited under state or local laws or regulations and supported by underlying documentation\". \n \n7 CFR Part 210.14(a) requires that \"Revenues received by the nonprofit school food service be used only for the operation or improvement of such food service... \" Additionally, regulations require that \"Expenditures of nonprofit school food service revenues shall be in accordance with the financial management system established by the State Agency under 210.19(a)(2) of this part\". \n \nGeorgia Department of Education School Nutrition Financial Management System Criteria and Procedure No: FM-07-02 states in part: \n \n \"Ifa School Food Authority (SFA) decides to cater food services, it is recommended they consider three goals: 1. To provide a service to the School District, \n2. to generate revenue over expenditures that can be used to enhance the SFA's non-profit school food service program, and \n3. to promote positive public relations between the School Nutrition Program (SNP), the school community and school-related organizations ... \n \n-7- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nACTIVITIES ALLOWED OR UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Catering Activities Material Weakness Material Noncompliance U.S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-07-01 \n Criteria and/or Procedures o A separate bank account must be used for the catering account in Enterprise Fund 693. This account will track expenditures and income separately so that associated expenses and revenues of catering are purged from costs attributable to the school nutrition program and so potential and actual revenues may be tracked... o The full cost ofall catering functions must be identified and recovered including clearly identifiable costs offood, labor, small and large equipment, and supplies and indirect costs... o Co-mingling oflabor or food costs must be minimized in an effort to separate the two activities as much as possible. o Any payment due to a school nutrition program employee for work performed, including catering functions, must be processed through the payroll department, so that the appropriate withholdings are made and the gross income earned is recorded and reported correctly. Time records must be available to demonstrate that the SNP has not compensated employees for work done on catering functions ... o Calculate the cost of all food and supplies used; be sure to include the cost ofpackaging used for catered items. Foods used for catering events should be ordered and inventoried separately from foods used for the service of reimbursable meals and should NOT be reported on the School Nutrition Form DE 106 Financial Data... o Purchase orders must reflect applicable purchase of goods, time sheets must reflect applicable personnel charges and invoices must reflect charges for events; these expenditures and revenue will be tracked in the appropriate accounts in the catering fund ... \n-8- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED OR UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Catering Activities Material Weakness Material Noncompliance U.S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-07-01 \n \no USDA commodities can only be used (1) when the full cost of commodities are recovered and accrue back to the nonprofit school nutrition account and (2) when students are the primary beneficiaries of the food service... \" \n \nQuestioned Cost: $58,727.71 \n \nInformation: \n \nThe School Food Service (SFS) Program's management and personnel participated in unallowable catering and retail sales for profit activities that failed to meet the required Federal and State regulations. The following unallowable activities and deficiencies were noted: \n Food sales, school related catering activities and private event catering activities were performed by a private, for profit organization, comprised ofSFS Nutrition Program management and employees. \n $58,727.71 in revenue generated from this venture was not recorded on the School District's general ledger. \n Compensation payments, based on a percentage of sales in the total amount of $17,489.96 were paid to the SFS Director, lunchroom managers and other SFS employees by this organization. Payroll taxes were not withheld by the organization for these payments. \n SFS Program's management ordered food items from vendors in the name of the SFS Program for these catering activities and resale to the public. \n Food used for catering events and resale was inventoried with food used for the SFS Program. \n SFS employees used SFS equipment and facilities to cater events, bake goods and resale food for this organization. \n Time records were not available to separate work performed for the SFS Program from activity performed for this organization. \n \n-9- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED OR UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Catering Activities Material Weakness Material Noncompliance U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-07-01 \n \n Documentation provided by the organization did not reveal any labor, equipment, supply or indirect cost reimbursements to the School Food Service Program. The full cost of the catering and resale activities was not identifiable. \n The School District's Federal Employee Identification (FEI) number was used by this unauthorized organization for their bank account. \n \nCause: \n \nThese deficiencies were a result of the School District's failure to properly manage the Child Nutrition Program and to ensure that activities and expenditures related to this program were allowable. \n \nEffect: \n \nThe School District's failure to ensure that the program was properly managed resulted in unallowable and inappropriate usage ofChild Nutrition Program resources, lost program revenue and material noncompliance with the requirements of this Federal Program. \n \nRecommendations: \n \nThe School District should take the necessary steps to ensure that current catering service practices cease. Ifmanagement decides to continue catering services they should implement procedures to ensure that this activity is recorded on the School District's general ledger and that, in line with Federal regulations, the Georgia Department ofEducation School Nutrition Financial Management System Criteria and Procedure No: FM-07-02 is followed. In addition, the School District should monitor the Child Nutrition Program to ensure that employees are not involved in activities that conflict with this Federal Program and that all salaries charged to the Child Nutrition Program are commensurate with actual time devoted to the program. The Georgia Department ofEducation should further review this matter to determine ifa reclaim of funds is necessary. \n \n- 10 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control Procedures Significant Deficiency U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-07-02 \n \nCondition: \n \nThis is a repeat finding (FA-6511-06-01) from fiscal year ended June 30, 2006. A review of the expenditures for the Child Nutrition Cluster (CFDA 10.553 and 10.555) revealed that adequate control procedures were not in place. \n \nCriteria: \n \nProvisions of the 0MB Circular A-87, Cost Principles for Determining Allowable Costs, require that \"government units are responsible for the efficient and effective administration of Federal Awards through the application of sound management practices and to be allowable under Federal awards, cost must be documented\". \n \nQuestioned Cost: NIA \n \nInformation: \n \nOur testing of expenditure activity for the Child Nutrition Cluster revealed the following deficiencies: \n The check writing function was not separated from the record keeping function, \n the purchasing function was not separated from the receiving of goods and the inventory functions, and \n based on a review of twenty items, one voucher lacked proper approval for payment, seven vouchers did not include properly approved purchase orders and two vouchers lacked receiving documentation. \n \nCause: \n \nThese deficiencies were the result of management's failure to ensure that internal controls for School Food Service Funds were established, implemented and functioning properly. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \n- 11 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control Procedures Significant Deficiency U.S. Department ofAgriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-07-02 \n \nRecommendations: \n \nManagement should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization are separated and/or utilize management oversight for these incompatible activities. In addition, management should review the control procedures in place to provide reasonable assurance that transactions are processed according to established policies, implement those procedures deemed necessary to strengthen internal controls over the accounting functions and ensure all cost is allowable under 0MB Circular A-87. \n \nALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Significant Deficiency U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding control Number: FA-6511-07-03 \n \nCondition: \n \nSemi-Annual Certifications and/or Personnel Activity Reports based on time distribution records, as required by Federal guidelines, were not utilized for School District employees paid from the Child Nutrition Cluster - Food Service Program (CFDA 10.553 and 10.555). \n \nCriteria: \n \nProvisions of the 0MB Circular A-87, Cost Principles for Determining Allowable Costs, require that salaries be documented as follows: \n Semi-Annual Certifications for personnel who work on one Federal program. 0MB Circular A-87-B states in part: \"Where employees are expected to work solely on a single Federal award or cost object, charges for their salaries and wages will be supported by periodic certifications that the employees worked solely on that program for the period covered by the certification. These certifications will be prepared at least semi-annually and will be signed by the employee or supervisory official having first hand knowledge of the work performed by the employee\". \n \n- 12 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Significant Deficiency U.S. Department ofAgriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding control Number: FA-6511-07-03 \n \n Personnel Activity Reports (PARs) for those personnel who work on multiple Federal programs or Federal and non-Federal activity. Provisions of the 0MB Circular A-87, Cost Principles for Determining Allowable Costs, require that \"to be allowable under Federal awards, cost must be ... adequately documented\" and charges to Federal awards for salaries and wages ... \"will be based on payrolls documented in accordance with generally accepted practice of the governmental unit and approved by a responsible official of the governmental unit\". \n \nQuestioned Cost: NIA \n \nInformation: \n \nBased on a review of ten (10) Child Nutrition Cluster - Food Service Program employee's payroll records, the following deficiencies were noted: \n Three (3) employees whose salaries were charged solely to the Federal program were not supported with the required semi-annual certifications. \n Two (2) employees whose salaries were paid from multiple programs did not have the required personnel activity reports (PARs) supporting time and effort. \n \nCause: \n \nThe School Food Service Director and employees failed to comply with the Federal requirements for certifying and documenting actual time and effort for Federal personnel and, as a result, the required certifications and PARs were not completed and utilized as a basis for documenting salary and wages charged to the Child Nutrition Cluster - Food Service Program. \n \nEffect: \n \nBecause ofthe School District's failure to maintain the required semi-annual certifications and PAR supporting time and effort, it could not be determined ifthe appropriate amount ofsalaries for these employees were charged to the Child Nutrition Cluster - Food Service Program. Federal program funding could be lost if the School District does not follow Federal requirements. \n \n- 13 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Significant Deficiency U.S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding control Number: FA-6511-07-03 \n \nRecommendation: \n \nThe School District should implement procedures to ensure that employee compensation expenses paid from Federal award programs are allowable and properly documented in accordance with 0MB Circular A-87. Management should ensure that all salaries charged to a Federal program are commensurate with actual time devoted to that Federal program. Georgia Department of Education should review documentation to determine if refunds are appropriate. \n \n- 14 - \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2007 \nFinding Control Number: FS-6511-07-01 \nThe School Principal Accounts will be reviewed for job task relationships, technical use ofsoftware and Policy as stated in the School District's Fiscal Management Handbook. This review will focus on bank statement reconciliations, cash receipt procedures, check writing procedures and Purchase Order preparation. The elimination ofincompatible relationships, implementation ofcompensating controls and transaction compliance with established Policy will result in these accounts having adequate policy and procedural control resulting in increase financial compliance. \nFinding Control Number: FS-6511-07-02 \nManagement in the Maintenance and Transportation areas will institute oversight procedures for corrective action. The purchasing function will be separated from the approval process by having management approve all purchases request. Requisition and purchase orders will be completed prior to the placement of orders thereby ensuring compensation controls over the purchasing process. \nCentral Office personnel have begun compensating controls over deposit function as related to record keeping and cash custody. The Central Office has utilized personnel in other areas to perform control endorsement of receipt checks and receipt logs. \nFinding Control Number: FS-6511-07-03 \nThe School District has begun the process of developing the annual financial statements with the related notes utilizing the Department of Education's templates. These templates have become available on DOE's web site. The generic form will allow creation of the financial statements and notes from the Department of Education's Form DE046 as the source document. This process will reflect the annual activity ofthe School District with associated assurances ofcompliance regarding Governmental Accounting Standards as noted in Statement 34. \nFinding Control Number: FA-6511-07-01 \nThe School District is ensuring that catering for profit services have been eliminated. Procedures have been developed and implemented to ensure these activities will not continue. The School District has established a separate bank account for all catering services performed by the Nutrition Program. The catering services will be recorded in a separate fund on the School District's records. This will include all revenues and expenses associated with the catering activity and will be recorded in the catering fund. These activities will occur only when the full cost ofcommodities is recovered, the revenues are posted to the nonprofit school nutrition account and when students are the primary beneficiaries ofthe food service. All supplies, commodities and labor will be purchased apart from School Food Service accounts. The School District's Federal Employment Identification (FEI) number has been eliminated from the unallowable bank account and that account has been closed. \n- 1- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2007 \nFinding Control Number: FA-6511-07-01 The catering services and all other activities not related to the SFS Program will be recorded on separate timesheets. These unrelated activities will not be included in the cost of the SFS Program nor will these costs be included in any Federal or State cost reimbursement reports. The School District will monitor the SFS Program to ensure compliance. Finding Control Number: FA-6511-07-02 The check writing function is separate from the record keeping function. The staffmember writing the checks is separated from the recording function. These two duties will not be performed by the same person. To separate the functions ofpurchasing, receiving and inventory, managers, assistant managers and the Director will be utilized. These functions will be performed by separate individuals. The purchasing, receiving and inventory functions will be properly approved and documented consistent with SFS Policy. Finding Control Number: FA-6511-07-03 The School District procedures will require supervisory personnel to perform semi-annual certifications and PAR documentations to support time and effort ofpersonnel who work on multiple Federal and/or non-Federal Programs. This will include written documentation and appropriate timesheets. This will allow the School District to ensure that all salaries charged to a Federal Program are commensurate with the actual time devoted to that program. Contact Person: Randy Shearouse, Superintendent Phone: (912) 754-6491 Fax: (912) 754-7033 E-mail: rshearouse@effingham.k12.ga.us \n-2 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2005-h2006","title":"Effingham County Board of Education, Springfield, 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":["Fiscal year ended June 30, 2000-","Ceased with fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: Effingham County Board of Education, Springfield, 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 ... (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed February 3, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Effingham County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Effingham County--Auditing--Periodicals","Education--Georgia--Effingham County--Finance--Statistics--Periodicals"],"dcterms_title":["Effingham County Board of Education, Springfield, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2006"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2005-h2006"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodical","periodicals","state government audits","official reports","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"EFFINGHAM COUNTY BOARD OF EDUCATION \nSPRINGFIELD, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n9 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERALFUND \n \n27 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n3 SCHEDULE OF STATE REVENUE \n \n29 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n30 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \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 \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 21, 2007 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Effingham County Board ofEducation, as ofand for the year ended June 30, 2006, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Effingham County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \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. \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 Effingham 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 of America. \n2006ARL-11 \n \n The Effingham County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \nIn accordance with Government Auditing Standards, we have also issued our report dated April 21, 2007, on our consideration of the Effingham 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. \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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Effingham 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. \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. \nRespectfully submitted, \n \nRWH:gp 2006ARL-11 \n \nRu ell W. Hinton, CPA, CGFM State Auditor \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS \nJUNE 30, 2006 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. \n-1- \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n8,940,861 \n \n5,692,817 \n \n2,282,524 5,643,391 1,003,715 \n65,101 47,518 \n \n3,248,707 10,144,536 9,999,000 82,391,875 9,574,484 -34,870,895 \n \n$ ===10=4=,1=6=3,.,,.6=34= \n \n$ \n \n2,798,263 \n \n8,795,275 \n \n10,313 \n \n2,124,798 16,065,325 \n \n$ \n \n29,793,974 \n \n$ \n \n63,180,575 \n \n47,518 3,176,134 7,965,433 \n \n$ \n \n74.369,660 \n \n$ ===10=4=,1=6=3,.,,.6=34= \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2006 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChanges in Net Assets \nNet Assets - Beginning of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n53,311,547 $ \n \n2,264,659 1,714,939 1,796,054 1,250,743 4,061,716 \n842,007 4,479,002 3,824,970 \n32,448 \n \n646,733 4,559,793 \n820,930 \n \n$====7=9=,6=0=5,=54=1= $ \n \n1,170,134 \n20,983 643,706 1,729,405 3,564,228 \n \nNet Assets - End of Year \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n36,949,507 $ \n \n584,148 389,993 907,185 1,267,941 1,847,610 \n \n2,661,430 1,248,608 \n32,448 \n \n2,077,366 \n \n$ \n \n47,966,236 $ \n \n1,955,780 $ \n76,225 84,348 115,329 33,112 224,241 \n198,872 \n2,687,907 $ \n \n-13,236, 126 \n-1,680,511 -1,324,946 \n-812,644 17,198 \n-2,129,758 -726,678 \n-1,763,477 -2,352,121 \n0 \n-3,027 -554,150 -820,930 \n-25,387, 170 \n \n$ \n \n19,115,342 \n \n1,473,445 \n \n35,588 \n \n8,780,236 821,366 \n7,902,768 733,758 572 714 \n \n$ \n \n39,435,217 \n \n$ \n \n14,048,047 \n \n60,321,613 \n \n$ ======74=,3=6=9=,6=6.0... \n \n-3- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2006 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Due From Other Funds Inventories \nTotal Assets \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Due To Other Funds Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Debt Service Inventories Capital Projects \nUnreserved Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 13,826,342 $ \n1,402,025 5,643,391 1,003,715 \n38,691 313,094 47 518 \n \n$ 3,101,037 1,410,686 \n26,410 \n \n525,985 $ 14,352,327 \n \n2,591,780 \n \n5,692,817 \n \n69,923 \n \n2,882,634 5,643,391 1,003,715 \n65,101 313,094 47 518 \n \n$ 22,274,776 $ 4,538,133 $ 3,187,688 $ 30,000,597 \n \n$ $ 1,956,455 \n8,795,275 \n10 313 \n$ 10,762,043 $ \n \n5,411,466 841,808 313,094 \n6,566,368 \n \n$ 5,411,466 2,798,263 8,795,275 313,094 10 313 \n$ 17,328,411 \n \n$ 3,187,688 $ 3,187,688 \n \n$ \n \n47,518 \n \n47,518 \n \n$ \n \n970,028 \n \n970,028 \n \n11,465,215 \n \n-2,998,263 \n \n$ 11,512,733 $ -2,028,235 $ \n \n11,465,215 -2,998,263 \n3,187,688 $ 12,672,186 \n \n$ 22,274,776 $ 4,538,133 $ 3,187,688 $ 30,000,597 \n \nThe notes to the basic financial statements are an integral part of this statement. -4 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2006 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \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. \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: \nBonds Payable Capital Leases \nTotal Long-Term Liabilities \n \n$ 12,672,186 \n \n$ \n \n3,248,707 \n \n10,144,536 \n \n9,999,000 \n \n82,391,875 \n \n9,574,484 \n \n-34,870,895 \n \n80,487,707 \n \n-600,110 \n \n$ -9,195,000 -8,995,123 \n \n-18,190,123 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 74,369,660 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2006 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 18,814,145 756,483 $ \n50,643,029 5,450,216 3,564,228 300,870 547 914 \n \n$ 8,780,236 2,463,666 \n311,354 25,000 \n \n$ 80,076,885 $ 11,580,256 $ \n \n1,509,573 $ 64,883 \n121,534 \n \n20,323,718 9,601,602 53,106,695 5,450,216 3,564,228 733,758 572 914 \n \n1,695,990 $ 93,353,131 \n \n$ 50,490,198 $ \n \n194,836 \n \n$ 50,685,034 \n \n2,277,587 1,714,939 1,683,612 1,250,743 3,923,717 \n643,972 4,456,261 3,787,511 \n32,448 646,733 4,239,474 621,449 \n \n257 $ 100,000 \n11,344,677 \n \n9,091 \n \n2,277,587 1,714,939 1,683,612 1,250,743 3,923,717 \n653,320 4,456,261 3,887,511 \n32,448 646,733 4,239,474 11,966,126 \n \n513,304 387,261 \n \n3,465,000 433,669 \n \n3,978,304 820,930 \n \n$ 76,669,209 $ 11,639,770 $ 3,907,760 $ 92,216,739 \n \n$ 3,407,676 $ \n \n-59 514 $ -2,211,770 $ 1,136,392 \n \n$ \n \n22,623 \n \n$ 1,040,202 $ 1,062,825 \n \n$ -1,040,202 \n \n-22,623 \n \n-1,062,825 \n \n$ \n \n22,623 $ -1,040,202 $ 1,017,579 $ \n \n0 \n \n$ 3,430,299 $ -1,099,716 $ -1,194, 191 $ 1,136,392 \n \n8,082,434 \n \n-928,519 \n \n4,381,879 \n \n11,535,794 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2006 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \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: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \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. \nIn the Statement of Activities, only the gain on the sale of the land 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 cost of the land sold. \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: \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 1,136,392 \n \n$ 11,633,063 -3,000,169 \n \n8,632,894 300,657 \n \n-200 \n \n$ 3,465,000 513,304 \n \n3,978,304 \n \n$ 14,048,047 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n (This page left intentionally blank) \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2006 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \nAGENCY FUNDS \n$ =====3=5=0,=7.6..1. = \n$ ==3=5.,.0,=76=1= \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Effingham County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists ofall the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial st~tements, fund financial statements and notes to the basic financial statements of the Effingham County Board of Education. \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. \nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \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. \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. \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. \n \n- 10 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \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. \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 facilitie~. \n Debt Service Fund accounts for taxes (property and sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments and individuals. \nBASIS OF ACCOUNTING \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. \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. \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 \n- 11 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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. \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. \nCASH AND CASH EQUIVALENTS \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. \nINVESTMENTS \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 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: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation ofthe United States government, \n(5) Prime banker's acceptances, \n \n- 12 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \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. \n \nRECEIVABLES \n \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. \n \nPROPERTY TAXES \n \nThe Effingham County Board ofCommissioners fixed the property tax levy for the 2005 tax digest year (calendar year) on June 27, 2005 (levy date). Taxes were due on November 15, 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 Effingham 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 $18,778,557 and for school bonds amounted to $1,509,573. \n \nTax millage rates levied for the 2005 tax year (calendar year) for the Effingham County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n15.570 mills 1.178 mills \n \n16.748 mills \n \n- 13 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $8,780,236 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFOOD INVENTORIES On the basic financial statements, inventories ofdonated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAny Amount \n \n$ \n \n50,000 \n \n$ \n \n50,000 \n \n$ \n \n5,000 \n \nNIA 15 years 20 to 40 years 5 to 10 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \n- 14 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nGENERAL OBLIGATION BONDS \n \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 ofNet Assets. \n \nDEFICIT FUND BALANCES \n \nFunds and individual nonmajor funds reporting deficit fund balances at June 30, 2006, are as follows: \n \nFund Type/Fund Name \n \nDeficit Balances \n \nGovernmental Funds District-wide Capital Projects Fund General Fund School Food Services Fund \n \n$ 2,998,263 \n \n$ \n \n43,624 \n \nThe Effingham County Board of Education plans to transfer funds from the General Fund and use Special Purpose Local Option Sales Tax to liquidate the District-wide Capital Projects Fund deficit. The Effingham County Board ofEducation plans to alleviate the School Food Service Fund deficit through an increase in meal prices and a reduction in spending. \n \nNote 3: DEPOSITS AND INVESTMENTS \n \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. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n- 15 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n \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. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2006, the bank balances were $11,256,735. The amounts ofthe total bank balances are classified into four categories of custodial credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal Deposit Insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Cash collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name. \nCategory 4 - Uncollateralized. \n \nThe School District's deposits are classified by custodial credit risk category at June 30, 2006, as follows: \n \nCustodial Credit Risk Category \n1 2 3 4 \nTotal \n \nBank Balance \n$ 2,009,105 9,208,387 39,243 0 \n$ 11,256,735 \n \n- 16 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nCATEGORIZATION OF INVESTMENTS Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event of a failure ofthe counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. \nFunds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. \nAt June 30, 2006, the carrying value ofthe School District's total investments was $5,692,817 which is materially the same as fair value. These investments included funds in the amount of$3,101,037 invested in the Local Government Investment Pool administered by the State ofGeorgia, 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 Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows: \nThe Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \nInvestments in Georgia Fund 1 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U.S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2006, was 28 days. \n \n- 17 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nThe investments are classified as to custodial credit risk categories as follows: \n \nType of Investment \n \nRisk Categories \n \n2 \n \n3 \n \nCarrying Amount \n \nFederal Home Loan Mortgage Corporation Discount Notes DTD $,===:!!: $ 2 520 016 $.====\"'o $ 2 520 016 \n \nFair Value \n$ 2 601 osJ \n \nInterest Rate Risk Interest rate risk is the risk that changes in interest rates ofdebt investment will adversely affect the fair value ofan investment. The School District does not have a formal policy for managing interest rate risk. \n \nInvestments are classified as to investment maturity as follows: \n \nInvestment Type \n \nInvestment Maturity Less Than 1 Year \n \nDebt Securities Federal Home Loan Mortgage Corporation Discount Notes DTD \n \n$ 2,601,083 \n \nCredit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing credit quality risk. \n \nThe Federal Home Loan Mortgage Corporation, Discount Notes DTD have a credit quality rating of AAA by Moody's and Standard and Poor's. \n \nNote 4: NON-MONETARY TRANSACTIONS \n \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 \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \n- 18 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 5: CAPITAL ASSETS \n \nBalances July 1. 2005 \n \nIncreases \n \nBalances Decreases June 30, 2006 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \nTotal Capital Assets Not Being Depreciated \n \n$ 2,524,549 $ 724,358 $ \n \n540,605 \n \n9,603,931 \n \n$ 3,065.154 $ 10,328,289 $ \n \n200 $ 3,248,707 10,144.536 \n200 $ 13,393.243 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 81,984,155 $ 8,853,944 9,939,000 \n \n407,720 837,054 $ \n60,000 \n \n$ 82,391,875 \n \n116,514 \n \n9,574,484 \n \n9,999,000 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n18,396,611 5,709,830 7,880,799 \n \n2,008,076 633,693 358,400 \n \nTotal Capital Assets, Being Depreciated, Net $ 68,789,859 $ -1.695.395 $ \n \nGovernmental Activity Capital Assets - Net $ 71,855,013 $ 8,632,82~ $ \n \n116,514 \n \n20,404,687 6,227,009 8,239.199 \n \n0 $ 67.094,464 \n \n200 $ 80,4811:Z0:Z \n \nCapital assets being acquired under capital leases as of June 30, 2006, are as follows: \n \nGovernmental Funds \n \nBuildings and Improvements Land Less: Accumulated Depreciation \n \n$ 9,728,972 275,000 364,836 \n \n$ 9,639.136 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 1,992,609 \n \n$ \n \n92,824 \n \n102,716 \n \n140,444 \n \n40,323 \n \n389,074 \n \n765,381 242,179 \n \n$ 3,000,169 \n \n- 19 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds and Qualified Zone Academy Bonds (QZAB) escrow account, property tax levied specifically for retirement of outstanding bond principal, interest and paying agent's fees (Debt Service Funds) are reported as restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2006, were as follows: \n \nDistrict-wide Capital Projects Bond Proceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services \n \n$ \n \n525,985 \n \n$ \n \n970,028 \n \n$ 2,591,780 \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2006, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund District-wide Capital Projects \n \n$ 313,094 $ 313.094 \n \n$ 3131Q24 $ 313,Q24 \n \nThis represents an amount due to reimburse the General Fund for Capital Project expenditures. \n \nNote 8: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2006, consisted ofthe following: \n \n- 20- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 8: INTERFUND TRANSFERS \n \nTransfer to \n \nTransfers From \n \nDistrict-wide \n \nCapital \n \nDebt Service \n \nProjects \n \nFund \n \nGeneral Fund Debt Service Fund \n \n$ $ 1,040.202 \n \n22,623 \n \nTotal \n \n$ 1,040,202 $ \n \n22,623 \n \nTransfers are used to move funds from the Debt Service Fund to the General Fund as reimbursement for a prior year Debt Service expenditure and to move Special Purpose Local Option Sales Tax revenue from the District-wide Capital Projects Fund to the Debt Service Fund to retire bond debt. \n \nNote 9: RISK MANAGEMENT \n \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. \n \nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions,job related illness or injuries to employees and acts ofGod. 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. \n \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. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning ofYear Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2005 \n \n$ \n \n0 $ \n \n0 $ \n \n0 $ \n \n0 \n \n2006 \n \n$ \n \n0 $ \n \n106 $ \n \n106 $ \n \n0 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \n- 21 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 9: RISK MANAGEMENT \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Employee \n \n$ 100,000 $ 150,000 \n \nNote 10: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance ofproperty tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$======0 $ 8,000.000 $ 8,000.000 $=====0 \n \nNote 11: LONG-TERM DEBT \n \nCAPITAL LEASES The Effingham County Board of Education entered into an agreement in February 2003, with the Georgia School Board Association for the construction and subsequent lease of various school facilities. Under the terms ofthe agreement, the School District will make annual payments through August 15, 2018. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1994 General Government- Series 2001A General Government- QZAB - Series 2001B \n \n4.20% - 6.25% 3.25% - 4.00% \n0.00% \n \n$ 4,975,000 20,000 \n4,200,000 \n \n$ 9,195.000 \n \n- 22 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 11: LONG-TERM DEBT \n \nVoters have authorized $15,000,000 in general obligation debt for advance funding of the 2006, Special Purpose Local Option Sales Tax Capital Outlay Projects. This debt was not issued as of June 30, 2006. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2006, were as follows: \n \nGovernmental Funds \n \nGeneral \n \nCapital \n \nObligation \n \nLeases \n \nBonds \n \nTotal \n \nBalance July 1, 2005 \n \n$ 9,508,427 $ 12,660,000 $ 22,168,427 \n \nDeductions Debt Retired \nBalance June 30, 2006 \n \n513,304 \n \n3,465.000 \n \n3,978.304 \n \n$ 8,995,123 $ 9,195,000 $ 18,190,123 \n \nPortion of Long-Term Debt Due within One Year \n \n$ 534,798 $ 1,590,000 $ 2,124.798 \n \nAt June 30, 2006, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n2007 2008 2009 2010 2011 2012 - 2016 2017 - 2021 \n \n$ 534,798 $ 557,192 579,617 604,794 630,119 \n3,568,475 2,520,128 \n \n365,369 342,503 319,604 293,896 268,036 913,482 161,042 \n \nTotal Principal and Interest \n \n$ 8,995,123 $ 2,663,932 \n \n- 23 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 11: LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2007 2008 2009 2016 - 2019 \n \n$ 1,590,000 $ 1,660,000 1,745,000 4,200,000 \n \n311,338 212,813 109,062 \n \nTotal Principal and Interest \n \n$ 9,195.000 $ 633.213 \n \nNote 12: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2006, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n06-651-018 Rincon Elementary School 06-651-020 and 060-651-010 Central Learning Center Central Office \n \n$ \n \n1,480 $ \n \n43,402 \n \n3,332,188 \n \n121,921 \n \n72,691 \n \n381,655 279,369 \n \n$ 3,571.682 $===6=61-,0=2==4 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \n- 24- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 14: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2006 2005 2004 \n \n100% 100% 100% \n \n$ 3,979,176 $ 3,578,723 $ 3,413,587 \n \n- 25 - \n \n (This page left intentionally blank) \n \n EFFINGHAM COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOther Sources \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n14,500,000 $ \n \n16,500,000 $ \n \n18,814,145 \n \n700,000 \n \n700,000 \n \n756,483 \n \n42,868,409 \n \n47,301,698 \n \n50,643,029 \n \n5,588,161 \n \n5,837,088 \n \n5,450,216 \n \n1,580,092 \n \n1,672,800 \n \n3,564,228 \n \n7,500 \n \n11,000 \n \n300,870 \n \n708,075 \n \n758 040 \n \n547 914 \n \n$ \n \n65,952.237 $ \n \n72,780.626 $ \n \n80,076,885 \n \n$ \n \n42,648,038 $ \n \n47,296,689 $ \n \n50,490,198 \n \n2,235,818 1,973,955 1,722,656 \n887,920 3,297,176 \n743,845 4,161,872 3,385,720 \n15,850 \n3,488,245 1,161,079 \n \n2,112,007 1,960,698 1,689,044 1,063,966 4,640,527 \n556,164 4,593,581 3,781,277 \n22,646 \n3,855,470 314,300 900,622 \n \n2,277,587 1,714,939 1,683,612 1,250,743 3,923,717 \n643,972 4,456,261 3,787,511 \n32,448 646,733 4,239,474 621,449 900,565 \n \n$ \n \n65,722,174 $ \n \n72,786,991 $ \n \n76,669,209 \n \n$ \n \n230,063 $ \n \n-6,365 $ \n \n3,407,676 \n \n22,623 \n \n$ \n \n230,063 $ \n \n-6,365 $ \n \n3,430,299 \n \n7,862,795 \n \n7,862,795 \n \n8,082,434 \n \n-94,222 \n \n-94,222 \n \nFund Balances - Ending \n \n$ \n \n7,998,636 $ \n \n7,762,208 $===11=\"',5=1=2=,7=3=3 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \n \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. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Even Start Hurricane Education Recovery Improving Teacher Quality State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Navy R.O.T.C. Program \nTotal U. S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n10.550 \n \nN/A \n \n(2) \n \nN/A $ _ _ _4....,._13__1_-'-',6_0_9 \n \n$ \n \n4,131,609 \n \nN/A \n \n113,374 \n \n$ _ _ _4-\"'\"'-24-'-'4-'-',9...;.8.c..3 \n \n* 84.027 * 84.173 \n84.318 84.213 84.938 * 84.367 84.298 * 84.010 84.048 \n \nNIA $ N/A \n$ \n \n1,348,394 86,027 \n1,434,421 \n \nN/A N/A N/A N/A N/A NIA N/A \n$ \n \n30,168 285,113 (3) 329,283 23,944 1,234,407 95,597 \n3,432,933 \n \n$ \n \n42,237 \n \n75,669 \n \n$ _ _ _ _1_1_7~,9_06_ \n \nTotal Federal Financial Assistance NIA = Not Available \n \n$ =====7,.,.79=5=,8==2=2 \n \nNotes to the Schedule of Expenditures of Federal Awards \n \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. \n(2) Expenditures for the funds earned on the School Breakfast Program {$363,531) were not maintained separately and are included in the 2006 National School Lunch Program. \n(3) Funds earned on the Hurricane Education Recovery program, in the amount of $54,055, do not require reporting of expenditures. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Effingham 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. \n \nSee notes to the basic financial statements. \n \n- 28- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright from the Start: Georgia Department of Early Care and Leaming Pre-Kindergarten Program \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 Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) 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 Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs K-8 Reading and Math Program National Teacher Certification Preschool Handicapped Program Unpaid Sales Tax (1) Virtual Schools Grant \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 1,755,012 \n \n$ 1,755,012 \n \n1,871,255 1,049,888 5,996,851 1,245,501 2,812,858 \n727,853 5,792,581 4,739,054 2,014,796 \n285,269 835,166 2,586,730 1,017,396 1,106,422 1,034,923 \n93,245 457,068 \n64,926 906,560 290,957 193,161 \n1,066,715 1,801,314 2,655,263 \n1,245,050 224,241 187,562 34,328 18,183 \n7,620,266 232,044 159,432 \n-1,949,507 \n140,763 59,926 104,352 165,000 \n625 \n \n1,871,255 1,049,888 5,996,851 1,245,501 2,812,858 \n727,853 5,792,581 4,739,054 2,014,796 \n285,269 835,166 2,586,730 1,017,396 1,106,422 1,034,923 \n93,245 457,068 \n64,926 906,560 290,957 193,161 \n1,066,715 1,801,314 2,655,263 \n1,245,050 224,241 187,562 34,328 18,183 \n7,620,266 232,044 159,432 \n-1,949,507 \n140,763 59,926 104,352 165,000 625 \n \n- - - - - $_~2~,4~63~,6~6~6- \n \n2,463,666 \n \n$ 50,643,029 $ 2.463,666 $ 53,106,695 (1) The purpose of the funds are to reimburse local school systems for taxes charged on the purchase of materials for infrastructure. \n \nSee notes to the basic financial statements. \n \n- 29- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"4\" \n \nPROJECT \nThe constructing, equipping and furnishing of a new elementary school to replace the present Springfield Central Elementary School; a new elementary school to replace the present Marlow Elementary School; new classroom wings at Guyton and Sand Hill Elementary Schools and Ebenezer Middle School; a new gymnasium and media center at Rincon Elementary School; a new band room at South Effingham Middle School; outdoor physical education/sports facilities at middle and high schools; a new middle school to replace the present Effingham County Middle School; replacing aged roofs and heating/air conditioning units, as necessary, at all School District buildings; renovating/ relocating, furnishing and equipping Alternative School; installing air conditioning units in gymnasiums at Ebenezer, Guyton, Marlow and Sand Hill Elementary Schools and at South Effingham Middle School; installing additional playground equipment at all elementary schools; renovating the Board of Education's Bus Shop, installing bus washing equipment, replacing maintenance vehicles and purchasing new buses; constructing an access road behind Effingham County Middle School; renovating and modifying to the Board of Education's central offices in Springfield; purchasing new textbooks and instructional equipment, including band and vocational equipment; installing storage buildings at all schools; purchasing land for Effingham County School District operations, including future school sites; adding to, remodeling, renovating, improving and equipping existing educational buildings, properties and facilities of the School District, acquiring any necessary personal and real property and equipment, including computers and related technology, copiers, energy management systems, heating and air conditioning systems, lighting, fencing and paving, security and safety equipment and similar equipment at all Effingham County District schools, including Ebenezer Elementary, Effingham County High, Effingham County Middle, Guyton Elementary, Marlow Elementary, Rincon Elementary, Sand Hill Elementary, South Effingham Elementary, South Effingham High, South Effingham Middle and Springfield Central Elementary. \n \nORIGINAL ESTIMATED \nCOST(1l \n \nCURRENT ESTIMATED COSTS(2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 35,000,000 $ 40,290,597 $ 11,677.976 $ 27,010,202 Ongoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Effingham 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. \n \nSee notes to the basic financial statements. \n \n- 30- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program 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 English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1} (2} \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES OPERATIONS \n \nTOTAL \n \n$ \n \n2,146,427 $ 1,666,915 $ \n \n59,472 $ \n \n1,726,387 \n \n1,124,728 \n \n1,929,455 \n \n1,929,455 \n \n6,606,300 \n \n7,224,381 \n \n157,653 \n \n7,382,034 \n \n1,366,570 \n \n2,726,154 \n \n2,726,154 \n \n3,131,068 \n \n3,215,069 \n \n124,451 \n \n3,339,520 \n \n817,527 \n6,418,953 5,207,067 2,216,643 6,325,294 \n1,088,999 102,460 504,654 69640 \n \n1,300,423 131,223 \n7,300,267 6,442,745 1,643,423 \n108,900 1,210,977 3,945,649 \n58,396 \n712,521 99,937 \n286,903 76 751 \n \n302,163 3,695 \n354,637 191,985 \n8,510 40,303 69,472 17,775 12,774 15,563 \n1,082 32,601 \n1 328 \n \n1,300,423 433,386 \n7,303,962 6,797,382 1,835,408 \n117,410 1,251,280 4,015,121 \n76,171 12,774 728,084 101,019 319,504 78079 \n \n$ \n \n37,126,330 $ 40,080,089 $ \n \n1,393,464 $ \n \n41,473,553 \n \n1,001,698 215 831 \n \n1,146,947 89 341 \n \n536,040 92 011 \n \n1,682,987 181,352 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n38,343,859 $ 41,316,377 $ \n \n2,021,515 $ \n \n43,337,892 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 21, 2007 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members ofthe Effingham County Board of Education \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 \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Effingham County Board of Education as of and for the year ended June 30, 2006, which collectively comprise Effingham County Board of Education's basic financial statements and have issued our report thereon dated April 21, 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. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Effingham County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose ofexpressing our opinions 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 our judgment, could adversely affect Effingham 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-6511-06-01 and FS-6511-06-04. \n2006YB-30 \n \n A material weakness is a reportable condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above are material weaknesses. