{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2007-h2008","title":"Rabun County Board of Education, Clayton, 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, Rabun County, 34.88168, -83.40214"],"dcterms_creator":["Georgia. Department of Audits"],"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: Rabun County Board of Education, Clayton, Georgia, scheule 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 ... (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online resource); (Georgia Government Publications database, viewed June 27, 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":["Rabun County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Rabun County--Auditing--Periodicals.","Education--Georgia--Rabun County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Rabun County--fast--https://id.oclc.org/worldcat/entity/E39PBJt3VJPKFBPxFbFXxhD8YP","Georgia Government Documents--Serial"],"dcterms_title":["Rabun County Board of Education, Clayton, 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-br2-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2007-h2008"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"RABUN COUNTY BOARD OF EDUCATION \r\nCLAYTON, GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n4 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n5 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n7 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n8 \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n9 \r\n \r\nI \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n10 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERALFUND \r\n \r\n25 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n26 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n27 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n28 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n29 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nSeptember 15, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate i\"emaining fund information (Exhibits A through I) of the Rabun County Board of Education, as of and for the year ended June 30, 2008, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Rabun County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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 Rabun County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \r\n \r\n2008ARL-11 \r\n \r\n In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information ofthe Rabun County Board of Education, as of June 30, 2008, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\nThe Rabun 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. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated September 15, 2009, on our consideration of the Rabun County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 25, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Rabun County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nRWH:as 2008ARL-11 \r\n \r\nW.~ \r\nRu sell W. Hinton, CPA, CGFM State Auditor \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2008 \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES Salaries and Benefits Payable Retainages Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities NET ASSETS Invested in Capital Assets, Net of Related Debt Restricted for Continuation of Federal Programs Debt Service Unrestricted Total Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT\"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n7,775,976.20 \r\n \r\n2,230,944.76 971,808.27 417,553.56 2,683.88 6,679.55 \r\n17,687,257.43 35,055,010.57 \r\n \r\n$ ====6=4'=14=7=,9=1=4.=22= \r\n \r\n$ \r\n \r\n2,876,507.42 \r\n \r\n491,868.80 \r\n \r\n989,910.71 3,125,000.00 \r\n \r\n$ \r\n \r\n7,483,286.93 \r\n \r\n$ \r\n \r\n48,637,073.00 \r\n \r\n166,750.39 1,051,055.00 6,809,748.90 \r\n \r\n$ \r\n \r\n56,664,627.29 \r\n \r\n$ =====6=4,=14=7=,9=1=4.=22= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -1- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2008 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Local Option Sales Tax Other Sales Tax Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 19,527,678.85 $ \r\n895,981.28 578,572.21 530,393.75 406,831.04 1,500,634.72 318,292.92 2,092,805.57 755,911.68 \r\n59,605.59 237,086.63 \r\n134,159.73 1,309,890.87 \r\n246,975.00 \r\n$ 28,594,819.84 $ \r\n \r\n65,930.73 \r\n400,140.38 466 071.11 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -2- \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET {EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n6,881,410.14 \r\n \r\n182,120.24 285,222.97 329,369.42 655,554.02 875,664.49 \r\n14,779.50 779,463.71 430,483.99 $ \r\n845.55 4,504.33 \r\n \r\n851,778.79 \r\n \r\n$ \r\n \r\n11,291,197.15 $ \r\n \r\n$ 77,448.00 77 448.00 $ \r\n \r\n-12,580,337.98 \r\n-713,861.04 -293,349.24 -201,024.33 248,722.98 -624,970.23 -303,513.42 -1,313,341.86 -247,979.69 \r\n-58,760.04 -232,582.30 \r\n-134,159.73 -57,971.70 \r\n-246,975.00 \r\n-16,760, 103.58 \r\n \r\n$ \r\n \r\n15,426,186.33 \r\n \r\n1,068,566.09 2,482,543.50 3,538,060.69 \r\n290,190.04 171,218.28 367,080.06 \r\n \r\n$ \r\n \r\n23,343,844.99 \r\n \r\n$ \r\n \r\n6,583,741.41 \r\n \r\n50,080,885.88 \r\n \r\n$ =====5=6'=,6=64=li,6=2=7=.2=9 \r\n \r\n-3- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2008 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Inventories \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 5,042,024.96 $ 2,681,679.28 $ \r\n \r\n1,059,320.55 971,808.27 417,553.56 2,683.88 6,679.55 \r\n \r\n615,146.21 \r\n \r\n52,271.96 $ \r\n \r\n7,775,976.20 \r\n1,674,466.76 971,808.27 417,553.56 2,683.88 6,679.55 \r\n \r\nTotal Assets \r\n \r\n$ 7,500,070.77 $ 3,296,825.49 $ \r\n \r\n52,271.96 $ =====1,..0,=84=9='1=6,..8.=22= \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nSalaries and Benefits Payable Retainages Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Continuation of Federal Programs Debt Service \r\nUnreserved Designated for Student Activities Undesignaled Reported in: General Fund Capital Projects \r\nTotal Fund Balances \r\n \r\n$ 2,876,507.42 \r\n \r\n$ \r\n \r\n$ 491,868.80 \r\n \r\n$ 2,876,507.42 $ 491,868.80 \r\n \r\n$ \r\n \r\n$ 166,750.39 $ 998,783.04 $ \r\n \r\n220,882.15 \r\n \r\n4,235,930.81 \r\n \r\n1,806, 173.65 \r\n \r\n$ 4,623,563.35 $ 2,804,956.69 $ \r\n \r\n$ 52,271.96 \r\n52,271.96 $ \r\n \r\n2,876,507.42 491,868.80 \r\n3,368,376.22 \r\n166,750.39 1,051,055.00 \r\n220,882.15 4,235,930.81 1,806,173.65 7,480,792.00 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 7,500,070.77 $ 3,296,825.49 $ \r\n \r\n52,271.96 $ =====1,..0,=84=9='1=6=8.=22= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2008 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \r\nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \r\nBonds Payable Capital Leases Payable \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 7,480,792.00 \r\n \r\n$ 1,281,155.79 16,406,101.64 3,592,189.33 40,111,636.97 2,740,900.76 -11,389,716.49 \r\n \r\n52,742,268.00 \r\n \r\n556,478.00 \r\n \r\n$ -4, 100,000.00 -14 910.71 \r\n \r\n-4.114,910.71 \r\n \r\n$ 56,664,627.29 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008 \r\n \r\nEXHIBIT\"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 15,220,606.48 3,828,250.73 $ 8,561,322.51 2,807,322.64 466,071.11 152,351.13 367,080.06 \r\n \r\n2,482,543.50 $ 18,411.88 \r\n \r\n$ 1,068,566.09 \r\n455.27 \r\n \r\n15,220,606.48 7,379,360.32 8,561,322.51 2,807,322.64 466,071.11 171,218.28 367,080.06 \r\n \r\n$ 31,403,004.66 $ 2,500,955.38 $ 1,069,021.36 $ 34,972,981.40 \r\n \r\n$ 17,746,165.20 $ 1,670,608.81 \r\n \r\n$ 19,416,774.01 \r\n \r\n897,366.27 578,572.21 530,393.75 408,511.04 1,500,634.72 319,976.29 2,142,064.49 1,344,728.18 \r\n73,418.59 237,086.63 134,159.73 1,331,356.68 635,984.20 \r\n \r\n9,025,618.89 \r\n \r\n897,366.27 578,572.21 530,393.75 408,511.04 1,500,634.72 319,976.29 2,142,064.49 1,344,728.18 \r\n73,418.59 237,086.63 134,159.73 1,331,356.68 9,661,603.09 \r\n \r\n43,130.83 2,115.00 \r\n \r\n$ 900,000.00 \r\n168,805.00 \r\n \r\n943,130.83 170,920.00 \r\n \r\n$ 27,925,663.81 $ 10,696,227.70 $ 1,068,805.00 $ 39,690,696.51 \r\n \r\n$ 3,477,340.85 $ -8, 195,272.32 $ \r\n \r\n216.36 $ -4,717,715.11 \r\n \r\n$ 3,058,815.31 $ -3,058,815.31 \r\n \r\n$ -3,058,815.31 $ 3,058,815.31 \r\n \r\n$ 418,525.54 $ -5,136,457.01 $ \r\n \r\n4,205,037.81 \r\n \r\n7,941,413.70 \r\n \r\n$ 3,058,815.31 \r\n-3,058,815.31 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n216.36 $ -4,717,715.11 \r\n \r\n52,055.60 12,198,507.11 \r\n \r\nFund Balances - Ending \r\n \r\n$ 4,623,563.35 $ 2,804,956.69 $ 52,271.96 $ 7,480,792.00 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2008 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \r\nRedemption of Principal Capital Lease Payments \r\nTotal Long-Term Debt Repayments \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -4,717,715.11 \r\n \r\n$ 11,386,978.16 -1,234,232.22 \r\n \r\n10,152,745.94 \r\n \r\n205,579.85 \r\n \r\n$ 900,000.00 43,130.73 \r\n \r\n943,130.73 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT\"G\" \r\n \r\nASSETS Cash and Cash Equivalents Investments \r\nCertificate of Deposit Accounts Receivable, Net \r\nOther \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\nNET ASSETS Held in Trust for Private Purposes \r\nTotal Liabilities and Net Assets \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ 16,056.04 $ 139,845.86 146,402.16 30,043.00 \r\n \r\n$ 162,458.20 $ 169,888.86 \r\n \r\n$ 169,888.86 $ 162,458.20 $ 162,458.20 $ 169,888.86 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2008 \r\nADDITIONS Investment Earnings \r\nDEDUCTIONS Scholarships Change in Net Assets \r\nNet Assets - Beginning \r\nNet Assets - Ending \r\n \r\nEXHIBIT\"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ ------'6\"\"'-',8'--2-'-6.-'-6-'-2 \r\n \r\n$ _--=3\"\"-',3;..:;0..;;..0.=0..;;....0 \r\n \r\n$ \r\n \r\n3,526.62 \r\n \r\n158,931.58 \r\n \r\n$ 162,458.20 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Rabun County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Rabun County Board of Education. \r\nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n- 10 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \r\n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) to be used for the acquisition, construction or renovation of major capital facilities. \r\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund types: \r\n Private Purpose Trust fund reports trust arrangements under which principal is to be invested and preserved intact with the resultant income to be used to provide awards or scholarships. \r\n Agency funds account for assets held by the School District as an agent for various scholarship funds and principal's accounts. \r\nBASIS OF ACCOUNTING \r\nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund \r\n- 11 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nliability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation of the United States government, \r\n(5) Prime banker's acceptances, \r\n- 12 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Rabun County Board ofCommissioners fixed the property tax levy for the 2007 tax digest year (calendar year) on August 6, 2007 (levy date). Taxes were due on December 20, 2007 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2007 tax digest are reported as revenue in the governmental funds for fiscal year 2008. The Rabun County Tax Commissioner bills and collects the property taxes for the School District and remits 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 $15,220,606.48 and for school bonds amounted to $24.64. \r\n \r\nThe tax millage rate levied for the 2007 tax year (calendar year) for the Rabun County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n8.94 mills \r\n \r\nSALES TAXES \r\n \r\nLocal Option Sales Tax revenue, at the fund reporting level, during the fiscal year amounted to $3,538,060.69 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation of the School District. \r\n \r\n- 13 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,551,109.59 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAll \r\n \r\nNIA \r\n \r\n$ 10,000.00 20 to 80 years \r\n \r\n$ 10,000.00 10 to 80 years \r\n \r\n$ 10,000.00 3 to 14 years \r\n \r\n- 14 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. \r\nIn the District-wide and fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. 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 premiums and discounts, as well as issuance costs, should be deferred and amortized over the life ofthe bonds using the straight-line method. The effect ofthis deviation is deemed to be immaterial to the fair presentation of the basic financial statements. 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. \r\nNET ASSETS \r\nThe School District's net assets in the District-wide Statements are classified as follows: \r\nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \r\nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nNote 3: DEPOSITS \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not \r\n- 15 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 3: DEPOSITS \r\nbeen 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. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS At June 30, 2008, the bank balances were $10,652,953.04. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \r\nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \r\ntrust department or agent but not in the School District's name. \r\n \r\n- 16 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 3: DEPOSITS \r\n \r\nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n525,593.07 \r\n \r\n3 \r\n \r\n6,403,613.34 \r\n \r\nTotal \r\n \r\n$ 6,929,206.41 \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\nTotal Capital Assets Not Being Depreciated \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\nTotal Capital Assets, Being Depreciated, Net \r\nGovernmental Activity Capital Assets - Net \r\n \r\nBalances July 1. 