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Effingham 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. \nThis report is intended solely for the information and use of the management and members of the Effingham County Board of Education and is not intended to be and should not be used by anyone other than these specified parties. \n..zj Respectfully submitted, \n-:.:?,. ...oo w. \n~):sell W~ton, CPA, CGFM \nState Auditor \nRWH:gp 2006YB-30 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 21, 2007 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members ofthe Effingham County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Effingham 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. Effingham County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofEffingham County Board of Education's management. Our responsibility is to express an opinion on Effingham County Board of Education's compliance based on our audit. \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 Effingham County Board ofEducation'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 Effingham County Board ofEducation's compliance with those requirements. \n2006SA-10 \n \n In our opinion, the Effingham 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. \nInternal Control Over Compliance \nThe management of Effingham 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 Effingham 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 and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \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 ofthe 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. \nThis report is intended solely for the information and use of the management, members of the Effingham 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. \nRespectfully submitted, \n~~ID~~ State Auditor \nRWH:gp 2006SA-10 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6511-03-02 FS-6511-04-01 FS-6511-04-02 FS-6511-04-03 FS-6511-04-04 FS-6511-04-05 FS-6511-05-01 FS-6511-05-02 FS-6511-05-03 FS-6511-05-04 FS-6511-05-05 \n \nFurther Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Further Action Not Warranted Partially Resolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nEXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION Inadequate Internal Control Procedures Finding Control Number: FS-6511-04-03 \n \nThe old rules have been reinterpreted requiring reclassification of some of these employees. We are in discussion with the Georgia Department of Community Health; however, no resolution has been determined with the Georgia Department ofCommunity Health. Effingham County Board of Education has corrected the classification of these employees in fiscal year 2005, and will continue to adhere to these rules as they apply to these circumstances. \n \nCASH AND CASH EQUIVALENTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Finding Control Number: FS-6511-05-01 \n \nAdministration has begun reconciling the Debt Service cash account in accordance with the Management's Response from the 2005 Audit Report. Administration ofSchool Food Service has implemented review of invoices by the Director. The approval process is continuing to evolve as staff work out the routine procedures, the details of which primarily have been corrected and include the School Food Director having approval over the disbursements prior to mailing. \n \n- 1- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Finding Control Number: FS-6511-05-03 The various schools have made adjustments to reorganize the duties. This process is on going training due to the tum over in staff in the schools offices as well as new teacher training. The new software has been installed and is functioning in all schools. Training will be reviewed and updated allowing new and established personnel refresher training. BUDGET PREPARATION/EXECUTION Deficit Fund Balance Finding Control Number: FS-6511-05-04 The 2001 Special Purpose Local Option Sales Tax projects are almost complete. The SPLOST revenue has continued to remain above projected amounts, which will increase Fund Balance to a positive position, as fiscal year 2007 closes. The deficit in the Capital Projects Fund will be corrected with future Special Purpose Local Option Sales Tax receipts and if required transfers from the General Fund. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n-2 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Effingham County Board of Education's financial statements was unqualified. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Effingham County Board ofEducation disclosed financial statement reportable conditions related to the following control categories. \n \nRevenues/Receivables/Receipts \n \nBudget Preparation/Execution \n \nNone ofthe reportable conditions described above are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit of the Effingham County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Effingham County Board ofEducation did not disclose a reportable condition in internal control over major programs. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Effingham County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Reguired to be Reported by Section .510(a) ofOMB Circular A-133 The Effingham County Board ofEducation's audit did not disclose an audit finding required to be reported by section .510(a) ofOMB Circular A-133; however, we noted a reportable condition in a nonmajor program which is included in section IV of this report. \n \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 84.367 Improving Teacher Quality State Grants \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n \n- 1- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n9. Low Risk Auditee The Effingham County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nREVENUES/RECEIVABLES/RECEIPTS Inadequate Internal Controls over School Activity Accounts Reportable Condition Finding Control Number: FS-6511-06-01 \n \nCondition: \n \nThis is a repeat finding (FS-6511-05-03 and FS-6511-04-01) 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. \n \nCriteria: \n \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. \n \nQuestioned Cost: NIA \n \nInformation: \n \nRevenues/Receivables/Receipts  Based on a review oftwenty-five items, four receipts lacked adequate supporting documentation. \n \nCause: \n \nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nManagement should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \n \nEXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Obtain Performance Audits of SPLOST Projects Nonmaterial Noncompliance Finding Control Number: FS-6511-06-02 \n \nCondition: \n \nThe School District did not comply with provisions ofO.C.G.A. 20-2-491. \n \n-2 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nEXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Obtain Performance Audits of SPLOST Projects Nonmaterial Noncompliance Finding Control Number: FS-6511-06-02 \n \nCriteria: \n \nO.C.G.A. 20-2-491 states in part: \"When a sales tax for educational purposes is imposed for capital outlay projects as provided in Part 2 of Article 3 of Chapter 8 of Title 48 and such tax generates or is reasonably anticipated to generate annualized proceeds of $5 million per year or more, the expenditure oftax proceeds shall be subject to an ongoing performance audit or performance review... \" \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe School District received in excess of $5 million of SPLOST proceeds during the 2005 fiscal year and in excess of$8 million during the 2006 fiscal year. The School District did not contract for a performance audit or review. \n \nCause: \n \nManagement failed to contract with an outside auditor, consultant, or other provider for such performance audit or review. \n \nEffect: \n \nThe failure ofthe School District to have a performance review or audit leads to incomplete external reporting as required by O.C.G.A. 20-2-491. \n \nRecommendation: The School District should implement procedures to ensure that provisions of O.C.G.A. 20-2-491 are adhered to. \n \nGENERAL LEDGER Excessive Fund Balance Nonmaterial Noncompliance Finding Control Number: FS-6511-06-03 \n \nCondition: \n \nThe School District did not comply with provisions of O.C.G.A. 20-2-167 as defined by Chapter 32 of the Financial Management for Georgia Local Units of Administration (FMGLUA). \"The purpose of this paragraph is to prohibit local school systems from accumulating surplus funds through taxation without accounting to the taxpayers for how such funds will be expended, and this paragraph shall be liberally construed to accomplish this purpose.\" The School District's General Fund had an excessive unreserved, undesignated fund balance at fiscal year end. \n \n-3- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nGENERAL LEDGER Excessive Fund Balance Nonmaterial Noncompliance Finding Control Number: FS-6511-06-03 \n \nCriteria: \n \nO.C.G.A. 20-2-167 states in part: \"The budget ofeach local school system shall designate all of such anticipated revenues among the several funds or accounts of the system and shall not leave any anticipated revenues undesignated. Except as otherwise provided in this paragraph, all amounts allocated to each fund or account and any existing balance in each fund or account shall be intended for expenditure within the budget year for the purposes of that fund or account. There shall be no fund or account in the nature of a 'surplus' or 'unobligated surplus' fund or account. Each local school system may, however, establish a single reserve fund or reserve account intended to cover unanticipated deficiencies in revenue or unanticipated expenditures, provided that the budget for any year shall not allocate to such reserve fund or reserve account any amounts which, when combined with the existing balance in such fund or account, exceed 15 percent of that years total budget\". \n \nChapter 32 Preparing Operating Budgets of the Financial Management for Georgia Local Units of Administration (FMGLUA) states_in part: \"The O.C.G.A. 20-2-167 limits this part of fund balance to 15% of the total budget. What this statute really means is that the general fund balance, after deducting all other reserves, may not exceed 15% ofthe next year's budgeted general fund expenditures\". \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe School District's General Fund reported an unreserved, undesignated fund balance at fiscal year end that exceeded 15 percent of the 2007 fiscal year budgeted general fund expenditures. \n \nCause: \n \nThe School District neglected the specific limitations imposed upon the School District by the Georgia Department of Education. \n \nEffect: \n \nNonmaterial noncompliance with respect to Chapter 32 of the FMGLUA. \n \nRecommendation: \n \nThe School District should establish policies and procedures designed to ensure that in future periods the School District complies with the provisions ofO.C.G.A. 20-2-167 as defined by Chapter 32 of the FMGLUA. \n \n-4- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Reportable Condition Finding Control Number: FS-6511-06-04 \n \nCondition: \n \nThis is a repeat finding (FS-6511-05-04 and FS-6511-04-05) from the years ended June 30, 2005, and 2004, respectively. Deficit Fund Balances. \n \nCriteria: \n \nChapter 25 Reportingfor LUA 's with General Fund Deficit Balances ofthe Financial Management for Georgia Local Units of Administration states in part: \"The seriousness of fund balance deficits cannot be overstated. The Georgia Department ofEducation requires those LUA's with deficit balances to meet certain reporting requirements\". \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe School District's Capital Projects Fund reported a deficit fund balance in the amount of$2,998,263. The School District's School Food Service Fund, which is included in the General Fund, reported a deficit fund balance in the amount of $43,624. \n \nCause: \n \nThe School District had a deficit beginning fund balance and incurred expenditures in excess of revenues during the year under review in the Capital Projects Fund. The School District incurred expenditures in excess ofrevenues during the year under review for the School Food Services Fund. \n \nEffect: \n \nA financial statement irregularity in accordance with O.C.G.A. 20-2-67. \n \nRecommendation: \n \nThe School District should establish policies and procedures designed to ensure that in future periods the School District does not report deficit fund balances. \n \n-5- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control Procedures Reportable Condition U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-06-01 \n \nCondition: \n \nA review of the expenditures for the Food Services - School Breakfast Program (CFDA 10.553) and the Food Services - National School Lunch Program (CFDA 10.555) revealed that control procedures were not in place to adequately provide for the proper approval of expenditures. \n \nCriteria: \n \nProvisions of the 0MB Circular A-87, Cost Principles for Determining Allowable Costs, require that \"governmental units are responsible for the efficient and effective administration of Federal awards through the application of sound management practices\" and \"to be allowable under Federal awards, costs must be adequately documented\". \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe School District did not have adequate procedures in place to conform to the requirements. \n The goods receiving function was not separated from the order processing and inventory record functions. \n The check writing function was not separated from the record keeping function. \n Based on a review of ten items, six vouchers lacked an approved order form, five vouchers were paid without approval and four vouchers lacked proper receiving documentation. \n \nCause: \n \nThese deficiencies were the result of management's failure to ensure that internal controls for School Food Service Funds were established, implemented and functioning properly. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \n-6- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control Procedures Reportable Condition U.S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-6511-06-01 \n \nRecommendation: \n \nThe School District should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization be separated and/or utilize management oversight for these incompatible activities. In addition, management should review the control procedures in place to provide reasonable assurance that transactions are processed according to established policies, implement those procedures deemed necessary to strengthen internal controls over the accounting functions and ensure all costs are allowable under 0MB Circular A-87. \n \n-7- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2006 \nFinding Control Number: FS-6511-06-01 \nThe School Principal Accounts have been reviewed and Job Tasks have been reassigned to address needed separation of duties. Reassignment of duties includes cash deposit receipt preparation and record keeping function performed by different persons allowing for better separation of duties. \nManagement has also purchased and has implemented new accounting software. This new software created by Star Software Systems is web based allowing all schools common functionality. Management has a program ofmonthly review of all school records and will continue the review of functional processes to complete the separation process. The monthly review process will continue to make adjustments to those procedures required for better control and review allowing management the mechanism to find and change procedures as required. \nFinding Control Number: FS-6511-06-02 \nManagement has begun the process ofRequesting Bids for this audit from private accounting firms. The audit process will be conducted in a timely manner with appropriate attention to detail for fiscal years 2005 to 2012. Each year will be audited separately with the prior years audited first and then each following year in tum as each year is completed. \nFinding Control Number: FS-6511-06-03 \nManagement has begun the needed transfers to the appropriate Capital Project funds to correct this excess as well as monitoring the current year to ensure current year compliance. \nFinding Control Number: FS-6511-06-04 \nThe Board ofEducation decided to proceed with much-needed capital projects before they received all of the Special Purpose Local Option Sales Tax Revenue. The accelerated pace of Project completion beyond the pace of SPLOST collections placed the Capital Project Funds in a deficit position. This deficit will be corrected as SPLOST receipts are collected and the approved Projects are completed. Management has monitored SPLOST receipts and has concluded the combined SPLOST receipts and transfers from General Fund will eliminate this negative Fund Balance. \nFinding Control Number: FA-6511-06-01 \nManagement has taken steps to implement control procedures to ensure authorization oftransaction and oversight of procedures. These controls have been implemented to ensure record keeping accuracy, separation of key duties and approvals, as well as, strengthen internal controls at the individual cafeteria locations. \nContact Person: Ronald Wilson, CPA, CGFO, Director of Finance Phone: (912) 754-5885; Fax Number: (912) 754-3489 E-mail Address: r1wi1son@effingham.kl2.ga.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2004-h2005","title":"Effingham County Board of Education, Springfield, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2005","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. 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Hinton State Auditor \n \n EFFINGHAM COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nPage \n3 4 6 7 8 9 11 12 \n27 \n28 \n30 31 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n33 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \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 \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nMay 27, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Effingham 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 Effingham County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \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 opinions. \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 Effingham County Board of Education, 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. \n2004ARL-11 \n \n The Effingham County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \nIn accordance with Government Auditing Standards, we have also issued our report dated May 27, 2005, on our consideration of the Effingham 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. \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 of measurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Effingham 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. \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. \nRespectfully submitted, \n~w.ci}~ \nRussell W. Hinton State Auditor \nRWH:as 2004ARL-11 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30. 2004 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Prepaid Items Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries Payable Contracts Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Unrestricted (Deficit) \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n6,946,838 \n \n3,428,877 \n \n1,732,251 5,104,047 \n821 93,260 \n \n2,098,658 6,690,787 9,939,000 63,170,327 7,616,819 -29,463,249 \n \n$===7=7=,3=5=8=,4=36= \n \n$ \n \n3,656,368 \n \n6,974,909 \n \n54,748 \n \n309,092 \n \n3,325,000 12,660,000 \n \n$ \n \n26,980,117 \n \n$ \n \n47,309,189 \n \n531,083 3,425,336 -887 289 \n \n$ \n \n50,378,319 \n \n$ ===7=7=,3=5=8-=,4=36= \n \nThe notes to the basic financial statements are an integral part of this statement. -3 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30. 2004 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services 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 \nTotal General Revenues \nChanges in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n45,080.937 $ \n \n2,143.589 2.107,264 1,733.814 \n846.949 3.212,056 \n793,025 4,149,829 2,964,885 \n79,935 \n \n547,316 3,761,157 1,138,263 \n \n$ \n \n68,559,019 $ \n \n541,810 \n555,734 1,504,849 2 602 393 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n31,067,787 $ \n \n622,255 945,887 791,382 1,111,667 1,648,536 \n \n2,437,346 1,520,286 \n92,529 \n \n1,774,950 \n \n$ \n \n42,012,625 $ \n \n1,054,668 $ \n41,660 31,245 28,967 16,579 233,502 \n118,451 \n1 525 072 $ \n \n-12,416,672 \n-1,521,334 -1,161,377 \n-900,772 264,718 -1,532,275 -764,058 -1,695,904 -1,211,097 \n12,594 \n8,418 -362,907 -1 138 263 \n-22,418,929 \n \n$ \n \n14,511,144 \n \n1,707,219 \n \n2,141,212 2,508,066 \n614,098 23,139 \n4,818,352 103,116 \n1,256,955 \n \n$ \n \n27,683,301 \n \n$ \n \n5,264,372 \n \n45,113,947 \n \n$ =====5=0\"'=3=7='8=3=19= \n \n-5- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30. 2004 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Prepaid Items Inventories \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 9,086,539 \n \n$ 3,312,099 $ \n \n$ 3,428,304 \n \n573 \n \n1,499,163 4,780,397 \n821 93 260 \n \n862,209 323,650 \n \n54,136 \n \n12,398,638 3,428,877 \n2,415,508 5,104,047 \n821 93 260 \n \nTotal Assets \n \n$ 15,460,180 $ 4,614,163 $ 3,366,808 $===2=3='=4=4=1'=1=51= \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Contracts Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects \nUnreserved Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \n \n$ 5,451,800 \n \n$ 3,572,403 \n \n81,911 $ \n \n6,974,909 \n \n54,748 \n \n309,092 \n \n$ 10,856,404 $ 5,588,459 $ \n \n$ 2,054 \n2 054 $ \n \n$ \n \n437,823 \n \n$ \n \n$ 3,364,754 \n \n93,260 \n \n$ 3,135,303 \n \n4,072,693 \n \n-4,109,599 \n \n$ 4,603,776 $ -974,296 $ 3,364,754 $ \n \n5,451,800 3,656,368 6,974,909 \n54,748 309,092 \n16 446,917 \n437,823 3,364,754 \n93,260 3,135,303 \n4,072,693 -4,109,599 \n6,994,234 \n \nTotal Liabilities and Fund Balances \n \n$ 15,460,180 $ 4,614,163 $ 3,366,808 $===2;;;;3;;,!,;4;;;;4:,;,1.,;,1~51~ \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2004 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nBond Payables, which are Long-Term Liabilities, are not due and payable in the current period and therefore are not reported as liabilities in the funds. \n \n$ \n \n6,994,234 \n \n$ 2,098,658 6,690,787 9,939,000 \n63,170,327 7,616,819 \n-29,463,249 \n \n60,052,342 \n \n-683,257 -15,985,000 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 50,378,319 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30. 2004 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nNet Change in Fund Balance \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 15,579,949 \n \n$ 1,725,539 $ \n \n573,277 $ 2,508,066 \n \n2,205,172 \n \n41,710,691 \n \n1,291,570 \n \n5,353,788 \n \n2,602,393 \n \n55,033 \n \n39,671 \n \n8,412 \n \n1,245,577 \n \n11,378 \n \n$ 67,120,708 $ 3,839,307 $ 3,950,501 $ \n \n17,305,488 5,286,515 \n43,002,261 5,353,788 2,602,393 103,116 1,256,955 \n74,910,516 \n \n$ 42,312,306 \n \n$ \n \n2,143,589 2,107,264 1,603,525 \n846,949 3,114,340 \n698,648 4,097,978 3,014,932 \n79,935 547,316 3,390,708 276,735 $ \n \n$ 2,491,962 \n \n3,784 \n \n19,796 416117 \n \n3,200,000 722,146 \n \n$ 64,670,138 $ 2,491,962 $ 3,925,930 $ \n \n$ 2,450,570 $ 1,347,345 $ \n \n24,571 $ \n \n2,153,206 \n \n-2,321,641 \n \n3,340,183 \n \n42,312,306 \n2,143,589 2,107,264 1,603,525 \n846,949 3,114,340 \n702,432 4,097,978 3,014,932 \n79,935 547,316 3,390,708 2,768,697 \n3,219,796 1,138,263 \n71,088,030 \n3,822,486 \n3 171 748 \n \n$ 4,603,776 $ -974,296 $ 3,364,754 $ =====6='=,9=9=4=,2=34= \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30. 2004 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \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: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \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. \nThe net effect of various miscellaneous transactions involving Capital Assets is to decrease net assets. \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: \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \n \n$ \n$ 2,178,108 -2,514,005 \n$ 3,200,000 19 796 \n \n3,822,486 \n-335,897 -1,087,125 \n-354,888 \n3,219,796 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ =====5:1:,2=6=41=,3=72= \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2004 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \nAGENCY FUNDS \n$ 1,977,745 \n$ 1,977,745 \n \nThe notes to the basic financial statements are an integral part of this statement. - 11 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Effingham County Board of Education (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \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 Effingham County Board of Education. \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. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \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. \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. \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. \nThe School District reports the following major governmental funds: \n- 12 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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. \n District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds, grants from Georgia State Financing and Investment Commission and Special Purpose Local Option Sales Tax proceeds to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (property and sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments and individuals. \nBASIS OF ACCOUNTING \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 and grants. 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 is recognized in the fiscal year in which all eligibility requirements have been satisfied. \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. \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 \n \n- 13 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nliability is incurred, except for principal and interest on general long-term debt and interest on GSBA Installment Sale Agreement, which are recognized as 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. \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. \nCASH AND CASH EQUIVALENTS \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. \nINVESTMENTS \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: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n \n- 14 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nRECEIVABLES \n \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. \n \nPROPERTY TAXES \n \nThe Effingham County Board of Commissioners fixed the property tax levy for the 2003 tax digest year (calendar year) on August 25, 2003 (levy date). Taxes were due on November 15, 2003 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2003 tax digest are reported as revenue in the governmental funds for fiscal year 2004. The Effingham 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 $15,579,949 and for school bonds amounted to $1,725,539. \n \nTax millage rates levied for the 2003 tax year (calendar year) for the Effingham County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n15.146 mills 1.835 mills \n \n16.981 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $4,649,278 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. \n \n- 15 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nINVENTORIES \n \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. \n \nCAPITAL ASSETS \n \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 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. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAny Amount \n \n$ \n \n50,000 \n \n$ \n \n50,000 \n \n$ \n \n5,000 \n \nNIA 15 years 20 to 40 years 5 to 10 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \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. \n \n- 16 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nDEFICIT FUND BALANCE \n \nThe fund reporting a deficit fund balance at June 30, 2004, is as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGovernmental Funds District-wide Capital Projects Fund \n \n$ 4,109.599 \n \nThe Effingham County Board of Education plans to transfer funds from the General Fund and use Special Purpose Local Option Sales Tax to liquidate this deficit. \n \nNote 3: DEPOSITS AND INVESTMENTS \n \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. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \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, \n \n- 17 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \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. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2004, the bank balances were $10,352,743. The amounts ofthe total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2004, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 6,104,165 \n \n2 \n \n4,248,578 \n \n3 \n \n0 \n \nTotal \n \n$ 10~352)43 \n \nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \n \nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name. \n \n- 18 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nFunds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. \n \nAt June 30, 2004, the carrying value ofthe School District's total investments was $3,428,877 which is materially the same as fair value. The investments are classified as to risk categories as follows: \n \nType of Investment \n \nInvestment Portfolio \n \nAccount \n \n$ \n \nLocal Government Investment Pools \n \nTotal Investments \n \nRisk Categories \n \n2 \n \n3 \n \nCarrying Amount \n \nFair Value \n \n$ \n \n5:Z3 $ \n \n0 $ \n \n573 $ \n \n573 \n \n3,428,304 \n \n3,428,304 \n \n$ 3 428 8:Z:Z $ 3,428,81'.Z \n \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission (SEC) as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2004, was 24 days. The average investment duration for Fund 6 on June 30, 2004, was 0.22 years. \n \n- 19 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2003 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2004 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 2,098,658 8,159,025 $ \n \n$ 2,098,658 \n \n212,878 $ 1,681,116 \n \n6,690,787 \n \nTotal Capital Assets Not Being Depreciated $ 10,257,683 $ 212,878 $ 1,681,116 $ 8,789,445 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 60,345,678 $ 7,518,374 9,939,000 \n \n2,824,649 821,697 $ \n \n$ 63,170,327 \n \n723,252 \n \n7,616,819 \n \n9,939,000 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n15,127,731 5,134,044 7,055,833 \n \n1,499,199 445,406 569,400 \n \n368,364 \n \n16,626,930 5,211,086 7,625,233 \n \nTotal Capital Assets, Being Depreciated, Net $ 50,485,444 $ 1,132,341 $ 354,888 $ 51,262,897 \n \nGovernmental Activity Capital Assets - Net $ 60,743.127 $ 1,345.219 $ 2,036.004 $ 60,052.342 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 1,723,156 \n \n$ \n \n81,090 \n \n60,817 \n \n56,384 \n \n32,271 \n \n329,725 \n \n560,287 230,562 \n \n$ 2!514!005 \n \n- 20- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and property tax levied specifically for retirement of outstanding bond principal, interest and paying agent's fees (Debt Service Funds) are reported as restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2004, were as follows: \n \nDistrict-wide Capital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ 3,312,099 $ 3,156,934 \n \n$ 3,428,304 \n \n$ \n \n573 \n \nNote 7: RISK MANAGEMENT \n \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. \n \nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions,job related illness or injuries to employees and acts ofGod. 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. \n \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. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2003 2004 \n \n$ \n \n0 $ \n \n0 $ \n \n0 $ \n \n0 \n \n$ \n \n0 $ \n \n4 507 $ \n \n4 507 $ \n \n0 \n \n- 21 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 7: RISK MANAGEMENT \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Employee \n \n$ 100,000 \n \n$ \n \n50,000 \n \nNote 8: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount ofshort-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$ 5,000.000 $=====0 $ 5,000.000 $=====0 \n \nNote 9: LONG-TERM DEBT \n \nCAPITAL LEASES The Effingham County Board of Education has entered into a lease agreement as lessee for a bus. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1994 General Government - Series 2001 A General Government - QZAB Series 2001B \n \n4.20% - 6.25% 3.25% - 4.00% \n0% \n \n$ 7,845,000 3,940,000 4,200,000 \n \n$ 15,985.000 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2004, were as follows: \n \n- 22 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 9: LONG-TERM DEBT \n \nGovernmental Funds \n \nGeneral \n \nCapital \n \nObligation \n \nLeases \n \nBonds \n \nTotal \n \nBalance July 1, 2003 \n \n$ \n \n19,796 $ 19,185,000 $ 19,204,796 \n \nDeductions Debt Retired \n \n19 796 \n \n3,200,000 \n \n3,219,796 \n \nBalance June 30, 2004 \n \n$====0 $ 15,985,000 $ 15,985,000 \n \nPortion of Long-Term Debt Due within One Year \n \n$_ _ _~0 $ 3,325,000 $ 3,325,000 \n \nAt June 30, 2004, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2005 2006 2007 2008 2009 2015 - 2019 \n \n$ 3,325,000 $ 3,465,000 1,590,000 1,660,000 1,745,000 4,200,000 \n \n583,863 433,669 311,338 212,813 109,062 \n \nTotal Principal and Interest \n \n$ 15,985,000 $ 1,650,745 \n \nDuring fiscal year 2004, the Effingham County Board of Education failed to make deposits in accordance with the Series 2001A and QZAB Series 2001B Bond covenants. \n \nNote 10: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $550,291 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \n- 23 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 10: ON-BEHALF PAYMENTS \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $545,127 \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $5,164 \nNote 11: SIGNIFICANT CONTINGENT LIABILITIES \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. \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. \nThe Effingham County Board of Education entered into an agreement in February 2003, with the Georgia School Board Association (GSBA), Incorporated, for the construction and subsequent lease ofvarious school facilities. Under the terms ofthe installment sales agreement, the School District will make semi-annual payments through August 15, 2018. This sales agreement includes an annual renewal clause. The lease will be an obligation of the School District in fiscal year 2005. The School District made interest payments on the installment sales agreement during fiscal year 2004 totaling $415,295. \nThe Effingham County Board of Education entered into construction contracts as an agent for GSBA, with Pope Construction, Ellis Wood Contracting Company, Incorporated, and Buckley and Associates, Incorporated. The significant commitments with these Unearned Contracts totaled $2,481,326 and the Funding Available from Wachovia(the bank where the funds are being held for GSBA) is $1,920,050. \nNote 12: RETIREMENT PLANS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and \n- 24 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 12: RETIREMENT PLANS \n \nsurvivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2004 2003 2002 \n \n100% 100% 100% \n \n$ 3,413,587 $ 3,318,992 $ 2,981,412 \n \n- 25 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nSCHEDULE \"1\" \n \nGENERAL FUND \n \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \n \nBUDGET AND ACTUAL \n \nYEAR ENDED JUNE 30. 2004 \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Service \nTotal Expenditures \nNet Change in Fund Balances \nFund Balances - Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n12,172,000 $ \n \n13,440,862 $ \n \n15,579,949 \n \n700,000 \n \n700,000 \n \n573,277 \n \n39,499,565 \n \n40,591,012 \n \n41,710,691 \n \n4,147,833 \n \n5,313,244 \n \n5,353,788 \n \n1,378,000 \n \n1,556,462 \n \n2,602,393 \n \n11,155 \n \n5,000 \n \n55,033 \n \n816 062 \n \n716 568 \n \n1245577 \n \n$ \n \n58,724,615 $ \n \n62,323,148 $ \n \n67,120,708 \n \n$ \n \n39,002,162 $ \n \n40,285,622 $ \n \n42,312,306 \n \n2,012,156 2,047,854 1,654,370 \n848,731 3,082,094 \n532,266 3,789,024 3,087,659 \n159,814 \n3,002,382 297,834 \n \n2,048,343 2,083,646 1,632,538 \n826,542 3,232,449 \n737,942 4,143,148 3,276,286 \n134,412 \n3,286,121 640,294 \n \n2,143,589 2,107,264 1,603,525 \n846,949 3,114,340 \n698,648 4,097,978 3,014,932 \n79,935 547,316 3,390,708 276,735 435 913 \n \n$ \n \n59,516,346 $ \n \n62,327,343 $ \n \n64,670,138 \n \n$ \n \n-791,731 $ \n \n-4,195 $ \n \n2,450,570 \n \n3,093,759 \n \n3,093,759 \n \n2,153,206 \n \nFund Balances - Ending \n \n$ \n \n2,302,028 $ \n \n3,089,564 $ ===4=,6=0=3=7,=76== \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \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. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U.S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Armstrong Atlantic State University Teacher Quality Enhancement Grants Programs Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Even Start Improving Teacher Quality State Grants Reading Excellence - Local Reading Improvement State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program \nTotal Federal Financial Assistance \nN/A = Not Available \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n. 10.553 . 10.555 \n \nN/A \n \nN/A \n \n$ \n \n$ \n \n(2) 2 977 971 \n2,977,971 \n \n10.550 \n \nN/A $ \n \n200 579 3178550 \n \n. 84.027 \n. 84.173 \n \nN/A \n \n$ \n \nN/A \n \n$ \n \n1,112,981 76 635 \n1,189,616 \n \n84.336 \n84.318 84.213 84.367 84.338 84.298 84.010 84.048 \n \nN/A \nN/A N/A NIA N/A N/A N/A N/A \n$ \n \n19,927 \n44,914 297,229 330,418 459,882 45,078 1,232,930 \n86,826 \n3,706,820 \n \n$ \n \n99 427 \n \n$ ===6=98=4=7=9=7 \n \n- 28 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \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. \n(2) Expenditures for the funds earned on the School Breakfast Program ($254,430) were not maintained separately and are included in the 2004 National School Lunch Program. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Effingham 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. \n \nSee notes to the basic financial statements. \n \n- 29- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \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 Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) 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 Nursing Services Principal Supplements Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs 4-8 Statewide After School Program K-3 Statewide Reading Program Health Insurance Mentor Teachers National Teacher Certification Preschool Handicapped Program \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nSee notes to the basic financial statements. \n \n- 30 - \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n951.230 \n \n$ \n \n951.230 \n \n2,179,525 690.421 \n4.703.414 1,571,069 2.482.928 1,110,087 5,368.536 3.827.037 1,720,511 \n232.364 798.921 2.188.571 774,233 184.425 508,586 \n97.306 397.691 \n56.928 795,973 255.087 169.480 \n903.115 1.617.196 2.431.736 \n1.165.555 233.502 180.468 34.383 \n4,536,383 227.410 255.202 \n-1.774.173 \n52.226 97.861 545.127 13.787 24.712 96.714 \n \n2,179,525 690.421 \n4.703.414 1,571,069 2.482,928 1.110.087 5,368,536 3,827.037 1,720,511 \n232.364 798.921 2.188.571 774,233 184.425 508.586 \n97.306 397,691 \n56.928 795.973 255.087 169,480 \n903,115 1.617,196 2,431,736 \n1.165.555 233.502 180,468 34,383 \n4,536.383 227.410 255.202 \n-1.774.173 \n52.226 97.861 545.127 13.787 24,712 96,714 \n \n$ 1.291.570 5 164 \n \n1,291,570 5 164 \n \n$ 41710691 $ \n \n1 291 570 $ \n \n43 002 261 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL SALES TAXES PROJECTS \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"4\" \n \nPROJECT \nThe constructing. equipping and furnishing of a new elementary school to replace the present Springfield Central Elementary School; a new elementary school to replace the present Marlow Elementary School; new classroom wings at Guyton and Sand Hill Elementary Schools, and Ebenezer Middle School; a new gymnasium and media center at Rincon Elementary School; a new band room at South Effingham Middle School; outdoor physical education/sports facilities at middle and high schools; a new middle school to replace the present Effingham County Middle School; replacing aged roofs and heating/air conditioning units, as necessary, at all School District buildings; renovating/ relocating. furnishing and equipping Alternative School; installing air conditioning units in gymnasiums at Ebenezer. Guyton, Marlow and Sand Hill Elementary Schools and at South Effingham Middle School; installing additional playground equipment at all elementary schools; renovating the Board of Education\"s Bus Shop, installing bus washing equipment. replacing maintenance vehicles and purchasing new buses; constructing an access road behind Effingham County Middle School; renovating and modifying to the Board of Education\"s central offices in Springfield; purchasing new textbooks and instructional equipment. including band and vocational equipment; installing storage buildings at all schools; purchasing land for Effingham County School District operations. including future school sites; adding to. remodeling. renovating. improving, and equipping existing educational buildings, properties, and facilities of the School District. acquiring any necessary personal and real property and equipment. including computers and related technology. copiers, energy management systems, heating and air conditioning systems. lighting, fencing and paving, security and safety equipment. and similar equipment at all Effingham County District schools. including Ebenezer Elementary. Effingham County High, Effingham County Middle, Guyton Elementary. Marlow Elementary. Rincon Elementary. Sand Hill Elementary, South Effingham Elementary, South Effingham High, South Effingham Middle. and Springfield Central Elementary \n \nORIGINAL ESTIMATED \nCOST(1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 35,000,000 $ 40,290,597 $ \n \n2 665 175 $ 21,274,272 \n \nOngoing \n \n(1) The School District\"s original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District\"s current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Effingham 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. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle Grades (6-8) Program \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory 111 \n \nCategory IV \n \nCategory V \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n2,380,367 $ 810,518 \n5,234,535 1,763,349 2,779,066 \n \n2,324,482 $ 979,250 \n6,023,926 2,008,724 3,054,897 \n \n1,235,001 \n5,969,987 4,280,163 1,922,417 4,614,862 \n \n948,974 137,782 5,994,861 5,734,858 1,455,383 \n269,109 893,789 2,703,684 \n90,373 \n \n563,499 97,367 \n443,634 58,807 \n \n397,680 122,761 310,582 \n61,296 \n \n105,520 $ \n87,780 \n97,469 \n125,568 8,137 \n145,755 181,336 \n4,895 13,457 78,532 \n4,427 575 \n9,605 \n13,936 1 103 \n \n2,430,002 979,250 \n6,111,706 2,008,724 3,152,366 \n948,974 263,350 6,002,998 5,880,613 1,636,719 \n274,004 907,246 2,782,216 \n94,800 575 \n407,285 122,761 324,518 \n62,399 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n32,153,572 $ 33,512,411 $ \n \n878,095 $ \n \n34,390,506 \n \nMedia Center Program Staff and Professional Development \n \n884,174 189 352 \n \n1,072,280 52477 \n \n526,622 114 927 \n \n1,598,902 167 404 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n33,227,098 $ 34,637,168 $ \n \n1,519,644 $ =====3=6,.,.1=56:e,8=1=2 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nMay 27, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \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 \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Effingham County Board of Education as of and for the year ended June 30, 2004, which collectively comprise Effingham County Board ofEducation's basic financial statements and have issued our report thereon dated May 27, 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. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Effingham 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 Effingham County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6511-04-01, FS-6511-04-02, FS-6511-04-03, FS-6511-04-04 and FS-6511-04-05. \n2004YB-50 \n \n A material weakness is a reportable condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above is a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Effingham County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance ofnoncompliance that is required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings and Questioned Costs as item FS6511-04-02. \nThis report is intended solely for the information and use of the management and members of the Effingham County Board of Education and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:as 2004YB-50 \n \nState Auditor \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nMay 27, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Effingham 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. Effingham County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofEffingham County Board of Education's management. Our responsibility is to express an opinion on Effingham County Board of Education's compliance based on our audit. \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 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 Effingham 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 Effingham County Board ofEducation's compliance with those requirements. \n2004SA-30 \n \n In our opinion, the Effingham 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, 2004. \nInternal Control Over Compliance \nThe management of Effingham 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 Effingham 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. \nWe noted certain matters involving the internal control over compliance 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 compliance that, in our judgment, could adversely affect the Effingham County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FA-6511-04-01 and FA-6511-04-02. \nA material weakness is a reportable condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with the applicable requirements of laws, 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. Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above is a material weakness. \nThis report is intended solely for the information and use of the management, members of the Effingham 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. \nRespectfully submitted, \n \nRWH:as 2004SA-30 \n \n'-(\\.~ \nsell W. Hinton State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6511-03-01 FS-6511-03-02 FS-6511-03-03 \n \nUnresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nREVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Finding Control Number: FS-6511-03-01 \n \nDeposit preparation has now been separated from the record keeping and cash custody functions at all schools. All receipts will be documented and stored in a secure place. \n \nEMPLOYEE COMPENSATION EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Finding Control Number: FS-6511-03-02 \n \nThe old rules have been reinterpreted requiring reclassification of some of these employees. We are in discussion with the Georgia Department of Community Health. Effingham County Board of Education will adhere to all rules as they apply to these circumstances. \n \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Finding Control Number: FS-6511-03-03 \n \nThe School District will fund these Projects as required from Federal, state, local, and private sources. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6511-03-01 \n \nPreviously Reported Corrective Action Implemented \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Effingham County Board of Education's financial statements was unqualified. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Effingham County Board ofEducation disclosed financial statement reportable conditions related to the following control categories. \n \nCash and Cash Equivalents Employee Compensation Revenues/Receivables/Receipts Capital Assets \n \nExpenditures/Liabilities/Disbursements Budget Preparation/Execution General Ledger \n \nNone ofthe reportable conditions described above are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit of the Effingham County Board of Education disclosed one instance of noncompliance deemed material to the financial statements. This noncompliance involved the Board's failure to follow bond covenants. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Effingham County Board of Education disclosed reportable conditions in internal control over major programs for the following compliance requirements. \n \nReporting \n \nSpecial Tests and Provisions \n \nNone ofthe reportable conditions described above are considered to be material weaknesses. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Effingham County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Effingham County Board of Education's audit disclosed audit findings required to be reported by section .510(a) of 0MB Circular A-133. These audit findings are included in section IV of this report. \n \n- 1- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nI SUMMARY OF AUDITOR'S RESULTS \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 84.027 Special Education - Grants to States 84.173 Special Education - Preschool Grants \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n9. Low Risk Auditee The Effingham County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-6511-04-01 \nAn examination of the internal accounting control procedures revealed that the School District did not provide for adequate separation of duties in the performance of the following accounting functions and related procedures: \nCentral Office Accounts Cash and Cash Equivalents  Two bank accounts were not properly reconciled to the general ledger.  Deposits were not made in a timely manner. \nPrincipal Accounts Cash and Cash Equivalents  One bank account was not properly reconciled to the school's accounting records. \nRevenues/Receivables/Receipts  Deposit preparation was not separated from the record keeping and cash custody functions.  Receipt documentation was not maintained for the principal account tested.  Based on a review of ten items, nine receipts could not be traced to deposit slips. \n-2- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-6511-04-01 \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping functions.  Based on a review of twenty items, the following deficiencies were noted: 1. One voucher lacked a purchase order. 2. One approved purchase order was never used or voided. 3. Three approved purchase orders were blank and incomplete. \nThese deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions and their failure to ensure established controls were functioning as designed. The School District should review the accounting procedures in place, design procedures which would enhance segregation of duties relative to the above control categories, and implement those procedures to strengthen the internal control over accounting functions. \nCASH AND CASH EQUIVALENTS GENERAL LEDGER Violation of Bond Covenant Reportable Condition Material Noncompliance Finding Control Number: FS-6511-04-02 \nDuring the year under review, the School District failed to deposit sales tax receipts in accordance with Article V of the Series 2001 Bond Covenant. The following deficiencies were noted: \n Sales tax receipts were deposited into the wrong bank account.  $250,123 of the required $500,000 deposit was not transferred into the specified \nQualified Zone Academy Bonds (QZAB) bank account by December 1, 2003, as required.  Interest earned on the specified bank accounts was recorded in the Capital Projects Fund rather than the Debt Service Fund, as required. \nThese deficiencies were a result ofmanagement's failure to implement appropriate internal controls to ensure compliance with Bond Covenants. The School District should establish procedures to ensure sales tax receipts and related interest are deposited and recorded in accordance with applicable Bond Covenants. \n-3- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-6511-04-03 \nDuring the fiscal year ended June 30, 2004, the School District classified 39 employees as eligible for the Health Insurance Plan for Public School Employees (See OCGA, Title 20, Chapter 2, Article 17, Part 6, Sub Part 2). However, these individuals may be eligible for membership in the Health Insurance Plan for Public School Teachers (See OCGA Title 20, Chapter 2, Article 17, Part 6, Sub Part 1). \nAccording to the Department ofCommunity Health (DCH), School District employees who are to be included as members of the Health Insurance Plan for Public School Teachers (PST) are either: \n1. Employed in a professionally certificated position; employee holds a valid certification; employee is assigned to a position that requires a certification as a qualification; employee's compensation is determined, at least in part, based upon the certificate; and employee is a member of the Teachers Retirement System or other public school retirement system. \nOr: \n2. Employed in a professionally certificated capacity; employee holds a valid certification; employee is not assigned to a position that requires a certification as a qualification; employee's compensation is determined, at least in part, based upon the certificate; and employee is a member ofthe Teachers Retirement System or other public school retirement system. \nWith respect to membership in the Health Insurance Plan for Public School Employees (PSE) Georgia Laws OCGA 20-2-910 and 47-4-2 (20) provide that the definition of public school employee, for the purpose ofmembership in the Health Insurance Plan for Public School Employees, means classroom aides, paraprofessionals, noncertified administrative and clerical employees, school bus drivers, school lunchroom personnel, school maintenance personnel and school custodial personnel. Generally, in order to determine which School District employees are eligible for the PSE or for the PST insurance plans, a comparison should be made ofthe employee's position and DCH's criteria listed above. Ifthe employee meets either test, then the employee is eligible for the Health Insurance Plan for Public School Teachers. If the employee fails both of the above tests, the employee is eligible for the Health Insurance Plan for Public School Employees. \nFrom information provided by the School District, 39 employees are eligible for membership in the PSE plan under DCH's criteria. \n-4- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-6511-04-03 \nThe School District should establish policies and procedures to ensure that employer contributions for employee health insurance are paid in accordance with State Laws. In addition, the School District should contact the Georgia Department of Community Health to determine whether the employees who were moved from the PST plan were moved in error. If employees were moved in error, the affected employees should be returned to the PST plan and the School District should make payment to DCH for those employees. \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Reportable Condition Finding Control Number: FS-6511-04-04 \nA review of the School District's Capital Assets policies and procedures and the related Capital Assets records noted deficiencies as discussed below: \n The School District did not update Capital Assets records for activity occurring during fiscal year 2004 until May 2005. \n The Capital Assets records contained numerous calculation errors.  During a review of current year additions, the following deficiencies were noted: \n- One item was added twice. - One item was not added to the listing and did not have an identification tag. - Eighteen items were added in error.  During a review of current year deletions, the following deficiencies were noted: - The listing of deletions was incomplete and inaccurate. - Revenue from the sale of items was not properly documented. - One item disposed ofduring the year under review was not removed form the Capital \nAssets records. - Four items were removed from the Capital Assets records but no disposal information \nwas available. - Two items were noted as being sold at an auction; however, the revenue from the sale \ncould not be traced to the general ledger.  Depreciation Expense and Accumulated Depreciation were not calculated in accordance \nwith the School District's policy. \n-5- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Reportable Condition Finding Control Number: FS-6511-04-04 \n The Capital Asset Records presented for audit failed to present depreciation expense by function. \n The Capital Assets Listing was incomplete and failed to meet proper management standards set forth in Chapter 41 ofthe Financial Management for Georgia Local Units of Administration (FMGLUA). \nThese deficiencies were a result ofmanagement's failure to establish adequate controls related to the Capital Assets. The School District should reassess internal control procedures for Capital Assets to ensure that Capital Assets records are updated timely, reflect actual purchases, reflect actual deletions, include depreciation expense calculated in accordance with the School District's policy and contain all required information. An administrative review should be performed to ensure the accuracy of inventory records and amounts recorded in the general ledger at the close ofeach fiscal year. \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Reportable Condition Finding Control Number: FS-6511-04-05 \nAt June 30, 2004, the Capital Projects Fund ofthe Effingham County Board ofEducation reported a deficit fund balance in the amount of $4,109,599, which is considered to be an irregularity in accordance with O.C.G.A. 20-2-67. This condition occurred because management approved expenditures in excess of funds available in the Capital Projects Fund. The School District should establish appropriate policies and procedures designed to ensure that in future periods, the School District does not report a deficit. \n-6- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nREPORTING Errors on Reimbursement Claim Forms U.S. Department of Agriculture Through Georgia Department of Education Reportable Condition Finding Control Number: FA-6511-04-01 \nA review ofthe School District's reporting procedures for the Child Nutrition Cluster (CFDA 10.553 and 10.555) revealed that the School District failed to adequately complete the reimbursement claim forms submitted to the Georgia Department ofEducation. The School District incorrectly completed the DE-0112 and DE-0118 claim forms, causing the amount of reimbursement to be in error. Additionally, management did not properly review the forms for accuracy before submission. \nThis condition was a result of management's failure to implement appropriate internal controls to ensure that the reimbursement claims are accurate. The School District should implement procedures to ensure that the DE-0112 and DE-0118 claim forms are reviewed for accuracy and submitted in accordance with reporting requirements. Georgia Department of Education should review this matter to determine if a reclaim of funds is necessary. \nSPECIAL TESTS AND PROVISIONS Failure to Verify Required Number of Applications U.S. Department of Agriculture Through Georgia Department of Education Reportable Condition Finding Control Number: FA-6511-04-02 \nA review of the School District's verification procedures for the Child Nutrition Cluster (CFDA 10.553 and 10.555) revealed that the School District failed to adequately perform the verification process. \nThis condition was a result of management's failure to implement appropriate internal controls to ensure that 3% of free and reduced-price meal applications are properly verified. Procedures should be implemented to ensure that the verification of free and reduced-price meal applications is performed in accordance with eligibility requirements. The Georgia Department ofEducation should evaluate the School District's compliance with program requirements and determine amounts to be reclaimed, if any. \n-7- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2004 \nFinding Control Number: FS-6511-04-01 \nThe Finance Department has begun implementing procedures to ensure all reconciliations are performed timely. The separation of duties has been addressed at the schools with the realignment of duties. This has been implemented as a result of the 2003 audit, but due to the late performance of the 2003 audit the same problem occurred in 2004. \nFinding Control Number: FS-6511-04-02 \nAdditional review has been implemented to ensure receipts are deposited into the correct account. Funding of Debt Service for QZAB has been met on timely basis by depositing SPLOST receipts to the debt service account monthly. Also, the recording of interest earned has been changed to the Debt Service Fund. This has been implemented as a result of the 2003 audit, but due to the late performance of the 2003 audit the same problem occurred in 2004. \nFinding Control Number: FS-6511-04-03 \nWe do not concur with this finding. This issue is the same as in 2003. The classification of the 43 employees was based on documentation from the Department of Community Health that clearly states certified employees not in a certified position should not be included in the certified employees plan. \nFinding Control Number: FS-6511-04-04 \nManagement has begun the capital asset documentation in a more timely manner. The documentation of physical inventory, the timely recording of assets and the documentation of purchased or disposed of assets will ensure accurate record keeping. \nFinding Control Number: FS-6511-04-05 \nThe Board of Education decided to proceed with much-needed capital outlay projects before the receipts of all the Special Purpose Local Option Sales Tax revenue had been received. We realized that proceeding with the projects before the receipt of SPLOST caused us to temporarily borrow from the general fund and put the Capital Projects in a deficit position. This situation will be corrected as SPLOST receipts are received. \nFinding Control Number: FA-6511-04-01 \nSchool Food Services has implemented additional training for staff, which will emphasize proper reporting procedures. \n- 1- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2004 Finding Control Number: FA-6511-04-02 School Food Services has implemented additional training for staff, which will emphasize the proper number of application to verify. Contact Person: Ron Wilson, Director of Finance Phone: (912) 754-5885 Fax Number: (912) 754-3489 E-mail Address: r1wilson@effingham.kl2.ga.us \n-2- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2002-h2003","title":"Effingham County Board of Education, Springfield, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2003","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2003-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: Effingham County Board of Education, Springfield, 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 ... (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed February 3, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Effingham County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Effingham County--Auditing--Periodicals","Education--Georgia--Effingham County--Finance--Statistics--Periodicals"],"dcterms_title":["Effingham County Board of Education, Springfield, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2003"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2002-h2003"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2002-h2003"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodical","periodicals","state government audits","official reports","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"EFFINGHAM COUNTY BOARD OF EDUCATION \nSPRINGFIELD, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2003 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n3 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n4 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n6 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n7 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n8 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n9 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n11 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n12 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n29 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n30 \n \n3 SCHEDULE OF STATE REVENUE \n \n32 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n34 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n35 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nAugust 5, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Effingham 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 Effingham County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \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 opinions. \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 Effingham County Board of Education, as of June 30, 2003, and the respective changes in financial position thereoffor the year then ended in conformity with accounting principles generally accepted in the United States of America. \n2003-34ARL-11 \n \n The Effingham County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \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. \nAs described in Note 2, the Effingham 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. \nIn accordance with Government Auditing Standards, we have also issued our report dated August 5, 2004, on our consideration of the Effingham 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. \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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Effingham 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. \n2003-34ARL-11 \n \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 of Georgia Annotated section 506-24. \nRespectfully submitted, \n \nUJ.~ \n \nRWH:gp 2003-34ARL-11 \n \nState Auditor \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS \nJUNE 30, 2003 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries Payable Short-Term Debt Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Unrestricted (Deficit) \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. \n-3- \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n11,300,844 \n \n20,551 \n \n1,627,591 4,835,842 \n179,154 667,607 \n78,010 \n \n2,098,658 8,159,025 9,939,000 60,345,678 7,518,374 -27 317 608 \n \n$ ===7=9=,4=5=2,=72=6= \n \n$ \n \n3,024,609 \n \n6,429,262 \n \n5,000,000 \n \n375,558 \n \n157,880 \n \n146,674 \n \n3,219,796 15,985,000 \n \n$ \n \n34 338 779 \n \n$ \n \n44,983,467 \n \n412,065 3,419,085 -3 700 670 \n \n$ \n \n45 113 947 \n \n$ =====7=9=,4=5=2,=72=6= \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30. 2003 \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n$ \n \n41,988,997 $ \n \n1,937,342 2,024,269 1,746,621 \n842,731 3,268,169 \n816,431 3,934,509 2,998,759 \n84,825 \n \n1,572,029 \n \n3,428,589 962 130 \n \n378,668 \n506,291 1,447,563 \n \nTotal Governmental Activities \n \n65,605,401 $ \n \n2,332,522 \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services 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 \n \nTotal General Revenues \n \nChanges in Net Assets \n \nNet Assets - Beginning of Year \n \nNet Assets - End of Year \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n30,751,259 $ \n \n625,791 699,194 760,174 1,116,842 1,622,291 \n \n2,375,518 1,558,756 \n12,532 \n \n1,629,591 \n \n$ \n \n41 151 948 $ \n \n2,398,893 $ \n113,037 84,666 10,581 23,440 \n569,285 \n321,624 \n3,521,526 $ \n \n-8,460,177 \n-1,311,551 -1,325,075 \n-873,410 274,111 -1,561,212 -805,850 -1,535,551 -870,718 -72,293 \n-1,065,738 \n-29,811 -962 130 \n-18,599,405 \n \n$ \n \n12,926,004 \n \n1,754,282 \n \n30,129 \n \n2,567,239 1,491,285 \n566,732 87,183 \n4,879,048 281,370 \n1363081 \n \n$ \n \n25,946,353 \n \n$ \n \n7,346,948 \n \n37,766,999 \n \n$ ======45=1=1=3!=,94=7= \n \n-5- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30. 2003 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Due From Other Funds Inventories \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 10.867,715 $ \n473.071 4.835,842 \n179,154 \n11.378 78 010 \n \n$ 3.291,988 $ 14,159,703 \n \n19.748 \n \n803 \n \n20,551 \n \n691,882 667.607 \n \n58,770 \n \n1,223,723 4,835,842 \n179,154 667,607 \n11,378 78 010 \n \n$ 16,445,170 $ 1,379,237 $ 3,351,561 $ 21,175,968 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Short-Term Debt Contracts Payable Retainages Payable Due To Other Funds Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects \nUnreserved Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \n \n$ 2,858.859 \n \n$ 2,716.028 \n \n308.581 \n \n6,429,262 \n \n5.000,000 \n \n375.558 \n \n157,880 \n \n$ \n \n146 674 \n \n$ 14,291,964 $ 3,700,878 $ \n \n$ \n11,378 \n \n2.858.859 3.024,609 6,429,262 5,000,000 \n375.558 157.880 \n11,378 146 674 \n \n11 378 $ 18,004,220 \n \n$ 334.055 \n \n$ 334,055 \n \n$ 3,340,183 \n \n3,340,183 \n \n78,010 \n \n78,010 \n \n$ 3,241,847 \n \n3,241,847 \n \n1,741,141 \n \n-5,563,488 \n \n1.741,141 -5,563,488 \n \n$ 2,153,206 $ -2,321,641 $ 3,340,183 $ 3 171 748 \n \nTotal Liabilities and Fund Balances \n \n$ 16,445,170 $ 1,379,237 $ 3,351,561 $ 21,175,968 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30. 2003 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Buildings Equipment Land Improvements Accumulated Depreciation \nTotal Capital Assets \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. \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: \nBonds Payable Capital Leases \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ \n \n3,171,748 \n \n$ \n \n2,098,658 \n \n8,159,025 \n \n60,345,678 \n \n7,518,374 \n \n9,939,000 \n \n-27,317,608 \n \n60,743,127 \n \n403,868 \n \n$ -19,185,000 -19 796 \n \n-19,204,796 \n \n$ 45,113,947 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30. 2003 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nCapital Leases \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 12,927,152 574,924 $ \n40,935,796 5,095,200 2,332,522 131,774 1,363,081 \n \n$ 1,491,285 3,521,526 \n136,603 \n \n1,675,380 $ 2,646,230 \n12,993 \n \n14,602,532 4,712,439 \n44,457,322 5,095,200 2,332,522 281,370 1,363,081 \n \n$ 63,360,449 $ 5 149 414 $ 4,334,603 $ 72,844,466 \n \n$ 39,876,238 \n \n$ 39,876,238 \n \n1,937,342 \n \n2,024,269 \n \n1,647,167 \n \n842,731 \n \n3,193,601 \n \n801,155 $ \n \n80 $ \n \n3,913,865 \n \n3,008,264 \n \n84,825 \n \n1,572,029 \n \n3,145,327 \n \n43,445 \n \n12,280,385 \n \n5,877 \n \n1,937,342 2,024,269 1,647,167 \n842,731 3,193,601 \n807,112 3,913,865 3,008,264 \n84,825 1,572,029 3,145,327 12,323,830 \n \n124,291 6885 \n \n2,299,242 133,388 \n \n1,275,000 821,857 \n \n3,698,533 962,130 \n \n$ 62,221,434 $ 14,713,095 $ 2,102,734 $ 79,037,263 \n \n$ 1,139,015 $ -9,563,681 $ 2,231,869 $ -6,192,797 \n \n40414 \n \n40414 \n \n$ 1,179,429 $ -9,563,681 $ 2,231,869 $ -6,152,383 \n \n973 777 \n \n7,242,040 \n \n1,108,314 \n \n9,324,131 \n \nFund Balances - Ending \n \n$ 2,153,206 $ -2,321,641 $ 3,340,183 $ 3171 748 \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30. 2003 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \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: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \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. \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. \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: \nBond Principal Retirements Intergovernmental Contract Trust Certificate Capital Lease Payments \nTotal Long-Term Debt Repayments \n \n$ -6,152,383 \n \n$ 12,125,158 -2,391,828 \n \n9,733,330 107,883 \n \n-40,414 \n \n$ 1,275,000 85,000 \n2,338,532 \n \n3,698,532 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ ======7,=34=6=,94===8 \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2003 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \nAGENCY FUNDS $ 8,858,853 \n$ 8,858,853 \n \nThe notes to the basic financial statements are an integral part of this statement. - 11 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Effingham 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. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \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 Effingham County Board of Education. \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. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \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. \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. \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. \n \n- 12 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \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. \n District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds, grants from Georgia State Financing and Investment Commission and Special Purpose Local Option Sales Tax Proceeds to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (property and sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments and individuals. \nBASIS OF ACCOUNTING \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. \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. \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 \n- 13 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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. \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. \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. \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. \nRESTATEMENT OF PRIOR YEAR FUND BALANCE - GENERAL FUND \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 $259,859 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$288,345 at July 1, 2002. This change is in accordance with generally accepted accounting principles. \n \n- 14 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nGeneral Fund Balance July 1, 2002 \n \n$ 2,662,863 \n \nAdd Funds Consolidated with General Fund: School Food Services Fund School Activity Account - Governmental Activity \n \n259,859 288,345 \n \nAdd: State Revenue Related to July and August 2002 Salary Payments Earned by Employees in Fiscal Year 2002 \n \n4,510,047 \n \nDeduct: July and August 2002 Salary Payments Earned by Employees in Fiscal Year 2002 \n \n6,747,337 \n \nGeneral Fund Balance July 1, 2002 (Restated) \n \n$ 973 777 \n \nCHANGES IN ACCOUNTING PRINCIPLES \n \nThe Effingham 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. \n \nThe provisions of GASB Statement No. 34 require the inclusion of a Statement ofNet Assets. The elements comprising Net Assets - Beginning include the following: \n \nGeneral Fund (Restated) July 1, 2002 Capital Projects Fund Debt Service Fund \n \n$ 973,777 7,242,040 1,108,314 \n \nGovernmental Funds (Restated) July 1, 2002 Capital Assets Accumulated Depreciation Property Tax Revenue Timing Differences Bonds Payable Capital Leases Payable Intergovernmental Contract Trust Certificates \n \n$ 9,324,131 75,935,577 -24,925, 780 295,985 -20,460,000 -2,317,914 -85,000 \n \nNet Assets Beginning (See Exhibit \"B\") \n \n$ 37J66!999 \n \n- 15 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCASH AND CASH EQUIVALENTS \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 Board to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \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: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nRECEIVABLES \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 \n- 16 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \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. \n \nPROPERTY TAXES \n \nThe Effingham County Board of Commissioners fixed the property tax levy for the 2002 tax digest year (calendar year) on July 16, 2002 (levy date). Taxes were due on November 15, 2002 (lien 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 Effingham 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 $12,897,023 and for school bonds amounted to $1,675,380. \n \nTax millage rates levied for the 2002 tax year (calendar year) for the Effingham County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n14.300 mills 1.835 mills \n \n16.135 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $4,058,524 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. \n \nINVENTORIES \n \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. \n \n- 17 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nCAPITAL ASSETS \n \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 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 fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost ofnormal 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. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAny Amount \n \n$ \n \n50,000 \n \n$ \n \n50,000 \n \n$ \n \n5,000 \n \nNIA 15 years 20 to 40 years 5 to 10 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \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. \n \nDEFICIT FUND BALANCES \n \nThe fund reporting a deficit fund balance at June 30, 2003, is as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGovernmental Funds District-wide Capital Projects Fund \n \n$ -5.563.488 \n \n- 18 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe Effingham County Board of Education plans to transfer funds from the General Fund and use Special Purpose Local Option Sales Tax to liquidate this deficit. \nNote 3: DEPOSITS AND INVESTMENTS \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. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \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, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \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. \n \n- 19 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCATEGORIZATION OF DEPOSITS At June 30, 2003, the bank balances were $23,198,653. The amounts of the total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2003, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 15,642,944 \n \n2 \n \n4,121,408 \n \n3 \n \n3,434,301 \n \nTotal \n \n$ 23,198,653 \n \nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \n \nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name. \n \nFunds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. \n \nAt June 30, 2003, the carrying value ofthe School District's total investments was $20,551 which is materially the same as fair value. The investments are classified as to risk categories as follows: \n \n- 20 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nType of Investment \n \nInvestment Portfolio \n \nAccount \n \n$ \n \nLocal Government Investment Pools \n \nTotal Investments \n \nRisk Categories \n \n2 \n \n3 \n \n$ \n \n803 $ \n \nCarrying Amount \n \nFair Value \n \n$ \n \n803 $ \n \n803 \n \n19 748 \n \n19 748 \n \n$ \n \n20,551 $ \n \n20 551 \n \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2003, was 30 days. The average investment duration for Fund 6 on June 30, 2003, was 0.39 years. \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \n- 21 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July I, 2002 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2003 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 2,018,701 $ \n \n79,957 \n \n$ 2,098,658 \n \n7,726,342 \n \n6,818,070 $ 6,385,387 \n \n8,159,025 \n \nTotal Capital Assets Not Being Depreciated $ 9,745,043 $ 6,898,027 $ 6,385,387 $ 10,257,683 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 49,690,182 $ 10,655,496 $ \n \n6,911,352 \n \n607,022 \n \n9,589,000 \n \n350,000 \n \n0 $ 60,345,678 7,518,374 9,939,000 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n13,797,032 4,669,415 6,459,333 \n \n1,330,699 464,629 596,500 \n \n15,127,731 5,134,044 7,055,833 \n \nTotal Capital Assets, Being Depreciated, Net $ 41,264,754 $ 9,220,690 $ \n \n0 $ 50,485,444 \n \nGovernmental Activity Capital Assets - Net $ 51,009.797 $ 16,118,717 $ 6,385,387 $ 60,743.127 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 1,629,401 \n \n$ \n \n76,678 \n \n57,508 \n \n7,187 \n \n15,921 \n \n386,676 \n \n543,970 218,457 \n \n$ 2,391,828 \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds and property tax levied specifically for retirement of outstanding bond principal, interest and paying agent's fees (Debt Service Funds) are reported 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: \n \n- 22 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 6: RESTRICTED ASSETS \n \nDistrict-wide Capital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ 3,291,988 $ 3,241,847 \n \n$ \n \n19,748 \n \n$ \n \n803 \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2003, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund Debt Service Funds \n \n$ \n \n11,378 \n \n$_ _1_1~37_8 \n \n$ \n \n11378 $==~11=3-7~8 \n \nTransfers are used to move General Fund revenue to cover administration fees for Bond payments. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions,job related illness or injuries to employees and acts of God. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \n- 23 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 8: RISK MANAGEMENT \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n2002 2003 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n$ \n \n2,261 $ \n \n0 $ \n \n2,261 $ \n \n0 \n \n$ \n \n0 $ \n \n0 $ \n \n0 $ \n \n0 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Employee \n \n$ 100,000 \n \n$ \n \n50,000 \n \nNote 9: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount ofshort-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$ 4,995,000 $ 5,000,000 $ 4,995,000 $ 5,000,000 \n \nNote 10: LONG-TERM DEBT \n \nCAPITAL LEASES The Effingham County Board ofEducation has entered into lease agreements for 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 inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \n- 24 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 10: LONG-TERM DEBT \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1994 General Government - Series 2001A General Government - QZAB Series 2001B \n \n4.20% - 6.25% 3.25% - 4.00% 0.00% \n \n$ 9,185,000 5,800,000 4,200,000 \n \n$ 19,185.000 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2003, were as follows: \n \nBalance July I, 2002 \nAdditions Capital Leases \nDeductions Debt Retired \nBalance June 30, 2003 \nPortion of Long-Term Debt Due within One Year \n \nCapital Leases \n \nGovernmental Funds Intergovernmental Contract Trust Certificates \n \nGeneral Obligation \nBonds \n \nTotal \n \n$ 2,317,914 $ \n \n85,000 $ 20,460,000 $ 22,862,914 \n \n40,414 \n \n40,414 \n \n2,338,532 \n \n$ \n \n19,196 $ \n \n85,000 \n \n1,275,000 \n \n3,698,532 \n \n$ 19,185,000 $ 19,204,796 \n \n$ \n \n19 796 $ \n \n0 $ 3,200,000 $ 3,219,796 \n \nAt June 30, 2003, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCagital Leases \n \nPrincigal \n \nInterest \n \n2004 \n \n$ \n \n19 796 $ \n \n821 \n \nFiscal Year Ended June 30 \n2004 2005 2006 2007 2008 2009 - 2013 2014 - 2018 \n \nGeneral Obligation \n \nDebt \n \nPrincigal \n \nInterest \n \n$ 3,200,000 $ 3,325,000 3,465,000 1,590,000 1,660,000 1,745,000 4,200,000 \n \n722,145 583,863 433,669 311,337 212,813 109,063 \n \nTotal Principal and Interest \n \n$ 19,185,000 $ 2,372,890 \n \n- 25 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 11: ON-BEHALF PAYMENTS \n \nThe Board has recognized revenues and costs in the amount of $642,995 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $541,266 \n \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 $101,729 \n \nNote 12: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2003, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n04-651-029 040-651-010 03G/02S-651-018 and SAO 1S-651-015 \n \n$ 856,831 $ 566,321 \n \n174,181 \n \n401,599 \n \n323,650 \n \n$ 1!031!012 $ 1!291!570 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \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. \n \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. \n \n- 26 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \nThe Effingham County Board of Education entered into an agreement in February 2003, with the Georgia School Board Association (GSBA), Incorporated for the construction and subsequent lease of various school facilities. Under the terms ofthe installment sales agreement, the School District will make semi-annual payments through August 15, 2018. This sales agreement includes an annual renewal clause. The lease will be an obligation of the School District in fiscal year 2004. \n \nThe Effingham County Board of Education entered into construction contracts as an agent for GSBA, with Pope Construction and Buckley and Associates, Incorporated. The significant commitments with these Unearned Executed Contracts total $6,897,655 and the Funding Available from Wachovia (the bank where the funds are being held for GSBA) is $8,858,853. \n \nNote 14: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2003 2002 2001 \n \n100% 100% 100% \n \n$ 3,318,992 $ 2,981,412 $ 3,316,988 \n \n- 27 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOther Sources \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nACTUAL AMOUNTS \n \n$ \n \n12,172,000 $ \n \n12,172,000 $ \n \n12,927,152 \n \n700,000 \n \n700,000 \n \n574,924 \n \n38,179,684 \n \n38,179,684 \n \n40,935,796 \n \n75,000 \n \n75,000 \n \n5,095,200 \n \n2,332,522 \n \n131,774 \n \n475 000 \n \n599 087 \n \n1,363,081 \n \n$ \n \n51,601,684 $ \n \n51,725,771 $ \n \n63,360,449 \n \n$ \n \n35,415,266 $ \n \n35,660,461 $ \n \n39,876,238 \n \n1,630,353 1,362,255 1,654,557 \n661,366 3,183,850 \n532,266 3,784,750 2,978,873 \n297,834 \n \n1,730,544 1,362,296 1,654,370 \n661,366 3,082,094 \n532,266 3,785,124 2,989,416 \n297,834 \n \n1,937,342 2,024,269 1,647,167 \n842,731 3,193,601 \n801,155 3,913,865 3,008,264 \n84,825 1,572,029 3,145,327 \n43,445 131 176 \n \n$ \n \n51,501,370 $ \n \n51,755,771 $ \n \n62,221,434 \n \n$ \n \n100,314 $ \n \n-30,000 $ \n \n1,139,015 \n \n40414 \n \n$ \n \n100,314 $ \n \n-30,000 $ \n \n1,179,429 \n \n2,662,422 \n \n2,662,422 \n \n973 777 \n \n$ \n \n2,762,736 $ \n \n2,632,422 $ ===2=,1=5=3\"=,2=06= \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture. U.S. Department of Direct Secondary Agricultural Education Grants \nChild Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) \nTotal U. S. Department of Agriculture \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 \nTotal Special Education Cluster \nOther Programs Pass-Through From Armstrong Atlantic State University Title II Teacher Quality Enhancement Grants Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Even Start Grants to Local Educational Agencies School Improvement Title II Eisenhower Professional Development Enhancing Education Through Technology Improving Teacher Quality Reading Excellence - Local Reading Improvement Title Ill Tech Literacy Challenge Fund Grants TitleV Innovative Education Program Strategies Vocational Education - Basic Grants to States High School Program Basic Grant \nTotal U. S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.226 \n \n$ \n \n11 225 \n \n10.553 10.555 \n \nN/A NIA $ \n$ \n \n(2) 2,751,978 \n2,751,978 \n \n10.550 \n \nN/A $ $ \n \n191 069 2,954,272 \n \n84.027 84.173 84.027 \n \nN/A $ N/A N/A \n$ \n \n972.988 91,506 34249 \n1,098,743 \n \n84.336 \n \nN/A \n \n64,116 \n \n84.213 * 84.010 * 84.010 \n84.281 84.318 * 84.367 * 84.338 \n84.318 \n84.298 \n84.048 \n \nNIA N/A N/A \nN/A N/A N/A N/A \nNIA \nN/A \nN/A \n$ \n \n310,000 1,185,962 \n32,763 \n35,585 22,137 320,101 388,614 \n1,706 \n46,418 \n86 790 \n3,592,935 \n \n- 30 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nDefense, U. S. Department of Direct Department of the Air Force RO.TC. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n$ _ _ _ _9;:_:5:.i.;?c.=2=-5 \n \nTotal Federal Financial Assistance \n \n$ ===6,.;;;,64=2;,.;,9=3=2 \n \nN/A = Not Available \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($212,473) were not maintained separately and are included in the 2003 National School Lunch Program. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Effingham 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. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Leaming Pre-Kindergarten Program \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 Category II Category Ill Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) 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 Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs 4-8 Statewide After School Program K-3 Statewide Reading Program Apprenticeship Program Health Insurance Mentor Teachers National Teacher Certification Preschool Handicapped Program Lottery Programs Assistive Technology Computers in the Classroom Post Secondary Options \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n882,508 \n \n$ \n \n882,508 \n \n1,818,693 946,168 \n4,509,219 1,615,310 2,515,349 1,066,495 5.155.190 3,833,699 1,687,809 \n172.403 908,782 2.115,584 583,090 \n30,620 471,063 \n18,398 391,181 \n25,077 769,627 262,367 163,539 \n855,495 1,569,206 2,371,680 \n1,233.562 261,931 174,497 34,771 71,430 \n3,540,974 234,276 189,707 -907,442 \n87,372 60,026 \n1,900 541,266 \n15,936 18,684 96,714 \n14,959 177,870 \n7,668 \n \n$ 101,729 \n \n3,521,526 \n \n1,818,693 946.168 \n4,509,219 1,615,310 2,515,349 1,066,495 5,155,190 3,833,699 1,687,809 \n172,403 908,782 2,115,584 583,090 \n30,620 471,063 \n18,398 391,181 \n25,077 769,627 262,367 163,539 \n855,495 1,569,206 2,371,680 \n1,233,562 261.931 174,497 34,771 71,430 \n3,540,974 234,276 189,707 -907,442 \n87,372 60,026 \n1,900 541.266 \n15,936 18,684 96,714 \n14,959 177,870 \n7,668 \n3,521,526 \n101,729 \n \n- 32- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nCONTRACT Education. Georgia Department of Student Information System \nOTHER Community Affairs. Georgia Department of Local Assistance Grant \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n194.414 \n \n$ \n \n194,414 \n \n45 000 \n \n45000 \n \n$ \n \n40,935,796 $ \n \n3,521,526 $ \n \n44 457 322 \n \nSee notes to the basic financial statements. \n \n- 33- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL SALES TAXES PROJECTS \nYEAR ENDED JUNE 30 2003 \n \nSCHEDULE \"4\" \n \nPROJECT \nPayments as required under the Public Facilities Master Lease of the Ebenezer Elementary School in order to facilitate the purchase of said facility. \nThe constructing, equipping and furnishing of a new elementary school to replace the present Springfield Central Elementary School; a new elementary school to replace the present Marlow Elementary School; new classroom wings at Guyton and Sand Hill elementary schools and Ebenezer Middle School; a new gymnasium and media center at Rincon Elementary School; a new band room at South Effingham Middle School; outdoor physical education/sports facilities at middle and high schools; a new middle school to replace the present Effingham County Middle School; replacing aged roofs and heating/air conditioning units, as necessary, at all School District buildings; renovating/ relocating, furnishing and equipping Alternative School; installing air conditioning units in gymnasiums at Ebenezer, Guyton, Marlow and Sand Hill elementary schools and at South Effingham Middle School; installing additional playground equipment at all elementary schools; renovating the Board of Education's Bus Shop, installing bus washing equipment, replacing maintenance vehicles and purchasing new buses; constructing an access road behind Effingham County Middle School; renovating and modifying to the Board of Education's central offices in Springfield; purchasing new textbooks and instructional equipment, including band and vocational equipment; installing storage buildings at all schools; purchasing land for Effingham County School District operations, including future school sites; adding to, remodeling, renovating, improving and equipping existing educational buildings, properties and facilities of the School District, acquiring any necessary personal and real property and equipment, including computers and related technology, copiers, energy management systems, heating and air conditioning systems, lighting, fencing and paving, security and safety equipment and similar equipment at all Effingham County District schools, including Ebenezer Elementary, Effingham County High, Effingham County Middle, Guyton Elementary, Marlow Elementary, Rincon Elementary, Sand Hill Elementary, South Effingham Elementary, South Effingham High, South Effingham Middle and Springfield Central Elementary. \n \nORIGINAL ESTIMATED \nCOST(1) \n \nCURRENT ESTIMATED \nCOST (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 4,874,000 $ 6,294,977 $ \n \n2,331,888 $ 3,963,089 Completed \n \n35,000,000 \n \n40,198,920 \n \n12,584,645 \n \n8,689,627 Ongoing \n \n$ 39,874,000 $ 46,493,897 $ 14,916,533 $ 12,652,716 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of Effingham 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. \n \nSee notes to the general purpose financial statements. \n \n- 34 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE} \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2003 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program 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 Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n1,993,407 $ 1,962,210 $ \n \n48,076 $ \n \n2,010,286 \n \n1,022,136 \n \n1,181,203 \n \n1,181,203 \n \n4,981,292 \n \n5,103,625 \n \n61,614 \n \n5,165,239 \n \n1,766,186 \n \n2,242,282 \n \n2,242,282 \n \n2,742,170 \n \n3,077,663 \n \n105,532 \n \n3,183,195 \n \n1,172,119 5,651,003 4,202,415 1,878,039 4,164,685 \n520,602 27,398 \n429,046 28,954 \n \n803,728 132,024 5,774,831 5,506,720 1,445,470 \n269,214 975,011 2,557,247 \n85,982 \n341,026 116,619 499,966 \n25,595 \n \n127,372 161,293 \n168,354 191,950 \n4,374 13,265 63,965 \n7,747 930 \n11,676 \n3,300 1,250 \n \n931,100 293,317 5,774,831 5,675,074 1,637,420 \n273,588 988,276 2,621,212 \n93,729 930 \n352,702 116,619 503,266 \n26,845 \n \n$ \n \n30,579,452 $ 32,100,416 $ \n \n970,698 $ \n \n33,071,114 \n \n845,788 181,958 \n \n1,094,357 81,990 \n \n538,311 86,607 \n \n1,632,668 168,597 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n31,607,198 $ 33,276,763 $ \n \n1,595,616 $ ====34='=87=2.,.,3=7=9 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 35 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nAugust 5, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Effingham County Board of Education as of and for the year ended June 30, 2003, which collectively comprise Effingham County Board ofEducation's basic financial statements and have issued our report thereon dated August 5, 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. \nCompliance \nAs part of obtaining reasonable assurance about whether Effingham 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. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Effingham 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 \n2003-34YB-30 \n \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 Effingham County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6511-03-01, FS-6511-03-02 and FS-6511-03-03. \n \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 none of the reportable conditions described above is a material weakness. \n \nThis report is intended solely for the information and use of the management, members of the Effingham 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. \n \nRespectfully submitted, \n~tu. \nRussell W. Hinton State Auditor \n \n-~ \n \nRWH:gp 2003-34YB-30 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nAugust 5, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Effingham 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, 2003. Effingham 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 ofEffingham County Board of Education's management. Our responsibility is to express an opinion on Effingham County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Effingham 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 Effingham County Board ofEducation's compliance with those requirements. \n2003SA-40 \n \n In our opinion, the Effingham 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. \nInternal Control Over Compliance \nThe management of Effingham 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 Effingham 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. \nWe noted a certain matter involving the internal control over compliance and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the Effingham County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-6511-03-01. \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 of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. \nThis report is intended solely for the information and use of the management, members of the Effingham 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. \nRespectfully submitted, \n~w.~ \nRussell W. Hinton State Auditor \nRWH:gp 2003SA-40 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2003 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6511-01-02 FS-6511-02-01 \n \nFurther Action Not Warranted Previously Reported Corrective Action Implemented \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Effingham County Board of Education's financial statements was unqualified. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Effingham County Board ofEducation disclosed financial statement reportable conditions related to the following control categories. \n \nExpenditures/Liabilities/Disbursements Budget Preparation/Execution \n \nRevenues/Receivables/Receipts Employee Compensation \n \nNone ofthe reportable conditions described above are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit of the Effingham County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Effingham County Board of Education disclosed a reportable condition in internal control over major programs for the following compliance requirement. \n \nCash Management \n \nThe reportable condition described above is not considered to be a material weakness. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Effingham County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Effingham County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \n \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 84.367 Elementary and Secondary Education Act - Title II- Improving Teacher Quality 84.338 Elementary and Secondary Education Act - Title II - Reading Excellence Local Reading Improvement \n \n- 1- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nI SUMMARY OF AUDITOR'S RESULTS \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n9. Low Risk Auditee The Effingham County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nREVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-6511-03-01 \nOur examination of the principal's accounts disclosed weaknesses in internal controls as discussed below: \nRevenues/Receivables/Receipts  Deposit preparation was not separated from the record keeping and cash custody functions.  Receipt documentation was not maintained for the principal account tested. \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping function.  Based on a sample of 50 items the following deficiencies were noted: 1. 47 vouchers lacked proper approval of purchase orders 2. 20 vouchers had \"Blank\" Vendor as payee 3. 2 vouchers had incorrect vendors 4. 7 voucher packages were dated after the checks were issued and mailed. \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 are segregated and that appropriate accounting controls are utilized. \nManagement's Response: \nIt is difficult to have adequate segregation of duties for accounting activities at the school level since we cannot afford to organize each location with a full accounting staff. We are hoping to correct the situation by moving the bookkeeping function for the principal accounts to the central office. \n-2- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEMPLOYEE COMPENSATION EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-6511-03-02 \nDuring the fiscal year ended June 30, 2003, the School District classified 43 employees as eligible for the Health Insurance Plan for Public School Employees (See OCGA Title 20, Chapter 2, Article 17, Part 6, Sub Part 2). However, these individuals may be eligible for membership in the Health Insurance Plan for Public School Teachers (See OCGA Title 20, Chapter 2, Article 17, Part 6, Sub Part 1). \nAccording to the Department of Community Health (DCH), School District employees who are to be included as members of the Health Insurance Plan for Public School Teachers (PST) are either: \n1. Employed in a professionally certificated position; employee holds a valid certification; employee is assigned to a position that requires a certification as a qualification; employee's compensation is determined, at least in part, based upon the certificate; and employee is a member of the Teachers Retirement System or other public school retirement system. \nOr: \n2. Employed in a professionally certificated capacity; employee holds a valid certification; employee is not assigned to a position that requires a certification as a qualification; employee's compensation is determined, at least in part, based upon the certificate; and employee is a member of the Teachers Retirement System or other public school retirement system. \nWith respect to membership in the Health Insurance Plan for Public School Employees (PSE) Georgia Laws OCGA 20-2-910 and 47-4-2 (20) provide that the definition of public school employee, for the purpose of membership in the Health Insurance Plan for Public School Employees, means classroom aides, paraprofessionals, noncertified administrative and clerical employees, school bus drivers, school lunchroom personnel, school maintenance personnel and school custodial personnel. Generally, in order to determine which School District employees are eligible for the PSE or for the PST insurance plans, a comparison should be made ofthe employee's position and DCH's criteria listed above. Ifthe employee meets either test, then the employee is eligible for the Health Insurance Plan for Public School Teachers. If the employee fails both of the above tests, the employee is eligible for the Health Insurance Plan for Public School Employees. \nFrom information provided by the School District, it is not clear that all of these 43 employees are eligible for membership in the PSE plan under DCH's criteria. \n-3- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEMPLOYEE COMPENSATION EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-6511-03-02 \nThe School District should establish policies and procedures to ensure that employer contributions for employee health insurance are paid in accordance with State Laws. In addition, the School District should contact the Georgia Department of Community Health to determine whether the above referenced employees should be in the PST plan; move misclassified employees to the PST plan and make payment to DCH for those employees who were misclassified. Ifall above referenced employees should have been in the PST plan the amount due to DCH would be $159,839. \nManagement's Response: \nWe strongly disagree with Finding #FS-6511-03-02 dealing with the eligibility classification of 43 employees for the Health Insurance Plan ofPublic School Employees. This classification was based on documentation from the Department of Community Health that clearly states certificated employees not in certificated positions should not be included in the certificated employee plan. According to employees ofthe Department of Community Health, the Department ofEducation, not the Department of Community Health, is responsible for defining a \"certificated position\". In an electronic correspondence, we confirmed with Melanie Stockwell, the previous Director of Legal Affairs for the Department of Education, that certificated positions are those positions in which the \"job description requires the holder to have a certificate\". Based on the clear instructions of the Department of Community Health publication, discussions with Community Health employees and legal advice from the Department ofEducation, we believe we properly classified the 43 employees in question. \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Reportable Condition Finding Control Number: FS-6511-03-03 \nAt June 30, 2003, the Capital Projects Fund ofthe Effingham County Board ofEducation reported a deficit fund balance in the amount of $5,563,488 which is considered to be an irregularity in accordance with O.C.G.A. 20-2-67. This condition occurred because management approved expenditures in excess of funds available in the Capital Projects Fund. The School District should establish appropriate policies and procedures designed to ensure that in future periods the School District does not report a deficit. \n-4- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Reportable Condition Finding Control Number: FS-6511-03-03 \nManagement's Response: \nThe Board ofEducation decided to proceed with the much-needed capital outlay projects before the receipts of all the Special Local Option Sales Tax revenue had been received. We realize that proceeding with the projects before the receipt of SPLOST caused us to temporarily borrow from the general fund and put the Capital Projects in a deficit position. This situation will be corrected as SPLOST receipts are received. \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nCASH MANAGEMENT Excessive Cash Balances U.S. Department of Education Through Georgia Department of Education Reportable Condition Finding Control Number: FA-6511-03-01 \nA review ofcash management procedures for the Elementary and Secondary Education Act - Title I Grants to Local Educational Agencies Program (CFDA 84.010) disclosed that cash draws utilizing DE form 0147 entitled \"Quarterly Report of Expenditures and Estimated Requirements for Grant Funds\" were made in advance of immediate cash needs, resulting in the accumulation ofexcessive cash balances. During fiscal year 2003, the program had an average cash balance of $54,838 with excessive ending monthly cash balances in seven months. The excessive cash balances are a result ofmanagement's failure to adequately forecast the cash needs ofthis program. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the School District. \nManagement's Response: \nWe will monitor the expenditures on a monthly basis and tailor the cash draws accordingly to correct the situation. \n-5 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2001-h2002","title":"Effingham County Board of Education, Springfield, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2002-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: Effingham County Board of Education, Springfield, 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 ... (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed February 3, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : 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-be2-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2001-h2002"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodical","periodicals","state government audits","official reports","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":";A . -, \n \n1e0o \n \n,l \n \n~\\ .,..,..;\\.,__,, _-.;, _;_______.;.__~- _,_______~_;____ \n \n=~~ \n \n~\"'-- \u003e \n \n... ' '' -ST' ATE._ OF- GEORGIA \n \n,_ \n \n,_DEPARTMENJ OF AU..DITS:AND.ACCOUNTS \n \n' ' \n \n. ' \n \n.. . , ' \n \n' . . ' \n \n: ' \n \n.,. \n \n- \n \n., \n \nl \\ \n \n' - \n \n. ' \n \n! . \n \n,:\"; \n \n.,.,. :- \n \n' EFFINGHAM CO.UNTYBOA' RD OF EDUCATION- \n \nSP~R INGFIELD, \n \nGEORGIA \n' \n \nREPORT ON AUDrr. \nOF. THE FINANCIAL STA' TEMENTS- \n \nFOR \n-,: \n \nT,,HE \n \nFISCAL \n \nYEA...R \n \nENDED \n \nJ. UNE \n \n30. \n \n2002 \n \n \n \n-. \n \n- \n \n! \n \n' ' \n \n' \n \n. ' \n \n. , \n \n,_,1 \nRussell W. Hinton State' Auditor _ \n \n'' ,.________'' _...;...;':...--,---'-------------------------.-./ ------------------1 \n \n, \n'. \n, . \n'. ' \n \n EFFINGHAM COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORl ON GENERAL-PURPOSE ~ll'\u003cANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPFNDI fURES OF Fl:.DERAL AWARDS \n \nEXHIBITS \n \nGENERAL-PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \nB \n \nCOMBINED STAl EM ENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \n4 \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n6 \n \nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \n7 \n \nADDITIONAL flNANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \nSPECIAL RLVENUE fUND \n \nE \n \nCOMBINING BALANCE SHEET \n \n20 \n \nF \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n22 \n \nCAPITAL PROJECTS FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \n24 \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN fUND BALANCES \n \n26 \n \nDEBT SERVICI:. FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \n28 \n \nJ \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n29 \n \nSCHEDULES \n \nI SCHEDULE OF EXPENDITURES OF fEDERAL AWARDS \n \n30 \n \n2 SCHEDULE OF STATE REVENUE \n \n32 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n33 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \n \nSECTION I \n \nFINANCIAL \n \nADDITIONAL FINANCIAL INFORMATION \n \nSCHEDULES \n \nALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALi fY BASIC CDUCATION PROGRAMS (QBE) \n \n4 \n \nBY PROGRAM \n \n34 \n \n5 \n \nBY SITE \n \n35 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASCD ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INl ERNAL CONTROL OVER COMPLIANCE IN ACCORDANCr WITI I 0MB CIRCULAR A-133 \n \nSECTION Ill \nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED cos rs \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHf:DULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n {[1,,1 I I \\V, HINl\u003cl'i \nSTATr AUDITOfl (~04) F'\u003e6- 1 1,-l \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 W.t..,hmgton Strt.:cl, ~ W Su1IC' 214 AtlJntJ. Ucorg1J 1(113 I-X4lKl \nJuly 3. 2003 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Member; of the State Board of Education \nand Superintendent and Members ot the Effingham County Board of l,:dueatlon \nINDCPENDl:N I AUDI I OR'S COMBINED REPOR I ON GCNERAL-PURPOSE FNANCIAL Sl ATEMfNTS AND SUPPLr:MENTARY INFOR.\\.1ATION SCHEDULF OF EXPENDITURES OF FEDCRAL AWARDS \nLad1e, and Gentlemen \nWe have audited the accompanying general-purpose financial statements of the Effingham County Board of Educatmn. as ol and for the year ended June 30, 2002. a, listed in the table of contents The,c general-purpose financial statement, arc the respons1b1ltty of the Ctlingham County Board ol Education's management Our respons1b1ltty 1s to express an opinmn on these general-purpose financial ,tatemcnts based on our audit \nWe conducted our audit in accordance with audmng standards generally accepted in the Umted States ofAmenca and the standards applicable to financial audit, contained in Government Auditing Standards. 1s,ued by the Comptroller General of the Umted States Those standard, require that wc plan and perlonn the audit to obtain rea,onable assurance about whether the financial statement, are free of matenal misstatement An audit includes examining. on a test bas,,. evidence ,upporting the amounts and disclosures in the finanual statement, An audit also includes a.scssing the a~counting pnnc1ples u,cd and ,1grnficant estimate, made by management, a, v.ell as evaluating the overall financial statement presentation We belte\\e that our audit pro,1dcs a reasonable ba,1s for our opinion \nAs described in the notes to the general-purpo,e financial statement,. the Board of l:ducatlon', financial statements havo: been prepared using certam accountmg practices and policies which. m our opinion. val) in some respects from generally accepted accounting pnnc1ples These vananco:, are descnbed as follows \n \n2002ARL-13 \n \n  The general-purpose financial statements of the Board of Education did not contam a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accountmg principles. \n School activity accounts mamtamed at the md1v1dual schools are not mcluded m the general-purpose financial statements To conform to generally accepted accountmg pnnc1ple~. the,e accounts should be mcluded in the general-purpose financial statements \n The Board of Educat10n did not recognize as expenditures. m the year ended June 30. 2002. a poruon 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 ,hare of these unrecorded salaries and related benefits were not recorded as revenue in the year under review Conversely, the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30, 2001. were improperly recorded m the year ended June 30. 2002 To conform to generally accepted accountmg principles, revenues should be recorded when avrulable and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed \nThe aggregate efTects on the general-purpose financial statements of these variance~ or om1ss1ons have not been dctcrmmed. but are believed to be matcnal \nIn our op1mon, except for the effects on the general-purpose financial statements of the matter, referred to m the precedmg paragraph, the general-purpose financial statements referred to above present fairly. in all matenal respects, the financial position of the Effingham County Board of Education a, of June 30, 2002, and the results of its operations for the year then ended, m conformity with accounting prmc1ples generally accepted m the Umted States of America \nIn accordance with Government Aud1tmg Standards, we have also issued our report dated July 3. 2003. on our considerat10n of the Effingham County Board of Education's mtemal control over financial reponmg and our tests of its compliance with certam provisions of laws, regulations. contracts and grants That report 1s an mtegral part of an audit performed in accordance with Government Aud1tmg Standards and should be read in conJunct1on with this report in considering the results of our audit \nOur audit was performed for the purpose of formmg an opm10n on the general-purpose financial statements of the Effingham County Board of Education taken as a whole The accompanymg combining statement~ (Exh1b1ts E through J) and the financial schedules (Schedules I through 5). which mcludes the Schedule of Expenditures of Federnl Awards as required by U S Office of Management and Budget Circular A-133, Audlls of States. Local Gmernment~. and Non-Profit Orgam=atwm, 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 aud1tmg \n2002ARL-13 \n \n procedure, applied m the audit ofthe general-purpose financial statements and m our opm10n. e'l.cept for the effects of the matters referred tom the third paragraph, ,uch mformatlon 1s fairly stated.mall matenal respects, m relallon to the general-purpose financial statements taken as a whole \nA copy ofth1s report has been filed as a permanent record m the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Secuon 506-24 \n \nRWl-lgp 2002ARL-13 \n \nHmton State Auditor \n \n EfflNGHAM COUNTY BOARD OF EDUCA rtON \n \n l;FFlN~tlaM CQU~TY aQBBO QF EDUCATIQN \nQQM!iflNEQ 6ei~CE St::H;EI \n8LL E!J~Q IYPES \u0026ii:.! ACCQUNI GBQUe \nJUNE 30 2002 \n \n~ \nCash and Cash EqUtvalents \nInvestments \nAccounts Receivable \nDue from Other Funds \nInventories Food Donated Commod.,.. Purchased Food \nAmount Avarlable rn Debt Serna, Fund \nAmount to be Provided 1n Future Years For Payment ot Bond Debt Capital Lease Agreements Intergovernmental Contract \nTotal Assets \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ 8,020 550 61 s \n \n930 634 03 $ 5 509 206 \u003c6 \n \n1 700 001 60 \n \n877 970 10 \n \n37 646 55 \n \n119026299 \n \n12 019 04 \n \n16 106 35 \n \n3\u003c 628 37 1138631 \n \ns 8 910 539 75 S 1 030 301 61 $ 8 399 471 05 \n \nLle.61LIIIES ~Q EUNQ EQUIIY \nUABIL\\JIES \nAccounts Payable Salanes Payable Short-Term Debt Expired Grant Balances Payable Contracts Payable Retain.ages Payable Due to Other Funds Deferred Revenue General Ob11gabon Bonds Payable Capital Lease Agreements Intergovernmental Contract Payable \nTotal uab11.... \nFUND EQUITY \nFund Balances Reserved \nFor Bus Replacement Funds For Debt SeMce \nFor GSBA Pro,ec! For Inventories \nFood Donated Commod11:Jes \nPurchased Food For Purpose of Bond Issue For SPLOSl' PrOjeci.S Unreserved Undes,gnated \nTotal Fund Equity \n \ns 1 158 553 64 s \n60 377 06 \n4 995 000 00 \n \n134 245 97 s \n518 8\u003c9 75 \n \n16 106 35 17 640 00 \n \n1173\u003c698 \n \n18\u003c,442 93 \n269 266 51 703 721 52 \n \ns 624767705 $ \n \n770 442 70 S 115743096 \n \ns \n \n286 500 00 \n \ns \n \n3\u003c 628 37 \n \n11 386 31 \n \n$ 4 287 930 60 \n \n2 376 362 70 \n$ 2 662 862 70 s \n \n213 8\u003c4 23 259 858 91 $ \n \n2 954 109 49 7 242 040 09 \n \nTotal L1abll1ties and Fund Equity \n \ns $ 8 910 539 75 \n \nThe notes to the general-purpose finanoal statements are \u00261n integral part of this statement \n \n1 030 301 61 $ \n \n-2 - \n \n8 399 471 05 \n \n DEBT \nSERVICE \nFUND \n \nACCOUNT GROUP GENERAL \nLONG-TERM \nDEBT \n \nTOTALS \n \n{Memorandum Onl:t} \n \nJUNE 30 2002 \n \nJUNE 30 2001 \n \n$ \n \n1 011 691 35 \n \ns 15 472 082 45 s 7 890 068 33 \n \n1,098 70 \n \n1 701 100 30 \n \n691 760 73 \n \n107,841 84 \n \n2 213 621 48 \n \n2 567 100 89 \n \n28 125 39 \n \n22 208 97 \n \ns \n \n1108 313 60 \n \n34 628 37 \n1138631 \n1 108 313 60 \n \n10 923 30 10 898 25 \n527 946 03 \n \n19 351 686 40 2 317 914 59 \n85 000 00 \n \n19 351 686 40 2 317 914 59 \n85 000 00 \n \n11,152 053 97 3 518 205 02 160 000 00 \n \ns 1120631 89 S \n \ns 22 862 914 59 $ 421323 858 89 \n \n2655116549 \n \ns \n \n299 25 \n \n$ \n \n1,4n 541 79 s \n \n2 064 568 44 \n \n579 226 81 \n \n426 137 51 \n \n4 995 000 00 \n \n4 995 000 00 \n \n9 227 59 \n \n269 266 51 \n \n316 354 43 \n \n703 721 52 \n \n155 871 89 \n \n12 019 04 \n \n28 125 39 \n \n22 208 97 \n \ns \n \n20 460 000 00 \n \n134 986 98 20 460 000 00 \n \n39 599 75 11680000 00 \n \n2 317 914 59 \n \n2 317 914 59 \n \n3,518 205 02 \n \n85 000 00 \n \n85 000 00 \n \n160 000 00 \n \ns \n \n12 318 29 S \n \n22 862 914 59 s 31 050 783 59 s 23,387 173 60 \n \n$ 1 108 313 60 \n0 00 \ns 1 108 313 60 \n \n$ \n \n$ \n \n1,108 313 60 \n \n286 500 00 \n \n69,928 59 527,946 03 618 000 00 \n \n34 628 37 1138631 4 287 930 60 \n5 544 316 42 $ 11273075 30 $ \n \n10 923 30 10 898 25 \n1 330 685 50 \n595 610 22 \n3 163 991 89 \n \n$ \n \n1120631 89 S \n \ns 22 862 914 59 S -12,323,858 89 \n \n26 551 165 49 \n \n-3 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \nCOMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES \nYEAR ENDED JUNE 30 2002 \n \nREVENUES \nState Funds Federal Funds \nTaxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of lnstrucbonal Services Educallonel Media Servtees General Admimstrabon \nSchool Adm1mstrat10n Business Adm1mstra1.Jon Maintenance and Operatton of Plant Student Transportation Servtees Food Services Operation Capital Outlay Debt Service Pnnapal Interest Paying Agent Fees \nTotal EJ(pendrtures \nExcess of Revenues over (under) Expenditures \nOT!::!ER FINANCING SOURCES (USES} \nAccrued Interest on Bonds Sold Premium on Bonds Sold Proceeds from General Obhgahon Bonds \nPar Value Capital Lesses Operabng Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other F1nancmg Uses \nFUND BALANCE JULY 1 \nFoOO Inventory - Net Change m Penod Donated Commodlbes Purchased Food \n \nGENERAL FUND \n \nSPECIAL REVENUE \nFUND \n \n$ 37,665 257 36 $ 99 335 40 \n11 608 826 27 370 181 91 \n$ 49 743 600 94 $ \n \n1,307 348 60 4,144,64413 \n1 616 301 73 \n7 068 294 46 \n \ns 33,087,674 62 $ \n1,696 464 45 1,152,203 92 1 626,747 BO \n621,13779 2,771,342 67 \n742,382 36 3 677,256 90 2,810,420 42 \n12,460 97 \n189,628 94 24,19712 \n \n3,225 652 42 40341467 64 335 60 166 429 99 \n28 445 34 311653110 \n \ns $ 48 213 917 98 \n$ 1,529,682 98 $ \n \n7.004 809 32 63 485 14 \n \n$ \n \ns \n \n-1594030 \n \n$ \n \n-1594030 $ \n \n$ \n \ns 1,513,74268 \n \n1,14912002 \n \n1594030 \n1594030 \n79,425 44 156 240 34 \n23 705 07 488 06 \n \nFUND BALANCE JUNE 30 \n \ns 2 662 862 70 $ _ _,.25::,9\"'8\"'5_8.;;:9,;.,1 \n \nThe notes to the general.purpose financial statements are an integral part of this statement -4 - \n \n EXHIBIT ''B\" \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTALS \n \n(Memorandum Only) \n \nYEAR ENDED \n \nJUNE 30, 2002 \n \nJUNE 30 2001 \n \n$ 3,281,025 21 \n \n$ 42,253,631 17 $ 36197,331 05 \n \ns 3,924172 00 \n \n2,350,441 82 \n \n4 243 979 53 17,883,440 09 \n \n3 534,296 06 16 328,19811 \n \n98 799 78 \n \n34 614 03 \n \n211989745 \n \n2,243 850 45 \n \n$ \n \n7 303 996 99 $ \n \n2,385,055 85 $ 66,500,948 24 $ 58.303 675 67 \n \n$ \n \n36 524 00 \n \n9,991 561 00 1,085 661 49 $ \n182,321 23 \n$ 11 296 067 72 $ $ -3 992.070 73 $ \n \ns $ 36,313,327 04 \n \n33 040,596 10 \n \n2,101,87912 1,216,539 72 1,626 747 80 \n787,567 78 2,771 342 67 \n778,906 36 3,677,256 90 2,638 865 76 3,116 53110 10,004,021 97 \n \n1846,66698 1060,62646 1556,40403 \n807,882 08 2 628,689 37 \n709,161 30 3 282,329 96 2,429,564 46 2,832,271 87 4 309,851 66 \n \n1,220,000 00 785 408 75 3 767 03 \ns 2 009 175 78 \ns 375 880 07 \n \n2 495 290 43 991,927 10 3 767 03 \n68.523 970 7B $ \n-2 023 022 54 $ \n \n2,117,215 72 1,010,180 79 \n2 640 14 \n57,634,080 92 \n669 594 75 \n \n$ \n \n$ \n \n98,30605 \n \n10 000, 000 00 \n \n-194 880 73 \ns 9,903 425 32 $ \n \n$ \n \n5911,354 59 $ \n \n1,330 685 50 \n \n9,606 77 $ \n \n9,606 77 98,306 05 \n \n194 880 73 \ns 204 487 50 \n \n10,000,000 00 \ns \n210,821 03 -210 821 03 \n10,107,912 82 $ \n \n51700000 97 005 36 -97 005 36 \n517 000 00 \n \n580 367 57 $ 527,946 03 \n \n8,084,890 28 $ 3,163,991 89 \n \n1 186,594 75 2 003,797 83 \n \n23,705 07 488 06 \n \n-24 875 99 -1 524 70 \n \n$ \n \n7.242,04009 $ \n \n110831360 $ 11.27307530 $ \n \n3 163 991 89 \n \n-5 - \n \n EFFINGHAM COUNIY BOARD OE EPUCAIION \nCOMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES B1/DGET AND ACTUAL - (NON.GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 2002 \n \nEXHIBIT c;- \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent lnstrucbon Support SeMces Pupil Services \nlrl\"lpro'Jement of I ~ Ser-nces Educaltonal Mech.a Services \nGeneral Adm1mstrabon School Adm1n1straboo Bus1ness Adm1n1stration Mamtenance and Operation of Plant \nStudent Transportaton SeMces \nFood Services Operation Capital Outlay Debt Service \nTotal Expendotures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES {USES) \nOther Sources Other Uses \nTotal Other F1nanong Sources (Uses) \nExcess of Revenues and Other F1nsnong Sources over (under) Expenditures and Otner Ftnancing Uses \nFUND BALANCE JULY 1 2001 \nFood Inventory - Net Change in Penod Donated Commod11:Jes Ptm:hased Food \n \nGENERAL FUND \n \nBUDGET \n \nACTUAL \n \ns 36 435 501 00 5 37 665 257 36 \n99 335 40 11,11350000 11 608 826 27 \n370 181 91 \nS 4754900100 S 49 743 600 94 \n \ns 32 330 996 00 $ 33,087 674 62 \n \n1 194,318 00 1685S..OO 1665472 00 \n545 614 00 3 011 439 00 \n457 559 00 3 601 881 00 2 773 594 00 \n \n1698464 45 1152 20392 1 626 747 80 \n621 137 79 2 771 342 67 \n742 382 36 3 677 256 90 2 610 420 42 \n \n282 584 00 \n \n12 460 97 213,826 06 \n \n$ 47,549 001 00 $ 48,213,~17 96 \n \n$ \n \n000 $ 1529682 98 \n \n$ \n \n15 940 30 \n \ns -15 940 30 \n \n$ \n \ns 0 00 \n \n1 513 742 68 \n \n1,325 445 42 \n \n1,14912002 \n \nFUND BALANCE JUNE 30 2002 \n \nS 1 325 445 42 S 2 662 862 70 \n \nSPECIAL REVENUE FUND \n \nBUDGET \n \nACTUAL \n \ns s 2 575 606 00 1,307 348 60 \n3 751,495 00 4,144 644 13 \n250,000 00 1 616 301 73 \ns 6 577 301 00 $ 7,068,294 46 \n \ns $ 3 128 607 00 3,225 652 42 \n \n382 500 00 59,594 00 \n \n403 414 67 64 335 BO \n \n149 360 00 \n \n166,429 99 \n \n7 240 00 2,850 000 00 \n \n28 445 34 3,116 53110 \n \ns $ 6 577 301 00 7,004,809 32 \n \ns \n \ns 0 00 \n \n63 485 14 \n \ns 1594030 \n \n$ 1594030 \n \ns \n \ns 0 00 \n \n79 425 44 \n \n244 843 38 \n \n156 240 34 \n \n23 705 07 488 06 \n \nS 244 843 38 S 2591858 91 \n \nThe notes to the general-purpose fiNillooa\\ statements ere an integral part of th1!! statement -6 - \n \n HFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTFS ro 1 HE GENERAL-PURPOSE FINANCIAL STA1 IoMENTS \n \nJUNE 30, 2002 \n \nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Effingham County Board of Education (School D1stnct) 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 Supenntendent appointed by the Board The School D1stnct 1s organized as a separate legal entity and ha~ the power to levy taxes and issue bonds Its budget 1s not subject to approval by any other entity Accordingly, the School D1stnct 1s a pnmary government and consists of all the organizations that compose its legal entity \nFUND ACCOUNTING \nThe School Distnct uses fund~ and an account group to report on its financial pos1t1on and the results of its operations Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transact10ns related to certain governmental functions or activities. A fund 1s a separate accounting entity with a self-balancing set of accounts An account group 1s a financial reporting device designed to provide accountab1hty for certain assets and liab1lit1es that are not recorded in the funds because they do not directly affect expendable available financial resources \nGeneral F1xcd Assets are recorded as expenditures in the vanous funds at the time of purchase A General Fixed A,sets Account Group 1s not presently maintaincd by the School Distnct 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 \nAlthough \"school activity accounts\" are maintained at the ind1v1dual schools, neither the assets. liab1ht1es 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 account, should be recorded in the general-purpose financial statements \nThe general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School D1~tr1ct. in compliance with generally accepted accounting principles applicable to governmental umts, unless otherwise disclosed in these notes Funds and the account group presented in this report are as follows \nGOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's educational activities Governmental Fund Types include \nGENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those reqmred to be accounted for in another fund These transactions relate to resource, obtained and used for services provided by a board of education \n \n- 7- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNF 30, 2002 \n \nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nSPECIAL REVENUE FUND - the fund used to account for the proceed~ of specific revenue sources (other than for major capital projects) that are legally restncted to expenditure~ for specified purposes These funds are received pnmarily from the Georgia Department of Educatmn and from the Federal government to accomphsh specific educatmnal obJectlves \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqu1s1tton or construction of maJor capital fac1littes \nDEBT SERVICE FUND- the fund used to account for the accumulatton ofresources for, and the payment of. general long-term principal, interest and paying agent fees \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obhgatlon debt outstanding. capital lease obhgatlons and intergovernmental contracts \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment apphed 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 liabilit1es generally arc included on the balance sheet Operating statement~ of these funds present increases (1 e. revenue, and other financing ;ources) and decreases (1e , expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources \nLiabiliues which are expected to be financed from available spendable resources are reported a~ hab1httes in the governmental funds Other hab1ht1es, which are not expected to be financed from available spendable resources. arc reported in the General Long-Term Debt Account Group \nGovernmental funds are accounted for using the modified accrual basis of accounting under which \nRevenues are recognized when susceptible to accrual (1.c., when they become both measurable and available) \"Measurable\" means the amount of the transaction can be determined and \"available\" means eollecttble within the current penod or soon enough thereafter to be used to pay liab1ht1es of the current period The School Di,tnct 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 transactmns, in which the School Distnct gives (or receives) value without directly receiving (or giving) equal value in exchange. include property taxes, local option sales taxes. intergovernmental grants and donatmns Revenue for property taxes 1s recognized en the fiscal year for which the taxes are leVIed Revenue from sales taxes 1s recognized in the fiscal year the resources are received or ,usceptlble to accrual Revenue from grants and donatmns is recognized in the fiscal year m which all ehgib1hty reqmremcnts have been satisfied \n-8- \n \n ErFINGHAM COUNTY BOARD OF EDUCATION \n \nEX! IIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nExpenditures arc generally recognized when the related fund liability 1s incurred \nA departure from the above definitions 1s the accounting treatment afforded the final two payment~ on General Fund teachers' and bus dnvers' contracts. and the resources available from the Georgia Department of Educat10n for the State's share of these contracts Dunng fi~cal year 2002. a substanual number of personnel of the School D1stnct were employed for a one hundred and nmety day penod begmning in August 2001 and ending in early June 2002 Personnel contracts for this employment penod specify that compensation be paid in twelve equal monthly payments beginmng in September 200 I and ending in August 2002 State grants to fund the State~ share of these contracts were disbursed from the Georgia Department of Educat10n to the School D1stnct m the same twelve months As of June 30, 2002. compcnsat10n 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 expenditure~ by the School D1stnct subsequent to June 30, 2002 Also. the State's port10n of the compensat10n paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30. 2002 Conversely, the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30. 2001. were recorded in the year ended June 30. 2002 Generally accepted accounting pnnciplcs require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are rece1 ved or d1~burscd \nBUDGET \nThe Effingham County Board of Education's budget 1s a complete financial plan for the School D1stnct's fiscal year and is based upon estimates of expenditures together with probable fundmg sources. There 1s no statutory prohibition regarding overexpend1ture of the budget at any level The budget for all governmental funds 1s prepared by fund, funct10n and obJect The legal level of budget control was estabhshed by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accounting pnnc1ples \nThe budget process begins when the School D1stnct's admin1stra11on prepares a tentative budget for the Board's approval After approval ofth1s tentative budget by the Board, such budget 1s advertised at least once ma newspaper of general circulat10n in the locality At the next regular meeting of the Board after advertisement. the Board receive~ comments on the tentative budget, makes rev1s10ns as necessary and adopts a final ~hool budget This final budget 1s then submitted, in accordance with prov1s1ons of the Quahty Basic bducat10n Act, OCGA Section 20-2-167(c). to the Georgia Department of Educat10n. The Board may increase or decrease the budget at any time dunng the year All unexpended budget authonty lapses at fiscal year-end \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term mvestrncnt; with onginal matunt1es of three months or less from the date of acqu1s1110n in authonzed financial \n-9- \n \n ErFINGHAM COUNTY BOARD or EDUCATION \n \nEXHIBIT \"D\" \n \nNO fES TO THE GENFRAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote I SUMMARY Or SIGNIFICANT ACCOUNTING POLICIES \ninstttuuon~ Georgia Law~ OCGA 45-8-14 authonze the School D1stnct to deposit its funds in one or more solvent banks or insured Federal savings and loan a~\u003c;0e1at10ns \nINVESTMENTS \nCOMPOSITION OF JNVESTMEN1 S Investments made by the School D1stnct in nonparticipating interest-earning contracts (such as ceruficates ofdeposit) and repurchase agreements are reported at cost Partic1patmg mterest-earnmg contracts and money marl..et investments with a matunty at purchase of one year or less arc reported at amortized cost. Both part1cipatmg interest-earnmg contracts and money market investments with a matunty at purchase greater than one year are reported at fau value The Official Code ofGeorgia Annotated Sect10n 36-83-4 authonzes the School D1stnct to invest its funds and m selecting among options for investment or among m~titut1onal bids for deposits, the highest rate of return shall be the obJecUve, given equivalent cond1t1ons of safety and hqmdity. Funds may be invested in the following \n(I) Obligations issued by the State of Georgia or by other states, \n(2) Obhgahons issued by the Umted States government, \n(3) Obhgat10ns fully insured or guaranteed by the Umted States government or a Umted States government agency, \n(4) Obhgat10ns of any corporatton of the Umted States government, \n(5) Pnme banker's acceptances, \n(6) The Local Government Investment Pool adm1mstered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obhgauons of other pohllcal subd1v1sions of the State of Georgia \nRECEIVABLES \nReceivable~ consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from mformation available Receivables are recorded when either the asset or revenue recogmt1on cntena has been met Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an a1!owance for uncollecuble receivables \n \n- IO - \n \n ErFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \n\"!OTES TO THE GENFRAL-PURPOSE FINANCIAL STATEMl:.NTS \n \nJUNE 30, 2002 \n \nNote J SUMMARY OF SJGNIFJCANT ACCOUNTING POLICIES \n \nPROPERTY TAXES \n \nThe Effingham County Board ofComm1ss1oners fixed the property tax levy for the 2001 tax digest year (calendar year) on August 21. 2001 (levy date) Taxes were due on November 15. 2001 (hen date) Taxe~ collected withm 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 Effingham County Tax Comm1ss10ner b1lb and collects the property taxes for the School Distnct. withholds 2.5% oftaxe, collected as a fee for tax collecllon and remlls the balance oftaxes collected to the School D1stnct Property tax revenue~ dunng the fi~al year ended June 30. 2002 for maintenance and operallons amounted to $11,118.141 45 and for ,chool bonds amounted to $2,267.177 02 \n \nTax millage rate, levied for the 2001 tax year (calendar year) for the Effingham County Board of Educat10n were a, follows (a mill equal~ $1 per thousand dollars of a,sessed value) \n \nSchool Operallons School Bonds \n \n13 300 mills 2 835 mill~ \n1_6_,J :15_ mII] S \n \nSALES TA..XES \n \nSpecial Purpose Local Opl!on Sales Tax revenue dunng the year amounted to $3.924.172.00 and 1s to be used for capital outlay for educat10nal purposes or debt service This sales tax was authonzed by local referendum and the ,ale~ ta, must be re-authorized at least every five years \n \nINVENTORIES \n \nFOOD INV!: NTORIES Inventories of donated food commodllies used in the preparallon of meals are reported on the Combined Balance Sheet at their Federally assigned value Purchased foods inventones arc reported on the Combined Balance Sheet at co,t (fir,t-in. fir,t-out) Donated food commod1t1e, arc recorded as revenue~ and cxpend11ures at the time commodity item, arc received Purchased foods inventoncs are recorded as expend!lures at the llme of purchase fhe inventones reported on the balance sheet for donated food commod111es and for purchased foods are equally offset by reservation, of fund balance which indicate, that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets \n \nGENERAL OBLIGATION BONDS \n \nThe School D1stnct 1s,ues general obhgat1on bonds to provide funds for the acqm,1110n and con,trm.,llon ofmaJor capital facihlles Bond premiums and discount,. a, well as issuance co~ts. are recogn17cd in the financial statement, dunng the year bonds arc issued Generd! obhgat1on bonds arc direct obhgat10ns and pledge the full faith and credit ofthe government The outstanding amount of these bonds 1s recorded in the General Long-1 erm Debt Account Group \n \n- 11 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THf-, GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nINTERFUND TRANSACTIONS \nThe School District has the following types of interfund transactions: \nReimbursements of expenditures 1rut1ally 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 1s reimbursed \nOperating transfers arc recorded for all interfund transactions other than reimbursements \nMEMORANDUM ONLY - TOTAL COLUMNS \nI otal 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 pos1t1on or results of operations in conformity with generally accepted accounting pnnc1plcs Neither are such data comparable to a consolidatlon Interfund eliminations have not been made in the aggrcgat10n of this data \nNote 2 DEPOSITS AND INVESTMENTS \nCOi.LATERALIZATION 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 secunties pledged shall be equal to not less than 110 percent of the 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 of the market value ofthe secunues pledged to secure a pool of public funds shall he not less than 110 percent of the daily pool balance OCGA Section 45-8-11 (b) provides an officer holding public funds may. in his d1scret1on. waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of any one of or any combination of the following \n( 1) Surety bond signed by a surety company duly qualified and authonzed to transact business wnhin the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporallon, \n(3) Bonds, bills, notes, cerllficates of indebtedness or other direct obligatlons of the Umted States or of the State of Georgia. \n \n- I2 - \n \n EFFINGI 1AM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 2 DEPOSITS AND INVESTMENTS \n \n(4 l Bonds, bills, notes. certificates of mdebtednes~ or other obligation, of the counties or mumc1pahues of the State of Georgia. \n \n(5) Bonds of any public authonty created by the laws of the State of Georgia, providing that the statute that created the authonty authorized the use of the bonds for this purpose, \n \n(6) lndustnal revenue bonds and bonds of development authonties created by the laws of the State of Georgia. and \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obhgatlons of a subs1d1ary corporation of the Umted States government. which are fully guaranteed by the Umted States government both~ to pnnc1pal 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 Nat10nal Mortgage Associat10n. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $17.876.730 77. The amounts of the total bank balances are classified into three categories of credit nsk \n \nCategory I - Cash that 1s insured (e g. Federal depository insurance) or collaterahzed with securities held by the School D1stnct or by the School D1stnct's agent in the School D1stnct's name \nCategory 2 - Cash collateralized with secunlles held by the pledging financial ms11tut1on's trust department or agent in the School D1stnct's name \nCategory 3 - Uncollaterahzed deposits (This includes any bank balance that 1s collateral1zed with securities held by the pledging financial institution, or by its trust department or agent but not in the School D1stnct', name ) \n \nThe School D1stnct's deposits are classified by risk category at June 30. 2002, as follows \n \nRisi. Category \n \nBank Balance \n \n$ 5.423,856.50 \n \n2 \n \n12,452.874.27 \n \n3 \n \n000 \n \nIota! \n \n$ l7,876 730,77 \n \nCATEGORIZA I ION OF INVCSTMENTS Investment, arc classified as to nsl.. by the three categones dcscnbed below \n \n- 13 - \n \n EFFINGHAM COUNTY BOARD or EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FfNANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 2 DEPOSITS AND INVESTMENTS \n \nCategory I - Insured or registered, or secunttes held by the School Dbtnct or the School District's agent m the School D1stnct's name \nCategory 2 - Umnsurcd or unregistered. With secunttcs held by the countcrparty's trust department or agent m the School Dtstnct's name. \nCategory 3 - Uninsured or unregistered. with secunttes held by the counterparty, or by its trust department or agent hut not m the School D1stnct's name \n \nAt June 30, 2002. the carrymg value of the School D1stnct's total mvestments was $1.701.100 30 which 1, matenally the same as fair value. The mvestments are classified as to nsk categones as follow~. \n \nJypc QI ln\\lestmcnt \n \nlnve,tmcnt Ponfollo \n \nAccount \n \ns \n \nL\u003cx.,il (ul\\emmi:nt Investment Pools \n \nTotal lmcstmenL., \n \nRisi,,. C;itcgonc,;; 2 \n000 $ 4 942 II $ \n \nLarrymg \n \nI air \n \n3 \n \nAmount \n \nValue \n \nqoo s 4 942 II s 5.369 11 \n \n1,696,158 19 I 696 158 19 \ns I WJ, l.QO 3ll s t,ZQl.~,z JO \n \nThe carrymg amounts shown above mcludes amounts mamtamed man mvestment pool by the State of Georgia. Office ofl reasury and Fiscal Services m which the School Dtstnct owns no tdenttfiable secunue, The mvestment policy of the State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qutd1ty Portfolio) does not provide for mvestmcnt m denvattves or s1m1lar mvestments A descnptton of the Pnmary L1qu1d1ty Portfolio ts as follows \n \nThe Pnmary L1qu1d1ty Portfolio consists of Georgia Fund I, which ts a combmauon local and state government mvcstmcnt pool. and Fund 6 Georgia Fund I 1s a stable net asset value investment pool which follows Standard and Poor'~ critena for AAAm rated money market funds The pool is not registered with the Secunttes and Exchange Comm1ss10n as an mvestment company but does operate Georgia Fund I ma manner consistent With Rule 2a-7 of the Inve~tment Company Act of 1940 and 1s considered to be a 2a-7 like pool The pool's pnmary objective~ are ,afety of capital. mvestment mcome. liqutdtty and d1vers1fication while mamtainmg principal ($1 00 per share value). Net asset value 1~ calculated weekly lo ensure stability The pool dtstnbutes eammgs (net of management fee~) on a monthly basts and values participant's ,hare~ sold and redeemed ba,ed on$ I 00 per share Pooled cash and ca~h equivalents and investments are reported at cost which approximates fa,r value The pool does not 1,sue any legally bmdmg guarantees to support the value of the shares Part1c1patton m the pool is voluntary and deposits consist of funds from local governments. operatmg and trust fund~ of Georgia's state agencies. colleges and un1vers1ttes. and current operating funds ot the State of Georgia's General Fund \n \n- 14 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIRIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2002 \n \nNote 2 DEPOSITS AND INVESTMENTS \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments ~uch a~ U S Treasury obligation~, secunlles issued or guaranteed as to pnnc1pal and interest by the U S Government or any of ,ts agencies or instrumentahtles, banker's acceptances and repurchase agreements The weighted average maturity of Georgia Fund I may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2002, was 0.12 years The average inve,tment durauon for Fund 6 on June 30, 2002. was 0 75 years \n \nNote 3 NON-MONETARY fRANSACTIONS \n \nThe School District receives food commod111es from the Umted States Department of Agriculture (USDA) for school breakfast and lunch programs These commodities are recorded at their Federally assigned value Sec Note 1 - Inventories \n \nNote 4 INTERFUND ASSETS AND LIABILI I IES \n \nDue to and due from other funds are recorded for interfund receivables and payables which anse from interfund transactions The following analysis summarizes the status of all interfund transactwns of the School District at June 30. 