2007 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2008 \r\n \r\n$ 649,528.00 $ 631,627.79 \r\n \r\n$ 1,281,155.79 \r\n \r\n8,242,565.22 10,575,000.64 $ 2,411,464.22 16,406,101.64 \r\n \r\n$ 8,892,093.22 $ 11.206,628.43 $ 2,411,464.22 $17,687,257.43 \r\n \r\n$ 37,824,642.95 $ 2,286,994.02 $ \r\n \r\n2,482,937.18 \r\n \r\n257,963.58 \r\n \r\n3,545,332.98 \r\n \r\n46,856.35 \r\n \r\n0.00 $40,111,636.97 2,740,900.76 3,592,189.33 \r\n \r\n7,997,662.86 1,279,580.82 \r\n878,240.59 \r\n \r\n827,046.85 218,917.42 188,267.95 \r\n \r\n8,824,709.71 1,498,498.24 1,066,508.54 \r\n \r\n$ 33,697,428.84 $ 1,357,581.73 $ \r\n \r\n0.00 $ 35,055,010.57 \r\n \r\n$ 42 582,522.06 $ 12,SM 210 16 $ 2,~111,464.22 $ 52,142,268 00 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2008, are as follows: \r\n \r\n- 17 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nGovernmental Funds \r\n \r\nBuildings and Improvements Less: Accumulated Depreciation \r\n \r\n$ 341,902.00 95,732.04 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\n$ 246.169.96 \r\n \r\nInstruction Support Services \r\nStudent Transportation Services Food Services \r\n \r\n$ 1,068,198.83 \r\n159,530.22 6,503.17 \r\n \r\n$ 1,234,232.22 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST) are restricted assets in the Statement of Net Assets because its use is limited by statutory provisions. Restricted assets at June 30, 2008, were as follows: \r\n \r\nDistrict-wide Capital Projects SPLOST \r\n \r\nDebt Service Funds \r\n \r\nRestricted Cash and Cash Equivalents: Debt Services \r\n \r\n$ 998,783.04 $ 52,271.96 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2008, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From General Fund \r\n \r\nDistrict-wide Capital Projects \r\n \r\n$ 3,058,815.31 \r\n \r\n- 18 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\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. \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk ofloss associated with motor vehicle liability. The School District has neither significantly reduced coverage for this risk nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past two years. \r\n \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups ofself-insurance funds, including the processing and defense ofclaims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions and crime. Payment of excess insurance for the system varies by line of coverage. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning ofYear Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEndofYear Liability \r\n \r\n2007 2008 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n3,270.00 $ \r\n \r\n3,270.00 $ \r\n \r\n0.00 \r\n \r\n- 19 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ 100,000.00 $ 150,000.00 \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Rabun County Board ofEducation entered into a lease agreement for energy saving equipment. This lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value ofthe future minimum lease payments as ofthe date of its inception. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2006 \r\n \r\n3.71% \r\n \r\n$ 4.100,000.00 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows: \r\n \r\nBalance \r\nJuly I. 2007 \r\n \r\nGovernmental Funds \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nBalance June 30. 2008 \r\n \r\nDue Within One Year \r\n \r\nG.O. Bonds Capital Leases \r\n \r\n$ 5,000,000.00 $ 58.041.44 \r\n \r\n0.00 $ 900,000.00 $4,100,000.00 $ 975,000.00 \r\n \r\n43,130.73 \r\n \r\n14,910.71 \r\n \r\n14.910.71 \r\n \r\n$ 5,058 Q41.4~ $ \r\n \r\nQQQ $ 243,130.13 $41 H 210,11 $ 282,910.71 \r\n \r\nAt June 30, 2008, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\n-20- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCa:gital Leases \r\n \r\nPrinci:gal \r\n \r\nInterest \r\n \r\n2009 \r\n \r\n$ 14,910.71 $ \r\n \r\n171.00 \r\n \r\nFiscal Year Ended June 30 \r\n \r\nGeneral Obligation \r\n \r\nDebt \r\n \r\nPrinci:gal \r\n \r\nInterest \r\n \r\n2009 2010 2011 2012 \r\n \r\n$ 975,000.00 $ 1,005,000.00 1,040,000.00 1,080,000.00 \r\n \r\n134,023.75 97,294.75 59,360.00 20,034.00 \r\n \r\nTotal Principal and Interest Note 10: ON-BEHALF PAYMENTS \r\n \r\n$ 4.100.000.QQ $ 310,712.50 \r\n \r\nThe School District has recognized revenues and costs in the amount of $789,164.81 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $762,617.06 \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $23,281.75 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $3,266.00 \r\n \r\nNote 11: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2008: \r\n \r\n- 21 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 11: SIGNIFICANT COMMITMENTS \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nHigh School - New Auditorium High School - Gymnasium \r\n \r\n$ 6,490,584.09 171,285.52 \r\n \r\n$ 6,661,869.61 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \r\nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 13: POSTEMPLOYMENT BENEFITS \r\n \r\nGeorgia Retiree Health Benefit Fund \r\n \r\nPlan Description. The School District contributes to the Georgia Retiree Health Benefit Fund (\"GRHBF\"), a cost-sharing multiple-employer defined benefit postemployment healthcare plan administered by the Department ofCommunity Health. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. Pursuant to Title 45, Chapter 18 ofthe Official Code ofGeorgia Annotated, the authority to establish and amend the benefit provisions ofthe plan is assigned to the Board of Community Health. The Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for GRHBF. That report may be obtained from the Department ofCommunity Health at 2 Peachtree Street, Atlanta, Georgia 30303. \r\n \r\nFunding Policy. The contribution requirements of plan members and participating employers are established and may be amended by the Board of Community Health. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately twenty-five percent (25%) of the cost of health insurance coverage. \r\n \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rate established by the Board of Community Health. This contribution rate is established to fund both the active and retired employee health insurance plans based on projected pay-as-you-go financing requirements. The employer contribution rates for the combined active and retiree plans for the fiscal year ended June 30, 2008, were as follows: \r\n \r\n-22- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 13: POSTEMPLOYMENT BENEFITS \r\n \r\nTeachers Non-Certificated Employees \r\n \r\n18.534% of state-based salaries $162.72 per month \r\n \r\nThe School District's contribution to the health insurance plans for the fiscal year ended June 30, 2008, was $2,647,441.67, which equaled the required contribution. \r\n \r\nNote 14: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2008 2007 2006 \r\n \r\n100% 100% 100% \r\n \r\n$ 1,271,156.59 $ 1,229,604.59 $ 1,152,877.00 \r\n \r\n- 23 - \r\n \r\n (This page left intentionally blank) \r\n \r\n RABUN COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Service \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1} \r\n \r\nFINAL (1} \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ 13,534,302.00 $ 13,534,302.00 $ 15,220,606.48 \r\n \r\n3,200,000.00 \r\n \r\n3,200,000.00 \r\n \r\n3,828,250.73 \r\n \r\n7,398,463.00 \r\n \r\n7,653,154.00 \r\n \r\n8,561,322.51 \r\n \r\n3,001, 120.00 \r\n \r\n3, 132,256.00 \r\n \r\n2,807,322.64 \r\n \r\n428,900.00 \r\n \r\n428,900.00 \r\n \r\n466,071.11 \r\n \r\n131,500.00 \r\n \r\n131,500.00 \r\n \r\n152,351.13 \r\n \r\n49,787.00 \r\n \r\n49,787.00 \r\n \r\n367,080.06 \r\n \r\n$ 27,744,072.00 $ 28,129,899.00 $ 31,403,004.66 \r\n \r\n$ 18,362,694.00 $ 18,596,952.00 $ 17,746,165.20 \r\n \r\n1,064,194.00 596,857.00 510,724.00 411,026.00 \r\n1,444,113.00 323,807.00 \r\n2,102,512.00 1,374,135.00 \r\n36,337.00 208,682.00 \r\n1,381,841.00 80,000.00 \r\n \r\n1,006,303.00 604,416.00 510,724.00 427,561.00 \r\n1,444,113.00 323,807.00 \r\n2,102,512.00 1,374,135.00 \r\n36,337.00 208,682.00 \r\n1,381,841.00 80,000.00 \r\n \r\n897,366.27 578,572.21 530,393.75 408,511.04 1,500,634.72 319,976.29 2,142,064.49 1,344,728.18 \r\n73,418.59 237,086.63 134,159.73 1,331,356.68 635,984.20 \r\n45,245.83 \r\n \r\n$ 27,896,922.00 $ 28,097,383.00 $ 27,925,663.81 \r\n \r\n$ \r\n \r\n-152,850.00 $ \r\n \r\n32,516.00 $ \r\n \r\n3,477,340.85 \r\n \r\n$ \r\n \r\n5,000.00 $ \r\n \r\n5,000.00 \r\n \r\n$ -3,058,815.31 \r\n \r\n$ \r\n \r\n5,000.00 $ \r\n \r\n5,000.00 $ -3,058,815.31 \r\n \r\n$ \r\n \r\n-147,850.00 $ \r\n \r\n37,516.00 $ \r\n \r\n418,525.54 \r\n \r\n3,620,718.42 \r\n \r\n3,656,805.18 \r\n \r\n4,205,037.81 \r\n \r\n33,044.40 \r\n \r\n554.72 \r\n \r\nFund Balances - Ending \r\n \r\n$ 3,505,912.82 $ 3,694,875.90 $ 4,623,563.35 \r\n \r\nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\nSee notes to the basic financial statements. \r\n-25- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States English Language Acquisition Grants Enhancing Education Through Technology Program Improving Teacher Quality State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n. 10.553 \r\n10.555 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A $ 1 170 307.91 \r\n \r\n$ 1,170,307.91 \r\n \r\n10.550 10.665 \r\n \r\nN/A \r\n \r\n67,588.64 \r\n \r\nN/A \r\n \r\n(3) \r\n \r\n$ 1,237,896.55 \r\n \r\n84.027 84.173 \r\n \r\nN/A $ N/A \r\n$ \r\n \r\n464,951.23 25 887.10 \r\n490,838.33 \r\n \r\n84.048 84.365 84.318 84.367 84.298 84.010 84.287 \r\n \r\nN/A \r\n \r\n22,290.00 \r\n \r\nN/A \r\n \r\n20,280.00 \r\n \r\nN/A \r\n \r\n40,216.00 \r\n \r\nN/A \r\n \r\n103,191.63 \r\n \r\nN/A \r\n \r\n3,470.00 \r\n \r\nN/A \r\n \r\n460,492.26 \r\n \r\nN/A \r\n \r\n875,268.59 \r\n \r\n$ 2,016,046.81 \r\n \r\nTotal Federal Financial Assistance N/A = Not Available \r\n \r\n$ ==3.,.,2=53..,,9=4=3=.3=6 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($175,265.47) were not maintained separately and are included in the 2008 National School Lunch Program. \r\n(3) Funds earned on this program, in the amount of $74,043.83, do not require reporting of expenditures. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Rabun County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 26 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \r\n \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Early Intervention Program Primary Grades Program (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) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facilities Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Vocational Supervisors Food Services Vocational Education Amended Formula Adjustment Other State Programs Health Insurance High School Graduation Coach (CAPS) Middle School Graduation Coach Middle School Remediation and Intervention Grant National Teacher Certification Preschool Handicapped Program Special Education Low Incidence Grant Teachers' Retirement Virtual Schools Grant \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nPublic Safety, Georgia Department of Driver's Education Grant \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n471,661.00 \r\n \r\n22,248.00 \r\n \r\n1,227,461.00 \r\n \r\n19,902.00 \r\n \r\n654,025.00 \r\n \r\n40,850.00 \r\n \r\n9,090.00 \r\n \r\n928,866.00 \r\n \r\n797,691.00 \r\n \r\n327,003.00 \r\n \r\n100,449.00 167,359.00 396,896.00 115,840.00 \r\n90,642.00 128,745.00 \r\n17,119.00 72,585.00 99,233.00 164,863.00 51,834.00 28,148.00 \r\n \r\n268,939.00 397,350.00 375,334.00 \r\n \r\n371,169.00 77,448.00 20,000.00 58,442.00 17,327.00 63,904.00 42,458.00 \r\n-218,636.00 \r\n762,617.06 68,554.00 42,096.00 1,503.00 85,657.00 47,939.00 48,200.00 23,281.75 125.00 \r\n \r\n3,266.00 \r\n \r\n71 838.70 \r\n \r\n$ ==8.,.,5,..6..,1,..,3.2..2=.=51.. \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST(1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR(3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\nThe acquisition, construction, equipping and furnishing for new school buildings and facilities, including, but not limited to, a performance arts center and a multi-purpose gym; the addition, renovation, repair, improvement and equipping of existing school buildings and facilities, including, but not limited to, additional classrooms and laboratories; and the acquisition and purchase of any property necessary and desirable therefore, both real and personal, including, but not limited to administrative and instructional technology equipment computer hardware and software and security and safety equipment. \r\n \r\n$ 19,800,000.00 $ 19,800,000.00 $ 10,777,018.12 $ 5,540,574.79 \r\n \r\nOngoing \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \r\n(3) The voters of Rabun County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 28- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) \r\n \r\nProgram \r\n \r\nMiddle Grades (6-8) Program \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nCategory I \r\n \r\nCategory II \r\n \r\nCategory Ill \r\n \r\nCategory IV \r\n \r\nCategory V \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\nEnglish Speakers of Other Languages (ESOL) \r\n \r\n901,634.00 $ 36,039.00 \r\n2,323,082.00 39,794.00 \r\n1,218,612.00 \r\n \r\n909,668.70 $ 41,113.38 3,109,055.71 90,523.47 1,405,830.14 \r\n \r\n27,139.67 $ 314.28 \r\n206,871.92 946.26 \r\n75,463.05 \r\n \r\n936,808.37 41,427.66 \r\n3,315,927.63 91,469.73 \r\n1,481,293.19 \r\n \r\n66,168.00 97,615.00 1,671,623.00 1,502,508.00 616,981.00 1,630,318.00 \r\n237,460.00 32,335.00 \r\n137,988.00 185 825.00 \r\n \r\n633,060.58 1,498,494.60 2,473,086.10 \r\n613,350.58 \r\n67,285.89 565,434.88 1,293,363.48 \r\n27,776.10 \r\n156,059.20 70,901.42 \r\n225,530.86 241,403.80 \r\n \r\n45,637.14 148,364.25 196,356.80 \r\n51,838.55 \r\n540.00 2,767.50 56,065.66 3,265.83 1,611.90 2,184.27 \r\n3,213.44 1,220.00 \r\n \r\n678,697.72 1,646,858.85 2,669,442.90 \r\n665,189.13 \r\n67,825.89 568,202.38 1,349,429.14 \r\n31,041.93 1,611.90 \r\n158,243.47 70,901.42 \r\n228,744.30 242,623.80 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n10,697,982.00 $ 13,421,938.89 $ 823,800.52 $ 14,245,739.41 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n310,553.00 53 010.00 \r\n \r\n466,807.14 \r\n \r\n45,282.19 \r\n \r\n512,089.33 51,629.00 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n11,061,545.00 $ 13,888,746.03 $ 869,082.71 $ 14,809,457.74 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nSeptember 15, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Rabun County Board of Education as of and for the year ended June 30, 2008, which collectively comprise Rabun County Board of Education's basic financial statements and have issued our report thereon dated September 15, 2009. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Rabun County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Rabun County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Rabun County Board of Education's internal control over financial reporting. \r\nOur consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. \r\n2008YB-40 \r\n \r\n A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Rabun 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 of the Rabun County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Rabun County Board of Education's internal control. We consider items FS-7191-08-01, FS-7191-08-02 and FS-7191-08-03 in the accompanying Schedule of Findings and Questioned Costs to be significant deficiencies in internal control over financial reporting. \r\nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Rabun County Board of Education's internal control. \r\nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, of the significant deficiencies described above, we consider item FS-7191-08-02 to be a material weakness. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Rabun County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nWe noted certain matters that we have reported to management of Rabun County Board of Education in a separate letter dated September 15, 2009. \r\nRabun County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Rabun County Board of Education's response and, accordingly, we express no opinion on it. \r\n2008YB-40 \r\n \r\n This report is intended solely for the information and use of management, members of the Rabun County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~1~fL~~\\~c~ State Auditor \r\nRWH:as 2008YB-40 \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nSeptember 15, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance ofRabun County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2008. Rabun County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Rabun County Board of Education's management. Our responsibility is to express an opinion on Rabun County Board of Education's compliance based on our audit. \r\nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Rabun County Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the \r\n \r\n2008SA-55 \r\n \r\n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Rabun County Board of Education's compliance with those requirements. \r\nAs described in item FA-7191-08-02 in the accompanying Schedule of Findings and Questioned Costs, Rabun County Board of Education did not comply with requirements regarding Matching Level of Effect and Earmarking that are applicable to its and Twenty-First Century Community Leaming Centers program. Compliance with such requirements is necessary, in our opinion, for Rabun County Board of Education to comply with requirements applicable to that program. \r\nIn our opinion, except for the noncompliance described in the preceding paragraph, the Rabun 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. \r\nInternal Control Over Compliance \r\nThe management of Rabun 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 Rabun 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, but not for the purpose ofexpressing an opinion on the effectiveness ofinternal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Rabun County Board of Education's internal control over compliance. \r\nOur consideration of the internal control over compliance was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the Board's internal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies and others we consider to be material weaknesses. \r\nA control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type 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-7191-08-01 and FA-7191-08-02 to be significant deficiencies. \r\nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control. \r\n2008SA-55 \r\n \r\n Ofthe significant deficiencies in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs, we consider item FA-7191-08-02 to be a material weakness. \r\nRabun County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Rabun County Board of Education's response and, accordingly, we express no opinion on it. \r\nThis report is intended solely for the information and use of management, members of the Rabun County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~~-~ Russell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2008SA-55 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7191-07-01 FS-7191-07-02 \r\n \r\nPreviously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Finding Control Number: FS-7191-07-02 \r\n \r\nTo ensure that GASB 34 requirements are met, additional personnel have been hired in the central office and others promoted to assist the finance director with future financial statements preparation. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-7191-07-01 FA-7191-07-02 \r\n \r\nPreviously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nMATCHING, LEVEL OF EFFORT AND EARMARKING Inadequate Records of Matching Funds U. S. Department of Education Through Georgia Department of Education Twenty-First Century Community Learning Centers (CFDA 84.287) Finding Control Number: FA-7191-07-02 \r\n \r\nWe will be seeking guidance from our local Board ofEducation and 21st Century Grant as to how to solve these problems. We are attempting to prepare reports to identify and document in-kind costs for this grant. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Rabun County Board of Education's financial statements was unqualified. \r\n \r\n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Rabun County Board of Education disclosed financial statement significant deficiencies related to the following control categories. \r\n \r\nCash and Cash Equivalents Revenues/Receivables/Receipts Financial Reporting \r\n \r\nExpenditures/Liabilities/Disbursements General Ledger \r\n \r\nOf the significant deficiencies described above, Financial Reporting is considered to be a material weakness. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit ofthe Rabun County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \r\n \r\n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Rabun County Board ofEducation disclosed significant deficiencies in internal control over major programs for the following compliance requirements. \r\n \r\nActivities Allowed or Unallowed Matching, Level of Effort and \r\nEarmarking \r\n \r\nAllowable Costs/Cost Principles \r\n \r\nOfthe significant deficiencies described above, Matching, Level ofEffort and Earmarking is considered to be a material weakness. \r\n \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Rabun County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified, except for Twenty-First Century Community Leaming Centers, which was qualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .5 IO(a) of 0MB Circular A-133 The Rabun 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 ofthis report. \r\n \r\n- 1- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.287 Twenty-First Century Community Leaming Centers \r\n \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n \r\n9. Low Risk Auditee The Rabun County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-7191-08-01 \r\n \r\nCondition: \r\n \r\nThe accounting procedures ofthe School District were insufficient to provide adequate internal controls over the school activity accounts. \r\n \r\nCriteria: \r\n \r\nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are properly processed and reported in accordance with State law, procedures established by the Georgia Department of Education and School District policies and procedures. \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nCash and Cash Equivalents  The record keeping function was not separated from the cash custody function. \r\n \r\nRevenues/Receivables/Receipts  Deposit preparation was not separated from the receipt collection process and the record keeping function.  The following deficiencies were also identified: \r\n \r\n-2- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-7191-08-01 \r\n \r\n1. Numerous receipts were identified as not having adequate documentation. \r\n2. One receipt was identified as not having been deposited timely. \r\n \r\nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks functions.  The following deficiencies were also noted: 1. Various expenditures were not supported by pre-approved requisitions or purchase orders. 2. Procedures were not in place to properly document the receipt of goods prior to processing of payments. 3. A lack of invoice or other documentation was noted for numerous vouchers reviewed. \r\n \r\nCause: \r\n \r\nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \r\n \r\nEffect: \r\n \r\nErrors and/or irregularities may not be detected in a timely manner. \r\n \r\nRecommendation: \r\n \r\nManagement should establish adequate internal controls and accounting procedures at all schools to ensure that assets are adequately safeguarded. These controls should take into consideration collection procedures, separation of duties of critical accounting functions, and verification of goods/services received prior to vendor payment. Additionally, monitoring procedures should be implemented to provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\n-3- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7191-08-02 \r\n \r\nCondition: \r\n \r\nThis is a repeat finding (FS-7191-07-02) from fiscal year June 30, 2007. The School District did not have adequate controls in place to ensure that all required activity was included in the financial statement information presented for audit. \r\n \r\nCriteria: \r\n \r\nChapter 22 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nDuring the audit, the following correcting entries were proposed and accepted by the client to properly present the entity's financial statements: \r\n \r\nA reserve for debt service was not set up for bond debt payments due prior to December 31, 2008. A reclassification entry of$998,783.04 was required in the Capital Projects fund and District-wide Statements. \r\n \r\nThe regular Capital Project fund was included in the School District's entry to reserve capital projects. A reclassification entry of $1,806,173.65 was necessary to reclassify the amount from reserved fund balance to unreserved in the Capital Projects fund and on the District-wide Statements. \r\n \r\nAdjustments made to the Special Purpose Local Option Sales Tax (SPLOST) by the School District were incorrectly classified to the Local Option Sales Tax (LOST). A reclassification entry was required for $1,068,566.09 to correct this on the District-wide Statements. \r\n \r\nBond debt interest payments were incorrectly classified as principal payments in the Debt Service fund. An entry for $92,511.09 was required to decrease the principal payments and increase the interest payments. \r\n \r\nAn adjusting entry was posted to the Agency Fund by the School District that caused the Statement ofFiduciary Net Assets not to balance. A portion ofthe entry, for $99,133.64, was posted twice in an unbalanced entry. \r\n \r\n-4 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7191-08-02 \r\n \r\nThe Agency Fund showed an account payable in the amount of$18,102.22. This was not a true accounts payable, but was an error in the system from the previous year that had not been fully corrected. This amount was reclassified to funds held for others. \r\n \r\nNumerous other audit and reclassification entries were posted to adequately reflect the financial statements in accordance with generally accepted accounting principles. \r\n \r\nCause: \r\n \r\nThe School District did not implement an adequate system ofinternal control over the financial reporting process. \r\n \r\nEffect: \r\n \r\nThe School District did not comply with the requirements of the Georgia Department of Education regarding financial reporting. Numerous adjustments were necessary in order for the School District's financial statements to be in conformity with generally accepted accounting principles. \r\n \r\nRecommendation: \r\n \r\nThe School District should implement controls over the financial reporting process to ensure that all required activity is included in the financial statements. \r\n \r\nGENERAL LEDGER Inadequate Controls over Journal Entries Significant Deficiency Finding Control Number: FS-7191-08-03 \r\n \r\nCondition: \r\n \r\nThe accounting procedures ofthe School District were insufficient to provide adequate internal controls over the journal entry process. \r\n \r\nCriteria: \r\n \r\nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that journal entries are properly approved, documented and processed. \r\n \r\nQuestioned Cost: NIA \r\n \r\n-5- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nGENERAL LEDGER Inadequate Controls over Journal Entries Significant Deficiency Finding Control Number: FS-7191-08-03 \r\n \r\nInformation: \r\n \r\nNumerous journal entries reviewed lacked adequate supporting documentation and approvals. \r\n \r\nCause: \r\n \r\nThese deficiencies were a result of management's failure to adequately monitor and implement procedures to ensure that journal entries were properly documented and approved before posting to the accounting records. \r\n \r\nEffect: \r\n \r\nThe lack of adequate control over the journal entry process could result in errors in financial reporting and increases the risk ofmaterial misstatements. \r\n \r\nRecommendation: \r\n \r\nManagement should establish adequate internal controls and accounting procedures to ensure that entries are adequately documented and approved. Additionally, monitoring procedures should be implemented to provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPALS Inadequate Documentation of Expenditures Significant Deficiency U.S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) U.S. Department of Education Through Georgia Department of Education Twenty-First Century Community Leaming Centers (CFDA 84.287) Finding Control Number: FA-7191-08-01 \r\n \r\nCondition: \r\n \r\nA review of expenditures charged to the Food Services - School Breakfast Program (CFDA 10.553), the Food Services - National School Lunch Program (CFDA 10.555) and the Twenty-First Century Community Leaming Centers (CFDA 84.287) Program revealed that control procedures were not in place to ensure expenditures were adequately documented and properly approved. \r\n \r\n-6- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPALS Inadequate Documentation of Expenditures Significant Deficiency U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) U.S. Department of Education Through Georgia Department of Education Twenty-First Century Community Leaming Centers (CFDA 84.287) Finding Control Number: FA-7191-08-01 \r\n \r\nCriteria: \r\n \r\nProvision of the 0MB Circular A-87B, Cost Principles for Determining Allowable Costs, require that \"governmental units are responsible for efficient and effective administration of Federal awards through the application of sound management practices and to be allowable under Federal awards, costs must be ... authorized or not prohibited under State or local laws or regulations ... are adequately documented\". \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nA review of expenditure vouchers charged to the Child Nutrition Cluster (CFDA 10.553 and 10.555) revealed the following deficiencies: \r\n Selected vouchers did not indicate approval by the appropriate personnel. \r\n One voucher package did not contain evidence of receipt of goods. \r\n \r\nA review of expenditure vouchers for the Twenty-First Century Community Leaming Centers (CFDA 84.287) Program revealed the following deficiencies: \r\n Selected vouchers did not indicate approval by the appropriate personnel. \r\n One voucher did not contain an original invoice.  