2002 \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund Special Revenue Fund \nSchool Food Service Fund Debt Service Fund \n \n$ 12.019 04 $ 16,106 35 \n \n16,106.35 \n \n12.019 04 \n \n$ 28. l 2i.3,2 $ 28,125.39 \n \nNote 5 RISK MANAGEMI-.NT \n \nThe School D1smct 1s expo,ed to vanous risks of loss related to torts, theft of, damage to, and dcstruct10n of assets, errors or om1ss10ns. Job related illness or inJunes to employees; acts of God and unemployment compensation \n \nThe School District has obtained commercial insurance for nsk ofloss associated with torts. assets. errors or om1ss1ons,Job related illness or inJuries to employees and acts of God. The School D1stnct has neither s1gmficantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School D1stnct's in~urance coverage in any of the past three years \n \nThe School D1stnct i, self-in~ured with regard to unemployment compensat10n claims The School Oi,tnct accounts for claims Within the General Fund with expenditure and hab1hty being reported when 11 ,~ probable that a loss has occurred, and the amount of that loss can be reasonably estimated \n \n- 15 - \n \n EI-FINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STA fEMENTS \n \nJUNE 30, 2002 \n \nNote 5 RISK MANAGEMENT \n \nChanges m the unemployment compensation claims hab1hty during the last two fiscal years are as follows \n \n2001 2002 \n \nBegmnmg of Year Liab1hty \n \nClaims and Changes m Esllmates \n \n$ \n \n5 305 34 $ \n \ns 5 654 00 \n \n$ \n \n2 261 00 $ \n \n0 00 $ \n \nClaims Paid \n \nEnd of Year L1ab1htv \n \n8 698 34 $ 2 261 00 $ \n \n2,:?61 00 0 00 \n \nThe School District has purchased surety bonds to provide add1tmnal msurance coverage as follows \n \nPos1tmn Covered \n \nAmount \n \nSuperintendent Each Employee \n \n$ 100.000 00 $ 50,000 00 \n \nNote 6 GENERAL LONG-TERM DEBT \n \nCAPITAL LEASES The Effingham County Board of Education entered mto an agreement on October I. 1994, with the Georgia School Boards Association (GSBA), Incorporated for the construction and subsequent lease of various school facihlies Under the terms of the lease agreement. the Board will make semiannual payments through January 15, 2005 This lease mcludes an annual renewal clause \n \nThe Effingham County Board ofEducation has entered mto lease agreements for buses. eqmpment and an mtergovernmental contract with the City of Spnngfield to finance a sanitary sewer system to \nserve the schoob These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future mm1mum lease payments as of the \ndate of mceptmn. \n \nGENERAL OBLJGATION DEBT OUTSTANDING General Obhgatmn Bonds currently outstandmg are as follows \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Senes 1994 General Government - Senes 200 IA General Government - QZAB Sencs 2001B \n \n4 20%- 6 25% 3.25%-4 00% 000% \n \n$ I 0.460,000 00 5,800,000 00 4,200,000.00 \n$20.460.000,00 \n \n- 16 - \n \n EFFINGHAM COUNTY BOA RO OF EDUCATION \n \nEXIIIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIALS rATEMENTS \n \nJUNE 30, 2002 \n \nNote 6 GENERAL LONG-TERM DEBT \n \nThe changes in General Long-Tenn Debt dunng the fiscal year ended June 30. 2002, were as follows \n \nU,11,mcc Jul), I 2001 \nAdd1t1ons GO Bonds \nL\u003eu:fuCIIOn\\ \nDebt Retired \nBalance June 30 2002 \n \nLap1t::il \nI.cases \n$3,518 205 02 \n \nlntergO\\c:mmental \n \nC..cncntl \n \nContracl \n \nObl1gat1on \n \nTrust Ct..n1ficatc\" \n \nBonds \n \nlotal \n \ns 160,000 00 SI 1,680 000 00 SI 5,358 205 02 \n \n10 000 000 00 I0,000 000 00 \n \nI 200 290 43 \nS2.J 17,2),4,.59 \n \n75,000 IKI \n \nI 220 000,00 \n \n2,495,290.43 \n \nS~Q\\_)Q.l)Q S20,460,00:P~ $22.862,9 I4.52 \n \nAt June 30. 2002, payments due by fiscal year which includes pnnc1pal and interest for these items are as follows \n \nl-1~al Year fnded June 30 \n2003 2004 2005 2006 2007 2008 - 2012 2013-2015 \nrota) Pnnc1p.il and Interest \nOcdul.l Imputed \nInterest \nNt..1. Present Value orruture \u003ev1m1mum \nI ea...,e Pa)-ment,;; \nNote 7 SHORT-TERM DEBT \n \nCapnal Leass, \ns 940 560 80 \n822 793 76 820 531 26 \n \nIntergovernmental \nContract \nTru~1 Ccrt1ficatc:s \n \nGeneral Obligat1on \nBond, \n \ns 91,885 00 S 2,096,857 50 \nl 922,145 00 \n3,908 862 50 3,898 668 75 \nI 901,337 50 3,726,875 00 \n4,200,000 00 \n \nTotal llcht \nS 3 129 303 30 4 744 938 76 4 729191 76 3 898 008 75 I 901 317 50 3,726,875 OU 4,200 000 QO \n \ns S2 583 885 82 \n \n9188500 S2.1J!~4.746 25 $26 ll0..517 Q1 \n \n2~5 271.~l \n \n6 885 00 \n \nS2,J IL21:P9 S 85,QOll Wl \n \nThe School D1~tnct issues tax ant1e1pallon notes and obtains temporary loans in advance ofproperty tax collection,. depositing the proceeds m its General rund This short-term debt 1s to provide ca~h for operatwns until property tax collcct10ns arc received by the School D1stnct Article IX, Section V. Paragraph V of the Conslltut10n ofthe State ofGeorgia hm1ts the aggregate amount ofshort-lenn debt to 75 percent of the total gross mcome from taxe, collected in the preceding year and requires all ,hort-tenn debt to be repaid no later than December 31 of the calendar year in which the debt was incurred \n \n- I7 - \n \n EH ING HAM COUNTY ROA RD OF FDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE~ INANCIAL STATEME'sl \u003c; \n \nJUNE 30, 2002 \n \nNote 7 SHORT-TERM DEBT \n \nTax Ant1c1pa11on Notes \n \nBegmnmg Balanc~ \n \nAdd1t1ons \n \nPayments \n \nEndmg Balance \n \nNote 8 ON-BEHALF PAYMENTS \n \n1 he School D1~tnct has recognized revenues and expenditures in the amount of $609.703 59 lor \nhealth in~urance and retirement contnbut10ns paid on the School D1stnct's bc.:halfby the following State Agencies \n \nGeorgia IJepartment of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Cert1fied Personnel In the amount of $523,952 59 \n \nOffice of rreasury and Fiscal Services Paid to the Pubhc School Employees Retirement System For Pubhc School Employees Reurement (PSERS) Employer's Cost In the amount of $85,751 00 \n \nNote 9 SIGNIFICANT COMMITMEN rs \n \nThe following 1s an analysis of s1gmficant outstanding construct10n or renovation contracts executed by the School District as of June 30, 2002, together with funding available \n \nUnearned Executed Contracts \n \nFunding ,\\va1lable From State \n \n03G/02S-65 l-Ol 8 and SA 01S-651-015 03G/02S-65 l-019 and 02/01 S-651-013 \n \n$ 7,480,940 47 $2,586,160 71 1,243,831 48 1,259,015 00 \n \n$ B,724.771 25 $ 3.845,.175,.ll \nI he amounts described in th,~ note are not reflected in the general-purpose financial statemi:nl~ \n \nNote IO CONTfNGENT LIABILI f'IES \n \nAmounts received or receivable pnnc1pally 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 D1stnct believes that such d1sallowances. 1f any, will be 1mmatenal to its overall financial pos1110n \n \n- 18 - \n \n EFFINGHAM COUNTY BOARD or EDUCATION \n \nEXHIBI r \"D\" \n \nNOl ES 10 THE GENl:.RAL-PURPOSE FINANCIAL STATFMENl S \n \nJUNE 30. 2002 \n \nNote 10. CONTINGENT LIABILITIES \n \nThe School D1stnct is a defendant in vanous legal proceedings pertainmg to matters incidental to the performance of routine School D1stnct operallons The ulllmate d1spos1llon ofthese proceedings 1s not presently determinable, but 1s not believed to be material to the general-purpose financial statements \n \nNote 11 RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substanually all teachers. admin1strat1ve and clencal personnel employed by local school district~ are covered by the Teachers Rellrement System of Georgia ('fRS), which 1s a cost-shanng mulllple employer defined benefit pension plan TRS provide~ service reurement, d1sabihty rellrement 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 \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees of the School D1stnct who are covered by TRS are reqmred by State statute to contribute 5% ofthe1r gros~ earnings to TRS The School D1stnct makes monthly employer contnbullons to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary The reqmred employer contnbut1on rate 1s 9 24% and employer contnbut10ns for the current !heal year and the preceding two fiscal years are as follows \n \nFiscal Year \n \nPercentage Contnbuted \n \nReqmred Contnbuuon \n \n2002 2001 2000 \n \n100% 100% 100% \n \n$2,981,411.76 $ 3,316,988.35 $ 3,142,296 36 \n \n- 19 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \nCOMBINING BALANCE SHEET SPECIAL REVENUE FUND \nJUNE 30, 2002 \n \nASSETS \nCash and Cash Equrvalents \nAccounts Recervable \nDue from Other Funds \nlnventones Food Donated Commod11tes Purchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \ns \n \n401,007 53 $ \n \n112,049 03 \n \n16,10635 \n \n34,628 37 1138631 \n \nTotal Assets \n \n$ \n \n463,12s 56 s_~_1_12_04\"-0_0_3 \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nAccounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue \nTotal L1ab1hbes \nFUND EQUITY \nFund Balances Reserved For lnventones Food Donated Commod1t1es Purchased Food Unreserved Undes1gnated \nTotal Fund Equrty \nTotal L1ablhlles and Fund Equity \nSee notes to the general-purpose financial statements \n- 20 - \n \n$ \n \n40,465 69 $ \n \n162,803 96 \n \n21,642 43 90,406 60 \n \n$ \n \n203,269 65 $ \n \n11204903 \n \ns \n \n34,628 37 \n \n11,38631 \n \n213 844 23 $ \n \n0 00 \n \n$ \n \n259,858 91 $ \n \n000 \n \n$ \n \n453 12s 56 s _ _ _11_2__04_s.0.=\u003e3 1 \n \n EXHIBIT \"E\" \n \nFEDERAL PROGRAMS \n \nTOTALS \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ \n \n417,577 47 $ \n \n930,634 03 $ \n \n860,507 30 \n \n37,546 55 \n \n37,546 55 \n \n16,10635 \n \n22,208 97 \n \n34,628 37 1138631 \n \n10,923 30 10,898 25 \n \n$ \n \n455 124 02 $ \n \n$ \n \n72,137 85 $ \n \n134,245 97 $ \n \n273,332 63 \n \n265,63919 \n \n518,849 75 \n \n426,137 51 \n \n9,227 59 \n \n117 346 98 \n \n117 346 98 \n \n39 599 75 \n \n$ \n \n455,124 02 $ \n \n770442 70 $ \n \n748 297 48 \n \n$ \n \n$ _ _ _ _-=0..:00;... \n \n$ \n \n000 $ \n \n34,628 37 S 11,386 31 \n \n10,923 30 10,898 25 \n \n21364423 \n \n134 418 79 \n \n259 858 91 $ _ _--'1-=56=240-=-\"-34-'- \n \n$ \n \n455 124 02 $ 1:030,30161 $ _ _ _904-=5=3=7\"\"8._2 \n \n- 21 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \nCOMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND \nYEAR ENDED JUNE 30. 2002 \n \nREVENUES \nState Funds Federal Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil SeMces Improvement of Instructional SeMces General Adm1rnstrat1on Student Transportabon Services Food Services Operation \nDebt Service Pnncipal \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOperating Transfers In \nExcess of Revenues and Other Financing Sources over (under) Expendrtures \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Penod Donated CommodrtJes Purchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n240,544 00 $ \n \n1,066,804 60 \n \n1339,11081 \n \n1 616 301 73 \n \n$ 3,195,956 54 $ 1,066,804 60 \n \n$ \n$ 3,116,531 10 \n \n905,596 26 \n95,53911 \n40,614 78 25,898 00 \n \n$ 3116 53110 $ 1 067 648 15 \n \n$ \n \n79,425 44 $ \n \n-843 55 \n \n$ \n \n79,42544 $ \n \n156,240 34 \n \n23,705 07 488 06 \n \n84355 \n000 000 \n \nFUND BALANCE JUNE 30 \n \n$ \n \n259 858 91 $~~=~\"\"0\"'00.., \n \nSee notes to the general-purpose financial statements - 22 - \n \n EXHIBIT\"F\" \n \nFEDERAL PROGRAMS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2002 \n \nJUNE 30 2001 \n \n$ \n \n1,307,348 60 $ \n \n1,236,248 56 \n \n$ 2,805,533 32 \n \n4,144,644 13 \n \n3,448,162 27 \n \n1616301 73 \n \n1,566,813 05 \n \n$ \n \n2,805,533 32 $ \n \n7 068 294 46 $ \n \n6,249,223 88 \n \n$ \n \n2,320,056 16 $ \n \n3,225,652 42 $ \n \n2,803,366 73 \n \n307,875 56 64,335 80 125,815 21 2,547 34 \n \n403,414 67 64,335 80 \n166,429 99 28,445 34 \n3,116,531 10 \n \n276,380 32 44,251 62 \n224,587 01 28,185 99 \n2,832,271 87 \n \n3466 00 \n \n$ \n \n2,820,630 07 $ \n \n7,004,809 32 $ \n \n6,212,509 54 \n \n$ \n \n-15,096 75 $ \n \n63,485 14 $ \n \n36,714 34 \n \n15 096 75 \n \n15 940 30 \n \n97,005 36 \n \n$ \n \n0 00 $ \n \n79,425-44 $ \n \n133,719 70 \n \n000 \n \n156,240 34 \n \n48,921 33 \n \n23,705 07 48806 \n \n-24,875 99 -1 524 70 \n \n$ \n \n000 S \n \n259 0sa 91 s_ _-=155=2=4=0=34,.. \n \n- 23 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2002 \n \nASSETS Cash and Cash Equivalents Investments Accounts Rece,vable \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nS 4.287.930 60 $ \n \n615,914 77 \n \n506 485 29 \n \nTotal Assets \nLIABILITIES AND FUND EQUITY \nLIABILITIES Cash Overdraft Accounts Payable Contracts Payable Reta1nages Payable Total Liab1lllles \nFUND EQUITY Fund Balances Reserved \nFor Purposes of Bond Issue \nFor SPLOST Projects Unreserved \nUndes1gnated \nTotal Fund Equrty \nTotal L1abllrtJes and Fund Equity \n \n$ 4.2e11eJo oo s _ _1\"'.1\"\"22_1._4_00...,_06a.. \n \n$ \n \n149.412 03 \n \n269,266 51 \n \n703 721 52 \n \n$ _ _1.,1~2=2~,400=~06=- \n \n$ 4,287,930 60 \nooo s____\"'\"o\"'\"oo=- \ns 4,287,930 60 $ _ _ _ _~0~00=- \ns 412a11030 60 s_ _1_1.1\"'22=14-aao.o._os_ \n \nSee notes to the general-purpose financial statements - 24 - \n \n EXHIBIT \"G\" \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \n$ \n \n605,361 09 $ \n \n1,700,001 60 \n \n683 77170 \n \nLOTTERY PROJECT \n \nTOTALS \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n0 00 $ \n \n5,509,206 46 $ \n \n165,296 20 \n \n1,700,001 60 \n \n687,852 36 \n \n1,190,262 99 \n \n1,383,211 30 \n \n$ 2,989,14039 $ \n \n0 00 $ \n \n8,399,471 05 $ \n \n2,236,359 86 \n \n$ \n \n35,030 90 \n \n$ \n \n35 030 90 \n \n$ \n \n$ \n \n184,442 93 \n \n269,266 51 \n \n703 721 52 \n \n$ \n \n115743096 $ \n \n125,362 53 308,085 51 316,354 43 155 871 89 \n905 674 36 \n \n$ 2,954,109 49 \n \n$ 4,287,930 60 \n \n2,954,109 49 $ \n \n1,330,685 50 \n \nooo s____,,o_,o\"'-o \n \n000 \n \n000 \n \n$ 295410949 $ \n \n0 00 $ \n \n7,242,040 09 $ \n \n1,330,685 50 \n \n$ 2,989,14039 $ \n \n000 $ \n \n8,399,471 05 $ \n \n2,236,359 86 \n \n- 25 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002 \n \nREVENUES \nStale Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Support Services Business Adm1rnstratIon \nCapital Outlay Salanes Employee Benefrts Land and Land Improvements Building and Budding Improvements Equipment \nDebt Service Pnncipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES\\ \nPremiums on Bonds Sold Proceeds from General Obligation Bonds \nPar Value Capital Leases Operating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \n$ \n \n3,024.328 21 \n \n$ \n \n86,328 05 \n \n$ \n \n86,328 05 $ \n \n3,024,328 21 \n \n$ \n \n36,524 00 \n \n$ \n \n409,740 22 \n \n8,134,353 20 \n \n425,661 49 19 133 71 \n \n$ \n \n36,524 00 $ \n \n8,988,888 62 \n \n$ \n \n49 804 05 $ \n \n-5,964,560 41 \n \n$ \n \n98,306 05 \n \n10,000,000 00 \n \n$ -5,860, 179 50 \n \n$ 4,238,126 55 $ \n \n5,964,560 41 5,964,560 41 \n \n$ 4,287,930 60 $ 000 \n \n000 000 \n \nFUND BALANCE JUNE 30 \nSee notes to the general-purpose finanaal statements - 26 - \n \n$ 41287193060 $-----0.::00.:;. \n \n EXHIBIT \"H\" \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nLOTTERY PROJECT \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ \n \n$ \n \n3,924,172 00 \n \n1247173 \n \n$ \n \n3,936,643 73 $ \n \n256,697 00 $ 256,697 00 $ \n \n3,281,025 21 $ 3,924, 172 00 \n98 799 78 \n7,303,996 99 $ \n \n1,595,540 68 3,689, 173 65 \n75410 35 \n5,360, 124 68 \n \n$ \n \n306,73940 $ \n \n513,426 12 \n \n660000 00 163 187 52 \n \n$ \n \n1,643,353 04 $ \n \n$ \n \n2,293,290 69 $ \n \n$ \n \n36,524 00 \n \n$ \n \n627,302 06 \n \n409,740 22 9,068,394 66 \n513,426 12 \n \n1,085,661 49 182,321 23 \n \n627,302 06 $ 11,296,067 72 $ \n \n-370,605 06 $ -3,992,070 73 $ \n \n64,300 22 14,160 66 518,000 00 3,377,698 21 204,557 11 \n716,338 51 226,926 73 \n5 121 981 44 \n238 143 24 \n \n$ \n \n$ \n \n-669 866 70 \n \n$ \n \n-669,866 70 $ \n \n$ \n \n1,623,423 99 $ \n \n1,330,685 50 \n \n$ \n \n98,306 05 \n \n370,605 06 \n \n10,000,000 00 $ \n6,335,165 47 -6,530,046 20 \n \n370 605 06 $ \n \n9,903,425 32 $ \n \n517,000 00 1,321,467 00 -1,321,467 00 \n517 000 00 \n \n0 00 $ 0 00 \n \n5,911,354 59 $ 1,330,685 50 \n \n755,143 24 575,542 26 \n \n$ \n \n295410949 $ \n \n000 $ \n \n7,242,040 09 $ \n \n1,330,685 50 \n \n- 27 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30 2002 \n \nEXHIBIT\"!\" \n \n~ Cash and Gash Eqmvalents Investments Accounts Receivable \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nJUNE 30, 2002 \n \nJUNE 30. 2001 \n \ns s 909673 35 \n \ns s 102 018 00 \n \n1 011691 35 \n \n423,680 38 \n \n1098 70 \n \n109870 \n \n3908 37 \n \n107 841 84 \n \n107 841 84 \n \n100 357 28 \n \nTotal Assets \n \nS 101861389 S \n \n102 018 00 S 1,1201631 89 S_..,:5::2.:,7\"'94=6.::0;:..3 \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nAccounts Payable Due To Other Funds \nTotal L1ab1llbes \nFUND EQUITY \nFund Balances Reserved For Debt SeMce Unreserved Undesrgnated \nTotal Fund Eqwty \n \ns s 12 019 04 s s 12 019 04 \n \ns 29925 s 29925 \n \n299 25 12 019 04 \n12 318 29 \n \ns s 1,006 594 85 \n000 \ns $ 1006594 85 \n \ns 101 718 75 \n \n1 108 313 60 ! \n \n000 \ns 101 718 75 \n \n000 1.10831360 ! \n \n527,946 03 0 00 \n527 948 03 \n \nTotal L1ab1trttes and Fund Equrty \n \ns s 110181613 89 \n \ns s___ 10201800 \n \n112063189 \n \n5a;2,..1.9..49=0.,3._ \n \nSee notes to the general-purpose finane1al statements \n \n 28  \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \nCOMBINING STATEMENT OF REVENUES EXPENDlTURES AND CHANGES 1N FUND BALANCES DEBT SERVICE FUND \nYEAR ENDED JUNE 30 2002 \n \nEXHIBIT\"J\" \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS YEAR ENDED JUNE 30, 2002 JUNE 30. 2001 \n \nREVENUES \nTaxes \nOther Funds \nT01al Revenues \n \n$ 2 350,1 82 $ 34 614 03 \n$ 2,385,055 85 $ \n \n0 00 $ 2 350,1 82 $ 2 122 695 73 \n \n34 614 OJ \n \n77 957 87 \n \n0 00 $ 2.385,055 85 $ 2 200 653 60 \n \nEXPENDITURES \n \nDebt Service Pnnapal Interest Paying Agent Fees \nTotal Expendllures \nExcess of Revenues over (under) Expenchtures \n \n$ 1 220 000 00 683 690 00 $ 2 717 03 \n$ 1 906 407 03 $ \ns 478 848 82 $ \n \n$ 101 718 75 \n1 050 00 \n \n1,220 000 00 $ 785,408 75 3 767 OJ \n \n1,170,000 00 743,945 00 2 640 14 \n \n102.768 75 $ 2 OOll 175 78 $ 1 916 585 14 \n \n-102 768 75 $ 375 880 07 $ 284 068 46 \n \nOTHER FINANCING SOURCES (USESl \nAcaued Interest on Bonds SOid Operal.Jng Transfers In \nTotal Other Rnanong Sources (Uses) \n \n$ \n \n9,606 77 $ \n \n9 606 77 \n \n194.880 73 \n \n194 880 73 \n \n$ \n \n204 467 50 $ 204 467 50 \n \nExcess of Revenues and Other Financing Soufces over (under) Expenditures and Other Ftnancmg Uses \nFUND BALANCE JULY 1 \n \n$ 478,646 82 $ 527 946 03 \n \n101,718 75 $ 0 00 \n \n580 367 57 $ 527 946 03 \n \n284 068 46 243 877 57 \n \nFUND BALANCE JUNE 30 \n \n$ 1,00659485 $ \n \n10111515 s 11108131380 s ___s2_1,.94..,_6_o_3 \n \nSee notes to the general-purpose finanoal statements \n \n- 29 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \nSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30 2002 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \nl'.goculture U S Depanmenl o1 Direct Secondary l'.gocultural Educallon GranlS \nChrld Nutrtbon Cluster Pass-Through From Georg,a Department of Edocahon Food and Nutrtbon Program Food Services School Breakfast Program Nallonal Schc)oj Lcnch Program \nTotal Ch1ICI Nutntlon Cluster \nOther Programs Pass-Through From Georgia Depanment of Education Food and NutrJbOn Program Food DISITil\u003eullon Program { 1) \nT01al U S Department of l'.gnculture \nEducation U S Departmenl of Special Educabon Cluster Pass-Through From Georgia Department of EdlK:abOn lndMduals wrth Oisab!llbes Educabon Act Part B - SpeaaJ Educa1'0ll Flow Through Presdlool Capacity Budding lmprovemenl \nTotal Special Educaoon Cluster \nOther Programs Pass-Through From Armstrong Atla.nbe State Un1Versrty HIie II Teacher Quality Enhancement Grants Programs Pass-Through From Georgia Department of Educatlon Comprehensive Sdlool Reform Demonstration Prt)feci: Elementary and Secondary Educabon Act Tltlel Even Stan GranlS lo Local Edocallonal Agencies Tille II El\u0026eflhower Profes\u0026100al Development Tlfle\\11 Technology Literacy Challenge Fund Grants Title~ lnnovabve EdocabOn Program Strat8Ql\u0026S Class Size Reducbon vocatkmal EducatJon - BaSIC Grants to States High School Program Ba:51cGrant \nTotal U S Department of EducalK\u003en \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \n10 226 \n \n$ \n \n7 000 00 $ \n \n7 000 00 \n \n10 553 10 555 \n \nNIA $ 197 290 87 \n \n(21 \n \nNIA \n \n950 508 35 $ 2 925 219 51 (4) \n \ns 1 147 799 22 s \n \n2 925.219 51 \n \n10 550 \n \nN/1'. \n \n$ 191 311 59 $ \n \n191 311 59 \n \n$ 1,34611081 $ 3 123 531 10 \n \n84 027 84 173 84 027 \n \nNIA \n \ns 823,512 76 $ \n \nNIA \n \n72 881 00 \n \nNIA \n \n32 376 00 \n \ns 928169 76 s \n \n823 512 76 74 890 84 (4) 32 376 00 \n930,TT9 60 \n \n84 336 84 332 \n84 213 84 010 84 281 84 318 84 298 84 340 \n84 048 \n \nNIA \n \n56,927 49 \n \n56 927 49 \n \nNIA \n \n55 827 00 \n \n50,035 71 (4) \n \nNIA \n \n310,000 00 \n \n31038562 (4) \n \nNIA \n \n1,009 39911 \n \n100939911 \n \nNIA \n \n26 61816 \n \n26 618 76 \n \nNIA \n \n11451120 \n \n114 51120 \n \nNIA \n \n43 028 00 \n \n46 460 08 (4) \n \nNIA \n \n180 664 00 \n \n185 536 90 (4) \n \nNIA \n \n79 788 00 \n \n79 975 60 (4) \n \ns $ 2 805 533 32 \n \n2 820 630 07 \n \n 30- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \nSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 3Q 2002 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \nDefense U S Department of Direcl Depanment of the Air Force R O T C Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \ns 92 335 40 \n \n(3) \n \nTotal Federal Financial Assistance \n \ns  243 979 53 s ___5 _9_44_1_s_1_11_ \n \nNIA= Not Available \nNoten to the Schedule of Exoend1tures gf Federal Awards \n(1) The lllllOUfll shown for the Food Dlstnbu11on Program iepresents the Federally assigned VBlue of nonmonetal'j \nassrstence for donated commodrtles reG8fV8d and/or con\u0026Umed by the system dl.rtng the o.rrent fiscal year (2) Expenditures for the School Breakfast Program were not maintained separately end ere included In the 2002 \nNatJonol School Lunch Program (3) Expenditures on this program were not maintained by fund source (4) Expenditures tor this program include State, and /or Other Funds \n \nMajor Programs are 1denbfied by an asterisk (j in front of the CFDA number \n \nThe School Dlstnd did not provide Federal Assistance to any Subreclpl8flt \nThe accompanymg schedule of expeodrtures of Federal awards indudes the Federal grant actrvity of the Effingham County Board of Education and is presented on the modified accrual ba\u00261s of accounting whteh IS the baSIS of accountng used m the presentaOon of the general-purpose finanaal statements \n \nSee notes to the general-purpose finanaal statements \n \n- 31 - \n \n EFFINGHAM COUNTY BOARP OF EPUCAT!ON SCHEDULE OF STATE REVENUE \nYEAR ENPEP JUNE 30 2002 \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \nGRANTS Corrmunrty Affairs Georgie Department of Governor's Emergency Funds Local Community Grants \nEducabon Georgia Department of Ouahty Basoc Educobon Direct lnatruc11onal Cost Kindefgarten Program Kindergarten Program - Earty lntervenuon Program Pnrnary Grades (1-3) Program Pnmary Grades - Earty lntervenbon (1-3) Program Upper Elementary Grades (4'-5) Program Upper Elementary Graoes  Earty 1mervenbOn (4-5) Program Middle SchoOI (6-8) Program HIIJh School General EdUCclOOf'l (9-12) Program Vocabonal Laboratory (9-12) Program Students with D1sabil1bes Category I Category II Category Ill Cstego,y IV Category V G1nect Student - category VI Remedaal Educ:abon Program Attemabve Educa110n Program Eng\"5h Speakers of Olher Languages (ESOL) 20 Days AddrtJOnal lnstrucbon Mecha Center Program Staff and Profe$S101l8.1 Development Indirect Cost Categoncal Grants Pupil Transportabon Regular Bus Re~menl Nursing Services Pnndpal Supplements Vocabona1 SupeMSOB Educabon Equalization Funding Grant Food Serv,ces Vocallonal Education Other State Programs Hearth Insurance Mentor Tead'lers Post Secondary Opbons Preschool Handicapped Program Statewide After School (4-8) Program Statewtde Reading (K-3) Program Lottery Programs AsSlstrve Techoology Computers 1n the Classroom Excep1:tonal Growth-Caprtal Outlay \nGeorgie State Financing and Investment Comm1SS1011 \nReimbursement on Construcbon Profeds \nOfflc:e of School Readiness Pre-Kmdergarten Program \nOffice of Treasury and Fiscal Sel\"IIC8S Publlc School Employees Retrremenl \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nGENERAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nFUND \n \nTOTAL \n \ns \n \n20 000 00 \n \n11500000 \n \ns \n \n20 000 00 \n \n11500000 \n \n1629407 00 754 476 00 \n4 285 169 00 1420263 00 2 169 356 00 \n974 301 00 4 622,264 00 3-430,723 00 1698145 00 \n15811600 781 043 00 1848,63800 491 087 00 \n7129500 449 058 00 \n6171900 352 214 00 \n3161400 237 866 00 n4 30200 15120200 4 730 653 00 \n \n127583800 347 735 00 174 497 00 \n35 512 00 71 \"430 00 3 261 571 00 \ns \n353 817 00 \n \n240,544 00 \n \n523 952 59 2142000 3 6e3 00 92 519 00 88 206 97 71 437 80 \n \n14 959 00 206 300 00 \ns \n \n256 897 00 \n \n1629407 00 754 476 00 \n428516900 1420,28300 2,169 358 00 \n974 301 00 4 622 264 00 3 430 723 00 \n1e98145 oo \n15811600 78104300 1,648,638 00 491 087 00 \n7129500 449 056 00 \n6171900 352 214 00 \n31 614 00 237 868 00 774 302 00 15120200 4 730653 00 \n127683600 347 735 00 174 497 00 35 512 00 7143000 \n3 :2e1 571 00 2405-44 00 353 817 00 \n523 952 59 21 420 00 3 663 00 92 519 00 88 206 97 71 4'37 80 \n14 959 00 206 300 00 258 697 00 \n \n85 751 00 \n \n3 024 328 21 845,545 60 \n \n3,024,328 21 845 545 80 85 751 00 \n \nS 37 665 257 36 S 1 307 348 60 S 3 281 025 21 S 42 253 631 17 \n \nSee notes to the general purpose frnenoal statements - 32 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \nSCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30 2002 \n \nSCHEDULE ~y \n \nPROJECT \nPayments as reQutred under the \nPubhc Facll!bes Master Lease ot the \nEbenezer Elementary School u, order to taci1Jta1e the purchase of said fac:alrty \n \nThe construction remodeling fl.a'n:ishlng and eqU1ppmg of vanous SChools and e1hlebe facllrtlea Including acquh1ng necessary technology \n \nThe constn.Jcbng equippcr1Q !nd fumlSl'lu,g of a new elementary ,chool lO replace the present Spnngfield Central Elementary School a new \nelementary school to replace the present Martow \nElementary School new dassroom Wings at Guyton and Sand HIii elementary \u0026dlool.s and Ebenezer Middle School a new gymnasium and media center at Rll'\\COO Elementary School, a new band room at South Effingham Middle \n \nSchool - \n \nphysic.II educabonlsports \n \nfacllrtles at mlddle and high schools a new \n \nm\u003ed\u003clle school to ,eplace the present Effingham \n \nCounty Middle School repiaclng aged roofs \n \nand heabng/air concllbonlng unrts e11 noceuary \n \nal all school d1stnct bu1k:l1ngs renovating/ \n \nrek\u003ecatng furrush1ng and equipping Atternatrve \n \nSchool anstallmg air condrbonang units an \n \ngymnasioo,s at Ebenezer Guyton Marlow and \n \nSand HLll elementary SChoolS and at South \n \nEffingham Middle School installing addtbona1 \n \nplayground equipment at all eiementary schools \n \nrenovating the Board of Educabon's Bus Shop, \n \ninstalling bus washing equrpment replaang \n \nmaintenance veti1ctes and purc:haS1ng new \n \nbuses constructing an access road behind \n \nEffingham County Plldle School renovabng and \n \nmocl1fylng to the Board of Education's central \n \noffices In Spmgfield purchasmg new textbooks \n \nand instructK\u003enal equipment including band and \n \nvocabonal eqU1pmerrt. 1n11talhng storage bt.nlchngs \n \nat all llChools purdlasmg land for Effingham \n \nCounty School DlStnCt operabona Including future \n \nschool srtes adding to remodeling renovatmg \n \ntrrq:WtMllQ and eQIJIPPlnV eX1Sting educal.lOnal \n \nbUlktlngs propert!H and f8Clllbes of the school \n \ndIstnct, acquInng any necessary personal end \n \nreal property and equipment, l:nciudlng computeB \n \nand related technolOIJ'f copters energy management \n \nsystems, heatmg and a c:ondlUonmg systems, \n \nhghbrlg tenang and paving sea.mty and safety \n \nequipment and similar equipment at all Effingham \n \nCounty Dl11tnct school5 inciuding Ebenezer \n \nElementary Effingham County High Effingham \n \nCounty MlddJe Guyton Elementary, Marlow \n \nElementary Rincon Elementary Sand H1U \n \nElementary South Effingham Elementary South \n \nEffingham Htgh, South Effingham Middle and \n \nSpnngfield Centrat Elementary \n \nORIGINAL ESTIMATED \nCOST(1) \n \nCURRENT ESTIMATED \nCOST(2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \ns s s \u003cI 874 000 00 \n \ns 6 428 301 27 \n \n823 167 52 \n \n3 139 901 27 Ongoaig \n \n10 126,000 00 16,717 268 42 \n \n1 746 729 22 12 257 282 37 Completed \n \n35 000 000 00 3Q 095 917 00 \n \n6 669 526 98 \n \nOng01ng \n \n$ 501000,000 00 $ 62 2411-486 69 S 1125954372 $ 1539718364 \n( t) The School OmllCt's onganal cost estlmate as apeafled in the resotutJon calling tor the IIT1!X)Srbon of the Local Opt.Jon Sales Tax \n(2) The School DIStnCt's current esbmate of total oost o, each prqect Includes all COllt from p.rqect rncepbon to complebon \n(3) The Voters of Effingham County approved the lmposrtion of a 1% sales tax to fund the above Protedl Amounts expended for ttlese prOfeds may include sales tax proceed!, state local property \ntaxes and/or other funds over the life ot the pfOjects \nSee notes to the general-purpose final\"ICIBI statements \n- 33- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \nGENERAL FUND - OUALIJY BASIC EDUCATION PROGRAM IOBEl ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30 2002 \n \nSCHEDULE\"\" \n \nDESCRIPTION \nOneel \\nstrucbona1 Programs Klnde,varten Program Kndergarten Program-Early ln1ervenbo11 Program Pnmery Grades (1-3) Program Pnmary Grad..-Eerty lnleMtnbOn (1-3) Program Upper Elementary Grades ( -5) Program Upper Elementary Gra\u003cles-Eerty lnteM!nbon ( -5) Program Middle Grades (6-8) Program Middle School (6--8) Program H,gh School General EducabOn (9-12) Program Vocatonal Lal\u003eOratory (9-12) Program Studen1s With IJlsablhbeS Ce1egoryl Cmegoryll Ce1egory Ill \nca1egor;rv \nCe10g0ry V Gifted Student - CalegOIY VI Remedial Educabon Program Al1ema11ve Educa111,n Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and ProfesalOllal Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \ns \n \ns s 1,809,635 00 \n \n1 710,306 31 \n \ns 52,903 89 \n \n1,783 210 20 \n \n837,928 00 \n \n920 350 10 \n \n115 25 \n \n920 465 35 \n \n4 759,1  5 00 \n \n 921,483 98 \n \n208 79 O \n \n5 130 233 38 \n \n1 577,357 00 \n \n1,808,45 90 \n \n1 808 5 90 \n \n2  08,11500 \n \n2 951,1  9 71 \n \n107 691 92 \n \n3 058,841 63 \n \n1,083 259 00 \n5 133526 00 3 610 191 00 188597500 3 no,1 2 oo \n 98,ntiOO \n68 56 00 391 172 00 \n3511100 \n \n64 011 73  9 125 95 \n5,009 108 10 5 25 306 25 1  12 908 06 \n286,619 21 859 650 21 2 292 52960 \n83 95 06 \n331,58215 108 714 46  8136211 \n17 793 37 \n \n268 305 04  881 25 \n381,211 53 187, 59 12 \n3,959 17 17,732 04  5,650 53 8 951 71 \n8 6 \n11,07 03 \n2 00 5,820 07 1 120 60 \n \n6401173 317  30 99 5,013 969 35 5,835 517 78 1600,36718 \n290 578 38 877 382 25 2,338,180 13 \n92 905 77 8 6 \n3 2 656 18 109,138 46 467 18218 \n18 913 97 \n \ns \n \ns s s 28 019 26 00 \n \n29 1  3,  10 26 \n \n1 306,038 01 \n \n30 49 46 27 \n \n659946 00 167 926 00 \n \n1 033,705 67 10184210 \n \n577,984 0 83,309 3 \n \n161189007 184 951 4 \n \nTOTAL QBE FORMULA FUNDS \n \ns \n \n2904730000 S 30278,75803 S 1,967,33175 S 3224608978 \n \n(1) Comprised of State Funds plus Local Five MrD Share \n \nSee notes to the general-purpose financial statemems \n \n-3- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY SITE \nYEAR ENDED JUNE 30 2002 \n \nSCHEDULE \"5\" \n \nSITE \nSouth Effingham Elementary School Guyton Elementary School Spnngfield Central Elementary School Sandhill Elementary School South Effingham High School Effingham County Middle School Ebenezer Elementary School South Effingham Middle School Effingham County High School Marlow Elementary School Rincon Elementary School \nThe M Alternative School Program \nCentral Office (Alternative Educabon Program) \nTOTAL \n(1) Compnsed of State Funds plus Local F,ve Mill Share \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \n$ \n \n2,296,187 00 $ \n \n2,424,026 76 \n \n2,029,460 00 \n \n2,411,98299 \n \n2,450,596 00 \n \n2,597,467 98 \n \n1,674,651 00 \n \n1,837,498 22 \n \n3,136,735 00 \n \n3,724,589 96 \n \n3,366,147 00 \n \n3,409,183 50 \n \n2,131,260 00 \n \n2,133,372 29 \n \n2,987,046 00 \n \n3070,490 59 \n \n3,756,882 00 \n \n4,283,070 15 \n \n1,708,285 00 \n \n1,776,436 68 \n \n2,091,007 00 \n \n2,097,208 90 \n \n498,632 72 \n \n391,172 00 \n \n185 487 53 \n \n$ \n \n28,019,428 00 $ 30 449,448 27 \n \nSee notes to the general-purpose financial statements - 35 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORl S \n \n RllSSH I W. H1,10N \nSTATF AIJDITC)ll \n(404\\ 656-21,-1 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 W.1::,hmg1nn Street SW SmlL' l \\4 AllJntJ Georg1..1 10114-8400 \nJuly 3, 2003 \n \nHonorable Sonny Perdue, Governor Member, of the General A,,cmbly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \nREPORl ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen \nWe have audited the financial statements of Ellingham County Board of l:ducauon as ofand for the year ended June 30. 2002, and have issued our repon thereon dated July 3. 2003 I his repon was qualified for various depanures from generally accepted accounting principles, as 1dent1fied in the auditor', repon on the general-purpose financial ,tatements We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial aud1L, contained in Government Auditing Standards. 1,sued by the Comptroller General of the United States \nCompliance \nAs pan of obtaining reasonable assurance about whether Ef!ingham County Board of Educallon\\ financial statements an: fn:e of matcnal nusstatement, we perfomied tests of lls compliance with cenain prov1smns oflaws, regulatmns, contract, and grants, noncompliance with which could have a direct and material effect on the detem1inat1on of financial ,tatement amounts However, providing an opinion on compliance with those prov1,wn, was not an ob1ect1ve of our audit. and accordingly, we do not express such an opinion The results of our tests disclosed no in,tances of noncompliance that are required to be reported under Government Auditing Standards \nInternal Control Over Financial Reponing \nIn planning and perfomiing our audit, we considered [ffingham County Board of Education's internal control over financial reporting in order lo detemiine our auditing procedures for the purpose of expressing our opinmn on the financial ,tatements and not to provide a,surancc on the internal \n2002Yl3-41 \n \n control over financial reporting However. we noted a certam matter involving the internal control over financial reporting and its operation that we consider to be a reportable cond1t1on Reportable cond1t1on, involve matters coming to our attentmn relating to s1gmficant defic1enc1es in the design or opcratmn of the internal control over financial reporting that, in our judgment, could adversely affect Effingham County Board of Educatmn's ability to record, process, summanze and report financial data cons1,tent \\\\1th assertions of management in the financial statements The reportable cond1t1on is described in the accompanying Schedule of Findings and Questioned Costs as item FS-6511-020 \\ \nA matenal weakne~~ 1s a cond1uon in which the design or operation of one or more of the internal control component, docs not reduce to a relatively low level the nsk that misstatements m amounts that would be matenal m relation to the financial statements being audited may occur and not be detected within a timely penod by employees in the normal coun,c of performing their assigned functions Our consideration of the internal control over financial reporting would not necessanly d1sclo,e all matters in the internal control that might be reportable conditions and, accordingly. would not necessanly disclose all reportable cond1tmns that are also con,1dered to be matenal weaknesses However, we consider Item FS-6511-02-0 I to be a matenal weakness \nThis report 1s intended solely for the information and u,e of the management, membe~ of the Effingham County Board of Education, Federal awarding agencies and pass-through entitles and is not intended to be and should not be used by anyone other than these specified parties \nRWHgp 2002YB-41 \n \n w. '{(l\u003e,_',lU \n \nHINlON \n \n5 JATr AJ.JOITOFl \n \n(40,A) 6!,f,.. '174 \n \nDEPARTMENT OF Auorrs AND ACCOUNTS \n2_5..i WJ,hm~ton ~tree! ~ W ~u1tc 214 AIIJnlJ, Gcorg1J 10314 8400 \nJuly 3. 2003 \n \n1lonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Supenntendent and Members of the Effingham County Board of Educallon \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE IO EACH MAJOR PROGRAM AND ON IN fERNAL CONTROL OVER COMP! JANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen \nCompliance \nWe have audited the compliance of Effingham County Board of Education with the types of compliance requirements descnbed in the US Office ofManagement and Budge/ (0MB) Circular A-133 Compliance Supplemen/ that arc applicable to each of its maJor Federal program, for the year ended June 30. 2002 Ellingham County Board ofEducation's maJor Federal programs are identified in the Summary of Auditor's Re~ults Sect10n of the accompanying Schedule of Findmgs and Questioned Cosl~ Compliance with the reqmrements of law;. regulations, contracts and grants applicable to each of its maJor Federal programs 1s the respons1b1lity ofl:Jfingham County Board of Education's management Our respons1b1lity 1s to e,prcss an opm10n on Effingham County Board of Educat10n'; compliance bru,ed on our audit \nWe conducted our audit of compliance in accordance with aud1tmg standards generally accepted m the United States of America, the standard; applicable to financial aud1h contained in Government Auditing Standards. issued by the Comptroller General of the United States. and 0MB Circular A133. Aud11., of Sia/es, Local Go1ernmen/1, and Non-Pro/ii Or1{am=altons I hose ;tandard; and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the type; ofcompliance requirements referred to above that could have a direct and material effect on a maJor Federal program occurred An audit includes exammmg. on a test ba~1;, evidence about the Ellingham County Board of Educat10n's compliance with those requirements and performing ;uch other procedures a; we con~1dered necessary m the circumstance; We believe that our audit provides a reasonable basis for our opm10n Our audit does not provide a legal determmat1on on Effingham County Board ofl:ducauon's compliance with those requirements \n2002SA-10 \n \n In our opinion. the Effingham County Board of Education complied, in all matenal respects, with the \nr reqmrements referred to above that are applicable to each of its maJor cderal programs for the year \nended June 30, 2002 \nInternal Control Over Compliance \nThe management of Effingham County Board of Education 1s responsible for cstablishing and maintaining effective mternal control over compliance with reqmrements of laws. rcgulat1ons. contracts and grants applicable to Federal program, In planning and performing our audit, we considered Effingham County Board of Educatwn's internal control over compliance with requirements that could have a direct and matenal effect on a maJor Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to tc,t and report on mternal control over compliance m accordance with 0MB Circular A-133 \nOur consideration of the mternal control over compliance would not necessanly disclose all matter. m the internal control that might be material weaknesses A matenal weakness 1s a cond1twn in which the design or operation ofone or more of the internal control components does not reduce to a relatively low level of n,k that noncompliance with applicable requircmenl~ of laws, regulatwns, contracts and grants that would be material m rclatwn to a maJor Federal program being audited may occur and not be detected w1thm a timely penod by employees m the normal course of performing their a~s1gncd functions We noted no matters mvolving the mtemal control over compliance and 11\u003e operation that we consider to be matenal weaknesses \nTh1\\ report 1s intended solely for the mformatwn and use of the management, members of the Effingham County Board of Education. Federal awardmg agencies and pass-through cnlit1es and 1s not intended to be and should not be used by anyone other than these specified parties \n \nRWH gp 200'.!SA-10 \n \nHmton State Auditor \n \n SECTION Ill AUDll EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONFD COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRJOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6511-00-0 I FS-6511-01-01 FS-651 1-01-02 \n \nFurther Actton Not Warranted Further Act10n Not Warranted Unresolved - See Correcllve Act10n/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nGENERAL FIXED ASSEl S Failure to Maintam General Fixed Asset, Account Group Fmdmg Control Number FS-6511-01-02 \n \nIn accordance with the reqmrements ofGASB 34, we will be mamtammg a General Fixed A~~ts Account Group m fiscal Year 2003 \n \n SECTION IV FINDINGS AND QUESTIONl:.D COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF f INDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2002 \nSUMMARY or AUDI rOR'S RESULTS \nType of Report Issued on the Financial Statements The auditor's op1mon on the Effingham County Board of Education', financial statements was qualified for various departures from generally accepted accounting pnnc1ples \n2 Reportable Conditions in Internal Control Disclosed bv the Audit of the Financial Statements The audit report for the Effingham County Board of Educat10n disclosed a financial statement reportable cond1t1on related to the following control category. \nGeneral Fixed Assets \nThe reportable condition descnbed above 1s considered to be a matenal weaknes, \n3 Noncompliance Matenal to the Financial Statements The audit of the Effingham County Board of Educat10n disclosed no instances of noncompliance that were deemed to be matenal lo the financial statements \n4 Reportable Cond1t1ons in Internal Control Over Ma)Or Programs The audit report for the Effingham County Board of Education did not disclose any reportable cond1t10ns in internal control over maJor programs. \n5 Tvpe of Report Issued on Compliance for Ma1or Programs The auditor's opinion on the Effingham County Board of Educallon's report on compliance wllh reqmrements applicable to maJor programs was unqualified \n6 Audit hndings Required to be Reported by Section 51 0(a) of 0MB Circular A-133 l he Effingham County Board ofEducat10n's audit did not disclose audit findings rcqmred to be reported by sect10n 5\\0(a) ofOMB Circular A-133 \n7 Ma1or Programs Federal awards audited as maJor program, are as follows IO 553 Food and Nutnllon Program - Food Service, - School Breakfa,t Program IO 555 Food and Nutnt10n Program - Food Services - National School Lunch Program 84 213 Elementary and Secondary l::ducauon Act - Title I - Even Start \n8 Tvpc \"A\" Program Dollar Threshold l he dollar threshold for type \"A\" programs was $300.000 00 \n9 Low R1\u003ek Aud1tee fhe Effingham County Board of Education qualified as a low nsk aud1tee a, defined by Section 530 of 0MB Circular A-I 33 \n- I- \n \n f.FFINGHAM CO8NTY BOARD OF EDUCATION SCH[DULE 01- HNDINGS AND'QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2002 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS failure to Maintain General Fixed Assets Account Group Reportable Cond1t10n - Malena! Weakness Repeated From Pnor Year rinding Control :'.\\lumber. FS-6511-02-01 The Effingham County Board of Education dtd not maintam a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles Tht~ cond1t10n results m the general-purpose financial statements ofthe School D1stnct being incomplete and not in accordance with generally accepted accounting principles Appropriate action should be taken by the School D1stnct to establish accounting controls and procedures to provide for maintenance ofa General Ft xed Assets Account Group These subs1d1ary records should mclude an inventory of land, bu1ldmg, and eqmpment owned by the School D1stnct, and should include, but may not be hm1ted to, date acquired, acqms1t10n cost, esttmated replacement cost. loca11on and descnptton Detailed records should be maintained of all add1t10ns and deletion. to the General Fixed Assets Account Group. \nIII FEDERAL AwARD FINDINGS AND QUESTIONED cos rs \nNo matters were reported \n-2 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2000-h2001","title":"Effingham County Board of Education, Springfield, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2001-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: Effingham County Board of Education, Springfield, 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 ... (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed February 3, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Effingham County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Effingham County--Auditing--Periodicals","Education--Georgia--Effingham County--Finance--Statistics--Periodicals"],"dcterms_title":["Effingham County Board of Education, Springfield, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2000-h2001"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b2000-h2001"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodical","periodicals","state government audits","official reports","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \nG,A \nA~oo , RI \nE.:2b \nE.;2. \nd).COO - .;).DO I \nI \nEFFINGHAM COUNTY BOARD OF EDUCATION SPRINGFIELD, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2001 \nRussell W. Hinton State Auditor \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL-PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS -OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \n4 \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n7 \n \nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \n8 \n \nADDITIONAL FINANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \nSPECIAL REVENUE FUND \n \nE \n \nCOMBINING BALANCE SHEET \n \n22 \n \nF \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n24 \n \nCAPITAL PROJECTS FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \n26 \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n28 \n \nSCHEDULES \n \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n30 \n \n2 SCHEDULE OF STATE REVENUE \n \n32 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n35 \n \nALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \n4 \n \nBY PROGRAM \n \n36 \n \n5 \n \nBY SITE \n \n37 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nSECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n Rt'SSEl.l. \\\\'. H1!\\l'Oi\\ STATE AUQITOR \n1404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n2:'i-l Washington Street. S.W.. Suite 214 Atlanta, Georgia 30334-8400 \nApril 3, 2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying general-purpose financial statements ofthe Effingham County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Effingham County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \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 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 op1mon. \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: \n \n2001ARL-13 \n \n * The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. \n* School activity accounts maintained at the individual schools are not included in the \ngeneral-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. \n* The Board of Education did not recognize as expenditures, in the year ended \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 than when funds are received or disbursed. \nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \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 Effingham County Board of Education as of June 30, 2001, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \nIn accordance with Government Auditing Standards, we have also issued our report dated April 3, 2002, on our consideration of the Effingham 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. \nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Effingham 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 general-purpose financial statements. Such information has been subjected to the auditing \n2001ARL-13 \n \n procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \nA copy of this report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 506-24. \nRespectfully submitted, \n~w.~ Russell W. Hinton State Auditor \nRWH:gp 2001ARL-13 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001 \n \nASSETS \nCash and Cash Equivalents \nInvestments \nAccounts Receivable \nPrepaid Items \nDue from Other Funds \nInventories Food Donated Commodities Purchased Food \nAmount Available in Debt Service Fund \nAmount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements Intergovernmental Contract \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ \n \n6,565,946.98 $ \n \n860,507 30 $ \n \n39,933.67 \n \n687,852.36 \n \n1,083,532.31 \n \n1,383,211.30 \n \n22,208.97 \n \n10,923.30 10,898.25 \n \nTotal Assets \n \n$ 7,649,479.29 $ \n \n904 537.82 $ \n \n2 110 997.33 \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nAccounts Payable Salaries Payable Short-Term Debt Expired Grant Balances Payable Contracts Payable Retainages Payable Due to Other Funds Deferred Revenue General Obligation Bonds Payable Capital Lease Agreements Intergovernmental Contract Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For GSBA Project For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated \nTotal Fund Equity \n \n$ \n \n1,483,150.30 $ \n \n4,995,000.00 \n \n273,332.63 $ 426,137.51 \n9,227.59 \n \n22,208.97 \n \n39,599.75 \n \n308,085.51 \n316,354.43 155,871.89 \n \n$ 6,500,359.27 $ \n \n748 297.48 $ \n \n780 311.83 \n \n$ \n \n69,928.59 \n \n618,000.00 \n \n$ \n \n10,923.30 \n \n10,898.25 \n \n$ \n \n1,330,685.50 \n \n461 191.43 \n \n$ \n \n1 149 120.02 $ \n \n134 418.79 156 240.34 $ \n \n0.00 1,330,685.50 \n \nTotal Liabilities and Fund Equity \n \n$ \n \n7 649 479.29 $ \n \n904,537.82 $ \n \n2,1101997.33 \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -2- \n \n EXHIBIT \"A\" \n \nDEBT SERVICE \nFUND \n \nACCOUNT GROUP GENERAL \nLONG-TERM DEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \ns \n \n423,680.38 \n \n$ \n \n7,890,068.33 $ \n \n7,546,034.79 \n \n3,908.37 \n \n691,760.73 \n \n753,727.78 \n \n100,357.28 \n \n2,567,100.89 \n \n1,754,212 73 \n \n1,000.00 \n \n22,208.97 \n \n1,080,386.46 \n \n$ \n \n527,946.03 \n \n10,923.30 10,898.25 \n527,946.03 \n \n35,799.29 12,422.95 \n243,877.57 \n \n11,152,053.97 3,518,205.02 160,000 00 \n \n11,152,053.97 3,518,205.02 160 000.00 \n \n12,606,122.43 3,878,420.74 230,000.00 \n \n$ \n \n527,946.03 $ \n \n15,358,205.02 $ 26,551 165.49 $ 28 142 004.74 \n \n$ \n \n2,064,568.44 $ \n \n2,283,466.40 \n \n426,137.51 \n \n502,094.77 \n \n4,995,000.00 \n \n4,995,000.00 \n \n9,227.59 \n \n18,760.00 \n \n316,354.43 \n \n219,907.22 \n \n155,871.89 \n \n80,171.32 \n \n22,208.97 \n \n1,080,386.46 \n \n39,599.75 \n \n$ \n \n11,680,000.00 \n \n11 ,680 ,000.00 \n \n12,850,000.00 \n \n3,518,205.02 \n \n3,518,205.02 \n \n3,878,420.74 \n \n160 000.00 \n \n160 000.00 \n \n230,000.00 \n \n$ \n \n15,358,205.02 $ 23,387,173.60 $ 26,138,206.91 \n \n$ \n \n527,946.03 \n \n0.00 \n \n$ \n \n527 946.03 \n \n$ \n \n69,928.59 $ \n \n188,104.55 \n \n699 09 \n \n527,946.03 \n \n243,877.57 \n \n618,000.00 \n \n618,000.00 \n \n10,923.30 10,898.25 1,330,685.50 \n \n35,799.29 12.422.95 306,018.54 269,523.72 \n \n595,610.22 \n \n329,35212 \n \n$ \n \n3 163 991.89 $ \n \n2,003 797.83 \n \n$ \n \n527 946.03 $ \n \n153582~ $ 26,551 165.49 $ 2811421004 74 \n \n-3- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \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 Food Services Operation \nCapital Outlay Debt Service \nPrincipal Interest Paying Agent Fees \nTotal Expenditures \nExcess of Revenues over {under) Expenditures \nOTHER FINANCING SOURCES {USES) \nCapital Leases Operating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \n \nGENERAL FUND \n \nSPECIAL REVENUE \nFUND \n \n$ 33,365,541.81 $ 1,236,248.56 88,133.79 3,446,162.27 \n10,516,328.73 523,669.18 1,566,813.05 \n$ 44,493,673.51 $ 6,249,223.88 \n \n$ 30,237,229.37 $ 2,803,366.73 \n \n1,570,286.66 1,016,374.84 1,556,404.03 \n583,295.07 2,628,689.37 \n709,161.30 3,282,329.96 2,401,378.47 \n131,135.46 \n \n276,380.32 44,251.62 224,587.01 \n28,185.99 2,832,271.87 \n \n227,411.21 39,309.06 \n \n3,466.00 \n \n$ 44,383,004.80 $ 6,212,509.54 $ 110,668.71 $ 36 714.34 \n \n$ 97,005.36 $ -97,005.36 \n$ -97,005.36 $ 97,005.36 \n \n$ \n \n13,663.35 $ \n \n1,135,456.67 \n \n133,719.70 48,921.33 \n \n-24,875.99 -1,524.70 \n \nFUND BALANCE JUNE 30 \n \n$ 1,149,120.02 $ 156,240.34 \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -4 - \n \n EXHIBIT\"B\" \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTALS (Memorandum Only) \nYEAR ENDED JUNE 30, 2001 JUNE 30, 2000 \n \n$ 1,595,540.68 \n3,689,173.65 $ \n75 410.35 \n \n$ \n2,122,695.73 77 957.87 \n \n36,197,331.05 $ \n3,534,296.06 16,328,198.11 \n2,243,850.45 \n \n31,965,955.87 3,447,210.02 \n15,903,114.32 2,159,161.59 \n \n$ 5,360,124.68 $ 2,200,653.60 $ 58,303,675.67 $ 53,475,441.80 \n \n$ 33,040,596.10 $ 30,253,710.97 \n \n$ 4,178,716.20 \n \n1,846,666.98 1,060,626.46 1,556,404.03 \n807,882.08 2,628,689.37 \n709,161.30 3,282,329.96 2,429,564.46 2,832,271.87 4,309,851.66 \n \n2,270,663.67 1,066,349.98 1,396,942.74 \n830,088.18 2,425, 144.27 \n697,451.46 3,095,512.53 2,561,791.59 2,880,999.62 2,908,979.45 \n \n716,338.51 $ \n226,926.73 \n \n1,170,000.00 743,945.00 2 640.14 \n \n2,117,215.72 1,010,180.79 \n2 640.14 \n \n1,965,484.14 1,072,615.16 \n4,665.53 \n \n$ 5,121,981.44 $ 1,916,585.14 $ 57,634,080.92 $ 53,430,399.29 \n \n$ 238,143.24 $ 284,068.46 $ \n \n669,594.75 $ \n \n45,042.51 \n \n$ 517,000.00 $ 517,000.00 \n \n$ \n \n517,000.00 $ \n \n431,595.36 \n \n97,005.36 \n \n432,036.62 \n \n-97,005.36 \n \n-432,036.62 \n \n$ \n \n517,000.00 $ \n \n431,595.36 \n \n$ 755,143.24 $ \n575,542.26 \n \n284,068.46 $ 1,186,594.75 $ \n \n476,637.87 \n \n243,877.57 \n \n2,003,797.83 \n \n1,508,874.89 \n \n-24,875.99 -1 524.70 \n \n15,391.66 2 893.41 \n \n$ 1,330,685.50 $ 527,946.03 $ 3,163,991.89 $ 2,003,797.83 \n \n-5- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL - (NON-GAAP BASIS) \nGENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2001 \n \nEXHIBIT \"C\" \n \nGENERAL FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \nREVENUES \n \nState Funds Federal Funds Taxes Other Funds \n \n$ 32,824,984.00 $ 33,365,541.81 88,133.79 \n10,255,603.00 10,516,328.73 523,669.18 \n \nTotal Revenues \n \n$ 43,080,587.00 $ 44,493,673.51 \n \nEXPENDITURES \n \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 Food Services Operation \nCapital Outlay Debt Service \n \n$ 30,381,308.00 $ 30,237,229.37 \n \n839,477.00 975,144.00 1,533,658.00 471,953.00 2,430,518.00 402,166.00 2,993,725.00 2,435,992.00 \n \n1,570,286.66 1,016,374.84 1,556,404.03 \n583,295.07 2,628,689.37 \n709,161.30 3,282,329.96 2,401,378.47 \n \n616,646.00 \n \n131,135.46 266.720.27 \n \nTotal Expenditures \n \n$ 43,080,587.00 $ 44,383,004.80 \n \nExcess of Revenues over (under) Expenditures \n \n$ \n \n0.00 $ 110668.71 \n \nOTHER FINANCING SOURCES (USES) \n \nOther Sources Other Uses \n \n$ -97,005.36 \n \nTotal Other Financing Sources (Uses) \n \n$ -97,005.36 \n \nExcess of Revenues and Other Financing Sources \n \nover (under) Expenditures and Other Financing \n \nUses \n \n$ \n \n0.00 $ \n \n13,663.35 \n \nFUND BALANCE JULY 1, 2000 \n \n1,592,999.75 1,135,456.67 \n \nFood Inventory - Net Change in Pe1iod Donated Commodities Purchased Food \n \nFUND BALANCE JUNE 30, 2001 \n \n$ 1,592,999.75 $ 1,149,120.02 \n \nSPECIAL REVENUE FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \n$ 1,195,244.00 $ 1,236,248.56 3,140,590.00 3,446,162.27 \n1,541,375.00 1,566,813.05 \n$ 5,877,209.00 $ 6,249,223.88 \n \n$ 2,429,732.00 $ 2,803,366.73 \n \n383,215.00 152,144.00 \n \n276,380.32 44,251.62 \n \n170,138.00 \n \n224,587.01 \n \n7,240.00 \n \n28,185.99 \n \n2,734,740.00 2,832,271.87 \n \n3,466.00 \n \n$ 5,877,209.00 $ 6,212,509.54 \n \n$ \n \n0.00 $ 36 714.34 \n \n$ 97,005.36 $ 97,005.36 \n \n$ \n \n0.00 $ 133,719.70 \n \n-349,772.21 \n \n48,921.33 \n \n-24,875.99 -1 524.70 \n \n$ -349,772.21 $ 156,240.34 \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -7 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 200 I \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Effingham 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. \nFUND ACCOUNTING \nThe School District uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \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. \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. \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: \nGOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include: \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. \n \n-8- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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. \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \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. \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding, capital lease obligations and intergovernmental contracts. \nBASIS OF ACCOUNTING \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. \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. \nGovernmental funds are accounted for using the modified accrual basis of accounting under which: \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. \n-9- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nExpenditures are generally recognized when the related fund liability is incurred. \nA departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning 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. \nBUDGET \nThe Effingham 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. \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. \nCASH AND CASH EQUIVALENTS \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 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \ninstitutions. 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. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the 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: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nRECEIVABLES \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. \n \n- 11 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 200 I \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nPROPERTY TAXES \n \nThe Effingham County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on August 18, 2000 (levy date). Taxes were due on November 15, 2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Effingham County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $10,192,316.07 and for school bonds amounted to $2,071,486.57. \n \nTax millage rates levied for the 2000 tax year (calendar year) for the Effingham County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n13.56 mills 2.89 mills \n \n16.45 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $3,689,173.65 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $3,016,991.20 has been collected or on December 31, 2002, whichever occurs first. \n \nINVENTORIES \n \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. \n \n- 12 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nGENERAL OBLIGATION BONDS \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. \nINTERFUND TRANSACTIONS \nThe School District has the following types of interfund transactions: \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. \nOperating transfers are recorded for all interfund transactions other than reimbursements. \nMEMORANDUM ONLY-TOTAL COLUMNS \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. \nNote 2: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45--8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n- 13 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 2: DEPOSITS AND INVESTMENTS \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \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, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \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. \nCATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $9,136,901.03. The amounts ofthe total bank balances are classified into three categories of credit risk: \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \nThe School District's deposits are classified by risk category at June 30, 2001, as follows: \n \n- 14 - \n \n----- ----- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nRisk Category \n \nBank Balance \n \n$ 1,877,924.88 \n \n2 \n \n7,258,976.15 \n \n3 \n \n0.00 \n \nTotal \n \n$ 9,136,901.03 \n \nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \n \nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name. \n \nAt June 30, 2001, the carrying value of the School District's total investments was $691,760.73 which is materially the same as fair value. The investments are classified as to risk categories as follows: \n \nTYI1e of Investment \n \nInvestment Portfolio \n \nAccount \n \ns \n \nLocal Government Investment Pools \n \nTotal Investments \n \nRisk Categories \n \n2 \n \n3 \n \nCarrying Amount \n \nFair Value \n \nQ.Q0 $_lQ445.Q0 $ \n \n0.QQ $ 30,445.00 $ 30,445.00 \n \n661 315.73 \n \n661 315.73 \n \n$ 621,160.13 $ 621 76Q.11 \n \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Comri1ission as an investment company but does operate \n \n- 15 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nGeorgia Fund I in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. \n \nNote 3: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \n \nNote 4: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. The following analysis summarizes the status of all interfund transactions of the School District at June 30, 2001: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund Special Revenue Fund \nSchool Food Service Fund \n \n$ 22,208.97 $ 22,208.97 \n \n$ 22!208.97 $ 22!208.97 \n \n- 16 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 5: RISK MANAGEMENT \n \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. \n \nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions, job related illness or injuries to employees and natural disaster. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \n \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. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n2000 2001 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n$ \n \n0.00 $ \n \n5,305.34 $ \n \n0.00 $ \n \n5,305.34 \n \n$ \n \n5,305.34 $ \n \n5,654.00 $ \n \n8 698.34 $ \n \n2,261.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Employee \n \n$ 100,000.00 $ 50,000.00 \n \nNote 7: GENERAL LONG-TERM DEBT \n \nCAPITAL LEASES The Effingham County Board of Education entered into an agreement on October 1, 1994, with the Georgia School Boards Association (GSBA), Incorporated for the construction and subsequent lease of various school facilities.. Under the terms of the lease agreement, the Board will make semiannual payments through January 15, 2005. This lease includes an annual renewal clause. \n \nThe Effingham County Board of Education has entered into lease agreements for buses, equipment and an intergovernmental contract with the City of Springfield to finance a sanitary sewer system to serve the schools. 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 inception. \n \n- 17 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 7: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1994 \n \n4.20% - 6.25% $11,680,000.00 \n \nVoters have authorized $10,000,000.00 in general obligation debt for constructing, equipping and furnishing new schools which was not issued as ofJune 30, 2001. This bond issue is associated with a SPLOST referendum approved June 19, 2001 which will take effect upon termination of the current SPLOST referendum. \n \nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: \n \nCagital Leases \n \nGSBA \n \nOther \n \nIntergovernmental Contract \nTrust Certificates \n \nGeneral Obligation \nBonds \n \nTotal \n \nBalance July I, 2000 $3,490,000.00 $ 388,420.74 $ 230,000.00 $12,850,000.00 $16,958,420.74 \n \nAdditions Capital Leases \n \n5 I 7,000.00 \n \n517,000.00 \n \nDeductions Debt Retired \n \n625,000.00 252,215.72 \n \n70 000.00 I, 170,000.00 2,117,215.72 \n \nBalance June 30, 2001 $2,865 000.00 $ 653,205.02 $ ]GQ,000.00 $] I 680 000.00 $15 358 205.02 \n \nAt June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCagital Leases \n \nGSBA \n \nOther \n \nIntergovernmental Contract \nTrust Certificates \n \nGeneral Obligation \nBonds \n \nTotal Debt \n \n2002 2003 2004 2005 2006 2007 - 201 I \n \n$ 823,187.50 $ 247,268.78 $ 821,887.50 240,001.02 822,793.76 121,327.72 820,531.26 121,327.72 \n \n87,885.00 91,885.00 \n \n$ l ,903,690.00 1,893,420.00 1,888,932.50 1,874,562.50 1,865,462.50 5,607.812.50 \n \n$ 3,062,031.28 3,047,193.52 2,833,053.98 2,816,421.48 1,865,462.50 5,607,812.50 \n \nTotal Principal and \n \nInterest \n \n$3,288,400.02 $ 729,925.24 $ 179,770.00 $15 033,880.00 $19,231 9752.6 \n \nDeduct: Imputed Interest \n \n423,400.02 \n \n76.720.22 \n \n19 770.00 \n \nNet Present Value Of Future Minimum Lease Payments $2 865 000.00 $ 653 205.02 $ 160 000 00 \n \n- 18 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 8: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes and obtains temporary loans in advance ofproperty tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount of short-tem1 debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 ofthe calendar year in which the debt was incurred. \n \nBeginning Balance \n \nAdditions \n \nPayments \n \nEnding Balance \n \nTax Anticipation Note~. \n \n$4,995,000.00 $4,995,000.00 $4,995,000.00 $4,995,000.00 \n \nNote 9: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and expenditures in the amount of $669,512.24 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $492,330.60 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (IRS) Employer's Cost In the amount of $53,304.64 \n \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 $123,877.00 \n \nNote 10: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction orrenovation contracts executed by the School District as of June 30, 2001, together with funding available: \n \n- 19 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 10: SIGNIFICANT COMMITMENTS \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n0 l /00S-651-003 02/0lS-651-013 \n \n$ 5,119,027.19 $ 2,773,586.92 \n \n515,058.11 \n \n585,464.00 \n \n$ 5,634,085.30 $ 3,359,050.92 \n \nThe amounts described in this note are not reflected in the general-purpose financial statements. \n \nNote 11: CONTINGENT LIABILITIES \n \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. \n \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. \n \nNote 12: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \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. \n \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: \n \n- 20 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 200 I \n \nNote 12: RETIREMENT PLANS \nFiscal Year \n2001 2000 1999 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n$ 3,316,988.35 $ 3,142,296.36 $2,939,807.31 \n \n- 21 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001 \n \nASSETS \nCash and Cash Equivalents \nAccounts Receivable \nDue from Other Funds \nInventories Food Donated Commodities Purchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n296,437.28 $ \n \n149,011.32 \n \n22,208.97 \n \n10,923.30 10 898.25 \n \nTotal Assets \n \n$ \n \n340,467.80 $ ===14=9=0=1=1=.3=2 \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nAccounts Payable Salaries Payable Expired Grant Balances Payable Due to Other Funds Deferred Revenue \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \nTotal Fund Equity \n \n$ \n \n36,018.55 $ \n \n148,208.91 \n \n57,243.88 91,767.44 \n \n$ \n \n184,227.46 $ \n \n149 011.32 \n \n$ \n \n10,923.30 \n \n10,898.25 \n \n134 418.79 $ \n \n$ \n \n156,240.34 $ \n \n0.00 0.00 \n \nTotal Liabilities and Fund Equity See notes to the general-purpose financial statements. \n- 22 - \n \n$ \n \n340 467.80 $ ====14=9=01=1=.3=2 \n \n EXHIBIT \"E\" \n \nFEDERAL PROGRAMS \n \nTOTALS \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n415,058.70 $ \n \n860,507.30 $ \n \n986,503.49 \n \n8,976.07 \n \n22,208.97 \n \n10,923.30 10,898.25 \n \n35,799.29 12,422.95 \n \n$ \n \n415 058.70 $ \n \n904,537.82 $ 1,043,701.80 \n \n$ \n \n180,070.20 $ \n \n273,332.63 $ \n \n311,652.97 \n \n186,161.16 \n \n426,137.51 \n \n466,289.00 \n \n9,227.59 \n \n9,227.59 \n \n18,760.00 \n \n198,078.50 \n \n39 599.75 \n \n39 599.75 \n \n$ \n \n415 058.70 $ \n \n748 297.48 $ \n \n994 780.47 \n \n$ \n \n699.09 \n \n$ \n \n10,923.30 \n \n10,898.25 \n \n35,799.29 12,422.95 \n \n$ \n \n0.00 \n \n134 418.79 \n \n0.00 \n \n$ \n \n0.00 $ \n \n'156,240.34 $ \n \n48 921.33 \n \n$ \n \n415 058.70 $ \n \n904,537.82 $ 1,043,701.80 \n \n- 23 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 \n \nREVENUES \nState Funds Federal Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Student Transportation Services Food Services Operation \nCapital Outlay Debt Service \nPrincipal \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOperating Transfers In \nExcess of Revenues and Other Financing Sources over (under) Expenditures \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \nFUND BALANCE JUNE 30 \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n238,902.00 $ \n \n1,160,975.61 \n \n1,566,813.05 \n \n$ 2,966,690.66 $ \n \n997,346.56 997,346.56 \n \n$ $ 2,832,271.87 \n \n924,732.45 \n21,831.49 \n36,393.20 25,291.20 \n \n$ 2,832,271.87 $ 1,008,248.34 \n \n$ \n \n134,418.79 $ \n \n-10,901.78 \n \n$ \n \n134,418.79 $ \n \n48,222.24 \n \n-24,875.99 -1 524.70 \n \n10901.78 \n0.00 0.00 \n \n$ \n \n156,240.34 $ =======o=.o===o \n \nSee notes to the general-purpose financial statements. - 24 - \n \n EXHIBIT \"F\" \n \nFEDERAL PROGRAMS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ 1,2:36,248.56 $ 1,242,722.27 \n \n$ 2,285,186.66 \n \n3,446,162.27 \n \n3,376,837.83 \n \n1,566,813.05 \n \n1,537,216.64 \n \n$ 2,285,186.66 $ 6,249,223.88 $ 6 156 776.74 \n \n$ 1,878,634.28 $ 2,803,366.73 $ 2,780,805.96 \n \n254,548.83 44,251.62 188,193.81 2,894.79 \n \n276,380.32 44,251.62 \n224,587.01 .28,185.99 \n2,832,271.87 \n \n250,093.05 120,091.42 186,146.45 \n2,600.11 2,880,999.62 \n252.69 \n \n3 466.00 \n \n3 466.00 \n \n$ 2,371,989.33 $ 6,212,509.54 $ 6,220,989.30 \n \n$ \n \n-86,802.67 $ \n \n36,714.34 $ \n \n-64,212.56 \n \n86 103.58 \n \n97,005.36 \n \n430,668.64 \n \n$ \n \n-699.09 $ \n \n133,719.70 $ \n \n366,456.08 \n \n699.09 \n \n48,921.33 \n \n-335,819.82 \n \n-24,875.99 -1 524.70 \n \n15,391.66 2 893.41 \n \n$ \n \n0.00 $ \n \n156,240.34 $ ===4=8,..9=2=1=3=3 \n \n- 25 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \n$ \n \n89,783.04 $ \n \n75,513.16 \n \n687,852.36 \n \n454 446.47 \n \n599 997.83 \n \nTotal Assets \n \n$ \n \n544,229.51 $ =====1,=36=3=,3=6=3=35= \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Contracts Payable Retainages Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated \nTotal Fund Equity \n \n$ \n \n215,983.11 $ \n \n209,762.97 \n \n118 483.43 \n \n32,677.85 \n \n$ \n \n544 229.51 $ \n \n32,677.85 \n \n$ \n \n1,330,685.50 \n \n$ \n \n0.00 \n \n0.00 \n \n$ \n \n0.00 $ \n \n1,330,685.50 \n \nTotal Liabilities and Fund Equity \n \n$ \n \n544 229.51 $ ===1=,36=3=,3=63=.3=5 \n \nSee notes to the general-purpose financial statements. - 26 - \n \n EXHIBIT\"G\" \n \nLOTTERY PROJECT \n \nTOTALS \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n'165,296.20 $ \n \n404,340.06 \n \nfi87,852.36 \n \n268,939.31 \n \n$ _ _ _32_8~7_6_7_.o_o \n \n1,:'383,211.30 \n \n630,999.38 \n \n$ \n \n328 767.00 $ \n \n2,236,359.86 $ \n \n1,304,278.75 \n \n$ \n \n125,362.53 $ \n \n'125,362.53 $ \n \n385,127.26 \n \n59,424.55 106,591.46 \n \n:!08,085.51 \n:i 1 6 , 3 5 4 . 4 3 \n \n43,530.69 219,907.22 \n \n37 388.46 \n \n'155871.89 \n \n80 171.32 \n \n$ \n \n328,767.00 $ \n \n905 674.36 $ \n \n728,736.49 \n \n$ \n \n$ _ _ _ _ _o_.o_o \n \n$ \n \n0.00 $ \n \n1,330,685.50 $ \n \n306,018.54 269,523.72 \n \n0.00 \n \n0.00 \n \n1,330,685.50 $ _ _..c..,57'--'5'-'--',5'--'4=2.=2~6 \n \n$ \n \n328,767.00 $ \n \n2,236,359.86 $ \n \n1,304,278.75 \n \n- 27 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001 \n \nREVENUES \nState Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCapital Outlay Salaries Employee Benefits Land and Land Improvements Building and Building Improvements Equipment \nDebt Service Principal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nCapital Leases Operating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \n$ \n \n1,222,413.08 \n \n$ 3,689,173.65 \n \n75 410.35 \n \n$ \n \n1,222,413.08 $ 3 764 584.00 \n \n$ \n \n64,300.22 \n \n14,160.66 \n \n$ \n \n2,120,110.15 \n \n518,000.00 269,627.69 204,557.11 \n \n716,338.51 226,926.73 \n \n$ \n \n2,198,571.03 $ 1,935,450.04 \n \n$ \n \n-976 157.95 $ 1,829,133.96 \n \n$ \n \n517,000.00 \n \n$ \n \n706,634.23 \n \n-1,321,467.00 \n \n$ \n \n706,634.23 $ \n \n-804 467.00 \n \n$ \n \n-269,523.72 $ 1,024,666.96 \n \n269,523.72 \n \n306 018.54 \n \nFUND BALANCE JUNE 30 \n \n$ \n \n0.00 $ ==1=,3=3=0=,6=8=5=5==0 \n \nSee notes to the general-purpose financial statements. - 28 - \n \n--------- \n \n EXHIBIT \"H\" \n \nLOTTERY PROJECT \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n373,127.60 $ 1,595,540.68 $ \n \n460,818.80 \n \n3,689,173.65 \n \n3,884,156.54 \n \n75 410.35 \n \n39,730.62 \n \n$ \n \n373 127.60 $ 5,360,124.68 $ 4,384,705.96 \n \n$ \n \n64,300.22 $ \n \n181,550.37 \n \n14,160.66 \n \n31,772.37 \n \n518,000.00 \n \n$ \n \n987,960.37 \n \n3,377,698.21 \n \n2,093,301.13 \n \n204,557.11 \n \n317,248.49 \n \n716,338.51 226,926.73 \n \n590,000.00 239,950.00 \n \n$ \n \n987,960.37 $ 5,121,981.44 $ 3,453,822.36 \n \n$ \n \n-614 832.77 $ \n \n238 143.24 $ \n \n930,883.60 \n \n$ \n \n517,000.00 \n \n$ \n \n614,832.77 \n \n1,321,467.00 $ 1,249,400.02 \n \n-1 ,321,467.00 \n \n-1 ,249,400.02 \n \n$ \n \n614 832.77 $ \n \n517 000.00 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n755,143.24 $ \n \n930,883.60 \n \n0.00 \n \n575,542.26 \n \n-355 341.34 \n \n$ \n \n0.00 $ 1,330,685.50 $ ===57=5=,5=4=2.=2=6 \n \n- 29 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2001 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \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 \n \n. 10.553 \n. 10.555 \n \nNIA \n \n$ 174,604.10 \n \n(2) \n \nNIA \n \n869,464.51 $ \n \n2,715,364.87 (3) \n \nTotal Child Nutrition Cluster \n \n$ 1,044,068.61 $ \n \n2,715,364.87 \n \nOther Programs \n \nPass-Through From Georgia Department of Education \n \nFood and Nutrition Program \n \nFood Distribution Program (1) \n \n10.550 \n \nNIA \n \n116,907.00 \n \n116,907.00 \n \nTotal U. S. Department of Agriculture \n \n$ 1,160,975.61 $ \n \n2,832,271.87 \n \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 \n \n. 84.027 \n* 84.173 * 84.173 \n \nN/A \n \n$ 640,702.00 $ \n \nNIA \n \n69,602.00 \n \nN/A \n \n22,181.00 \n \n707,796.46 (4) 77,163.96 (4) 22,181.00 \n \nTotal Special Education Cluster \n \n$ 732,485.00 $ \n \n807,141.42 \n \nOther Programs \n \nPass-Through From Armstrong Atlantic State University \n \nTitle II \n \nTeacher Quality Enhancement Grants Programs \n \n84.336 \n \nNIA \n \nPass-Through From Georgia Department of Education \n \nComprehensive School Reform Demonstration Project \n \n84.332 \n \nN/A \n \nElementary and Secondary Education Act \n \nTitle I \n \nComprehensive School Reform Demonstration \n \nSite Evaluation \n \n84.010 \n \nN/A \n \nEven Start \n \n84.213 \n \nNIA \n \nGrants to Local Educational Agencies \n \n84.010 \n \nNIA \n \nTitle 11 \n \nEisenhower Professional Development \n \n84.281 \n \nNIA \n \nTitle 111 Technology Literacy Challenge Fund Grants \n \n84.318 \n \nNIA \n \nTitle VI Innovative Education Program Strategies \n \n84.298 \n \nNIA \n \nClass Size Reduction \n \n84.340 \n \nNIA \n \nVocational Education - Basic Grants to States \n \nHigh School Program \n \nBasic Grant \n \n84.048 \n \nNIA \n \n32,669.06 53,827.00 \n4,300.00 261,050.00 819,597.41 \n13,863.62 122,742.57 41,414.00 144,772.00 \n58,466.00 \n \n33,368.15 54,551.70 (4) \n4,300.00 264,306.33 (4) 819,597.41 \n13,863.62 122,742.57 41,989.85 (4) 151,546.70 (4) \n58,581.58 (4) \n \nTotal U. S. Department of Education \n \n$ 2,285,186.66 $ \n \n2,371,989.33 \n \n- 30 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2001 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \n$ 88,133.79 \n \n(3) \n \nTotal Federal Financial Assistance \n \n$ 3,534,296.06 $ =====5,=2=04=,2=6=1=.2=0 \n \nN/A = Not Available \n \nNotes to the Schedule of Expenditures of Federal Awards \n \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. \n(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program. \n(3) Expenditures are not maintained by fund source. (4) Expenditures for this program include State, and/or Other Funds. \n \nMajor Programs are identified by an asterisk () in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Effingham 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. \n \nSee notes to the general-purpose financial statements. \n \n- 31  \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001 \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nGENERAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nFUND \n \nTOTAL \n \nGRANTS Community Affairs, Georgia Department of Governor's Emergency Funds (1) Local Assistance Grants \n \n$ \n \n19,000.00 \n \n15,000.00 \n \n$ \n \n19,000.00 \n \n15,000.00 \n \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 I Category II Category 111 Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Environmental Science Program Health Insurance Mentor Teachers Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Computers in the Classroom Exceptional Growth-Capital Outlay \n \n1,476,054.00 367,192.00 \n4,290,343.00 1,018,305.00 2,450,365.00 4,242,408.00 3,377,284.00 1,466,948.00 \n92,603.00 734.350.00 1,721,817.00 424,862.00 \n23,326.00 419,709.00 216,571.00 325,901.00 \n11,643.00 724,066.00 204,776.00 4,462,126.00 \n \n1,476,054.00 367,192.00 \n4,290,343.00 1,018,305.00 2,450,365.00 4,242,408.00 3,377,284.00 1,466,948.00 \n92,603.00 734,350.00 1,721,817.00 424,862.00 \n23,326.00 419,709.00 216,571.00 325,901.00 \n11,643.00 724,066.00 204,776.00 4,462,126.00 \n \n1,135,959.00 331,946.00 172,699.00 34,340.00 60,905.00 \n2,471,426.00 $ \n185,986.60 \n \n238,902.00 \n \n9,539.82 750.00 \n492,330.60 17,441.00 76,291.00 7,519.15 53,304.64 \n \n171,774.00 $ 373,127.60 \n \n1,135,959.00 331,946.00 172,699.00 34,340.00 60,905.00 \n2,471,426.00 238,902.00 185,986.60 \n9,539.82 750.00 \n492,330.60 17,441.00 76,291.00 7,519.15 53,304.64 \n171,774.00 373,127.60 \n \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \n \n1,222,413.08 \n \n1,222,413.08 \n \nOffice of School Readiness Pre-Kindergarten Program \n \n825,572.56 \n \n825,572.56 \n \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \n123,877.00 \n \n123,877.00 \n \n--------- \n \n- 32 - \n----- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2001 \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \nCONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nGENERAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n65,930.00 \n \n40,648.00 \n \n$ \n \n65,930.00 \n \n40,648.00 \n \n$ 33,365,541.81 $ 1,236,248.56 $ 1,595,540.68 $ 36,197,331.05 \n \n(1) The purpose of the funds is for the purchase of technology equipment at Springfield Central Elementary School \n \nSee notes to the general-purpose financial statements. \n \n-33- \n \n  EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX-PROJECTS \nYEAR ENDED JUNE 30. 2001 \n \nSCHEDULE \"3\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED \nCOST (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \nPayments as required under the Public Facilities Master Lease of the Ebenezer Elementary School in order to facilitate the purchase of said facility \n \n$ 4,874,000.00 $ 6,428,301.27 $ 821,937.52 $ 2,317,963.75 Ongoing \n \nThe construction. remodeling, furnishin~I and equipping of various schools and athletic facilities including acquiring necessary technology \n \n10,126,000.00 \n \n16,704,796.69 \n \n4,300,043.92 \n \n7,957,238.45 Ongoing \n \n$ 15,000,000.00 $ 23,133,097.96 $ 5,121,981.44 $ 10,275,202.20 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost of each project. Includes all cost from project inception to completion. \n(3) The Voters of Effingham 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 lif,e of the projects. \n \nSee notes to the general-purpose financial statements. \n \n- 35- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM /QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001 \n \nSCHEDULE \"4\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nMiddle Grades (6-8) Program \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nCategory V \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n1,651,379.00 $ 410,807.00 \n4,799,950.00 1,139,259.00 2,741,420.00 \n4,746,319.00 3,778,437.00 1,641,192.00 3,352,937.00 \n \n1,642,787.42 $ 920,290.74 \n4,808,881.66 1,195,135.27 3,148,512.61 1,001,224.19 4,127,360.68 4,778,086.26 1,351,581.81 \n232,101.32 794,245.23 1,985,437.80 \n70,342.03 \n \n469,563.00 242,294.00 364,611.00 \n13,026.00 \n \n478,992.47 219,878.79 353,442.30 \n14,811.46 \n \n34,543.66 $ 763.25 \n180,870.78 540.25 \n49,810.92 117,930.44 \n787.50 186,810.44 205,388.62 \n14,214.32 14,332.37 38,643.44 10,591.40 \n1,851.00 7,575.30 3,860.56 14,565.23 \n \n1,677,331.08 921,053.99 \n4,989,752.44 1,195,675.52 3,198,323.53 1,119,154.63 4,128,148.18 4,964,896.70 1,556,970.43 \n246,315.64 808,577.60 2,024,081.24 \n80,933.43 1,851.00 \n486,567.77 223,739.35 368,007.53 \n14,811.46 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n25,351,194.00 $ 27,123,112.04 $ 883,079.48 $ 28,006,191.52 \n \nMedia Center Program Staff and Professional Development \n \n810,070.00 229,099.00 \n \n985,542.36 135,198.16 \n \n553,754.43 100,795.36 \n \n1,539,296.79 235,993.52 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n26,390,363.00 $ 28,243,852.56 $ 1,537,629.27 $ 29,781,481.83 \n \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nSee notes to the general-purpose financial statements. \n \n- 36 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION GENl=RAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2001 \n \nSCHEDULE \"5\" \n \nSITE \nSouth Effingham Elementary School Guyton Elementary School Springfield Central Elementary School Sandhill Elementary School South Effingham High School Effingham County Middle School Ebenezer Elementary School South Effingham Middle School Effingham County High School Marlow Elementary School Rincon Elementary School The Ark Alternative School Program Central Office (Alternative Education Program) \nTOTAL \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \n$ \n \n2,107,122.00 $ \n \n2,255,439.54 \n \n1,795,394.00 \n \n2,135,894.87 \n \n2,065,997.00 \n \n2,329,486.77 \n \n1,522,508.00 \n \n1,605,972.91 \n \n3,010,042.00 \n \n3,305,398.36 \n \n3, 155,552.00 \n \n3,284,498.84 \n \n1,826,723.00 \n \n1,910,124.38 \n \n2,707,757.00 \n \n2,974,419.27 \n \n3,450,587.00 \n \n3,945,000.68 \n \n1,557,586.00 \n \n1,752,906.33 \n \n1,787,315.00 \n \n1,974,608.14 \n \n368,007.53 \n \n364,611.00 \n \n164,433.90 \n \n$ \n \n25,351,194.00 $ 28,006,191.52 \n \nSee notes to the general-purpose financial statements. - 37 - \n \n SECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Rt'SSl:1.1. \\\\\". H1,TO'- \nSTATE AUDITOR \n,aoa, 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street.SW., Suite 214 Atlanta. Georgia 30334-8400 \nApril 3, 2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \nREPORT ON COMPL1'\\NCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements ofEffingham County Board ofEducation as of and for the year ended June 30, 2001, and have issued our report thereon dated April 3, 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. \nCompliance \nAs part of obtaining reasonable assurance about whether Effingham 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 of our tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Effingham 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 \n2001 YB-40 \n \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 Effingham County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanymg Schedule of Findings and Questioned Costs as items FS-6511-01-01 and FS-6511-01-02. \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-6511-0102 to be a material weakness. \nThis report is intended solely for the information and use of the management, members of the Effingham 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. \nRespectfully submitted, \n \nRWH:gp 2001YB-40 \n \nState Auditor \n \n R11ssu.1. \\\\'. H,~n\u003e~ \nSTATE AUDITOR 1404 656-2174 \n \n0EPART1\\1ENT OF AUDITS AND ACCOUNTS \n254 Washington Street. S.W.. Suile214 Atlanta. Georgia 30334-8400 \nApril 3, 2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \nREPORT ON COMPLIA~\\JCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Effingham County Board of Education with the types of compliance requirements described in the U.S. Office ofAfanagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2001. Effingham 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 ofEffingham County Board of Education's management. Our responsibility is to express an opinion on Effingham County Board of Education's compliance based on our audit. \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular Al 33, 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 Effingham 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 Effingham County Board ofEducation's compliance with those requirements. \n2001SA-10 \n \n In our opinion, the Effingham 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. \nInternal Control Over Compliance \nThe management of Effingham 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 Effingham 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. \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 of the 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. \nThis report is intended solely for the information and use of the management, members of the Effingham 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. \nRespectfully submitted, \n \nRWH:gp 2001SA-10 \n \nState Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n EFFil--TGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FWDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 \n \nPRIOR YEAR FINANCIAL STATEMENT FWDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6511-99-02 FS-6511-00-01 \n \nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6511-00-01 \n \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. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n EFFTI\\/GHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDTI'-!GS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2001 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Effingham County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Effingham County Board of Education disclosed financial statement reportable conditions related to the following control categories. \n \nEmployee Compensation \n \nGeneral Fixed Assets \n \nOf the reportable conditions described above, General Fixed Assets is considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit of the Effingham County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Effingham County Board of Education did not disclose any reportable conditions in internal control over major programs. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Effingham County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Requ:tred to be Reported by Section .510{a) of 0MB Circular A-133 The Effingham County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \n \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 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84.173 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n \n- 1- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2001 \nI SUMMARY OF AUDITOR'S RESULTS \n9. Low Risk Audi tee The Effingham County Board ofEducation qualified as a low risk auditee based on a waiver granted by the U.S. Department of Education. \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEMPLOYEE COMPENSATION Salary Underpayments/Overpayment Reportable Condition Amount: $5,211.lS(Net) Finding Control Number: FS-6511-01-01 \nThe accounting procedures ofthe Effingham County Board ofEducation were insufficient to provide adequate control over the employee compensation process. A sample of47 personnel files revealed the following deficiencies: \n(1) One employee was overpaid in the amount of $5,338.07 because the School District issued a paycheck-after the employee was no longer employed by the School District. \n(2) Two employees were underpaid in the amount of$126.92 due to incorrect calculations of their local salary supplement. \nThese deficiencies were the results of management's failure to update the payroll system once individuals were no longer employed by the School District and failure to correctly calculate local salary supplement payments. \nManagement should develop and implement policies and procedures to ensure that salaries are calculated correctly. When an employee leaves the system he or she should be immediately removed from the payroll system and management should establish appropriate internal controls over employee compensation. \nManagement's Response: \nWe concur with the finding and additional procedures have been implemented to prevent the deficiencies from occurring in the future. \n-2- \n- - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - - - -- \n \n EFFil\\JGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2001 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6511-01-02 The Effingham County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional staff the School District has decided not to pursue the recording of general fixed assets on the financial statements. III FEDERAL AWARI) FINDINGS AND QUESTIONED COSTS No matters were reported. \n-3- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b1999-h2000","title":"Effingham County Board of Education, Springfield, Georgia, report on audit for the financial statements for 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, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2000-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: Effingham County Board of Education, Springfield, 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 ... (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed February 3, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Effingham County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Effingham County--Auditing--Periodicals","Education--Georgia--Effingham County--Finance--Statistics--Periodicals"],"dcterms_title":["Effingham County Board of Education, Springfield, Georgia, report on audit for the financial statements for 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-be2-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b1999-h2000"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodical","periodicals","state government audits","official reports","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n \nG,A \n \nA8oo \n \n' \n \n \n \n. Rl \n \nt:.c:26 \n \n;)_ \n \n)999-,2000 \n \nD \nOo 000000 O \n1776 \n \nI \nEFFINGHAM COUNTY BOARD OF EDUCATION \nSPRINGFIELD, GEORGIA \n- \nREPORT ON AUDIT OF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2000 \n \nRussell W. Hinton State Auditor \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \n4 \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n6 \n \nD NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \n7 \n \nADDmONAL FINANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \nSPECIAL REVENUE FUND \n \nE \n \nCOMBINING BALANCE SHEET \n \n20 \n \nF \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n22 \n \nCAPITAL PROJECTS FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \n24 \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n26 \n \nSCHEDULES \n \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n2 SCHEDULE OF STATE REVENUE \n \n30 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n31 \n \nANALYSIS OF \n \nV.I.Y.I. EXPENDITURE REQUIREMENTS \n \nGENERAL FUND - QUALTIY BASIC EDUCATION PROGRAMS \n \n4 \n \nOVERALL \n \n33 \n \n5 \n \nBYPROGRAM \n \n34 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \nSECTION ill \nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS ........Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n \n SECTION I FINANCIAL \n \n- \n \n \n RussELI. W. HtNTON \nSTATE AUDITOR \n(404) 656-2174 \n \n \noY....c \" \n \n \n \nr\"-'=:': \n \n\\Cl \n \n\"'. \n \n,'  ......... 1110 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washingto11 Street. S.W., Suite 214 Atlanta, Georgia 30334-8400 \n \nMay 31, 2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying general purpose financial statements of the Effingham 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 ofthe Effingham County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \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 perfo11n 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 op1 n1 on. \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: \n \n2000ARL-13A \n \n * The general purpose financial statements ofthe Board did not contain a General Fixed \nAssets Account Group to account for property and equipment owned by the Board whit~h should be included to confo1n1 to generally accepted accounting principles. \n* School activity accounts maintained at the individual schools are not included in the \ngeneral purpose financial statements. To conforrn to generally accepted accounting principles, th~se accounts should be included in the general purpose financial statements. \n* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion \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 confor111 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. \n \nThe aggregate effects on the general purpose financial statements of these variances or omissions have not been dete11nined, but are believed to be material. \n \nIn our opinion, except for the effects on the general purpose financial statements of the matters \n \nreferred to in the preceding paragraph, the general purpose financial statements referred to above \n \npresent fairly, in all material respects, the financia,l position of the Effingham County Board of \n \nEducation as ofJune 30, 2000, and the results ofits operations for the year then ended, in confo1111ity \n \nwith accounting principles generally accepted in the United States of America. \n \n- \n \nIn \n \naccordance \n \nwith \n \nGovernment \n \nAuditing \n \nStandards, \n \nwe \n \nhave \n \nalso \n \nissued \n \nour \n \nreport \n \ndated \n \nMay \n \n \n31, \n \n2001, on our consideration of the Effingham County Board of Education's internal control over \n \nfinancial reporting and our tests of its compliance with certain provisions of laws, regulations, \n \ncontracts and grants. That report is an integral part of an audit performed in accordance with \n \nGovernment Auditing Standards and should be read in conjunction with this report in considering the \n \nresults of our audit. \n \nOur audit was perfor1ned for the purpose of fo1n1ing an opinion on the general purpose financial statements of the Effingham 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 \nManagement 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 \ngeneral purpose financial statements. Such infu11nation 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 info11nation is fairly stated, in all material respects; in relation to the general purpose financial statements taken as a whole. \n \n2000ARL-13A \n \n A copy ofthis report has been filed as a pc1111anent record in the office ofthe State Auditor and made \n \navailable to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50- \n \n6-24. \n \n \n \nRespectfully submitted, \n \n;.....