Selected voucher packages did not contain evidence of receipt of \r\ngoods. \r\n \r\nCause: \r\n \r\nManagement failed to monitor compliance with Federal guidelines to ensure that expenditures charged to the aforementioned Federal programs were allowable, approved and properly documented. \r\n \r\n-7- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPALS Inadequate Documentation of Expenditures Significant Deficiency U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) U.S. Department of Education Through Georgia Department of Education Twenty-First Century Community Leaming Centers (CFDA 84.287) Finding Control Number: FA-7191-08-01 \r\n \r\nEffect: \r\n \r\nFailure to ensure that expenditures are properly approved and allowable for the Federal program could result in improper reporting of program expenditures which could affect the School District's funding. \r\n \r\nRecommendation: \r\n \r\nThe School District should implement procedures to ensure that all costs are allowable under 0MB Circular A-87, approved by appropriate management, and properly documented. \r\n \r\nMATCHING, LEVEL OF EFFORT, EARMARKING Inadequate Records of Matching Funds Material Weakness Material Noncompliance U.S. Department of Education Through Georgia Department of Education Twenty-First Century Community Leaming Centers (CFDA 84.287) Finding Control Number: FA-7191-08-02 \r\n \r\nCondition: \r\n \r\nThis is a repeat finding (FS-7191-07-02) from the year ended June 30, 2007. The School District did not have procedures in place to maintain proper records to track expenses which would qualify as in-kind contributions to meet the matching requirement for the Twenty-First Century Community Leaming Centers program (CFDA 84.287). \r\n \r\nCriteria: \r\n \r\nProvisions ofthe 0MB Circular A-87, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (24(b)(6)) states that \"Costs and third party in-kind contributions counting toward satisfying a cost sharing or matching requirement must be verifiable from the records ofgrantees and sub grantees or cost-type contractors. These records must show how the value placed on third party in-kind contributions was derived.\" \r\n \r\n-8- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nMATCHING, LEVEL OF EFFORT, EARMARKING Inadequate Records of Matching Funds Material Weakness Material Noncompliance U.S. Department of Education Through Georgia Department of Education Twenty-First Century Community Leaming Centers (CFDA 84.287) Finding Control Number: FA-7191-08-02 \r\n \r\nQuestioned Cost: $215,602.40 \r\n \r\nInformation: \r\n \r\nGeorgia Department ofEducation(GDOE) policy requires School Districts that receive Twenty-First Century Community Leaming Centers funding to provide matching of the Federal award in the fourth and fifth years of participation so as to demonstrate the School District's sustainability of the program. In line with GDOE policy and provisions of the School District's GDOE approved Twenty-First Century Community Leaming Centers grant award, the School District was required to provide a forty percent (40%) match of the Federal grant. With a $539,006.00 grant award, the School District was compelled to provide $215,602.40 (539,006.00 x 40%) in matching costs. Supporting documentation could not be obtained for the $215,602.40 of the required match. \r\n \r\nCause: \r\n \r\nManagement failed to implement procedures to properly record and document costs incurred to meet the matching requirements of the Federal grant. \r\n \r\nEffect: \r\n \r\nDue to lack of proper records, testing could not be performed to determine that the matching requirements for the Twenty-First Century Community Leaming Centers Program had been met. \r\n \r\nFailure to maintain proper records can result in noncompliance with the requirements of the Federal grant. \r\n \r\nRecommendation: \r\n \r\nThe School District should implement procedures to ensure that all matching costs including those from in-kind contributions are properly identified and documented. Further, measures should be put in place to assure that all costs counted toward satisfying the matching requirements of the Twenty-First Century Community Leaming Centers Program are from allowable sources. Georgia Department ofEducation should review this matter to determine ifa reclaim of funds is appropriate. \r\n \r\n-9- \r\n \r\n SECTIONV MANAGEMENT'S RESPONSES \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nFinding Control Number: FS-7191-08-01 \r\n \r\nWe concur with this finding. Procedures will be established to insure that receipts have adequate documentation from the time of receiving the money until it is deposited in the bank. The check writing function will be separated to insure that all record keeping procedures are followed. Monthly audits ofschool activity funds have been implemented to ensure that accounting procedures at all schools are being followed. \r\n \r\nFinding Control Number: FS-7191-08-02 \r\n \r\nWe concur with this finding. The Finance Director will implement procedures to insure that all activity is included in the financial statements in the correct classifications. We will be seeking guidance from the Department of Education to make sure correct procedures are followed. \r\n \r\nFinding Control Number: FS-7191-08-03 \r\n \r\nWe concur with this finding. The Finance Director will implement procedures to insure that all journal entries have the proper documentation and approval prior to posting. \r\n \r\nFinding Control Number: FA-7191-08-01 \r\n \r\nWe concur with this finding. Procedures will be implemented to insure purchase orders are processed for all non-bid purchases, proper documentation and approval are followed. \r\n \r\nFinding Control Number: FA-7191-08-02 \r\n \r\nWe concur with this finding. This grant has ended, 21st Century has been contacted and we are awaiting guidance from Department of Education. \r\n \r\nContact Person: Telephone: Fax: Email: \r\n \r\nLois Burrell, Finance Director (706) 746-5376 (706) 746-7560 lburrell@rabun.kl2.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2006-h2007","title":"Rabun County Board of Education, Clayton, 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, Rabun County, 34.88168, -83.40214"],"dcterms_creator":["Georgia. Department of Audits"],"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: Rabun County Board of Education, Clayton, Georgia, scheule 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 ... (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online resource); (Georgia Government Publications database, viewed June 27, 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":["Rabun County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Rabun County--Auditing--Periodicals.","Education--Georgia--Rabun County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Rabun County--fast--https://id.oclc.org/worldcat/entity/E39PBJt3VJPKFBPxFbFXxhD8YP","Georgia Government Documents--Serial"],"dcterms_title":["Rabun County Board of Education, Clayton, 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-br2-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2006-h2007"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"RABUN COUNTY BOARD OF EDUCATION CLAYTON, GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n4 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n5 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n7 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n8 \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n9 \r\n \r\nI \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n10 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n25 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n26 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n27 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n28 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n29 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nApril 8, 2008 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Rabun County Board of Education, as of and for the year ended June 30, 2007, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Rabun County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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 Rabun County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \r\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 Rabun County Board of Education, as of June 30, 2007, and the \r\n2007ARL-11 \r\n \r\n respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\nThe Rabun 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. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated April 8, 2008, on our consideration ofthe Rabun County Board ofEducation'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 of that report is to describe the scope of our testing ofinternal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 25, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Rabun County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\nJ.4:: \r\nRu ell W. Hinton, CPA, CGFM State Auditor \r\nRWH:gp 2007ARL-11 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2007 \r\nASSETS Cash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nSalaries and Benefits Payable Retainages Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\nThe notes to the basic financial statements are an integral part of this statement. -1- \r\n \r\nEXHIBIT\"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n$ 12,481,152.45 \r\n1,733,922.20 955,447.31 403,683.70 23,248.55 9,360.47 \r\n649,528.00 8,242,565.22 3,545,332.98 37,824,642.95 2,482,937.18 -10, 155,484.27 \r\n$ =====5=8,6,,1=96=\",3=3=6=7.=4 \r\n \r\n$ \r\n \r\n2,573,179.95 \r\n \r\n484,229.47 \r\n \r\n943,130.73 4,114,910.71 \r\n \r\n$ \r\n \r\n8,115,450.86 \r\n \r\n$ 37,595,030.62 \r\n246,509.56 992,749.60 4,103,172.70 7,143,423.40 \r\n$ 50,080,885.88 \r\n \r\n$ =====5=86,1,,=96=\",3=3=6=7.=4 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2007 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \r\nTotal Governmental Activities \r\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 Local Option Sales Tax Intangible Recording Tax Real Estate Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 18,053,946.34 \r\n741,196.51 407,648.72 489,026.86 333,838.15 1,549,659.99 300,642.26 1,949,886.92 817,417.76 \r\n49,972.34 222,019.59 \r\n106,597.16 $ 1,233,306.78 \r\n$ 26,255,159.38 $ \r\n \r\n130,778.90 421 915.71 \r\n552,694.61 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -2 - \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n6,955,300.29 \r\n \r\n149,865.58 264,243.61 315,197.54 522,914.99 830,739.37 \r\n4,664.35 765,050.55 444,598.43 $ \r\n775.30 4,734.64 \r\n \r\n783,975.66 $ 11,042,060.31 $ \r\n \r\n$ 144,069.00 144 069.00 $ \r\n \r\n-11,098,646.05 \r\n-591,330.93 -143,405.11 -173,829.32 189,076.84 -718,920.62 -295,977.91 -1, 184,836.37 -228, 750.33 \r\n-49,197.04 -217,284.95 \r\n24,181.74 -27 415.41 \r\n-14,516,335.46 \r\n \r\n$ \r\n \r\n10,700,972.88 \r\n \r\n14.67 \r\n \r\n158,031.14 3,288,196.55 3,440,612.62 \r\n124,780.49 10,262.38 \r\n249,094.99 271,348.62 \r\n \r\n$ \r\n \r\n18,243,314.34 \r\n \r\n$ \r\n \r\n3,726,978.88 \r\n \r\n46,353,907.00 \r\n \r\n$ ===50=,0=8=0.,.,8=8=5.=8=8 \r\n \r\n-3- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2007 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nSalaries and Benefits Payable Retainages Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects \r\nUnreserved Designated for Student Activities Undesignated Reported in: General Fund Capital Projects \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 4,649,948.65 $ 7,779,148.20 $ \r\n \r\n736,529.08 955,447.31 403,683.70 \r\n23,248.55 9 360.47 \r\n \r\n646,494.97 \r\n \r\n52,055.60 $ 12,481,152.45 \r\n1,383,024.05 955,447.31 403,683.70 23,248.55 9 360.47 \r\n \r\n$ 6778217.76 $ 8,425,64317 $ \r\n \r\n52 055.60 $ 15,255,916.53 \r\n \r\n$ 2,573,179.95 $ \r\n$ 2,573,179.95 $ \r\n \r\n484 229.47 484 229.47 \r\n \r\n$ 2,573,179.95 484 229.47 \r\n$ 3 057 409.42 \r\n \r\n$ 237,149.09 $ 940,694.00 $ \r\n9,360.47 4,103,172.70 \r\n \r\n53,219.89 \r\n \r\n3,905,308.36 \r\n \r\n2,897,547.00 \r\n \r\n$ 4,205,037.81 $ 7 941 413.70 $ \r\n \r\n$ 52,055.60 \r\n \r\n237,149.09 992,749.60 \r\n9,360.47 4,103,172.70 \r\n \r\n53,219.89 \r\n \r\n3,905,308.36 2,897,547.00 \r\n \r\n52 055.60 $ 12,198,507.11 \r\n \r\n$ 6,778,217 76 $ 8,425,643.17 $ \r\n \r\n52,055.60 $ 15,255,916.53 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\n \r\n$ 12,198,507.11 \r\n \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\n \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\n \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\n \r\n$ \r\n \r\n649,528.00 \r\n \r\n8,242,565.22 \r\n \r\n3,545,332.98 \r\n \r\n37,824,642.95 \r\n \r\n2,482,937.18 \r\n \r\n-10,155,484.27 \r\n \r\n42,589,522.06 \r\n \r\nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \r\n \r\n350,898.15 \r\n \r\nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \r\n \r\nBonds Payable Capital Leases \r\nTotal Long-Term Liabilities \r\n \r\n$' -5,000,000.00 -58,041.44 \r\n \r\n-5,058 041.44 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 50,080,885.88 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2007 \r\n \r\nEXHIBIT\"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 10,960,396.73 3,575,655.49 $ 8,377,221.40 2,808,907.91 552,694.61 201,386.18 271 347.05 \r\n \r\n$ 3,288,196.55 \r\n47,545.57 \r\n \r\n$ 26,747,609.37 $ 3,335,742.12 $ \r\n \r\n14.67 $ 158,031.14 \r\n163.24 \r\n \r\n10,960,411.40 7,021,883.18 8,377,221.40 2,808,907.91 552,694.61 249,094.99 271 347.05 \r\n \r\n158,209.05 $ 30,241,560.54 \r\n \r\n$ 16,692,908.84 $ 2,348,093.02 \r\n \r\n741,196.51 409,988.72 491,316.86 333,838.15 1,549,659.99 300,642.26 1,904,641.94 1,166,135.03 \r\n57,800.80 222,019.59 106,597.16 1,245,899.27 125,756.56 \r\n \r\n5,378,591.18 \r\n \r\n40,828.58 \r\n \r\n4 416.40 \r\n \r\n$ \r\n \r\n$ 25,393,646.66 $ 7,726,684.20 $ \r\n \r\n$ 1,353,962.71 $ -4,390,942.08 $ \r\n \r\n$ 19,041,001.86 \r\n \r\n741,196.51 409,988.72 491,316.86 333,838.15 1,549,659.99 300,642.26 1,904,641.94 1,166,135.03 \r\n57,800.80 222,019.59 106,597.16 1,245,899.27 5,504,347.74 \r\n \r\n158 031.14 \r\n \r\n40,828.58 162 447.54 \r\n \r\n158 031.14 $ 33,278,362.00 \r\n \r\n177.91 $ -3,036,801.46 \r\n \r\n$ 1,623,766.23 $ -1,623,766.23 \r\n$ -1,623,766.23 $ 1,623,766.23 \r\n$ -269,803.52 $ -2,767, 175.85 $ \r\n4 474 841.33 1o, 708,589.55 \r\n \r\n$ 1,623,766.23 -1,623,766.23 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n177.91 $ -3,036,801.46 \r\n \r\n51 877.69 15,235,308.57 \r\n \r\nFund Balances - Ending \r\n \r\n$ 4,205,037.81 $ 7941413.70 $ \r\n \r\n52 055.60 $ 12,198,507.11 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \r\nCapital Lease Payments \r\n \r\n$ -3,036,801.46 \r\n \r\n$ 8,122,073.33 -1, 139,699.27 \r\n \r\n6,982,374.06 \r\n \r\n-259,422.30 \r\n \r\n40,828.58 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ 3,726,978.88 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS JUNE 30, 2007 \r\n \r\nEXHIBIT\"G\" \r\n \r\nASSETS Cash and Cash Equivalents Investments \r\nCertificate of Deposit Accounts Receivable, Net \r\nOther \r\nTotal Assets \r\nLIABILITIES Accounts Payable Funds Held for Others \r\nTotal Liabilities NET ASSETS Held in Trust for Private Purposes \r\nTotal Liabilities and Net Assets \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ 12,529.42 $ 144,968.53 \r\n146,402.16 8,552.87 \r\n \r\n$ 158,931.58 $ 153,521.40 \r\n \r\n$ 18,102.22 135,419.18 \r\n$ 153,521.40 \r\n$ 158,931.58 \r\n$ 158,931.58 $ 153,521.40 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2007 \r\nADDITIONS Contributions Donors \r\nDEDUCTIONS Scholarships Change in Net Assets \r\nNet Assets - Beginning \r\nNet Assets - Ending \r\n \r\nEXHIBIT\"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n7 840.17 \r\n \r\n$ \r\n \r\n1,400.00 \r\n \r\n$ \r\n \r\n6,440.17 \r\n \r\n152,491.41 \r\n \r\n$ 158,931.58 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Rabun County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Rabun County Board of Education. \r\nDistrict-wide