~. \nRu sell W. Hinton State Auditor \n \nRWH:jb \n2000ARL-13A \n \n  \nEFFINGHAM COUNTY BOARD OF EDUCATION \n \n \n \n ASSETS \nCash and Cash Equivalents \nInvestments \nAccounts Receivable \nPrepaid Items \nDue from Other Funds \nInventories Food Donated Commodities Purchased Food \nAmount Available in Debt Service Fund \nAmount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements Intergovernmental Contract \nTotal Assets \n \nEFFINGHAM COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2000 \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ \n \n5,499,311.34 $ \n \n986,503.49 $ \n \n19,212.80 \n \n482,125.90 \n \n268,939.31 \n \n1,031,721.48 \n \n8,976.07 \n \n630,999.38 \n \n1,000.00 \n \n1,080,386.46 \n \n35,799.29 12,422.95 \n \n$ \n \n1,043,101.80 $ _ _ _s1_s_1:.;5.1.;;;.4_,9 \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Due to Other Funds General Obligation Bonds Payable Capital Lease Agreements Intergovernmental Contract Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Bus Replacement Funds For Continuation of Federal Program For Debt Service For GSBA Project For Inventories Food Donated Commodities Purchased Food For Local Assistance Grant For State Capital Outlay Projects For SPLOST Projects Unreserved Deficit Undesignated \nTotal Fund Equity \n \n$ \n \n1,928,282.74 $ \n \n35,805.77 \n \n4,995,000.00 \n \n311,652.97 $ \n466,289.00 \n18,760.00 \n \n198,078.50 \n \n43,530.69 \n219,907.22 80,171.32 \n \n$ 6,959,088.51 $ \n \n994,780.47 $ \n \n34 3,609.23 \n \n$ \n \n188,104.55 \n \n$ \n \n618,000.00 \n \n329,352.12 \n$ 1, 135,456.67 $ \n \n699.09 \n35,799.29 12,422.95 \n$ \n0.00 \n48,921.33 $ \n \n269,523.72 306,018.54 \n0.00 575,542.26 \n \nTotal Liabilities and Fund Equity \n \n$ \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n \n-2- \n \n EXHIBIT \"A\" \n \nDEBT SERVICE \nFUND \n \nACCOUNT GROUP GENERAL \nLONG-TERM DEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n1,041,007.16 \n \n$ \n \n7,546,034.79 $ \n \n4,087,785.92 \n \n2,662.57 \n \n753,727.78 \n \n4,914,132.28 \n \n82,515.80 \n \n1,754,212.73 \n \n1,957,035.15 \n \n1,000.00 \n \n10,763.20 \n \n1,080,386.46 \n \n1,378,007.69 \n \n35,799.29 12,422.95 \n \n20,407.63 9,529.54 \n \n$ \n \n243,877.57 \n \n243,877.57 \n \n139,736.57 \n \n12,606,122.43 3,878,420.74 \n230,000.00 \n \n12,606,122.43 3,878,420.74 \n230,000.00 \n \n13,830,263.43 4,278,846.55 \n295,000.00 \n \n$ \n \n \n \n. . \n0. \n \n$ \n \n882,307.96 \n \n$ \n \n$ \n \n882,307.96 $ \n \n$ \n12,850,000.00 3,878,420.74 \n230,000.00 16,958,420.74 $ \n \n$ \n2,283,466.40 502,094.77 \n4,995,000.00 18,760.00 \n219,907.22 60,171.32 \n1,080,386.46 12,850,000.00 3,878,420.74 \n230,000.00 \n26,138,206.91 $ \n \n1,633,059.90 2, 154,805.44 \n393,258.42 4,995,000.00 \n248,684.59 \n65,970.48 1,378,007.69 13,970,000.00 4,278,846.55 \n295,000.00 \n29,412,633.07 \n \n$ \n \n243,877.57 \n \n0.00 $ ---=2'-\"43..,8;;.a7..;.7.;.;;.5a.;.7 \n \n$ \n \n188,104.55 $ \n \n8,133.25 \n \n699.09 \n \n243,BTT.57 \n \n139,736.57 \n \n618,000.00 \n \n618,000.00 \n \n35,799.29 12,422.95 \n269,523.72 306,018.54 \n \n20,407.63 9,529.54 252.69 \n49,290.00 \n \n329,352.12 \n \n-770,641.02 1,434,166.23 \n \n$ \n \n2,003,797.83 $ \n \n1,508,874.89 \n \n-3- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES \nYEAR ENDED JUNE 30, 2000 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \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 \nCapital Outlay Debt Service \nPrincipal Interest Paying Agent Fees \n \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nCapital Leases Operating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \n \nGENERAL FUND \n \nSPECIAL REVENUE \nFUND \n \n$ 30,262,414.80 $ 70,372.19 \n10,035,832.95 537,955.61 \n$ 40,906,575.55 $ \n \n1,242,722.27 3,376,837.83 \n1,537,216.64 \n6,156,776.74 \n \n$ 27,472,905.01 $ \n2,020,570.62 946,258.56 \n1,396,942.74 643,941.73 \n2,425,144.27 697,451.46 \n3,095,512.53 2,559,191.48 \n \n2,780,805.96 250,093.05 120,091.42 186,146.45 \n2,600.11 \n \n284,854.40 \n255,484.14 32,720.16 \n \n2,880,999.62 252.69 \n \n$ 41,830,977.10 $ 6,220,989.30 \n \n$ \n \n-924,401.55 $ ___-64:::..:.,;,2:.1:.::2a.::.5::::,.6 \n \n \n \n$ \n \n431,595.36 \n \n$ \n \n. -432,036.62 \n \n430,668.64 \n \n$ \n \n-441.26 $ _ _.:,;43:.:0:.z.:,6=.:6;.;8.:.:.64c.:.. \n \n$ \n \n-924,842.81 $ \n \n2,060,299.48 \n \n366,456.08 -335,819.82 \n \n15,391.66 2,893.41 \n \nFUND BALANCE JUNE 30 \n \n$ 1,135,456.67 $ _ _ _4_8_,9_2_1._33.., \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n \n-4- \n \n EXHIBIT \"B\" \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTALS \n \n(Memorandum Only) \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n460,818.80 \n \n$ 31,965,955.87 $ 29,271,339.87 \n \n3,447,210.02 \n \n2,844,315.82 \n \n3,884,156.54 $ \n \n1,983,124.83 \n \n15,903,114.32 \n \n14,748,299.39 \n \n39,730.62 \n \n44,258.72 \n \n2,159,161.59 \n \n2,086,583.23 \n \n$ \n \n4,384,705.96 $ \n \n2,027,383.55 $ 53,475,441.80 $ 48,950,538.31 \n \n \n \n$ 30,253,710.97 $ 26,976,551.65 \n \n$ 2,623,872.36 \n \n2,270,663.67 1,066,349.98 1,396,942.74 \n830,088.18 2,425,144.27 \n697,451.46 3,095,512.53 2,561,791.59 \n2,880,999.62 2,908,979.45 \n \n2,271,175.36 968,002.07 \n1,284,577.42 522,937.54 \n2,251,834.72 579,368.98 \n2,842,000.92 2,049,051.60 \n59,036.08 978.63 \n2,770,253.05 3,548,768.78 \n \n590,000.00 $ 239,950.00 \n \n1, 120,000.00 799,945.00 4,665.53 \n \n1,965,484.14 1,072,615.16 \n4,665.53 \n \n1,802,593.19 1, 159,926.57 \n3,247.27 \n \n$ \n \n3,453,822.36 $ \n \n1,924,610.53 $ 53,430,399.29 $ 49,090,303.83 \n \n$ \n \n930,883.60 $ \n \n102,773.02 $ \n \n45,042.51 $ \n \n-139,765.52 \n \n$ $ _ _ _ _..;;;.o=.o\"\"'\"o \n \n$ \n1,367.98 \n \n$ \n \n0.00 $ _ _ _1.;.i.,3;:;.;6;.:.7.;.;:.9;.;a.8 $ \n \n431,595.36 432,036.62 $ -432,036.62 \n431,595.36 $ \n \n35,362.62 -35,362.62 \n0.00 \n \n$ \n \n930,883.60 $ \n \n-355,341 .34 \n \n104,141.00 $ \n139,736.57 \n \n476,637.87 $ \n1,508,874.89 \n \n-139,765.52 1,654,928.59 \n \n15,391.66 2,893.41 \n \n-6,280.38 -7.80 \n \n$ \n \n575,542.26 $ \n \n243,877.57 $ 2,003,797.83 $ 1,508,874.89 \n \n-5- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL - (NON-GAAP BASIS! GENERAL' AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30. 2000 \n \nEXH 18IT \"C\" \n \nGENERAL FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \n \n$ 29,005,200.00 $ 30,262,414.80 \n \n70,372.19 \n \n9,549.500.00 10,035,832.95 \n \n496,804.00 \n \n537,955.61 \n \n$ 39,051,504.00 $ 40,906,575.55 \n \nEXPENDITURES \n \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 Food Services Operation \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \n \n$ 26,402,635.00 $ 27,472,905.01 \n \n1,910,239.00 1,149,851.00 1,393,769.00 \n464,047.00 2.366,994.00 \n367,052.00 2,693,594.00 1,926,609.00 \n \n2,020,570.62 946,258.56 \n1,396,942.74 643,941.73 \n2,425,144.27 697.451.46 \n3,095.512.53 2.559, 191.48 \n \n376,714.00 \n \n284,854.40 288,204.30 \n \n$ 39,051,504.00 $ 41,830,977.10 \n \n$ _ _ _..;:0;.;.,.00:.::. $ -924,401.55 \n \nOTHER FINANCING SOURCES {USESl \nOther Sources Other Uses \n \nTotal Other Financing Sources (Uses) \n \n$ 431,595.36 -432,036.62 \n$ _ _ _-44~1.:::.2:,;:;..6 \n \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ \n \n0.00 $ -924,842.81 \n \nFUND BALANCE JULY 1. 1999 \n \n2, 157,546.95 \n \n2,060,299.48 \n \nAdjustments Food Inventory - Net Change in Period \nDonated Commodities Purchased Food \n \nFUND BALANCE JUNE 30. 2000 \n \nSPECIAL REVENUE FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \n$ 910,897.00 $ 1,242,722.27 \n \n2,654,765.00 \n \n3,376,837.83 \n \n1,567,820.00 \n \n1,537,216.64 \n \n$ 5,133,482.00 $ 6,156,776.74 \n \n$ 1,819,624.00 $ 2,780,805.96 \n \n391,969.00 31,413.00 \n \n250,093.05 120,091.42 \n \n134,940.00 \n \n186,146.45 \n \n6,816.00 2,748,720.00 \n \n2,600.11 2,880,999.62 \n252.69 \n \n$ 5,133,482.00 $ 6,220,989.30 \n \n$ \n \n0.00 $ \n \n-64,212.56 \n \n$ 430,668.64 \n \n$ 430,668.64 \n \n$ \n \n0.00 $ 366,456.08 \n \n-407,844.17 \n \n-335,819.82 \n \n290,680.64 \n \n15,391.66 2,893.41 \n \n \n$ -1111163.53 s _ _4_s_,9_2_1_.3_3 \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n-6- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Effingham County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity. \nFUND ACCOUNTING \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. \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 GeneFal Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. \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 fmancial statements. To confo11n to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. \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: \nGOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: \nGENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \n \n-7- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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. \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or co11struction of major capital facilities. \nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-te11n principal, interest and paying agent fees. \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding, capital lease obligations and intergovernmental contracts. \nBASIS OF ACCOUNTING \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. \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-Te11n Debt Account Group. \nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \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 detc1111ined 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. \nExpenditures are generally recognized when the related fund liability is incurred. \n \n-8- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \nJUNE 30, 2000 \n' \n \nEXHIBIT \"D\" \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nA departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \nBUDGET \nThe Effingham County Board of Education'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 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. \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. \nCASH AND CASH EQUIVALENTS \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. \n \n-9- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nINVESTMENTS \n \nCOMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n \n(1) Obligations issued by the State of Georgia or by other states, \n \n(2) Obligations issued by the United States government, \n. \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n \n(4) Obligations of any corporation ofthe United States government, \n  \n \n(5) Prime banker's acceptances, \n.. .. . . \n., . \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of \n \n \n \nTreasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nRECEIVABLES \n \nReceivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from infu1n1ation 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. \n \n- 10 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nPROPERTY TAXES \n \nThe Effingham County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on August 17, 1999 (levy date). Taxes were due on November 15, 1999. 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 Effingham 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. \n \nTax millage rates levied for the 1999 tax year (calendar year) for the Effingham County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n13.63 mills 2.91 mills \n \n16.54 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $3,884,156.54 and was recorded in the Capital Projects Fund. The State will terrninate collection ofthis tax once an additional $6,706,164.85 has been collected or on December 31, 2002, whichever occurs first. \n \nINVENTORIES  \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 c9nstitute ''available spendable resources'' even \n \nthough they are a component of net current assets. \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2000, are recorded as prepaid items. \n \n- 11 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nGENERAL OBLIGATION BONDS \n \n \nThe Board issues general obligation bonds to provide funds for the acquisition and construction of \n \nmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in \n \nthe financial statements during the year bonds are issued. General obligation bonds are direct \n \nobligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese \n \nbonds is recorded in the General Long-Te1n1 Debt Account Group. \n \n \n \nINTERFUND TRANSACTIONS \n \nThe Board has the following types of interfund transactions: \n \nReimbursements ofexpenditures initially made from a fund that are properly applicable to another \nfund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \n \nOperating transfers are recorded for all interfund transactions other than reimbursements. \n \nMEMORANDUM ONLY -TOTAL COLUMNS \n \nTotal columns on the general purpose financial statements are captioned ''Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in confo11nity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS \nOfficial Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on \ndeposit at any time in any depository for a time longer than ten days a sum ofmoney which has not \nbeen secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value ofsuch surety bond and the market value ofsecurities pledged shall be equal to not less than \n110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking \naccounts. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n- 12 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \nNote 2: DEPOSITS AND INVESTMENTS \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \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, \n, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \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 Inte1mcdiate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $9,649,210.66. The amounts ofthe total bank balances are classified into three categories of credit risk: \n \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. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. \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.) \nThe Board's deposits are classified by risk category at June 30, 2000, as follows: \n \n- 13 - \n \n  \n \nEFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nRisk Category \n \nBank Balance \n \n1 \n \n$1,341,007.16 \n \n2 \n \n6,249,498.05 \n \n3 \n \n2,058,705.45 \n \nTotal \n \n$ 9.649,210.66 \n \nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \n \nCategory 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name. \n \nAt June 30, 2000, the carrying value of the Board's total investments was $753,727.78. The investments are classified as to risk categories as follows: \n \nType of Investment \n \nRisk Categories \n \nI \n \n2 \n \n3 \n \nCarrying Amount \n \nInvestment Portfolio Account $ 22,745.08 $ \n \no.oo s===o!!,,!;.o~o s s 22,745.os \n \nFair Value \n22,745.os \n \nLocal Government \n \n- \n \nInvestment Pools \n \n730.982.70 730,982.70 \n \nTotal Investments \n \n$ 753,727.78 $ 753,727.78 \n \n. \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool \nwhich follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not \nregistered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety of capital, investment \n \n- 14 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nincome, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-terrn instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year. \n \nNote 3: NON-MONETARY TRANSACTIONS \n \nThe Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned \nvalue. See Note 1 - Inventories \n \nNote 4: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. The following analysis summarizes the status of all interfund transactions of the Board at June 30, 2000: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund Special Revenue Fund \nSchool Food Services Fund Debt Service Fund \n \n$ 1,080,386.46 \n$ 198,078.50 882,307.96 \n \n$ 1,080,386.46 $ 1,080,386.46 \n \nNote 5: RISK MANAGEMENT  \n \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. \n \n- 15 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 5: RISK MANAGEMENT \n \nThe Board has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, job related illness or injuries to employees and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. \n \nThe Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Board has not incurred any liabilities for unemployment compensation during the past two fiscal years. \n \nThe Board has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Employee \n \n$ 100,000.00 $ 50,000.00 \n \nNote 6: OPERATING LEASES \n \nEffingham County Board ofEducation 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, 2000, amounted to $64,179.66. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \n2001 \n \nAmount \n$ 4,826.70 \n \nNote 7: GENERAL LONG-TERM DEBT \n \nCAPITAL LEASES The Effingham County Board ofEducation entered into an agreement on October 1, 1994, with the Georgia School Boards Association (GSBA), Incorporated for the construction and subsequent lease of various school facilities. Under the te1ms of the lease agreement, the Board will make semiannual payments through January 15, 2005. This lease includes an annual renewal clause. \n \nThe Effingham County Board of Education has entered into lease agreements as lessee for buses, equipment and an intergovernmental contract with the City ofSpringfield to finance a sanitary sewer system to serve the schools. 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 the inception. \n \n- 16 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 7: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose General Government - Series 1994 \n \nInterest Rates 4.20% - 6.25% \n \nAmount $ 12,850,000.00 \n \nThe changes in General Long-Terrn Debt during the fiscal year ended June 30, 2000, were as follows: \n \nCapital Leases \n \nGSBA \n \nOther \n \nIntergovernmental Contract \nTrust Certificates \n \nGeneral Obligation \nBonds \n \nTotal \n \nBalance July I, 1999 $4,080,000.00 $ 198,846.55 $ 295,000.00 $13,970,000.00 $18,543,846.55 \n \nAdditions Capital Leases \n \n431,595.36 \n \n431,595.36 \n \nDeductions Debt Retired Trade-Ins \n \n590,000.00 \n \n190,484.14 51,537.03 \n \n65,000.00 \n \nI, 120,000.00 \n \n1,965,484.14 51,537.03 \n \nBalance June 30, 2000 $3.490.000.00 $ 388,420.74 $ 230,000.00 $12.850.000.00 $16.958.420.74 \n \nAt June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCapital Leases \n \nGSBA \n \nOther \n \nIntergovernmental Contract \nTrust Certificates \n \nGeneral Obligation \nBonds \n \nTotal Debt \n \n2001 2002 2003 2004 2005 2006 - 2010 \n \n$ 821,937.50 $ I81,771.28 $ 823,187.50 125,941.06 821,887.50 118,673.30 822,793.76 820,531.26 \n \n88,415.00 87,885.00 91,885.00 \n \n$ 1,913,945.00 1,903,690.00 1,893,420.00 1,888,932.50 1,874,562.50 7,473,275.00 \n \n$ 3,006,068.78 2,940,703.56 2,925,865.80 2,711,726.26 2,695,093.76 7,473,275.00 \n \nTotal Principal and \n \nInterest \n \n$4,110,337.52 $ 426,385.64 $ \n \n268,185.00 $16.947.825.00 $21,752,733.16 \n \nDeduct: Imputed Interest \n \n620,337.52 \n \n37,964.90 \n \n38,185.00 \n \nNet Present Value of Future Minimum Lease Payments $3.490.000.00 $ 388,420.74 $ \n \n230,000.00 \n \n- 17 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \nNote 8: LOANS PAYABLE \n \nAt June 30, 2000, short-teim debt (temporary loans) amount to $4,995,000.00 with interest accruing at 4.67 percent. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia limits the aggregate amount oftemporary loans to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all temporary loans to be repaid no later than December 31 ofthe calendar year in which the loan was made. \n \nNote 9: ON-BEHALF PAYMENTS \n \nThe Board has recognized revenues and expenditures in the amount of $632,641.90 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $459,173.03 \n- \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $51,784.87 \n \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 $121,684.00 \n \n- \nNote 10: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \nOOG/99S-651-019 01 /005-651-003 \n \n$ 490,118.13 $ 44,360.60 6,424,188.76 3,996,000.00 \n \n$ 6,914,306.89 $ 4,040,360.60 \n \nThe amounts described in this note are not reflected in the general purpose financial statements. \n \n- 18 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \nNote 11: CONTINGENT LIABILITIES \n \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 te11ns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe Board is a defendant in various legal proceedings pertaining to matters incidental to the perforrnance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements. \n \nNote 12: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \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 ernployer contribution rate is 11.29% and ernployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2000 1999 1998 \n \n100% 100% 100% \n \n$3,142,296.36 $2,939,807.31 $ 2,584,620.12 \n \n- 19 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 \n \nASSETS \nCash and Cash Equivalents \nAccounts Receivable \nInventories Food Donated Commodities Purchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n378,461.50 $ \n \n199,770.83 \n \n8,976.07 \n \n35,799.29 12,422.95 \n \nTotal Assets \n \n$ \n \n435,659.81 $ ===1=99..,.7;.;,7.0..=.8=3 \n \nLIABILITIES AND FUND EQUITY \n \nLIABILITIES \n \nAccounts Payable Salaries Payable Expired Grant Balances Payable Due to Other Funds \n \n \n \nTotal Liabilities \n \nFUND EQUITY \n \nFund Balances \n \nReserved \n \nFor Continuation of Federal Program \n \nFor Inventories \n \nFood \n \nDonated Commodities \n \nPurchased Food \n \nFor Local Assistance Grant \n \n \n \nUnreserved \n \nDeficit \n \nUndesignated \n \nTotal Fund Equity \n \nTotal Liabilities and Fund Equity \nSee notes to the general purpose financial statements. -20- \n \n$ \n \n37,899.20 $ \n \n105,666.07 \n \n151,459.87 \n \n94,104.76 \n \n198,078.50 \n \n$ \n \n387,437.57 $ _ _..;.19;.;9'-'-7', '-\"7-\"-0!3~3 \n \n$ \n \n35,799.29 \n \n12,422.95 \n \n0.00 $ _ _ _ _.;;.0.=00~ \n \n$ \n \n48,222.24 $ _ _ _ _.;;.0-=0~0 \n \n$ \n \n435,659.81 $ \n \n199,770.83 \n \n-- - -------- \n \n--- \n \n-- ----------- \n \n \n \n EXHIBIT \"E\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAM \n \nTOTALS \n \n JUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n408,271.16 $ \n \n0.00 $ \n \n986,503.49 $ \n \n503,915.67 \n \n8,976.07 \n \n12,571.44 \n \n35,799.29 12,422.95 \n \n20,407.63 9,529.54 \n \n$ \n \n408,271.16 $ \n \n0.00 $ \n \n1,043,701.80 $ ===5.4.6...,,4=2=4=.2=8 \n \n$ \n \n168,087.70 $ \n \n220,724.37 \n \n18,760.00 \n \n$ \n \n407,572.07 $ \n \n \n \n0.00 $ \n \n311,652.97 $ 466,289.00 \n \n18,760.00 198,078.50 \n \n164,111.91 389,758.42 \n328,373.77 \n \n0.00 $ \n \n994,780.47 $ _ _ _8_82_,2_44_.1_0 \n \n- \n \n$ \n \n699.09 \n \n$ \n \n699.09 \n \n35,799.29 $ 12,422.95 \n \n20,407.63 9,529.54 252.69 \n \no.oo $ ----~o=.o~o \n \n-366,009.68 \n \n0.00 \n \n0.00 \n \n$ \n \n699.09 $ \n \n0.00 $ \n \n48,921.33 $ _ _-_33_5~,8_1_9._82_ \n \n \n$ \n \n408,271.16 $ \n \n0.00 $ \n \n1,043,701.80 $ \n \n546,424.28 \n \n- 21 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000 \n \nREVENUES \nState Funds Federal Funds Other Funds \n \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Student Transportation Services Other Support Services Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOperating Transfers In \nExcess of Revenues and Other Financing Sources over (under) Expenditures \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n217,994.00 $ \n \n1,024,728.27 \n \n1,201,118.02 \n \n1,537,216.64 \n \n$ \n \n_ _ _ _ 2,956,328.66 $ \n \n1..,..0__2..4...,..7. 28.27 \n \n$ \n \n1,029,083.10 \n \n9,031.78 \n \n9,239.58 \n \n$ \n \n2,880,999.62 \n \n$ \n \n_ _ _ _ 2,880,999.62 $ \n \n1..,..0__4..7...,..3. 54.46 \n \n$ \n \n75,329.04 $ \n \n-22,626.19 \n \n \n \n290,680.64 \n \n22,626.19 \n \n$ \n \n366,009.68 $ \n \n-336,072.51 \n \n0.00 0.00 \n \n15,391.66 2,893.41 \n \nFUND BALANCE JUNE 30 See notes to the general purpose financial statements. \n-22- \n \n$ \n \n48,222.24 $ ======0.0=0 \n \n EXHIBIT \"F\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAM \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n$ \n \n2,175,719.81 \n \n$ \n \n2,175,719.81 $ \n \n0.00 $ 0.00 $ \n \n1,242,722.27 $ 3,376,837.83 1,537,216.64 \n6,156,776.74 $ \n \n1,158,972.73 2,767,913.97 1,408,545.73 \n5,335,432.43 \n \n$ \n \n1,751,722.86 \n \n$ \n \n2,780,805.96 $ \n \n2,016,196.42 \n \n241,061.27 120,091.42 176,906.87 \n2,600.11 \n$ \n \n252.69 \n \n250,093.05 120,091.42 \n186,146.45 2,600.11 \n2,880,999.62 252.69 \n \n389,779.89 102,014.04 \n2,944.53 100,032.41 \n1,694.33 978.63 \n2,770,253.05 26,804.10 \n \n$ \n \n2,292,382.53 $ \n \n252.69 $ \n \n6,220,989.30 $ \n \n5,410,697.40 \n \n$ \n \n-116,662.72 $ \n \n-252.69 $ \n \n-64,212.56 $ \n \n-75,264.97 \n \n \n \n117,361.81 \n \n430,668.64 \n \n35,362.62 \n \n$ \n \n699.09 $ \n \n-252.69 $ \n \n366,456.08 $ \n \n-39,902.35 \n \n0.00 \n \n252.69 \n \n-335,819.82 \n \n-289,629.29 \n \n15,391.66 2,893.41 \n \n-6,280.38 -7.80 \n \n$ \n \n699.09 $ \n \n0.00 $ \n \n48,921.33 $ ===3.3.5....,,==81=9==.8=2 \n \n-23- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000 \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \n \nTotal Assets \n \nGEORGIA STATE FINANCING AND \nINVESTMENT \nCOMMISSION \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \n$ \n \n354,898.38 \n \n$ \n \n75,290.72 \n \n630,999.38 \n \n$ \n \n354,898.38 $ ===7=06=,2=9=0=.1=0 \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Contracts Payable Retainages Payable Due to Other Funds \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved  For State Capital Outlay Projects For SPLOST Projects Unreserved Deficit Un designated \nTotal Fund Equity \nTotal Liabilities and Fund Equity \n \n$ \n \n385,127.26 \n \n$ \n \n600.00 \n \n15,144.30 \n \n84,262.91 \n \n511.75 \n \n$ \n \n85,374.66 $ _ _....:4-=-00;;.i.,::.;27:...:1~.5~6 \n \n$ \n \n269,523.72 \n \n$ \n \n306,018.54 \n \n0.00 \n \n0.00 \n \n$ \n \n269,523.72 $ _ _...;:;3.;;;..06=,.;;..01.;..;;8.;;.;.5'-'-4 \n \n$ \n \n354,898.38 $ ===7=06=,2=9=0=.1=0 \n \nSee notes to the general purpose financial statements. -24- \n \n EXHIBIT \"G\" \n \nLOTTERY PROJECT \n \nTOTALS \n \nJUNE 30, 2000 \n \nJUNE 30, 1999' \n \n$ \n \n49,441.68 $ \n \n404,340.06 $ \n \n201,053.32 \n \n193,648.59 \n \n268,939.31 \n \n. \n1,606,664.21 \n \n630,999.38 \n \n803,168.47 \n \n$ \n \n243,090.27 $ \n \n1,304,278.75 $ \n \n2,610,886.00 \n \n \n \n$ \n \n385,127.26 $ \n \n1,834, 113.22 \n \n$ \n \n27,786.39 \n \n43,530.69 \n \n204,247.94 \n \n135,644.31 \n \n219,907.22 \n \n248,684.59 \n \n79,659.57 \n \n80,171.32 \n \n65,970.48 \n \n613,211.11 \n \n$ . 243,090.27 $ \n \n728,736.49 $ \n \n2,966,227.34 \n \n \n \n \n \n$ \n \n$ _ _ _ _..;;;.o=.o.a...o \n \n$ \n \n0.00 $ \n \n269,523.72 $ 306,018.54 \n \n49,290.00 \n \n-404,631.34 0.00 \n \n575,542.26 $ ---=3=55=,34~1=.34...;.. \n \n. \n \n$ \n \n243,090.27 $ \n \n1,304,278.75 $ \n \n2,610,886.00 \n \n- 25 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND \nYEAR ENDED JUNE 30, 2000 \n \nREVENUES \nState Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCapital Outlay Salaries Employee Benefits Building and Building Improvements Equipment \nDebt Service Principal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOperating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \n$ \n \n0.00 \n \n$ \n \n3,884,156.54 \n \n39,730.62 \n \n$ \n \n0.00 $ _ ____;_3=,9=23;;..,,8.:;..;8:;..;_7..;..;.1~6 \n \n$ \n \n113,009.18 \n \n19,012.38 \n \n$ \n \n229,976.28 \n \n684,617.21 \n \n317,248.49 \n \n590,000.00 239,950.00 \n \n$ \n \n229,976.28 $ _ ____;_1,t=,9.;:,;63:.i.,8:;.;:3;..;.7=.2;.;;...6 \n \n$ \n \n-229,976.28 $ _ ____;_1,i.;;.9.;;.;60;.:.,0;..4:.;.9.c.;.9~0 \n \n$ \n \n499,500.00 \n \n______ $ \n \n$ \n \n499,500.00 $ \n \n-1,249,400.02 -1,249,400.02 \n \n$ \n \n269,523.72 $ \n \n710,649.88 \n \n0.00 \n \n-404,631.34 \n \nFUND BALANCE JUNE 30 \n \n$ \n \n269,523.72 $ ===3=06=,0=1=8=.5=4 \n \nSee notes to the general purpose financial statements. \n-26- \n \n EXHIBIT \"H\" \n \nLOTTERY PROJECT \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n460,818.80 $ \n \n460,818.80 $ \n \n555,540.60 \n \n3,884,156.54 \n \n3,282,026.47 \n \n39,730.62 \n \n106,026.54 \n \n$ \n \n460,818.80 $ 4,384,705.96 $ 3,943,593.61 \n \n$ \n \n68,541.19 $ \n \n181,550.37 $ \n \n93,739.02 \n \n12,759.99 \n \n31,772.37 \n \n9,259.74 \n \n1,178,707.64 \n \n2,093,301.13 \n \n3,170,681.56 \n \n317,248.49 \n \n71,223.43 \n \n590,000.00 239,950.00 \n \n565,000.00 257,587.52 \n \n$ 1,260,008.82 $ 3,453,822.36 $ 4,167,491.27 \n \n$ \n \n-799,190.02 $ \n \n930,883.60 $ _ _-.;;;2;;.;23;.:.,8_,9..7..._.6__6_ \n \n$ \n \n749,900.02 $ \n \n1,249,400.02 $ \n \n799,236.28 \n \n-1,249,400.02 \n \n-799,236.28 \n \n$ \n \n749,900.02 $ \n \n \n \n0.00 $ - - - - -0.0-0 \n \n$ \n \n-49,290.00 $ \n \n930,883.60 $ \n \n-223,897.66 \n \n49,290.00 \n \n-355,341.34 \n \n-131,443.68 \n \n$ \n \n0.00 $ \n \n575,542.26 $ ==-..3..5..5._,3_4=1=.3=4 \n \n- 27 - \n \n \n \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2000 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \n \nCFDA NUMBER \n \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 \n \n* 10.553 * 10.555 \n \nTotal Child Nutrition Cluster \n \nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) \n \n10.550 \n \nTotal U.S. Department of Agriculture \n \nCorporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs \n \n94.004 \n \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 \n \n84.027 84.173 \n \nTotal Special Education Cluster \n \nOther Programs \n \nPass-Through From Armstrong Atlantic State University \n \n \n \nTitle II \n \nTeacher Quality Enhancement Grants Programs \n \n84.336 \n \nPass-Through From Georgia Department of Education \n \nComprehensive School Refonn Demonstration Project \n \n84.332 \n \nElementary and Secondary Education Act \n \n \n \nTitle I \n \nEven Start  Grants to Local Educational Agencies \n \n84.213 \n 84.010 \n \nTitle II \n \nEisenhower Professional Development \n \n84.281 \n \nTitle VI \n \nInnovative Education Program Strategies \n \n84.298 \n \nClass Size Reduction \n \n84.340 \n \nGoals2000 \n \nState and Local Education Systemic Improvement Grants \n \n84.276 \n \nVocational Education  Basic Grants to States \n \nHigh School Program \n \nBasic Grant \n \n84.048 \n \nTotal U. S. Department of Education \n \nOTHER FEDERAL ASSISTANCE \n \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \nN/A $ 168,749.93 \n \n(2) \n \nNIA \n \n831,810.22 $ 2,680,441.75 (3) \n \n$ 1,000,560.15 $ 2,680,441.75 \n \nNIA \n \n200,557.87 \n \n200,557.87 \n \n$ 1,201,118.02 $ 2,880,999.62 \n \nN/A \n \n$ \n \ns ___ 31,000.00 \n \n3.;;;.;7\"\"\",o;..;;o..;:;.o;..;:..o.a..o \n \nNIA $ 557,172.00 $ \n \nNIA \n \n68,089.00 \n \n$ 625,261.00 $ \n \n588,134.01 (3) 70 168.70 (3) \n658,302.71 \n \nNIA \n \n5,384.55 \n \n4,685.46 \n \nNIA \n \n53,827.00 \n \n54,141.00 (3) \n \nNIA \n \n261,050.00 \n \n262,382.97 (3) \n \nNIA \n \n821,975.26 \n \n846,448.97 (3) \n \nNIA \n \n31,021.00 \n \n43,924.14 (3) \n \nNIA \n \n40,171.00 \n \n52,311.88 (3) \n \nNIA \n \n132,934.00 \n \n143,659.70 (3) \n \nNIA \n \n110,955.00 \n \n133,334.27 (3) \n \nN/A \n \n56,141.00 \n \n56,191.43 (3) \n \n$ 2,138,719.81 $ 2,255,382.53 \n \n$ _ _..;..70=.,,,3:.;7.a::;2;.:..1.::..9 \n \n(4) \n \n \n \nTotal Federal Financial Assistance NIA= Not Available \n \n$ 3,447,210.02 $ 5, 173,382.15 \n \n-28- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2000 \nNotes to the Schedule of Expenditures of Federal Awards \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 system during the current fiscal year. \n(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program. \n(3) Expenditures for this program include State, and/or Other Funds. (4) Expenditures are not maintained by fund source. \nMajor Programs are identified by an asterisk () in front of the CFDA number. \nThe Board did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Effingham 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. \n \n \nSCHEDULE \"1\" \n \n \n \n \n \nSee notes to the general purpose financial statements. \n \n 29. \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE \nYEAR ENDED JUNE 30. 2000 \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nGENERAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nFUND \n \nTOTAL \n \nGRANTS \n \nCommunity Affairs, Georgia Department of \n \nLocal Assistance Grants \n \n$ \n \n17,500.00 \n \n$ \n \n17,500.00 \n \nEducation, Georgia Department of \n \nQuality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost \n \n17,128,416.00 3,190,205.00 \n406,264.00 732,150.00 204,490.00 4,474,095.00 \n \n17,128,416.00 3,190,205.00 406,264.00 732,150.00 204,490.00 4,474,095.00 \n \nPupil Transportation Regular Bus Replacement \nMiddle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Vocational Education \n \n1,024,121.00 315,242.00 659,043.00 475,084.00 131,538.00 960,336.00 74,757.00 86,527.00 \n-3,074,015.00 2,335,989.00 \n$ \n89,736.00 \n \n217,994.00 \n \n1,024, 121.00 315,242.00 659,043.00 475,084.00 131,538.00 960,336.00 74,757.00 86,527.00 \n-3,074,015.00 2,335,989.00 \n217,994.00 89,736.00 \n \nOther State Programs Alternative Program Apprenticeship Program \nAt-Risk Summer School Program \nEnvironmental Science Program Health Insurance Mentor Teachers Preschool Handicapped Program Remedial Summer School Teachers' Retirement \n \n128,806.00 2,000.00 \n21,804.82 1,500.00 \n459,173.03 20,412.00 70,317.00 7,807.08 51,784.87 \n \n128,806.00 2,000.00 \n21,804.82 1,500.00 \n459,173.03 20,412.00 70,317.00 7,807.08 51,784.87 \n \nLottery Programs \n \nAssistive Technology \n \n \n \nComputers in the Classroom \n \nExceptional Growth-Capital Outlay \n \n29,794.46 178,193.00 \n$ \n \n460,818.80 \n \n29,794.46 \n \n178,193.00 460,818.80 \n \nOffice of School Readiness Pre-Kindergarten Program \n \n816,740.81 \n \n816,740.81 \n \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \n121,684.00 \n \n121,684.00 \n \nCONTRACT Education, Georgia Department of Reading First Program \n \n20,648.00 \n \n20,648.00 \n \nOTHER \nEducation, Georgia Department of \nReimbursement for MUNIS Software \n \n125,000.00 \n \n125,000.00 \n \n$ 30,262,414.80 $ 1,242,722.27 $ \n \n460,818.80 $ 31,965,955.87 \n \nSee notes to the general purpose financial statements. \n \n-30  \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30. 2000 \n \nSCHEDULE \"3\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOU~JT EXPENDED \nIN PRIOR YEARS \n \nPayments as required under the \n \nPublic Facilities Master Lease of the \n \nEbenezer Elementary School in order \n \nto facilitate the purchase of said facility \n \n$ \n \n4,874,000.00 $ \n \n6,428,301.27 $ \n \n818,207.50 $ 1,499,756.25 \n \nThe construction, remodeling, furnishing and equipping of various schools and athletic facilities including acquiring necessary technology \n \n10,126,000.00 \n \n16,046,101.16 \n \n2,635,614.86 \n \n5,321,623.59 \n \n$ 15,000,000.00 $ 22,474,402.43 $ 3,453,822.36 $ ===6,~82=1.,.,3=7=9=.84= \n \n(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The Board's current estimate of total cost of each project. Includes all cost from project inception to completion. \n(3) The voters of Effingham County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \n \n \n \nSee notes to the general purpose financial statements. \n \n 31 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL \nGENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS \nYEAR ENDED JUNE 30, 2000 \n \nSCHEDULE \"4\" \n \nMinimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis  \nSalaries Operations \nLess: Expenditures for Media Center Programs in Excess of Total Media Allotment \nExpenditures per Audit \nAmount of Underexpenditure for Total Allotment \n \nFOURTEEN WEIGHTED AND MEDIA CENTER \nPROGRAMS \n \n100/o TEST FOR \nOPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \n \n$ \n \n22,417,371.00 667,702.00 $ _ ___,;;..;;._\"'--'-'c...;..;;...C.... \n \n$ \n \n__ __ 25,396,423.86 1,675,519.37 $ \n \n_1_,,1_7_8..,.1._18.16 \n \n$ \n \n27,071,943.23 \n \n-650,142.17 $ _ _2_6...,_,4_2_1..,_,8_0_1_.0_6 \n \n$ \n \no.oo $========0..0...=0 \n \nSee notes to the general purpose financial statements. \n- 33 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS  BY PROGRAM \nGENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 \n \nGENERAL AND CAREER EDUCATION PROGRAMS \n \nKindergarten (*) \n \nGrades 1  3 (*) \n \nSub-Total  K-3 \n \nGrades 4  5 (*) \n \nGrades 6 - 8 (*) \n \nGrades 9 - 12 (*) \n \nHigh School Laboratories (*) \n \nVocational Education Laboratories (*) \n \nTotal General and Career Education Programs \n \nSPECIAL EDUCATION PROGRAMS \n \nRegular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Category V (*) \n \nSub-Total - Regular \n \nCategory VI (Gifted) (*) \n \nTotal Special Education Programs \n \nREMEDIAL EDUCATION PROGRAM(*) \n \n- \n \nTotal Fourteen Weighted Programs \n \nMEDIA CENTER PROGRAMS \n \nSalaries Operations \n \nTotal Media Center Programs \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF \n \nREQUIRED \n \nORIGINAL \n \n% \n \nORIGINAL \n \nMID-TERM \n \n$ 1,806,831.00 \n \n$ 1,626,147.90 \n \n4,647,707.00 \n \n4.182.936.30 $ _ __,;2;.;:.o.;;.,o..;.;oo;;,.;;o,;.o;;.,;;.,o \n \n$ 6,454,538.00 90 $ 5,809,084.20 $ \n \n200,000.00 \n \n2,232,936.00 90 \n \n2,009,642.40 \n \n200,000.00 \n \n3,961,285.00 90 \n \n3,565,156.50 \n \n200,000.00 \n \n2,742,597.00 90 \n \n2,468,337.30 \n \n849,184.00 90 \n \n764,265.60 \n \n887,876.00 90 \n \n799,088.40 \n \n360,336.00 \n \n$ 17,128,416.00 \n \ns 15,415,574.40 $ ----=96=o,.::.:33:.:6,;.o;;.~o \n \n$ 2,905,815.00 \n \n$ 2,615,233.50 $ \n \n0.00 \n \n$ 2,905,815.00 90 $ 2,615,233.50 $ \n \n0.00 \n \n \n284,390.00 90 \n \n255,951.00 \n \n$ 3,190,205.00 \n \n$ 2,871,184.50 $ _ _ ___;;;0,;.;;.0.,;;.,0 \n \n$ \n \n406,264.00 90 $ \n \ns_ _ _ 365,637.60 \n \n__,;o,;.;;.o.,;;.,o \n \n$ 20,724,885.00 \n \n$ 18,652,396.50 $ _ __,;96=0,~33:;.:6;.;.:.0\"'-,0 \n \n$ \n \n581,418.00 90 $ \n \n523,276.20 $ \n \n0.00 \n \n150,732.00 100 \n \n150,732.00 \n \n$ \n \n732, 150.00 \n \n$ \n \n674,008.20 $ _ _ _ _-\"-0;,;;;.0.;;..0 \n \nTotal Fourteen Weighted and Media Center Programs $ 21,457,035.00 --------\" \n \n$ 19,326,404.70 $ \n \n960,336.00 \n \nSTAFF DEVELOPMENT PROGRAMS \nCost of Instruction Professional Development \n \n$ \n \n66,400.00 \n \n$ \n \n66,400.00 $ \n \n0.00 \n \n138,090.00 \n \n138,090.00 \n \n0.00 \n \nTotal Staff Development Programs \n \n$ \n \n204,490.00 100 $ \n \n204,490.00 $ \n \n0.00 \n \n(*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements. \n \n 34 - \n \n SCHEDULE \"5\" \n \nEDUCATION TOTAL \nREQUIRED \n \nACTUAL EXPENDITURES \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nAMOUNT OF UNDEREXPENDITURE \nFOR REQUIRED ALLOTMENT \n \n$ 1,626,147.90 $ 2,075,216.09 $ \n \n46,390.38 $ 2,121,606.47 \n \n4,382,936.30 \n \n5,028,229.41 \n \n211,725.50 \n \n5,239,954.91 \n \n$ 6,009,084.20 $ 7,103,445.50 $ \n \n258,115.88 $ 7,361,561.38 $ \n \n0.00 \n \n2,209,642.40 \n \n2,860,523.61 \n \n88,086.02 \n \n2,948,609.63 \n \n0.00 \n \n3,765,156.50 \n \n4,918,010.45 \n \n234,871.30 \n \n5,152,881.75 \n \n0.00 \n \n2,468,337.30 \n \n3,642,859.89 \n \n241,554.04 \n \n3,884,413.93 \n \n0.00 \n \n764,265.60 \n \n726,042.12 \n \n54,018.73 \n \n780,060.85 \n \n0.00 \n \n1,159,424.40 \n \n1,462,471.74 \n \n185,756.38 \n \n1,648,228.12 \n \n0.00 \n \n$ 16,375,910.40 $ 20,713,353.31 $ 1,062,402.35 $ 21,775,755.66 \n \n$ 2,615,233.50 \n$ \n \n181,348.09 $ 789,482.66 2,013,252.62 71,271.20 \n30,000.00 \n \n8,758.38 $ 19,466.95 49,754.89 16,313.09 \n \n190,106.47 808,949.61 2,063,007.51 \n87,584.29 30,000.00 \n \n$ 2,615,233.50 $ 3,085,354.57 $ \n \n94,293.31 $ 3,179,647.88 \n \n0.00 \n \n  \n \n255,951.00 \n \n273,565.46 \n \n16,233.43 \n \n289,798.89 \n \n0.00 \n \n. . \n \n$ 2,871,184.50 $ 3,358,920.03 $ \n \n110,526.74 $ 3,469,446.77 \n \n$ \n \n365,637.60 $ \n \n439,259.56 $ \n \n5,18-9.07 $ _ ___..!4~4!14.~44~8!;!.6~3 \n \n0.00 \n \n$ 19,612,732.50 $-  24,511,532.90 $ 1,178,118.16 $ 25,689,651.06 \n \n$ \n \n523,276.20 $ \n \n884,890.96 \n \n$ \n \n884,890.96 \n \n0.00 \n \n150,732.00 - - - - - - $ _ _4;,a;,9.;.,7,4.;.;0;.;.1.;.;;;.2.a,.1 \n \n497,401.21 \n \n0.00 \n \n$ \n \n674,008.20 $ \n \n884,890.96 $ \n \n497,401.21 $ 1,382,292.17 \n \n$ 20,286,740.70 $ 25,396,423.86 $ \n \n------ \n \n--- --- \n \n1,675,519.37 \n------ ---- \n \n$ \n \n27,071,943.23 \n- - --------- \n \n$ \n \n0.00 --- - - -- - - - - ---- - -- --- \n \n$ \n \n66,400.00 \n \n138,090.00 \n \n$ \n \n204,490.00 \n \n$  209,796.69 $ _ ___;2;;,;:0.,;;.9,\"--796=.6=9 \n \n209,796.69 209,796.69 0.00 $ - - - - - - -- \n \n$ -- - - - - - - - - - - \n \n- \n \n$ -------- - -- - - - - - ---- \n \n- 35  \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n \n RussELL W. H1NTON \nSTATE AUDITOR (404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nMay 31, 2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Effingham County Board of Education \n \nREPORT ON COMPLIANCE AND ON . INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \n \nLadies and Gentlemen: \n \nWe have audited the financial statements ofEffingham County Board ofEducation as ofand for the \n \nyear ended June 30, 2000, and have issued our report thereon dated May 31, 2001. This report was \n \nqualified for various departures from generally accepted accounting principles, as identified in the \n \nauditor's report on the general purpose financial statements. We conducted our audit in accordance \n \nwith auditing standards generally accepted in the United States of America and the standards \n \nappl,icable to financial audits contained in Government Auditing Standards, issued by the \n \nComptroller General of the United States. \n \n \n \nCompliance \n \nAs part of obtaining reasonable assurance about whether Effingham County Board of Education's financial statements are free of material misstatement, we perfo1med tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dete11nination 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. \n \nInternal Control Over Financial Reporting \n \nIn planning and perfo11ning our audit, we considered Effingham 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 \n \n2000YB-40A \n \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 Effingham County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6511-0001. \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 nonnal course of perfo1111ing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition noted above is considered to be a material weakness. \nThis report is intended solely for the info11nation and use ofmanagement, members ofthe Effingham 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. \nRespectfully submitted, \n \nRWH:jb 2000YB-40A \n \nRussell W. Hinton State Auditor \n \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washingt(Jn Street. S.W., Suite 214 Atlanta, Georgia 30334-84()() \nMay 31, 2001 \n \nHonorable Roy E. Barnes, Governor \n \nMembers of the General Assembly \n \nMembers of the State Board of Education \n \nand \n \n.. \n \nSuperintendent and Members of the Effingham County Board of Education \n \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \nLadies and Gentlemen: \nCompliance \n \nWe have audited the compliance of Effingham 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, 2000. Effingham County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the req11irements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Effingham County Board of Education's management. Our responsibility is to express an opinion on Effingham County Board of Education's compliance based on our audit. \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 Al 33, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo11n 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 Effingham County Board of Education's compliance with those requirements and perfo1111ing 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 dete1111ination on Effingham County Board ofEducation's compliance with those requirements. \n \n2000SA-10A \n \n In our opinif': .the Effingham 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. \nInternal Control Over Compliance \nThe management of Effingham 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 perfo11ning our audit, we considered Effingham 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 dete11nine 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. \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 no1mal course of perforrning their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \nThis report is intended solely for the infurrnation and use ofmanagernent, me1nbers ofthe Effingham 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. \nRespectfully submitted, \n \nRWH:jb 2000SA-10A \n \n00 J.C do; \n \nl(_j .. \n \nRu ell W. Hinton \n \nState Auditor \n \n  \nSECTION ill \n. \nAUDI'IEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n \n EFFINGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \n \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6511-98-01 FS-6511-98-02 FS-6511-99-01 FS-6511-99-02 \n \nFurther Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6511-99-02 \n \nDue to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staffthe Board has decided not to pursue the recording ofgeneral fixed assets on the financial statements. \n \n \n- \n \n \n \n \n SECTIONN FINDINGS AND QUESTIONED COSTS \n \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Effingham County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Effingham County Board of Education disclosed a financial statement reportable condition related to the following control category. \n \nGeneral Fixed Assets \n \nThe reportable condition described above is considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit of the Effingham County Board of Education disclosed no instances of noncompliance that were deemed to be material Jo the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Effingham County Board of Education did not disclose any reportable conditions in internal control over major programs. \n \n5. Type of Report Issued on Compliance for Major Programs \n \nThe auditor's opinion on the Effingham County Board ofEducation's report on compliance \n \nwith requirements applicable to major programs was unqualified. \n \n \n \n- \n \n \n \n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 \n \n \n \nThe Effingham County Board ofEducation's audit did not disclose audit findings req11ired to \n \nbe reported by section .510(a) ofOMB Circular A-133. \n \n7. Major Programs Federal awards audited as major programs are as follows: I 0.553 Food and Nutrition Program - Food Services - School Breakfast Program I 0.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies \n \n8. Type ''A'' Program Dollar Threshold The dollar threshold for type ''A'' programs was $300,000.00. \n \n9. Low Risk Auditee The Effingham County Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \n-I - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6511-00-01 The Effingham County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fo1mal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board, and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the Board has decided not to pursue the recording ofgeneral fixed assets on the financial statements. ID FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n-2- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b1997-h98","title":"Audit report, Effingham County Board of Education, Springfield, Georgia, year ended June 30, 1998","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Effingham County, 32.36731, -81.34134"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["1998-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: Effingham County Board of Education, Springfield, 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 ... (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Effingham County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed February 3, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Effingham County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Audit report, Effingham County Board of Education, Springfield, Georgia, year ended June 30, 1998"],"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-be2-b1997-h98"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-be2-b1997-h98"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"(fA \nf1~OD \n,RI \nt~b \nE'J. rq91-~ g \nAUDIT REPORT EFFINGHAM COUNTY BOARD OF EDUCAnON \nSPRINGFIELD, GEORGIA YEAR ENDED JUNE 30, 1998 \nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \n254 WASHINGTON STREET \nATLANTA, GEORGIA 30334-8400 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \n4 \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n7 \n \nD NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \n8 \n \nADDITIONAL FINANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \nSPECIAL REVENUE FUND \n \nE \n \nCOMBINING BALANCE SHEET \n \n22 \n \nF \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n24 \n \nCAPITAL PROJECTS FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \n26 \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n27 \n \nSCHEDULES \n \n1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION \n \n28 \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n29 \n \n3 SCHEDULE OF STATE REVENUE \n \n31 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n33 \n \n5 SCHEDULE OF EXPENDITURES \n \nLOTTERY PROGRAMS \n \n34 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nADDITIONAL FINANCIAL INFORMATION \n \nSCHEDULES \n \nANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \n \n6 \n \nOVERALL \n \n37 \n \n7 \n \nBYPR,OGRAM \n \n38 \n \nSECTIONll \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM \nAND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \n \nSECTION ill AUDITEE'SRESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 25, 1999 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education \nand Superintendent and Members ofthe Effingham County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying general purpose financial statements of the Effmgham County Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility of the Effingham County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \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. \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: \n* The general purpose financial statements of the Board did not contain a General Fixed Assets \nAccount Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. \n98ARL-14B \n \n * \n \n\" \nSchool activity accounts maintained at the individual schools are not included in the general purpose \n \nfinancial statements. To conform to generally accepted accounting principles, these accounts should \n \nbe included in the general purpose financial statements. \n \n* The Board did not recognize as expenditures, in the year ended June 30, 1998, a portion of salaries \nand the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, from the Georgia Department of Education for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were improperly recorded in the year ended June 30, 1998. 