Statements: The Statement ofNet Assets and the Statement of Activities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\n \r\n- 10 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \r\n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds to be used for the acquisition, construction or renovation of major capital facilities. \r\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment of general longterm principal, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund types: \r\n The Private Purpose Trust fund reports trust arrangements under which principal is to be invested and preserved intact with the resultant income to be used to provide awards or scholarships. \r\n Agency funds account for assets held by the School District as an agent for various scholarship funds and principal's accounts. \r\nBASIS OF ACCOUNTING \r\nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be \r\n- 11 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\navailable if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation of the United States government, \r\n \r\n- 12 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Rabun County Board ofCommissioners fixed the property tax levy for the 2006 tax digest year (calendar year) on October 2, 2006 (levy date). Taxes were due on December 20, 2006 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2006 tax digest are reported as revenue in the governmental funds for fiscal year 2007. The Rabun County Tax Commissioner bills and collects the property taxes for the School District and remits 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 $10,960,396.73 and for school bonds amounted to $14.67. \r\n \r\nThe tax millage rate levied for the 2006 tax year (calendar year) for the Rabun County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n8.0979 mills \r\n \r\nSALES TAXES \r\n \r\nLocal Option Sales Tax revenue, at the fund reporting level, during the fiscal year amounted to $3,440,612.62 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation of the School District. \r\n \r\n- 13 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,446,227.69 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAll \r\n \r\nNIA \r\n \r\n$ 10,000.00 20 to 80 years \r\n \r\n$ 10,000.00 10 to 80 years \r\n \r\n$ 10,000.00 3 to 14 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\n- 14 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \r\nNET ASSETS \r\nThe School District's net assets in the District-wide Statements are classified as follows: \r\nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \r\nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nNote 3: DEPOSITS \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n- 15 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 3: DEPOSITS \r\n \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\nCATEGORIZATION OF DEPOSITS AtJune 30, 2007, the bank balances were $14,423,033.71. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \r\n \r\nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or \r\nby its trust department or agent in the School District's name, Category 3 - Cash collateralized with securities held by the pledging financial institution's \r\ntrust department or agent but not in the School District's name. \r\n \r\nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\nI \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n9,296,578.75 \r\n \r\n3 \r\n \r\n4,903,613.34 \r\n \r\nTotal \r\n \r\n$14,200,192.09 \r\n \r\n- 16 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2006 \r\n \r\nIncreases \r\n \r\nBalances Decreases June 30, 2007 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 649,528.00 \r\n \r\n$ 649,528.00 \r\n \r\n570,036.00 $7,750,381.20 $ 77,851.98 8,242,565.22 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 1,219,564.00 $7,750,381.20 $ 77,851.98 $ 8,892,093.22 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$37,770,263.00 $ 54,379.95 \r\n \r\n$37,824,642.95 \r\n \r\n2,364,533.00 264,862.18 $ 146,458.00 2,482,937.18 \r\n \r\n3,415,031.00 130,301.98 \r\n \r\n3,545,332.98 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n7,224,911.00 1,245,556.00 \r\n691,776.00 \r\n \r\n772,751.86 180,482.82 186,464.59 \r\n \r\n146,458.00 \r\n \r\n7,997,662.86 1,279,580.82 \r\n878,240.59 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $34,387,584.00 $ -690,155.16 $ \r\n \r\n0.00 $33,697,428.84 \r\n \r\nGovernmental Activity Capital Assets - Net $35,607, 148,QO $ 7,060,226.04 $ 77,851,98 $42,589,522,06 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2007, are as follows: \r\n \r\nGovernmental Funds \r\n \r\nBuildings and Improvements Less: Accumulated Depreciation \r\n \r\n$ 341,902.00 88,894.04 \r\n \r\n$ 253,007.96 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\n- 17 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nInstruction Support Services \r\nStudent Transportation Services Food Services \r\n \r\n$ 1,003,754.22 \r\n129,458.55 6,486.50 \r\n \r\n$ 1,139,699.27 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST) are reported as restricted assets in the Statement ofNet Assets because its use is limited by statutory provisions. Restricted assets at June 30, 2007, were as follows: \r\n \r\nDistrict-wide Capital Projects SPLOST \r\n \r\nDebt Service Funds \r\n \r\nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \r\n \r\n$ 940,694.00 $ 52,055.60 $ 3,940,907.20 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2007, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From General Fund \r\n \r\nDistrict-wide Capital Projects \r\n \r\n$ 1,623,766.23 \r\n \r\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. \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\n- 18 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District has obtained commercial insurance for risk ofloss associated with motor vehicle liability. The School District has neither significantly reduced coverage for this risk nor incurred losses (settlements) which exceeded the School District's insurance coverage in the past year. \r\n \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups ofself-insurance funds, including the processing and defense ofclaims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions and crime. Payment of excess insurance for the system varies by line of coverage. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2006 2007 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n737.00 $ \r\n \r\n737.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\n- 19 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ 100,000.00 $ 150,000.00 \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Rabun County Board of Education has entered into a lease agreement for energy saving equipment. This lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2006 \r\n \r\n3.71% \r\n \r\n$ 5,000,000.00 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: \r\n \r\nGovernmental Funds \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nObligation \r\n \r\nLeases \r\n \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2006 \r\n \r\n$ 98,870.00 $ 5,000,000.00 $ 5,098,870.00 \r\n \r\nDeductions Debt Retired \r\n \r\n40,828.56 \r\n \r\n40,828.56 \r\n \r\nBalance June 30, 2007 \r\n \r\n$ 58,041.44 $ 5,000,000.00 $ 5,058,041.44 \r\n \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$ 43,130.73 $ 900,000.00 $ 943,130.73 \r\n \r\nAt June 30, 2007, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\n- 20 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2008 2009 \r\n \r\n$ 43,130.73 $ 14,910.71 \r\n \r\n2,115.00 171.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 58,041.44 $ 2,286.00 \r\n \r\nFiscal Year Ended June 30 \r\n \r\nGeneral Obligation \r\n \r\nDebt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2008 2009 2010 2011 2012 \r\n \r\n$ 900,000.00 $ 168,805.00 \r\n \r\n975,000.00 \r\n \r\n134,024.00 \r\n \r\n1,005,000.00 \r\n \r\n97,295.00 \r\n \r\n1,040,000.00 \r\n \r\n59,360.00 \r\n \r\n1,080,000.00 \r\n \r\n20,034.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 5,000,000.00 $ 479,518.00 \r\n \r\nNote 10: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $626,899.96 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $593,306.69 \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $30,458.27 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $3,135.00 \r\n \r\n- 21 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 11: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2007: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nHigh School Physical Education Facility High School Gymnasium High School - New Auditorium \r\n \r\n$ 49,780.61 5,477,894.43 11,491,954.00 \r\n \r\n$17,019,629.04 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \r\nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 13: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\n- 22 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 13: RETIREMENT PLANS \r\nFiscal Year 2007 2006 2005 \r\n \r\nPercentage Contributed \r\n100% 100% 100% \r\n \r\nRequired Contribution \r\n$ 1,229,604.59 $ 1,152,877.00 $ 1,060,020.00 \r\n \r\n- 23 - \r\n \r\n (This page left intentionally blank) \r\n \r\n RABUN COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Service \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ 10,241,174.00 $ 10,241,174.00 $ 10,960,396.73 \r\n \r\n3,000,000.00 \r\n \r\n3,000,000.00 \r\n \r\n3,575,655.49 \r\n \r\n7,520,116.37 \r\n \r\n7,661,588.54 \r\n \r\n8,377,221.40 \r\n \r\n2,989,246.00 \r\n \r\n3,097,705.00 \r\n \r\n2,808,907.91 \r\n \r\n415,650.00 \r\n \r\n415,650.00 \r\n \r\n552,694.61 \r\n \r\n110,900.00 \r\n \r\n110,900.00 \r\n \r\n201,386.18 \r\n \r\n49,652.00 \r\n \r\n49,652.00 \r\n \r\n271 347.05 \r\n \r\n$ 24,326,738.37 $ 24,576,669.54 $ 26,747,609.37 \r\n \r\n$ 16,531,836.37 $ 16,728,745.37 $ 16,692,908.84 \r\n \r\n885,412.00 613,616.00 455,256.00 399,488.00 1,385,876.00 287,095.00 1,660,311.00 1,252,533.00 \r\n26,800.00 175,000.00 \r\n1,294,332.00 80,000.00 \r\n \r\n888,985.00 609,642.00 458,106.00 411,648.00 1,386,876.00 287,095.00 1,660,311.00 1,252,533.00 \r\n26,800.00 175,176.00 \r\n1,294,332.00 80,000.00 \r\n \r\n741,196.51 409,988.72 491,316.86 333,838.15 1,549,659.99 300,642.26 1,904,641.94 1,166,135.03 \r\n57,800.80 222,019.59 106,597.16 1,245,899.27 125,756.56 \r\n45 244.98 \r\n \r\n$ 25,047,555.37 $ 25,260,249.37 $ 25,393,646.66 \r\n \r\n$ \r\n \r\n-720,817.00 $ \r\n \r\n-683,579.83 $ \r\n \r\n1,353,962.71 \r\n \r\n$ \r\n \r\n5,000.00 $ \r\n \r\n5,000.00 \r\n \r\n$ -1,623,766.23 \r\n \r\n$ \r\n \r\n5,000.00 $ \r\n \r\n5,000.00 $ -1,623, 766.23 \r\n \r\n$ \r\n \r\n-715,817.00 $ \r\n \r\n-678,579.83 $ \r\n \r\n-269,803.52 \r\n \r\n3,886,844.33 \r\n \r\n3,886,844.33 \r\n \r\n4,474,841.33 \r\n \r\n13 236.73 \r\n \r\n182,305.45 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n3,184,264.06 $ \r\n \r\n3,390,569.95 $ \r\n \r\n4,205,037.81 \r\n \r\nNotes to the Schedule of Revenues, Exi;1enditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 25- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \r\nTotal U.S. Department of Agriculture \r\nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education English Language Acquisition Grants Enhancing Education Through Technology Program Hurricane Education Recovery Improving Teacher Quality State Grants State Grants for Innovative Programs Tille I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Vocational Education - Basic Grants to States \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n10.550 10.665 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nNIA \r\n \r\n$ \r\n \r\n1 129 730.35 \r\n \r\n$ \r\n \r\n1,129,730.35 \r\n \r\nN/A \r\n \r\n54,466.92 \r\n \r\nN/A \r\n \r\n(3) \r\n \r\n$ \r\n \r\n1184197.27 \r\n \r\n84.027 84.173 \r\n84.365 84.318 84.938 84.367 84.298 84.010 84.287 84.048 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\n$ \r\n \r\n389,515.32 21,259.29 \r\n410,774.61 \r\n \r\nN/A \r\n \r\n18,379.78 \r\n \r\nN/A \r\n \r\n123,972.00 \r\n \r\nNIA \r\n \r\n(4) \r\n \r\nNIA \r\n \r\n106,824.31 \r\n \r\nNIA \r\n \r\n13,525.97 \r\n \r\nN/A \r\n \r\n583,273.02 \r\n \r\nN/A \r\n \r\n709,570.70 \r\n \r\nN/A \r\n \r\n31 457.00 \r\n \r\n$ \r\n \r\n1 997 777.39 \r\n \r\nTotal Federal Financial Assistance \r\n \r\n$ \r\n \r\n3 181 974.66 \r\n \r\nN/A = Not Available \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($157,199.00) were not maintained separately and are included in the 2007 National School Lunch Program. \r\n(3) Funds earned on this program in the amount of $74,196.00 do not require reporting of expenditures. (4) Funds earned and expended in the prior period on the Hurricane Education Recovery Act, in the amount of $20,112.00 do not \r\nrequire reporting of expenditures. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Rabun County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\nSee notes to the basic financial statements. \r\n \r\n- 26 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \r\n \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten 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) 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 State Bonds Sparsity Nursing Services Principal Supplements Mid-term Adjustment Hold-Harmless Food Services Vocational Education Amended Formula Adjustment Other State Programs Health Insurance National Teacher Certification Preschool Handicapped Program Special Education Low Incidence Grant Statewide K-8 Reading and Mathematics Program Teachers' Retirement High School Graduation Coach (CAPS) Middle School Remediation and Intervention Grant Virtual Schools State Grant \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n529,413.00 \r\n \r\n1,278,019.00 \r\n \r\n28,498.00 \r\n \r\n612,849.00 \r\n \r\n-522.00 \r\n \r\n325,901.00 \r\n \r\n637,335.00 \r\n \r\n812,949.00 \r\n \r\n336,698.00 \r\n \r\n89,702.79 136,610.90 437,241.94 \r\n74,282.41 86,463.96 115,424.00 17,320.00 78,373.00 97,836.00 166,063.00 53,052.00 27,643.00 \r\n \r\n271,269.00 404,336.00 384,867.00 \r\n \r\n392,396.00 44,069.00 \r\n100,000.00 20,000.00 58,331.00 7,531.00 12,680.00 61,702.00 62,965.07 \r\n-238,727.00 \r\n593,306.69 68,814.00 39,548.00 45,584.00 32,186.37 30,458.27 40,075.00 1,442.00 100.00 \r\n \r\n3 135.00 \r\n \r\n$ ====8,=37=7==,2-=2=1=.4=0 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nThe acquisition, construction, equipping and furnishing for new school buildings and facilities, including, but not limited to, a performance arts center and a multi-purpose gym; the addition, renovation, repair, improvement and equipping of existing school buildings and facilities, including, but not limited to, additional classrooms and laboratories; and the acquisition and purchase of any property necessary and desirable therefore, both real and personal, including, but not limited to, administrative and instructional technology equipment computer hardware and software and security and safety equipment. \r\nAcquisition, construction and equipping of a new elementary school, including necessary furnishings and equipment; the acquisition, construction and equipping of additional instructional, support and physical education facilities at existing schools, including the acquisition of necessary furnishings and equipment; and system-wide technology improvements. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 19,800,000.00 $ 19,800,000.00 $ 5,238,355.79 $ 302,219.00 Ongoing \r\n \r\n12,000,000.00 \r\n \r\n2,183,976.08 13,743,037.00 Complete \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Rabun 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 project. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 28 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program 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) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n940,648.00 $ 1,002,740.00 $ \r\n \r\n32,674.00 $ 1,035,414.00 \r\n \r\n2,288,567.00 \r\n \r\n2,992,560.00 \r\n \r\n181,656.00 \r\n \r\n3,174,216.00 \r\n \r\n51,668.00 \r\n \r\n45,900.00 \r\n \r\n969.00 \r\n \r\n46,869.00 \r\n \r\n1,087,391.00 \r\n \r\n1,179,158.00 \r\n \r\n38,391.00 \r\n \r\n1,217,549.00 \r\n \r\n570,423.00 1,138,465.00 1,438,373.00 \r\n598,098.00 1,494,616.00 \r\n197,419.00 31,486.00 \r\n139,536.00 171 402.00 \r\n \r\n304.00 689,235.00 1,416,972.00 2,219,048.00 620,896.00 \r\n65,206.00 426,687.00 1,201,452.00 \r\n13,937.00 304.00 \r\n146,998.00 130,477.00 169,199.00 189,057.00 \r\n \r\n24,403.00 101,545.00 200,440.00 130,342.00 \r\n725.00 2,552.00 83,947.00 1,380.00 4,865.00 3,479.00 \r\n60.00 1,000.00 1 176.00 \r\n \r\n304.00 713,638.00 1,518,517.00 2,419,488.00 751,238.00 \r\n65,931.00 429,239.00 1,285,399.00 \r\n15,317.00 5,169.00 \r\n150,477.00 130,537.00 170,199.00 190,233.00 \r\n \r\n$ \r\n \r\n10,148,092.00 $ 12,510,130.00 $ 809,604.00 $ 13,319,734.00 \r\n \r\n296,031.00 50 042.00 \r\n \r\n427,292.00 31,782.00 \r\n \r\n45,330.00 19,153.00 \r\n \r\n472,622.00 50,935.00 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n10,494,165.00 $ 12,969,204.00 $ 874,087.00 $ 13,843,291.00 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29- \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nApril 8, 2008 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Rabun County Board of Education as of and for the year ended June 30, 2007, which collectively comprise Rabun County Board of Education's basic financial statements and have issued our report thereon dated April 8, 2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Rabun County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Rabun County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Rabun County Board of Education's internal control over financial reporting. \r\nOur consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. \r\n2007YB-40 \r\n \r\n A control deficiency exists when the design or operation 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 Rabun 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 of the Rabun County Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the Rabun County Board of Education's internal control. We consider items FS-7191-07-01 and FS-7191-07-02 in the accompanying Schedule ofFindings and Questioned Costs to be significant deficiencies in internal control over financial reporting. \r\nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Rabun County Board of Education's internal control. \r\nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. We consider both items FS-7191-07-01 and FS-7191-07-02 to be material weaknesses. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Rabun County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nWe noted certain matters that we have reported to management of Rabun County Board of Education in a separate letter dated April 8, 2008. \r\nRabun County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Rabun County Board of Education's response and, accordingly, we express no opinion on it. \r\n2007YB-40 \r\n \r\n This report is intended solely for the information and use ofthe management, members ofthe Rabun County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n\u003c3,~~dEto~ \r\nState Auditor \r\nRWH:gp 2007YB-40 \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nApril 8, 2008 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance ofRabun County Board ofEducation with the types ofcompliance 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. Rabun County Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Rabun County Board of Education's management. Our responsibility is to express an opinion on Rabun County Board of Education's compliance based on our audit. \r\nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Rabun 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 Rabun County Board of Education's compliance with those requirements. \r\n2007SA-65 \r\n \r\n As described in item FA-7191-07-02 in the accompanying Schedule of Findings and Questioned Costs, Rabun County Board of Education did not comply with requirements regarding Matching, Level ofEffort and Earmarking that are applicable to its Twenty-First Century Community Leaming Centers Program. Compliance with such requirements is necessary, in our opinion, for Rabun County Board of Education to comply with requirements applicable to that program. \r\nIn our opinion, except for the noncompliance described in the preceding paragraph, the Rabun 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. \r\nInternal Control Over Compliance \r\nThe management of Rabun 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 Rabun 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, but not for the purpose ofexpressing an opinion on the effectiveness ofinternal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Rabun County Board of Education's internal control over compliance. \r\nOur consideration of the internal control over compliance was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the Board's internal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies and others we consider to be material weaknesses. \r\nA control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type ofcompliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control 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-7191-07-01 and FA-7191-07-02 to be significant deficiencies. \r\nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control. Of the significant deficiencies in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs, we consider item FA-7191-07-02 to be a material weakness. \r\n2007SA-65 \r\n \r\n Rabun County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Rabun County Board of Education's response and, accordingly, we express no opinion on it. \r\nThis report is intended solely for the information and use ofthe management, members ofthe Rabun County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~~~-~~ Russell W. Hinton, CPA, CGFM State Auditor \r\nRWH:gp 2007SA-65 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Rabun County Board of Education's financial statements was unqualified. \r\n \r\n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Rabun County Board of Education disclosed financial statement significant deficiencies related to the following control categories. \r\n \r\nCapital Assets \r\n \r\nFinancial Reporting \r\n \r\nBoth of the significant deficiencies described above are considered to be material weaknesses. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit ofthe Rabun County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \r\n \r\n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Rabun County Board ofEducation disclosed significant deficiencies in internal control over major programs for the following compliance requirements. \r\n \r\nAllowable Costs/Cost Principles \r\n \r\nMatching, Level of Effort and Earmarking \r\n \r\nOfthe significant deficiencies described above, Matching, Level ofEffort and Earmarking is considered to be a material weakness. \r\n \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Rabun County Board of Education's report on compliance with requirements applicable to major programs was unqualified, except for Twenty-First Century Community Leaming Centers, which was qualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Rabun 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. \r\n \r\n7. Major Programs Federal awards audited as major programs are as follows: 84.027 Special Education - Grants to States 84.173 Special Education - Preschool Grants 84.287 Twenty-First Century Community Leaming Centers \r\n \r\n- 1- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n \r\n9. Low Risk Auditee The Rabun County Board ofEducation qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Material Weakness Finding Control Number: FS-7191-07-01 \r\n \r\nCondition: \r\n \r\nThe School District failed to adequately maintain the capital assets listing. \r\n \r\nCriteria: \r\n \r\nChapter 37 Fixed Assets of the Financial Management for Georgia Local Units of Administration indicates that School Districts must establish fixed asset policies, define system requirements, implement a fixed asset system and maintain fixed asset inventory records. \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nThe capital assets listing, as presented for audit, contained the following deficiencies: \r\n \r\n No reconciliation was presented to tie the capital assets listing to the general ledger. A comparison ofthe general ledger and capital assets listing identified that the general ledger had not been updated since June 30, 2005. \r\n Construction In Progress (CIP) did not include all outstanding projects and was understated by $1,681,231.61. A portion ofthis problem was attributable to the Board's failure to identify retainages payable on projects at year-end. \r\n One equipment item was partially deleted resulting in the removal of the cost but not the depreciation. \r\n Six items were noted on the capital asset records as having no cost and no depreciation. \r\n One asset item was listed twice in error on the capital assets listing. \r\n One asset item was identified as not being recorded at cost. \r\n \r\n-2 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Material Weakness Finding Control Number: FS-7191-07-01 \r\n \r\n Depreciation expense was not calculated in accordance with the School District's policy for current year additions and deletions. Depreciation expense for current year additions and deletions was calculated based on the month placed in service; however, the School District's depreciation policy states that depreciation expense will be calculated using the one-half year convention. \r\n A review of the capital assets listing also identified several items with useful lives not in conformity with the Board's capital assets policy. \r\n \r\nThe above problems resulted in material misstatements that required auditor adjustment. \r\n \r\nCause: \r\n \r\nThe School District failed to properly maintain its capital assets records in accordance with the School District's approved capital assets policy and generally accepted accounting principles. \r\n \r\nEffect: \r\n \r\nThe failure ofthe School District to maintain a complete and accurate capital assets listing can lead to inaccurate internal and external reporting, misappropriation ofassets, as well as noncompliance with generally accepted accounting principles. \r\n \r\nRecommendation: \r\n \r\nThe School District should review its capital assets records and make appropriate adjustments to ensure that the capital assets records conform to the School District's approved capital assets policy and generally accepted accounting principles. \r\n \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7191-07-02 \r\n \r\nCondition: \r\n \r\nThe School District did not have adequate controls in place over the financial statement reporting process. \r\n \r\n-3 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7191-07-02 \r\n \r\nCriteria: \r\n \r\nManagement is responsible for having adequate controls over the financial reporting process, which not only includes proper recording oftransactions to the general ledger, but extends to accurate preparation and presentation ofthe financial statements, including note disclosures. \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nThe Governmental Accounting Standards Board (GASB) Statement 34 reporting model requires the presentation of both fund level and entity-wide level statements in the School District's financial statements. 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. \r\n \r\nCause: \r\n \r\nThe School District did not implement an adequate system of internal control over the financial statement reporting process. \r\n \r\nEffect: \r\n \r\nThe School District does not have adequate controls in place to ensure that the financial statements were properly prepared in accordance with generally accepted accounting principles. \r\n \r\nRecommendation: \r\n \r\nThe School District should develop and implement internal controls over the financial statement reporting process to ensure that activity is properly recorded in the general ledger; to verify that financial statements (including note disclosures) properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit. \r\n \r\n-4 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nALLOWABLE COSTS/COST PRINCIPLES Unreasonable Compensation Significant Deficiency U.S. Department of Education Through Georgia Department of Education Twenty-First Century Community Leaming Centers (CFDA 84.287) Finding Control Number: FA-7191-07-01 \r\n \r\nCondition: \r\n \r\nThe School District did not have adequate procedures in place to ensure that bus driver compensation was reasonable with work performed. \r\n \r\nCriteria: \r\n \r\nProvisions of the 0MB Circular A-87, Cost Principles for Determining Allowable Costs, state that \"Compensation for employees engaged in work on Federal awards will be considered reasonable to the extent that it is consistent with that paid for similar work in other activities of the governmental unit\". \r\n \r\nQuestioned Cost: $3,375 \r\n \r\nInformation: \r\n \r\nAn examination ofsalaries charged to the Twenty-First Century Community Leaming Centers Program (CFDA 84.287) revealed that bus drivers were being paid $25.00 per day for after school routes. These routes typically are 1.25 to 1.5 hours in length, which equates to between $16.67 and $20.00 per hour. The individual tested was compensated $15.54 per hour for similar services in their regular position as bus driver and was compensated $7.50 per hour for fieldtrips. \r\n \r\nAdditionally, one bus driver was paid $50.00 per day instead of the normal $25.00 per day due to a payroll calculation error. This doubling of the daily pay rate resulted in an overpayment of $3,375.00. \r\n \r\nCause: \r\n \r\nManagement failed to establish a reasonable rate ofpay for work performed on Federal awards. \r\n \r\nEffect: \r\n \r\nAn unreasonable amount of compensation was paid to one employee and all bus drivers were paid the questionable daily rate of $25.00 per day. These instances result in excessive charges to the Twenty-First Century Community Leaming Centers Program. \r\n \r\n-5- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nALLOWABLE COSTS/COST PRINCIPLES Unreasonable Compensation