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. \n \nThe aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \n \nIn our opinion, except for the effects on the general purpose fmancial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Effingham County Board ofEducation as ofJune 30, 1998, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. \n \nAs discussed in Note 1 to the general purpose financial statements, during fiscal year 1998, the Board changed its method of accounting for inventories ofpurchased foods and Federal donated commodities such that these amounts are recorded in the general purpose financial statements. In addition, the Board changed its method of-accounting to include revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. These changes are in accordance with generally accepted accounting principles. \n \nIn accordance with Government Auditing Standards, we have also issued our report dated March 25, 1999, on our consideration ofthe Effingham County Board ofEducation's internal control over fmancial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. \n \nThe year 2000 supplementary information on Schedule \"1\" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally 'of inquiries of management regarding the methods ofmeasurement and presentation ofthe supplementary information. However we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that Effingham County Board of Education is or will become year 2000 compliant, that the Board's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Effingham County Board ofEducation does business are or will become year 2000 compliant. \n \n98ARL-14B \n \n Our audit was perfonned for the purpose of forming an opinion on the general purpose financial statements of the Effingham County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 2 through 7), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, \nAudits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes ofadditional \nanalysis and are not a required part ofthe general purpose fmancial statements. Such infonnation has been subjected to the auditing procedures applied in the audit ofthe general purpose fmancial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such infonnation is fairly presented in all material respects in relation: to the general purpose financial statements taken as a whole. \nA copy of this report has been filed as a pennanent 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. \nRespectfully submitted, \n:{J/.4~J.P IA ~~ Russell W. Hinton State Auditor \nRWH:gp 98ARL-14B \n \n EFFINGHAM COUNTY BOARD OF EDUCAnON \n \n  EXHIBIT \"A\" \n \nDEBT SERVICE \nFUND \n \nACCOUNT GROUP GENERAL \nLONG-TERM DEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 30, 1998 \n \nJUNE 30,1997 \n \n$ 2,078,313,79 $ \n \n891,505.59 \n \n$ \n \n3,500.50 \n \n5,361,354.69 \n \n5,318,759.41 \n \n51,990.31 \n \n1,545,074.52 \n \n1,031,515.52 \n \n25,000.00 \n \n16,362.50 \n \n7,267.76 \n \n493,373.85 \n \n410,475.45 \n \n26,688.01 9,537.34 \n \n$ \n \n24,176.69 \n \n24,176.69 \n \n52,295.83 \n \n15,020,823.31 4,946,439.74 \n355,000.00 \n \n15,020,823.31 4,946,439.74 \n355,000.00 \n \n16,027,704.17 5,542,668.14 410,000.00 \n \n$ \n \n55,490.81 $ \n \n20,346,439.74 $ 29,902,144.44 $ 29,692,191.87 \n \n$ \n \n69,142.86 \n \n1,661,794.07 $ \n \n77,005.85 \n \n384,162.49 \n \n315,921.68 \n \n4,995,000.00 \n \n4,995,000.00 \n \n28,387.84 \n \n989.52 \n \n159,660.00 \n \n109,795.39 \n \n109,255.00 \n \n$ \n \n31,314.12 \n \n493,373.85 \n \n410,475.45 \n \n$ \n \n15,045,000.00 \n \n15,045,000.00 \n \n16,080,000.00 \n \n4,946,439.74 \n \n4,946,439.74 \n \n5,542,668.14 \n \n355,000.00 \n \n355,000.00 \n \n410,000.00 \n \n$ \n \n31,314.12 $ \n \n20,346,439.74 $ 28,247,215.85 $ 27,941,836.03 \n \n$ \n \n24,176.69 \n \n0.00 \n \n$ \n \n24,176.69 \n \n$ \n \n5,977.69 \n \n24,176.69 $ \n \n52,295.83 \n \n618,000.00 \n \n618,000.00 \n \n26,688.01 9,537.34 3,750.00 68,414.00 \n \n78,111.00 \n \n-535,440.01 1,433,824.87 \n \n-325,949.83 1,327,898.84 \n \n$ 1,654,928.59 $ 1?50,355.84 \n \n$ \n \n55,490.81 $ \n \n20,346,439.74 $ 29,902,144.44 $ 29,692,191.87 \n \n-3- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BAlANCES \nALL GOVERNMENTAL FUND TYPES \nYEAR ENDED JUNE 30,1998 \n \nFUND BALANCE JUNE 30 \nThe notes to the general purpose financial statements are an integral part of this statement. -4- \n \n$ 2,051,824.87 $ ====-2=8.=!9,=62=9..2...9.. \n \n EXHIBIT\"B\" \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTALS \n \n(Memorandum Only) \n \nYEAR ENDED \n \nJUNE 30,1998 \n \nJUNE 30,1997 \n \n$ \n \n701,624.00 \n \n$ 27,407,063.24 $ 25,562,428.78 \n \n2,912,572.83 \n \n2,238,395.47 \n \n1,127,652.14 $ 1,892,349.81 \n \n11,823,634.10 \n \n10,044,664.25 \n \n16,000.00 \n \n15,645.53 \n \n1,954,769.51 \n \n1,420,292.80 \n \n$ 1,845,276.14 $ 1,907,995.34 $ 44,098,039.68 $ 39,265,781.30 \n \n$ 24,487,566.56 $ 22,248,195.37 \n \n$ 1,976,719.82 \n \n1,807,510.49 836,015.74 \n1,151,735.90 602,872.29 \n2,059,029.74 619,525.32 \n2,796,631.05 1,940,404.99 \n66,854.99 14,985.44 2,551,783.33 2,363,194.72 \n \n1,730,589.23 288,360.96 \n1,140,677.28 779,827.02 \n2,139,536.42 337,830.79 \n2,790,002.82 1,807,712.02 \n38,227.00 15,031.80 2,638,260.96 2,998,402.31 \n \n$ 1,035,000.00 900,210.00 904.48 \n \n1,722,128.40 1,244,448.84 \n904.48 \n \n1,508,562.92 1,297,421.74 \n1,811.42 \n \n$ 1,976,719.82 $ 1,936,114.48 $ 44,265,592.28 $ 41,760,450.06 \n \n$ \n \n-131,443.68 $ \n \n-28,119.14 $ \n \n-167,552.60$ -2,494,668.76 \n \n$ . -78,111.00 $ \n \n$ \n \n-78,111,00 $ \n \n$ \n \n-209,554.68 $ \n \n78,111.00 \n \n$ 0,00 0.00 $ \n \n35,900.00 $ 78,930.82 -78,930.82 \n35,900.00 $ \n \n313,746.14 1,708,878.27 -1,70M78.27 \n313,746.14 \n \n-28,119.14 $ 52,295.83 \n \n-131,652.60 $ 1,750,355.84 \n \n-2,180,922.62 3,931,278.46 \n \n26,688.01 9,537.34 \n \n$ \n \n-131,443.68 $ \n \n24,176.69 $ \n \n1,750,355.84 \n \n-5- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL - lNON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30, 1998 \n \nEXHIBIT \"C \n \nThe notes to the general purpose financial statements are an integral part' of this statement. -7- \n \n -' \nEFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXIllBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Effingham 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. \nFUND ACCOUNTING \nThe Board 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 fmancial 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. \nGeneral Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Gr\u003c?up should be maintained for reporting the cost of assets acquired by governmental fund types. \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 ofthese 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. \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: \nGOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: \nGENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \nSPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific 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 ofEducation and from the Federal government to accomplish specific educational objectives. \n-8- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \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. \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding, material capital lease obligations and intergovernmental contracts. \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current fInancial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (Le., revenues and other financing sources) and decreases (Le., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \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. \nGovernmental funds are accounted for using the modifIed accrual basis ofaccounting under which: \nRevenues are recognized when susceptible to accrual (Le., when they become both measurable and available). \"Measurable\" means the amount ofthe transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. \nExpenditures are generally recognized when the related fund liability is incurred. \nA departure from the above defInitions is the accounting treatment afforded the fmal 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 1998, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1997 and ending in early June 1998. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1998, compensation under; these employment \n-9- . \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \ncontracts had been earned, but two of the twelve monthly payments, due for July and August 1998, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1998. Also, the State's portion of the compensation paid in July and August 1998 was received and recorded as revenue in the fiscal year subsequent to June 30, 1998. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were recorded in the year ended June 30, 1998. 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. \nBUDGET \nThe Effmgham County Board of Education's budget is a complete fmancial 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. \nThe budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this 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 fmal school budget. This fmal budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \nCASH AND CASH EQUIVALENTS \nCOMPOSmON OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase 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 Board to \n- 10- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"0\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \ninvest 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: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured 'or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nRECEIVABLES \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. \nPROPERTY TAXES \nThe Effingham County Board of Commissioners fixed the property tax levy for the 1997 tax year (calendar year) on October 17, 1997 (levy date). Taxes were due on December 29, 1997. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Effingham 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. \n \n- 11 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n( \nTax millage rates levied for the 1997 tax year (calendar year) for the Effingham County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n15.63 mills 2.67 mills \n \n.1.83ll mills \n \nSALES TAXES \n \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 amounted to $1,127,652.14 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $13,872,347.86 has been collected or on December 31, 2002 whichever occurs first. \n \nINVENTORIES \n \nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported. on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \n \nFor fiscal year 1998, the Board began recording inventories of purchased foods and donated food commodities, and also began accounting for the revenues and expenditures associated with donated food commodity items received and consumed by the Board. The recording of the purchased foods and donated food commodities inventories, and the related revenues and expenditures associated with donated food commodities is a change in accounting principles. \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 1998, are recorded as prepaid items. \n \n- 12- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nGENERAL OBLIGATION BONDS \n \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 the fmancial statements during the 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 General Long-Term Debt Account Group. \n \nINTERFUND TRANSACTIONS \n \nThe Board has the following types of interfund transactions: \n \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. \n \nOperating transfers are recorded for all interfund transactions other than reimbursements. \n \nMEMORANDUM ONLY - TOTAL COLUMNS \n \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 of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications. \n \nDEFICIT FUND BALANCES \n \nFunds reporting a deficit fund balance position at June 30, 1998, are as follows: \n \nFund Type/Fund Name \n \nDeficit Balances \n \nGovernmental Fund Types Special Revenue Fund School Food Services Fund Capital Projects Fund Special Purpose Local Option Sales Tax \n \n$ 335,582.33 $ 199,857.68 \n \nIn the subsequent period, the Board anticipates sufficient School Food Services revenues and Special Purpose Local Option Sales Tax revenues to eliminate these deficits. \n \n- 13 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 2: DEPOSITS AND INVESTMENTS \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. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of anyone of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia, \n(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \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 and 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. \nCATEGORIZATION OF DEPOSITS At June 30, 1998, the bank balances were $2,907,004.33. The amounts of the total bank balances are classified into three categories of credit risk: \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. \n- 14- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"0\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nCategory 2 - Cash collateralized with securities held by the pledging fmancial institution's trust department or agent in the Board's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) \n \nThe Board's deposits are classified by risk category at June 30, 1998, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 100,000.00 \n \n2 \n \n2,807,004.33 \n \n3 \n \n0.00 \n \nTotal \n \n$ 2.907,004.33 \n \nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \n \nCategory 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name. \n \nFunds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns Specific, identifiable investment securities in the pool. \n \nAt June 30, 1998, the carrying value of the Board's total investments was $5,361,354.69. The investments are classified as to risk categories as follows: \n \nType ofInvestment \n \nRisk Categories 2 \n \nInvestment Portfolio Account $ ]S,124,60 $ \n \n0,00 $ \n \nLocal Government Investment Pools \n \nTotal Investments \n \nCarrying \n \n3 \n \nAmount \n \n000 $ 15,124,60 $ \n \nFl'lir Value \n]5,124.60 \n \n5.346.230.09 5.346,230,09 $ 536] 35469 $ 5,36135469 \n \n- 15 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXIDBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 2: DEPOSITS AND INVESTMENTS \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows: \nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7like pool. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shar~s. Participation in the pool is voluntary and deposits consist offunds from local governments; operating and trust fwids of Georgia's state agencies,'colleges and universities; and current operating funds of the State of Georgia's General Fund. \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity ofGeorgia Fund 1 may not exceed 60 days. Fund 6 maintains a duration ofapproximately one year. The weighted average maturity for Georgia Fund 1 on June 30, 1998 was 29 days. The average investment duration for Fund 6 on June 30, 1998 was .96 years. \nNote 3: NON-MONETARY TRANSACTIONS \nThe Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \nNote 4: INTERFUND ASSETS AND LIABILITIES \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. The following analysis summarizes the status ofall interfund transactions ofthe Board at June 30~ 1998: \n \n- 16- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 1998 \n \nNote 4: INTERFUND ASSETS AND LIABILITIES \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund Special Revenue Fund \nSchool Food Services Fund Capital Projects Fund \nSpecial Purpose Local Option Sales Tax Debt Service Fund \n \n$ 493,373.85 \n$ 328,373.77 \n133,685.96 31,314.12 \n \n\" \nNote 5: RISK MANAGEMENt \n \n$ 493.373.85 $ 493.373.85 \n \nThe Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or. injuries to employees; natural disaster and unemployment compensation. \n \nThe Board has obtained commercial insurance forrisk of loss associated with torts, assets, job related illness or injuries to employees and natural disaster. 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. \n \nThe Board participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994 to develop and administer a plan to reduce risk of loss on account ofgeneral liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insUrance funds, including the processing and defense of claims brought against members of the system. The Board pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty fdr property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. Errors and omissions coverage was purchased to cover $1,000,000.00 of specific losses after member deductible. \n \nThe Board is self-insured with regardto unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n- 17 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 5: RISK MANAGEMENT \n \nBeginning o f Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear Liability \n \n1997 1998 \n \n$ \n \n0.00 $ \n \n17,196.00 $ \n \n17,196.00 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n6,250.00 $ \n \n6,250.00 $ \n \n0.00 \n \nThe Board has purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ 100,000.00 \n \nNote 6: OPERATING LEASES \n \nEffingham County Board ofEducation 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, 1998, amounted to $121,290.48. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nAmount \n \n1999 2000 2001 2002 \n \n$ 152,135.76 152,135.76 62,891.86 1,524.50 \n \nTotal \n \n$ 368.687.88 \n \nNote 7: GENERAL LONG-TERM DEBT \n \nCAPITAL LEASES The Effingham County Board ofEducation entered into an agreement on October 1, 1994, with the Georgia School Boards Association (GSBA), Incorporated for the construction and subsequent lease ofvarious school facilities. Under the terms of the lease agreement, the Board will make semi-annual payments through January 15,2005. This lease includes an annual renewal clause. \n \nThe Effingham County Board of Education has entered into a lease agreement as lessee for athletic, copy, maintenance, and vocational equipment and an intergovernmental contract with the City of Springfield to finance a sanitary sewer system to serve the schools. 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 ofthe inception. \n \n- 18 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 7: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1994 \n \n4.20% - 6.25% $15,045,000.00 \n \nThe changes in General Long-Term Debt during the fiscal year ended June 30, 1998, were as follows: \n \nBalance July 1, 1997 Additions Deductions \nPayments \nBalance June 30, 1998 \n \nCapital Leases \n \nGSBA \n \nOther \n \nIntergovernmental Contract \n \nGeneral Obligation \nBonds \n \nTotal \n \n$ 5,180,000.00 $ 362,668.14 $ 410,000.00 $16,080,000.00 $22,032,668.14 \n \n35,900.00 \n \n35,900.00 \n \n535,000.00 \n \n97,128.40 \n \n55,000.00 1,035,000.00 1,722.128.40 \n \n$ 464500000 $ 301,439.74 $ 35500000 $15,045,000.00 $20 346 439.74 \n \nAt June 30, 1998, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCapital Leases \n \nGSBA \n \nOther \n \nIntergovernmental Contract \n \nGeneral Obligation \nBonds \n \nTotal Debt \n \n1999 2000 2001 2002 2003 2004-2008 2009 - 2013 \n \n$ 822;587.50 $ 818,207.50 821,937.50 823,187.50 821,887.50 \n1,643,325.02 \n \n124,744.74 $ 124,744.74 85,525.90 \n8,792.26 \n \n88,105.00 88,485.00 88,415.00 87,885.00 91,885.00 \n \n$ 1,927,082.50 1,919,945.00 1,913,945.00 1,903,690.00 1,893,420.00 9,382,707.50 1,854,062.50 \n \n$ 2,962,519.74 2,951,382.24 2,909,823.40 2,823,554.76 2,807,192.50 11,026,032.52 1,854,062.50 \n \nTotal Principal and Interest $ 5,751,132.52 $ 343,807.64 $ 444,775.00 $20.794,852.50 $27334,567.66 \n \nDeduct: Imputed Interest \n \n1.106,132.52 \n \n42.367.90 \n \n89,775.00 \n \nNet Present Value of Future Minimum Lease Payments $ 4.645 000.00 $ 301,43974 $ 355.000.00 \n \nNote 8: ON-BEHALF PAYMENTS \nThe Board has recognized revenues and expenditures in the amount of $555,480.42 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. \n \n- 19- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 1998 \n \nNote 8: ON-BEHALF PAYMENTS \n \nGeorgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel \nIn the amount of $410,360.62 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost \nIn the amount of $39,465.80 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost \nIn the amount of$105,654.00 \n \nNote 9: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1998, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n98/97S-651-021 \n \n$ 280.255.96 $ 1.380.00 \n \nThe amounts described in this note are not reflected in the general purpose financial statements. \n \nNote 10: CONTINGENT LIABILITIES \n \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. \n \nThe Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements. \n \n- 20- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 11: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \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. \n \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 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n. 1998 1997 1996 \n \n100% 100% 100% \n \n$ 2,584,620.12 $ 2,304,756.95 $ 2,036,207.00 \n \n- 21 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1998 \n \nASSETS \nCash and Cash Equivalents \nAccounts Receivable \nInventories Food Donated Commodities Purchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTIERY PROGRAMS \n \n$ \n \n177,261.31 $ \n \n131,066.12 \n \n26,688.01 9,537.34 \n \nTotal Assets \n \n$ \n \n213,486.66 $=====1=31=,O=6=6=.1=.2 \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nAccounts Payable Salaries Payable Expired Grant Balances Payable Due to Other Funds \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food For Local Assistance Grant Unreserved Deficit Undesignated \nTotal Fund Equity \n \n$ \n \n46,561.21 $ \n \n137,908.66 \n \n44,874.20 86.191.92 \n \n328,373.77 \n \n$ \n \n512.843.64\" $ \n \n131.066.12 \n \n$ \n \n26,688.01 \n \n9,537.34 \n \n-335,582.33 \n \n0.00 $ \n \n0.00 \n \n$ -299,356.98 $ \n \n0.00 \n \nTotal Liabilities and Fund Equity \nSee notes to the general purpose financial statements. - 22- \n \n$ \n \n213,486.66 $ __....1...3..1......0..6.=6=.1=::2 \n \n EXHIBIT\"E\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS \nJUNE 30, 1998 JUNE 30, 1997 \n \n$ 185,536.26 $ \n \n44,270.82 $ 538,134.51 $ 303,135.51 \n \n83,283.00 \n \n16,802.78 \n \n100,085.78 \n \n163,635.00 \n \n26,688.01 9,537.34 \n \n$ 268,819.26 $ \n \n61,073.60 $ 674,445.64 $ 466,770.51 \n \n$ \n \n93,377.72 $ \n \n141,076.01 \n \n28,387.84 \n \n$ 262,841.57 $ \n \n57,323.60 $ 57,323.60 $ \n \n242,136.73 $ 365,176.59 28,387.84 328,373.77 \n964,074.93 $ \n \n74,882.65 306,454.24 \n908.00 410,475.45 \n792,720.34 \n \n$ \n \n5,977.69 \n \n$ \n \n5,977.69 \n \n$ \n \n3,750.00 \n \n26,688.01 9,537.34 3,750.00 \n \n-335,582.33 $ -325,949.83 \n \n0.00 \n \n0.00 \n \n0.00 \n \n0.00 \n \n$ \n \n5,977.69 $ \n \n3,750.00 $ -289,629.29 $ -325,949.83 \n \n$ 268,819.26 $ \n \n61,073.60 $ 674,445.64 $ 466,770.51 \n \n- 23- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND YEAR ENDED JUNE 30.1998 \n \nREVENUES \nState Funds Federal Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOperating Transfers In \nExcess of Revenues and Other Financing Sources over (under) Expenditures \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \nFUND BALANCE JUNE 30 \nSee notes to the general purpose financial statements. \n-24 - \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n186,184.00 $ 1,004,728.41 \n \n1,102,919.37 \n \n1,253,047.46 \n \n$ 2,542,150.83 $ 1,004,728.41 \n \n$ \n \n876,097.23 \n \n92,370.06 325.00 \n \n11,821.09 23,627.50 \n \n$ 2,551,783.33 \n \n836.77 \n \n$ 2,551,783.33 $ 1,005,077.65 \n \n$ \n \n-9,632.50 $ \n \n-349.24 \n \n$ \n \n-9,632.50 $ \n \n-325,949.83 \n \n26,688.01 9,537.34 \n \n349.24 \n0.00 0.00 \n \n$ -299,356.98 $ ========,,0..0...=0 \n \n EXHIBIT\"F\" \n \nFEDERAL \nPROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS \nYEAR ENDED JUNE 30, 1998 JUNE 30, 1997 \n \n$ $ 1,724.670.16 \n$ 1,724,670.16 $ \n \n80,552.78 $ \n \n1.271,465.19 $ 2,827.589.53 1.253,047.46 \n \n1,045.663.37 2.094,401.71 1,054,583.26 \n \n80.552.78 $ 5,352.102.18 $ 4,194,648.34 \n \n$ 1,310,414.99 \n189.287.66 70.502.44 \n$ 75.314.29 \n4,457.00 55,038.00 \n14,148.67 \n \n$ 1.719.163.05 $ \n \n$ \n \n5,507.11 $ \n \n$ 2,186,512.22 $ 1.533,277.54 \n \n36.802.78 40,000.00 \n \n281.657.72 70,827.44 36,802.78 87.135.38 23,627.50 4.457.00 55,038.00 \n14.985.44 2.551.783.33 \n40,000.00 \n \n314,093.85 76,023.46 \n97,122.80 \n28,574.78 38.227.00 15,031.80 2,638.260.96 \n \n76.802.78 $ 5,352,826.81 $ 4,740.612.19 \n \n3,750.00 $ \n \n-724.63 $ -545,963.85 \n \n470.58 \n \n819.82 \n \n27,501.16 \n \n$ \n \n5.977.69 $ \n \n3.750.00 $ \n \n95.19 $ -518,462.69 \n \n0.00 \n \n0.00 \n \n-325.949.83 \n \n192.512.86 \n \n26,688.01 9,537.34 \n \n$ \n \n5,977.69 $ \n \n3,750.00 $ -289.629.29 $ -325.949.83 \n \n- 25- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30,1998 \n \nEXHIBIT\"G\" \n \nASSETS Cash and Cash EqUivalents Accounts Receivable \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nLOTIERY PROJECT \n \nTOTALS JUNE 30,1998 JUNE 30,1997 \n \n$ 352,020.02 $ 352,020.02 $ 187,906.39 \n \n$ 474,465.09 \n \n474A65.09 \n \nTotal Assets \n \n$ 474A65.09 $ 352,020.02 $ 826A85.11 $ 187,906.39 \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Contracts Payable Retainages Payable Due to Other Funds \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For State Capital Outlay Projects Unreserved Deficit Undesignated \nTotal Fund Equity \n \n$ 421,162.88 \n \n$ 421,162.88 \n \n119,473.93 $ \n \n14,691,02 \n \n134,164.95 \n \n159,660.00 \n \n159,660.00 $ \n \n109,255,00 \n \n109,255.00 \n \n133,685.96 \n \n133.685.96 \n \n$ 674,322.n $ 283,606.02 $ 957,928.79 $ \n \n$ \n$ -199,857;68 -0.00 \n$ -199,857.68 $ \n \n68,414.00 $ \n0.00 68A14.00 $ \n \n68,414.00 $ \n-199,857.68 0.00 \n-131A43.68 $ \n \n109,795,39 109,795.39 \n78,111.00 0.00 \n78,111.00 \n \nTotal Liabilities and Fund Equity \n \n$ 474A65.09 $ 352.020.02 $ 826A85.11 $ 187.906.39 \n \nSee notes to the general purpose financial statements. \n \n-26 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30.1998 \n \nEXHIBIT \"H\" \n \nFUND BALANCE JUNE 30 \n \n$ -199,857.68 $ \n \n68:414.00 $ -131,443.68 $ _.....7..8.,.1.1..10..0. \n \nSee notes to the general purpose financial statements. \n \n- 27- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION \n \nSCHEDULE \"1\" \n \nSCHEDULE OF REOUIRED SUPPLEMENTARY INFORMATION \n \nYEAR 2000 DISCLOSURES \n \nYEAR ENDED JUNE 30, 1998 \n \nAt June 30, 1998, the Effingham County Board of Education had no outstanding contractual commitments for the purpose of making computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result of shortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is of primary concern for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems. \nAwareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 Issue. \nAssessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance. \nRemediation Stage - When changes are made to systems and equipment. \nValidation/Testing Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system. \nIt will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As ofJune 30, 1998, the financial accounting system was detennined to be at the Awareness Stage. \nThe Board's financial accounting software (GENESIS) and hardware (Wang VS) is owned by the State (Georgia Department ofEducation). These systems have been detennined to be critical to the Board's ability to successfully conduct operations. As ofJune 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as of December 9, 1998. The Georgia Department of Education has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards ofeducation currently utilizing the GENESIS accounting software. \n \nSee notes to the general purpose financial statements. - 28- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 1998 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY 10 \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \nAgriculture, U, S, Department of Pass-Through Frpm Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1998 Grant National School Lunch Program 1998 Grant Food Distribution Program (1) \n \n* 10,553 \n* 10,555 \n10,550 \n \nN/A \n \n$ 166,897,96 \n \n(2) \n \nN/A \n \n768,990,79 $ 2,384,752,71 (3) \n \nN/A \n \n167,030,62 \n \n167,030.62 \n \nTotal U, S, Department of Agriculture \n \n$ 1,102,919.37 $ 2,551,783,33 \n \nEducation, U, S, Department of \n \nPass-Through From Board of Public Education for the City \n \nof Savannah and the County of Chatham \n \nAdult Education \n \n1998 Grant \n \n84,002 \n \nPass-Through From Georgia Department of Education \n \nElementary and Secondary Education Act \n \nTitle I \n \nGrants to Local Educational Agencies \n \n1998 Grant \n \n84,010 \n \nEven Start \n \n1998 Grant \n \n84,213 \n \nTitle II \n \nEisenhower Professional Development \n \n1998 Grant \n \n84.281 \n \nTitle VI \n \nInnovative Education Program Strategies \n \n1998 Grant \n \n84.298 \n \nGoals 2000 \n \nState and Local Education Systemic Improvement Grants \n \n1997 Grant \n \n84.276 \n \n1998 Grant \n \n84.276 \n \nIndividuals with Disabilities Education Act \n \nPart B - Special Education \n \nFlow Through \n \n1998 Grant \n \n* 84,027 \n \nPreschool \n \n1998 Grant \n \n* 84.173 \n \nVocational Education - Basic Grants to States \n \nHigh School Program \n \nBasic Grant \n \n1998 Grant \n \n84,048 \n \nN/A \n \n$ 11,611,10 \n \n(4) \n \nNlA \n \n760,532,74 $ \n \n760,532.74 \n \nN/A \n \n261,050.00 \n \n261,033.50 \n \nNlA \n \n27,677.00 \n \n27,877.18 (3) \n \nN/A \n \n32,602.00 \n \n32,659.86 (3) \n \nNlA \n \n40,480,00 \n \n40,655.50 (3) \n \nN/A \n \n170,000.00 \n \n164,038.81 \n \nNlA \n \n322,926,00 \n \nN/A \n \n63,062,42 \n \n322,963,04 (3) 63,062.42 \n \nN/A \n \n46,340,00 \n \n46,340.00 \n \nTotal U. S, Department of Education \n \n~ \n$ 1,736,281,26 $ 1,719,163.05 \n \nOTHER FEDERAL ASSISTANCE \n \nDefense, U, S. Department of Direct Department of the Air Force R.O,T,C. Program \n \n$ 73,372,20 \n \n(4) \n \nTotal Federal Financial Assistance N/A = Not Available \n \n- 29- \n \n$ 2,912,572,83 $ 4,270,946.38 \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 1998 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \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. \n(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1998 National School Lunch Program. \n(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. \n(4) Expenditures on this program were not maintained by fund source. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe Board did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Effingham County Board of Education and is presented on the modified accrual basis of accounting which is the same basis of accounting used in the presentation of the general purpose financial statements. \n \nSee notes to the general purpose financial statements. \n \n-30- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1998 \n \nSCHEDULE \"3\" \n \nAGENCYIFUNDING \nGRANTS Community Affai.rs, Georgia Department of Local Assistance Grants \nEducation, 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 Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Ad Valorem Tax Adjustment A1temative Program At-Risk Summer School Program Environmental Science Program Gifted Technology Health Insurance Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Alternative School Program Exceptional Growth-Capital Outlay Financial and Management Equipment Instructional Technology Assistive Technology Classroom Technology \nOffice of School Readiness Pre-Kindergarten Program \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACTS Education, Georgia Department of Reimbursement for Substitute Teachers \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nGENERAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n80,552.78 \n \n$ \n \n80,552.78 \n \n$ 14,483,826.00 2,127,746.00 305,421.00 606,685.00 190,633.00 3,967,855.00 \n982,864.00 311,401.00 572,433.00 487,798.00 155,785.00 550,030.00 \n65,193.00 86,527.00 -2,223,712.00 1,746,439.00 \n65,865.00 \n177,641.00 94,380.00 21,935.31 500.00 10,000.00 \n410,360.62 5,000.00 \n13,724.00 63,535.00 \n8,769.19 39,465.80 \n105,654.00 \n \n186,184.00 \n4,132.00 $ \n23,627.50 10,593.00 199,816.00 766,559.91 \n \n701,624.00 \n \n14,483,826.00 2,127,746.00 305,421.00 606,685.00 190,633.00 3,967,855.00 \n982,864.00 311,401.00 572,433.00 487,798.00 155,785.00 550,030.00 \n65,193.00 86,527.00 -2,223,712.00 1,746,439.00 186,184.00 65,865.00 \n177,641.00 94,380.00 21,935.31 500.00 10,000.00 \n410,360.62 5,000.00 \n13,724.00 63,535.00 \n8,769.19 39,465.80 \n4,132.00 701,624.00 \n23,627.50 \n10,593.00 199,816.00 \n766,559.91 \n105,654.00 \n \n220.13 \n \n220.13 \n \n$ 25,433,974.05 $ 1,271,465.19 $ \n \n701,624.00 $ 27,407,063.24 \n \nSee notes to the general purpose financial statements. \n \n- 31 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30,1998 \n \nSCHEDULE \"4\" \n \nPROJECT \nPayments as required under the Public Facilities Master Lease of the Ebenezer Elementary School in order to facilitate the purchase of said facility \nThe construction, remodeling, furnishing and equipping of various schools and athletic facilities including acquiring necessary technology \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED \nCOST (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS \n \n$ 4,874,000.00 $ 6,428,301.27 $ 677,168.75 $ \n \n0.00 \n \n10,126,000.00 11,460,738.00 1,976,719.82 \n$ 15,000,000.00 $ 17,889,039.27 $ 2,653,888.57 $ \n \n0.00 0.00 \n \n(1) .The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The Board's current estimate of total cost of each project. Includes all cost from project inception to completion. \n(3) The Voters of Effingham 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 project. \n \nSee notes to the general purpose financial statements. \n \n- 33- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1998 \n \nEXPENDITURES \n. Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Business Administration Other Support Services \n \nALTERNATIVE SCHOOL PROGRAM \n \nFINANCIAL AND MANAGEMENT \nEQUIPMENT \n \n4,480.15 \n \n$ \n \n23,627.50 \n \nTotal Expenditures \n \n$ \n \n4,480.15 $===2:i::!3,=62=7=.5=0 \n \nRECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Alternative School Program Financial and Management Equipment Instructional Technology Assistive Technology ClassroomTechnology Pre-Kindergarten Program \n \n$ 681,506.20 \n4,480.15 23,627.50 \n10,593.00 199,817.09 \n85,053.71 \n \n$ 1,005,On.65 \n \nSee notes to the general purpose financial statements. - 34- \n \n SCHEDULE \"5\" \n \nINSTRUCTIONAL TECHNOLOGY \n \nASSISTIVE \n \nCLASSROOM \n \nTECHNOLOGY TECHNOLOGY \n \nPRE-KINDERGARTEN PROGRAM \n \nTOTAL \n \n$ \n \n10,593.00 $ \n \n199,817.09 $ \n \n661,206.99 $ 876,097.23 \n \n92,370.06 \n \n92,370.06 \n \n325.00 \n \n325.00 \n \n11,821.09 \n \n11,821.09 \n \n23,627.50 \n \n836.77 \n \n836.n \n \n~ \n \n$ \n \n10,593.00 $ \n \n199,817.09 $========7=66=::,5:=5=:9=.9=1 $ 1,005,077.65 \n \n- 35- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1998 \n \nSCHEDULE \"6\" \n \nMinimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis \nSalaries Operations \nLess: Expenditures for Media Center Programs in Excess of Total Media Allotment \nExpenditures per Audit \nAmount of Underexpenditure for Total Allotment \n \nFOURTEEN WEIGHTED AND MEDIA CENTER \nPROGRAMS \n \n100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \n \n$ 18,073,708,00 $ \n \n482,129.00 \n \n$ 20,296,015.56 1,531 ,496,26 $ \n$ 21,827,511.82 \n \n1,180,857.60 \n \n-482,518,87 $ 21,344,992.95 \n \n$ \n \n0.00 $=====0:=.0=,=0 \n \nSee notes to the general purpose financial statements. - 37 - \n \n EFFINGHAM COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REqUIREMENTS - BY PROGRAM \nGENERAL FUND - qUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30,1998 \n \nGENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 -12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs \nSPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category III (*) Category IV (*) Category V (*) Sub-Total- Regular Category VI (Gifted) (*) Total Special Education Programs \nREMEDIAL EDUCATION PROGRAM C*} Total Fourteen Weighted Programs \nMEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs \nTotal Fourteen Weighted and Media Center Programs \n \nALLOTMENTS FROM DEPARTMENT OF EDUCATION \n \nREQUIRED \n \nORIGINAL --li- \n \nORIGINAL \n \nMID-TERM \n \n$ 1,588,011.00 3,887,732.00 \n$ 5,475,743.00 1,946,618,00 3,347,273.00 2,332,655.00 742,493.00 639,044.00 \n$ 14,483,826.00 \n \n$ 1,429,209.90 $ \n \n3,498,958.80 \n \n90 $ 4,928,168.70 $ \n \n90 \n \n1,751,956.20 \n \n90 \n \n3,012,545.70 \n \n90 \n \n2,099,389.50 \n \n90 \n \n668,243.70 \n \n90 \n \n575,139.60 \n \n$ 13,035,443.40 $ \n \n-19,095.00 \n-19,095.00 \n294,110.00 294,110.00 -19,095.00 \n550,030.00 \n \n$ 1,935,101,00 \n \n$ 1,741,590.90 $ \n \n0.00 \n \n$ 1,935,101.00 \n \n192,645,00 \n \n$ 2,127,746.00 \n \n$ \n \n305,421.00 \n \n$ 16,916,993.00 \n \n90 $ 1,741,590.90 $ \n \n90 \n \n173,380.50 \n \n$ 1,914,971.40 $ \n \n90 $ \n \n274,878.90 $ \n \n$ 15,225,293.70 $ \n \n0.00 \n0.00 0.00 550,030.00 \n \n$ \n \n488,329.00 90 $ \n \n439,496.10 $ \n \n118,356.00 90 \n \n106,520.40 \n \n$ \n \n606,685:00 \n \n$ \n \n546,016.50 $ \n \n0.00 0:00 \n \n$ 17,523,678.00 \n \n$ 15,771,310.20 $ \n \n550,030.00 \n \nSTAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development \nTotal Staff Development Programs (*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements. \n \n$ \n \n55,355.00 \n \n135,278.00 \n \n$ \n \n55,355.00 $ \n \n135,278.00 \n \n$ \n \n190,633.00 100 $ \n \n190,633.00 $ \n \n0.00 0.00 \n0.00 \n \n- 38 - \n \n SCHEDULE \"7\" \n \nTOTAL REQUIRED \n \nACTUAL EXPENDITURES \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nAMOUNT OF UNDEREXPENDITURE \nFOR REQUIRED ALLOTMENT \n \n$ 1,410,114.90 $ 1,599,032.10 $ \n \n76,936.19 $ 1,675,968.29 \n \n3,498,958.80 \n \n4,164,165.66 \n \n239,602.78 \n \n4,403,768.44 \n \n$ 4,909,073.70 $ 5,763,197.76 $ \n \n316,538.97 $ 6,079,736.73 $ \n \n0.00 \n \n1,751,956.20 \n \n2,331,702.67 \n \n89,122.28 \n \n2,420,824.95 \n \n0.00 \n \n3,306,655.70 \n \n3,976,512.43 \n \n291,182.~8 \n \n4,267,695.01 \n \n0.00 \n \n2,393,499.50 \n \n2,904,200.65 \n \n180,191.59 \n \n3,084,392.24 \n \n0.00 \n \n649,148.70 \n \n672,837.09 \n \n35,846.77 \n \n708,683.86 \n \n0.00 \n \n575,139.60 \n \n1,028,906.84 \n \n155,065.26 \n \n1,183,972.10 \n \n0.00 \n \n$ 13,585,473.40 $ 16,677,357.44 $ 1,067,947.45 $ 17,745,304.89 \n \n$ 1,741,590.90 $ \n \n72,892.01 $ 676,093.56 1,385,177.22 109,473.63 \n26,045.31 \n \n11,344.99 $ 24,699.67 46,157.49 14,111.91 \n1,603.40 \n \n84,237.00 700,793.23 1,431,334.71 123,585.54 \n27,648.71 \n \n$ 1,741,590.90 $ 2,269,681.73 '$ \n \n97,917.46 $ 2,367,599.19 \n \n0.00 \n \n173,380.50 \n \n229,242.51 \n \n10,496.00 \n \n239,738.51 \n \n0.00 \n \n$ 1,914,971.40 $ 2,498,924.24 $ \n \n108,413.46 $ 2,607,337.70 \n \n$ \n \n274,878.90 $ \n \n381,168.67 $ \n \n4,496.69 $ \n \n385,665.36 \n \n0.00 \n \n$ 15,775,323.70 $ 19,557,450.35 $ 1,180,857.60 $ 20,738,307.95 \n \n$ \n \n439,496.10 $ \n \n738,565.21 \n \n$ \n \n738,565.21 \n \n0.00 \n \n106,520.40 \n \n$ \n \n350,638.66 \n \n350,638.66 \n \n0.00 \n \n$ \n \n546,016.50 $ \n \n738,565.21 $ \n \n350,638.66 $ 1,089,203.87 \n \n$ 16,321,340.20 $ 20,296,015.56 $ 1,531,496.26 $ 21,827,511.82 $ \n \n0.00 \n \n$ \n \n55,355.00 \n \n135,278.00 \n \n$ =====1,;:90=:,.6.3..3....0..0;;. \n \n$ \n \n134,881.67 $ \n \n134,881.67 \n \n74,811.98 \n \n74,811.98 \n \n$ \n \n209,693.65 $ \n \n209,693.65 $=====..;O;;,;'O~O \n \n- 39 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 25,1999 \n \nHonorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members ofthe Effmgham County Board ofEducation \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of Effmgham County Board of Education as of and for the year ended June 30, 1998, and have issued our report thereon dated March 25, 1999. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose fmancial 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 ofthe United States. \nCompliance \nAs part of obtaining reasonable assurance about whether Effingham County Board of Education's financial statements are free ofmaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Effingham County Board of Education's internal control over fmancial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the fmancial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its \n98YB-40 \n \n 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 fmancial reporting that, in our judgement, could adversely affect Effmgham County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the fmancial statements. Reportable conditions are described in the accompanying Schedule of Findings and Questioned Costs as items FS-6511-98-0I. and FS-6511-98-02. \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, all ofthe reportable conditions noted above are also considered to be material weaknesses. \nThis report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record. \nRespectfully submitted, \n0 .~ell--W-.uHi.nton{fl.~ State Auditor \nRWH:gp 98YB-40 \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 25, 1999 \n \nHonorable RoyE. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation \nand Superintendent and Members ofthe Effingham County Board ofEducation \nREPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Effingham County Board of Education with the types of compliance \nrequirements described in the u.s. Office ofManagement and Budget (OMB) Circular A-133 Compliance \nSupplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. \nEffingham County Board ofEducation's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility of Effingham County Board of Education's management. Our responsibility is to express an opinion on Effingham County Board of Education's compliance based on our audit. \nWe conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the \nComptroller General of the United States; and OMB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform \nthe 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 Effingham 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 Effingham County Board of Education's compliance with those requirements. \n \n98SA-I0 \n \n In our opinion, the Effingham 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, 1998. \nInternal Control Over Compliance \nThe management ofEffingham 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 Effingham County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. \nOur consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applica~le 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. \nThis report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record. \nRespectfully submitted, \n~Il-w.~~ Russell W. Hinton State Auditor \nRWH:gp 98SA-1O \n \n SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 1998 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \n6511-93-01 6511-95-01 FS-6511-97-01 FS-6511-97-02 FS-6511-97-03 \n \nFurther Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTIONIRESPONSES \n \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6511-97-03 \n \nDue to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff the Board has decided not to pursue the recording of general fIxed assets on the financial statements. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6511-97-0l \n \nPreviously Reported\" Corrective Action Implemented \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 1998 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Effingham County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Effingham County Board of Education disclosed financial statement reportable conditions related to the following control categories. \n \nCash and Cash Equivalents \n \nGeneral Fixed Assets \n \nAll of the reportable conditions described above are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit ofthe Effingham County Board ofEducation disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Effmgham County Board of Education did not disclose any reportable conditions in internal control over major programs. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Effingham County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510Ca) ofOMB Circular A-133 The Effingham County Board of Education's audit did not disclose audit fmdings required to be reported by section .510(a) ofOMB Circular A-133. \n \n7. Major Programs Federal awards audited as major programs are as follows: to.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 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 \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n \n9. Low Risk Auditee The Effingham County Board of Education was audited as a low risk auditee based ona waiver granted by the U. S. Department of Education. \n \n- 1- \n \n EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS \nYEAR ENDED JUNE 30, 1998 \nIT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS Inadequate Separation of Duties Reportable Condition - Material Weakness Finding Control Number: FS-6511-98-01 \nAn examination of the internal accounting control procedures revealed that the Board did not provide for adequate separation of duties in the performance of the following accounting functions and related procedures: \n* The check preparation, check posting to general ledger and check signing functions were not separated. \nThese conditions were a result of management's decision to limit the number of administrative staff made responsible for accounting functions. The Board should review the accounting procedures in place, design procedures which would enhance segregation ofduties relative to the above control categories and implement those procedures to strengthen the internal control over the accounting functions. \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6511-98-02 \nThe Effingham County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board, and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. \nill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \n-2- \n \n "}],"pages":{"current_page":1,"next_page":2,"prev_page":null,"total_pages":2,"limit_value":10,"offset_value":0,"total_count":14,"first_page?":true,"last_page?":false},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":14}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. Department of Audits and Accounts","hits":9},{"value":"Georgia. 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