Significant Deficiency U.S. Department of Education Through Georgia Department of Education Twenty-First Century Community Leaming Centers (CFDA 84.287) Finding Control Number: FA-7191-07-01 \r\n \r\nRecommendation: \r\n \r\nThe School District should implement procedures to ensure that all employee compensation is in compliance with 0MB Circular A-87. Georgia Department ofEducation should recover the $1,950 overpayment charged to the Twenty-First Century Community Leaming Centers Program and review this matter to determine if any additional reclaim of funds is appropriate. \r\n \r\nMATCHING, LEVEL OF EFFORT AND EARMARKING Inadequate Records of Matching Funds Material Weakness Material Noncompliance U.S. Department of Education Through Georgia Department of Education Twenty-First Century Community Leaming Centers (CFDA 84.287) Finding Control Number: FA-7191-07-02 \r\n \r\nCondition: \r\n \r\nThe School District failed to maintain supporting documentation to provide evidence that matching requirements ofits Twenty-First Century Community Leaming Centers grant award were met. \r\n \r\nCriteria: \r\n \r\nMatching requirements required of a Board in support of a Federal program are to meet provisions in 34 CFR 80.24. Accordingly, a Board may meet matching requirements by the payment ofa Federal program's expenses with Board funds or through cash donations. Value of in-kind contributions in support of a Federal program's activities can also be used for satisfying matching provisions. \r\n \r\nProvisions ofthe 34 CFR 80.24 also states that \"Costs and third party in-kind contributions counting toward satisfying a cost sharing or matching requirement must be verifiable from the records ofgrantees and sub grantees or cost-type contractors. These records must show how the value placed on third party in-kind contributions was derived\". \r\n \r\nQuestioned Cost: $127,164.50 \r\n \r\n-6- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nMATCHING, LEVEL OF EFFORT AND EARMARKING Inadequate Records of Matching Funds Material Weakness Material Noncompliance U.S. Department of Education Through Georgia Department of Education Twenty-First Century Community Leaming Centers (CFDA 84.287) Finding Control Number: FA-7191-07-02 \r\n \r\nInformation: \r\n \r\nGDOE policy require Boards that receive Twenty-First Century Community Leaming Centers funding to provide matching of the Federal award in the fourth and fifth years of participation so as to demonstrate the Board's sustainability of the program. In line with GDOE policy and provisions of the Board's GDOE approved Twenty-First Century Community Leaming Centers grant award, the Board was required to provide a twenty-five percent (25%) match of the Federal grant. With a $508,658.00 grant award, the Board was compelled to provide $127,164.50 ($508,659.00 x 25%) in matching costs. However, the Board could not provide records to verify its required matching share. \r\n \r\nCause: \r\n \r\nThere were no procedures in place to document that the Board's required matching contribution was provided through Board paid expenses, cash donations or in-kind contributions. \r\n \r\nEffect: \r\n \r\nDue to lack of proper records, testing could not be performed to determine that the matching requirement for the Twenty-First Century Community Leaming Centers Program had been met. \r\n \r\nFailure to maintain proper records can result in material noncompliance with the requirements of the Federal grant. \r\n \r\nRecommendation: \r\n \r\nThe School District should implement procedures to ensure that all matching costs including those from in-kind contributions are properly identified and documented. Further, measures should be put in place to assure that all costs counted toward satisfying the matching requirements of the Twenty-First Century Community Leaming Centers Program are from allowable sources. Georgia Department ofEducation should review this matter to determine ifa reclaim of funds is appropriate. \r\n \r\n-7- \r\n \r\n SECTIONV MANAGEMENT'S RESPONSES \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2007 \r\nFinding Control Number: FS-7191-07-01 \r\nWe concur with this finding. We will make corrections and get everything in balance by this year end. We have some questions on some of the remarks. We were audited for 2005 in June of 2006. Then we were audited for 2006 in September of 2006. That is one of the things we question based on remark made about 2005. \r\nFinding Control Number: FS-7191-07-02 \r\nWe concur with this finding. We are taking steps to correct this finding. \r\nFinding Control Number: FA-7191-07-01 \r\nWe concur with this finding. We will be seeking guidance from our local Board of Education and 21 st Century Grant as to how to solve these problems. Along with an explanation and documentation from 21 st Century Audit Report 2006-2007, reference question #21 Policies Controls for matching contributions and fees. \r\n The purchase of diesel fuel for five buses to transport students home from After School as well as pick up and drop off for Summer School. \r\n Cost of snacks in the summer school program.  $103,000.00 was used from local LEA funds to pay teachers and paraprofessional salaries \r\nduring the 2006-2007 year. \r\nFinding Control Number: FA-7191-07-02 \r\nWe concur with this finding. We will be seeking guidance from our local Board of Education and 21 st Century Grant as to how to solve these problems. \r\nContact Person: Helen Wood Title: Finance Director Phone: (706) 746-5376 Fax: (706) 746-7560 E-mail: hwood@rabun.kl2.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2005-h2006","title":"Rabun County Board of Education, Clayton, 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, Rabun County, 34.88168, -83.40214"],"dcterms_creator":["Georgia. Department of Audits"],"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: Rabun County Board of Education, Clayton, Georgia, scheule 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 ... (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online resource); (Georgia Government Publications database, viewed June 27, 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":["Rabun County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Rabun County--Auditing--Periodicals.","Education--Georgia--Rabun County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Rabun County--fast--https://id.oclc.org/worldcat/entity/E39PBJt3VJPKFBPxFbFXxhD8YP","Georgia Government Documents--Serial"],"dcterms_title":["Rabun County Board of Education, Clayton, 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-br2-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2005-h2006"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":" RABUN COUNTY BOARD OF EDUCATION \r\n- TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL \r\nSTATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF \r\nEXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\nGENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n- TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n2 8 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n2 9 \r\n \r\nSECTION I1 \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A- 133 \r\n \r\nSECTION I11 AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENOTF AUDITSAND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nOctober 12, 2006 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL \r\nSTATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF \r\nEXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Rabun County Board of Education, as of and for the year ended June 30, 2006, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Rabun County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Rabun County Board of Education, as of June 30,2006, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\n \r\n The Rabun County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated October 12, 2006, on our consideration of the Rabun County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditinn Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 25, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Rabun 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 of States, Local Governments, and Non-Projt Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespecthlly submitted, \r\n~ u j s e lWl . Hinton, CPA, CGFM State Auditor \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\n                                        "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2004-h2005","title":"Rabun County Board of Education, Clayton, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2005","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. 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Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Rabun County, 34.88168, -83.40214"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2004-06-30"],"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: Rabun County Board of Education, Clayton, Georgia, scheule 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 ... (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online resource); (Georgia Government Publications database, viewed June 27, 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":["Rabun County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Rabun County--Auditing--Periodicals.","Education--Georgia--Rabun County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Rabun County--fast--https://id.oclc.org/worldcat/entity/E39PBJt3VJPKFBPxFbFXxhD8YP","Georgia Government Documents--Serial"],"dcterms_title":["Rabun County Board of Education, Clayton, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2004"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2003-h2004"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2003-h2004"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"RABUN COUNTY BOARD OF EDUCATION \r\nCLAYTON, GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n RABUN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n3 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n4 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n7 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n8 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n9 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n10 \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n11 \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n13 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n27 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n28 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n29 \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n30 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n31 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nJune 16, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Rabun 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 of the Rabun County Board of Education's management_ Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Rabun County Board of Education, as of June 30, 2004, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\n2004ARL-ll \r\n \r\n In accordance with Government Auditing Standards, we have also issued our report dated June 16, 2005, on our consideration ofthe Rabun 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 ofour testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through ix and page 27 respectively, are not a required part of the basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Rabun County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated section 506-24. \r\nRespectfully submitted, \r\nw.~ \r\n \r\nRWH:as 2004ARL-l 1 \r\n \r\nState Auditor \r\n \r\n RABUN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\nINTRODUCTION \r\nOur discussion and analysis of the Rabun County School District's financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2004. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. We encourage our readers to also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for fiscal year 2004 are as follows: \r\n On the District-wide financial statements, the assets of the School District exceeded liabilities by $35.8 million. Of this amount, $9.4 million is unrestricted and is available for spending at the School District's discretion. \r\n The School District had slightly more than $20.7 million in expenses relating to governmental activities; only $10.4 million of these expenses are offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $15.6 million were adequate enough to provide the remaining funding for these programs. \r\n As stated above, General revenues accounted for $15.6 million or 60% of all revenues totaling $26.0 million. Program specific revenues in the form of charges for services, grants and contributions accounted for the rest. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts; management's discussion and analysis (this section), the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide financial statements and the fund financial statements. \r\nThe District-wide financial statements include the 'Statement of Net Assets' and 'Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \r\nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The 'Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. The 'Fiduciary Funds' statements provide information about the financial relationships in which the \r\n- 1- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\nSchool District acts solely as a trustee or agent for the benefit of others. In the case of the Rabun County School District, the General Fund, Capital Projects Funds, and Debt Service Funds are all considered to be major funds. The School District has no nonmajor funds as defined by GASB Statement 34 for the purposes of this report. \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nDistrict-wide Statements \r\nSince Rabun County School District has no operations that have been classified as \"BusinessType Activities\", the District-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called \"Governmental Activities\". In reviewing the District-wide financial statements, a reader might ask the question, \"Are we in a better financial position now than last year\"? The 'Statement of Net Assets' and the 'Statement of Activities' provides the basis for answering this question. These financial statements include the School District's assets and liabilities. They use the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net assets and any changes in those assets. The change in net assets is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, reductions in state/Federal funding and other factors. \r\nThe 'Statement of Net Assets' and the 'Statement of Activities' reflect 100% of the School District's financial activities. \r\nFund Financial Statements \r\nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about only the School District's significant or major funds. As discussed previously, the School District has no nonmajor Funds as defined by GASB Statement 34. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows in to and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term \r\n-11- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\nview of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or less financial resources that can be spent in the near future to finance educational programs. The differences between government activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, including school clubs and other organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nRecall that the Statement of Net Assets provides the perspective of the School District as a whole. The reader can think of the School District's net assets as the difference between its assets (i.e., what the School District owns) and its liabilities (i.e., what the School District owes) at the end of a fiscal year. This balance represents one way to measure the School District's financial health or its financial position. In the case of the Rabun County School District, assets exceeded liabilities by $35.8 million at June 30, 2004. \r\nTo better understand the School District's actual financial position and ability to deliver services in future periods, the reader will need to review the various components of the net asset category. For example, of the $35.8 million of net assets, $2.8 million was restricted for replacing buses, continuation of Federal programs, debt service obligations and completion on certain ongoing capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \r\nIn addition, the School District also had $23.6 million (net of related debt) invested in capital assets (e.g., land, buildings, equipment and construction in progress). The School District uses these capital assets to provide educational services to students within geographic boundaries served by the School District. Because of the very nature and on-going use of the assets being reported in this component of net assets, it must be recognized that this portion of the net assets is not available for future spending. \r\nThe remaining balance of unrestricted net assets of $9.4 million may be used to meet the School District's ongoing obligations to citizens and creditors. \r\nTable 1 provides a summary of the School District's net assets for this fiscal year. The School District has prepared financial statements following GASB 34 for two years. Therefore, revenue and expense comparisons to fiscal year 2003 are available and have been included in our analysis. \r\n- 111 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nTable 1 Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2004 \r\n \r\nYear 2003 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 15,269,428 $ 17,153,049 \r\n \r\n28,630,329 \r\n \r\n21,235,585 \r\n \r\nTotal Assets \r\n \r\n$ 43,899,757 $ 38,388,634 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n$ 2,908,996 $ 2,495,183 \r\n \r\n5,179,627 \r\n \r\n5,217,142 \r\n \r\nTotal Liabilities \r\n \r\n$ 8,088,623 $ 7,712,325 \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\n$ 23,630,329 2,807,603 9,373,202 \r\n \r\n$ 18,688,279 5,118,896 6,869,134 \r\n \r\nTotal Net Assets \r\n \r\n$ 35,811,134 $ 30,676,309 \r\n \r\nTable 2 shows the Changes in Net Assets for this fiscal year. The School District has prepared financial statements following GASB 34 for two years. Therefore, revenue and expense comparisons to fiscal year 2003 are available and have been included in our analysis. \r\n \r\n- iv - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nTable 2 Change in Net Assets \r\n \r\nRevenues Program Revenues: Charges for Services and Sales \r\nOperating Grants and Contributions \r\nCapital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2004 \r\n \r\nYear 2003 \r\n \r\n$ \r\n \r\n675,237 $ \r\n \r\n566,560 \r\n \r\n8,418,163 \r\n \r\n8,725,392 \r\n \r\n1,314,563 \r\n \r\nTotal Program Revenues \r\n \r\n$ 10,407,963 $ 9,291,952 \r\n \r\nGeneral Revenues: \r\n \r\nTaxes \r\n \r\nProperty Taxes \r\n \r\nFor Maintenance and Operations \r\n \r\n$ 8,915,312 $ 8,552,909 \r\n \r\nFor Debt Service \r\n \r\n5 \r\n \r\nSales Taxes \r\n \r\nLocal Option Sales Tax \r\n \r\nFor Maintenance and Operations \r\n \r\n2,924,053 \r\n \r\n2,811,522 \r\n \r\nSpecial Purpose Local Option Sales Tax \r\n \r\nFor Debt Service \r\n \r\n163,000 \r\n \r\n163,000 \r\n \r\nFor Capital Projects \r\n \r\n2,769,853 \r\n \r\n2,356,763 \r\n \r\nReal Estate \r\n \r\n99,099 \r\n \r\n106,112 \r\n \r\nGrants and Contributions not Restricted to \r\n \r\nSpecific Programs \r\n \r\n293,275 \r\n \r\nInvestment Earnings \r\n \r\n261,487 \r\n \r\n349,570 \r\n \r\nMiscellaneous \r\n \r\n172,804 \r\n \r\n146 710 \r\n \r\nTotal General Revenues \r\n \r\n$ 15,598,883 $ 14,486,591 \r\n \r\nTotal Revenues \r\n \r\n$ 26,006,846 $ 23,778,543 \r\n \r\nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration \r\nMaintenance and Operation of Plant Student Transportation Services Central Support Services \r\nOther Support Services Operations of Non-Instructional Services \r\nEnterprise O~erations Community ervices \r\nFood Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 14,236,148 \r\n570,702 214,171 426,986 356,255 967,429 197,393 1,420,509 843,965 \r\n44,166 89,371 \r\n71,465 118,576 1,003,872 173 611 \r\n \r\n$ 12,769,333 \r\n613,663 241,971 429,379 278,235 955,883 200,870 1,244,650 792,495 \r\n46,656 65,454 \r\n938,665 237 754 \r\n \r\nTotal Expenses \r\n \r\n$ 20,734,619 $ 18,815,008 \r\n \r\nIncrease in Net Assets \r\n \r\n$ 5,272,227 $ 4,963,535 \r\n \r\n- V- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nGovernmental Activities \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. The School District has prepared financial statements following GASB 34 for two years. Therefore, revenue and expense comparisons to fiscal year 2003 are available and have been included in our analysis. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2004 Year 2003 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2004 Year2003 \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$14,236,148 $12,769,333 $ \r\n \r\n570,702 214,171 426,986 356,255 967,429 197,393 1,420,509 843,965 \r\n44,166 89,371 \r\n \r\n613,663 241,971 429,379 278,235 955,883 200,870 1,244,650 792,495 \r\n46,656 65,454 \r\n \r\n71,465 118,576 1,003,872 173 611 \r\n \r\n938,665 237 754 \r\n \r\n7,056,232 $ \r\n427,478 116,371 261,561 77,350 590,333 93,388 1,034,101 401,955 26,103 81,907 \r\n-4,935 -11,070 \r\n2,271 173 611 \r\n \r\n6,561,824 \r\n343,417 100,204 252,644 30,964 573,054 200,870 853,240 322,549 46,656 \r\n-4,594 \r\n-6,242 \r\n10,716 237 754 \r\n \r\nTotal Expenses \r\n \r\n$20,734,619 $18,815.008 $ 10,326,656 $ 9,523,056 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $25.9 million and total expenditures of $28.3 million during fiscal year 2004. Included in the $28.3 million of expenditures was $8.0 million of Capital Outlay expenditures. These expenditures were funded primarily through a General Obligation Bond Issue dated 1998/2001, for which proceeds were received in a prior year. \r\n \r\n- Vl - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nGeneral Fund Budgeting Highlights \r\n \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund of the School District is the General Fund. During the course of fiscal year 2004, the School District made no amendments to its original general fund budget. \r\n \r\nFor the General Fund, the final actual revenues of $21.6 million were over the final budgeted amounts of $19.8 million by $1.8 million. This difference (final actual vs. final budget) was due primarily to an increase in state revenues over final budget of $0.2 million, property taxes collected in excess of the budget of $0.7 million, sales tax collected in excess of the budget of $0.5 million, and other various local revenues over final budget by $0.4 million. \r\n \r\nThe final budgeted expenditures of $20.4 million exceeded the actual amount of expenditures of $20.0 million by $0.4 million. This difference was due primarily to a decrease in School Administration expenditures and a decrease to expenditures for Capital Outlay. \r\n \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\n \r\nCapital Assets \r\n \r\nAt fiscal year ended June 30, 2004 the School District had $28.6 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. The School District has prepared financial statements following GASB Statement 34 for 2 years. Therefore, Capital Assets comparisons to fiscal year 2003 are available and have been included in our analysis. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2003 \r\n \r\nYear 2004 \r\n \r\n(Restated) \r\n \r\nLand Construction in Progress Land Improvements Buildings Equipment \r\n \r\n$ 644,500 9,805,531 553,514 17,236,111 390 673 \r\n \r\n$ 644,500 1,759,484 625,935 \r\n17,687,669 380,595 \r\n \r\nTotal \r\n \r\n$ 28!630!329 $ 21!098!183 \r\n \r\nAdditional information on the School District's Capital Assets can be found in the Notes to the Financial Statement. \r\n \r\n- Vll - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nDue to the ongoing growth in the county, at June 30, 2004, the School District was in the final phases of completing a new elementary school. This facility opened in January 2005. \r\n \r\nDebt \r\n \r\nAt fiscal year ended June 30, 2004, the School District had $5,000,000 in bonds outstanding, and $179,627 in other Long-Term debt. Table 5 summarizes the School District's debt for general obligation bonds and capital leases outstanding. \r\n \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2004 \r\n \r\nYear 2003 \r\n \r\nBonds Payable Capital Leases \r\n \r\n$ 5,000,000 $ 5,000,000 \r\n \r\n179 627 \r\n \r\n217 142 \r\n \r\nTotal \r\n \r\n$ 5,179,627 $ 5,217,142 \r\n \r\nAdditional information can be found on the School District's debt in the Notes to the Financial Statement. \r\n \r\nCURRENT ISSUES \r\n \r\nCurrently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations in future years are as follows: \r\n \r\n As was the case in the prior year, the State of Georgia is suffering from the effects of the prevailing unfavorable economic conditions. Total revenue collections for the State for the 2004 fiscal year were down roughly 3% compared to the previous period. This has forced the State's Office of Planning and Budget to continue reducing the budgets of the various government agencies, including local educational agencies. \r\n \r\n State QBE Revenue Reductions - During the current fiscal year the State of Georgia implemented a 2.5% QBE revenue formula funding reduction to all state school districts. This funding reduction carried forward into the fiscal year 2005. Additionally, because state revenues are falling well below the projected amounts, all state school districts have been warned to expect a 5% reduction of revenues for fiscal year 2005. Considering the stagnant economy of the past few years, the formula funding reductions will seriously affect the long-term financial stability of the School District. Despite these challenges, the Rabun County School District is still in a strong financial position and we remain optimistic about the ability of the School District to maximize all of the financial resources to provide a quality education to our students. \r\n \r\n- Vlll - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004  Capital Improvements - The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues and anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education. The School District regularly monitors anticipated capital outlay needs. CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Ms. Helen Wood, Finance Director of Rabun County School District, 41 Education Street, Clayton, Georgia 30525. You may also email your questions to Ms. Wood at hwood@rabun.kl2.ga.us. \r\n- lX - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30. 2004 \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable. Net \r\nTaxes State Government Federal Government Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT\"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n12,697,629 \r\n \r\n1.598.053 759,907 200.069 13.770 \r\n \r\n644.500 9,805,531 1,464,186 22,584,680 1,808,023 -7,676,591 \r\n \r\n$ ===4=3;.,;8=9=-9=75=7= \r\n \r\n$ \r\n \r\n519,907 \r\n \r\n1,552,087 \r\n \r\n272,413 \r\n \r\n564,589 \r\n \r\n1,644,467 3,535,160 \r\n \r\n$ \r\n \r\n8,088,623 \r\n \r\n$ \r\n \r\n23,630,329 \r\n \r\n117,400 206,511 1,738,052 745,640 9,373,202 \r\n \r\n$ \r\n \r\n35,811,134 \r\n \r\n$ ===4=3=-8=9=9\"'=7=5=7 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -3- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2004 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Local Option Sales Tax For Maintenance and Operations Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year, Restated \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n14,236,148 $ \r\n \r\n570,702 214,171 426,986 356,255 967,429 197,393 1,420,509 843,965 \r\n44,166 89,371 \r\n \r\n71,465 118,576 1,003,872 173,611 \r\n \r\n$ \r\n \r\n20 734 619 $ \r\n \r\n55,407 1,921 3,792 \r\n25,230 \r\n2,146 \r\n6,592 76,400 129,646 374,103 \r\n675 237 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n5,901,508 $ \r\n \r\n1,223,001 $ \r\n \r\n-7,056,232 \r\n \r\n141,303 94,008 \r\n140,195 278,905 377,096 \r\n97,628 381,616 361,012 \r\n18,063 872 \r\n \r\n6,377 2,646 80,998 \r\n \r\n-427,478 -116,371 -261,561 \r\n-77,350 -590,333 \r\n-93,388 -1,034,101 \r\n-401,955 -26, 103 -81,907 \r\n \r\n625,957 \r\n \r\n1,541 \r\n \r\n4,935 11,070 -2,271 -173,611 \r\n \r\n$ \r\n \r\n8 418 163 $ \r\n \r\n1 314 563 $ \r\n \r\n-10,326,656 \r\n \r\n$ \r\n \r\n8,915,312 \r\n \r\n2,924,053 \r\n \r\n163,000 2,769,853 \r\n99,099 293,275 261,487 172,804 \r\n \r\n$ \r\n \r\n15,598,883 \r\n \r\n$ \r\n \r\n5,272,227 \r\n \r\n30,538,907 \r\n \r\n$ ======35=8==1=1=1=34= \r\n \r\n-5- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30. 2004 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories Capital Projects \r\nUnreserved Undesignated Reported in: General Fund Capital Projects \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 8,165,733 $ \r\n717,496 759,907 200,069 \r\n13,770 \r\n \r\n4,480,344 $ 544,673 \r\n \r\n51,552 $ 12,697,629 \r\n1,262,169 759,907 200,069 13,770 \r\n \r\n$ 9,856,975 $ 5,025,017 $ 51,552 $ 14,933,544 \r\n \r\n$ \r\n \r\n519,907 \r\n \r\n1,552,087 \r\n \r\n$ \r\n \r\n$ 2,071,994 $ \r\n \r\n272,413 564,589 \r\n837,002 \r\n \r\n$ 519,907 1,552,087 272,413 564,589 \r\n$ 2,908,996 \r\n \r\n$ \r\n \r\n117,400 \r\n \r\n$ 117,400 \r\n \r\n192,741 \r\n \r\n192,741 \r\n \r\n$ 1,686,500 $ 51,552 \r\n \r\n1,738,052 \r\n \r\n13,770 \r\n \r\n13,770 \r\n \r\n745,640 \r\n \r\n745,640 \r\n \r\n7,461,070 $ 7,784,981 $ \r\n \r\n1,755,875 4,188,015 $ \r\n \r\n7,461,070 1,755,875 \r\n51,552 $ 12,024,548 \r\n \r\n$ 9,856,975 $ 5,025,017 $ 51 552 $ 14 933 544 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \r\nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \r\nBonds Payable Capital Leases \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 12,024,548 \r\n \r\n$ 644,500 9,805,531 1,464,186 \r\n22,584,680 1,808,023 -7,676,591 \r\n \r\n28,630,329 \r\n \r\n335,884 \r\n \r\n$ -5,000,000 -179,627 \r\n \r\n-5,179,627 \r\n \r\n$ 35,811,134 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30. 2004 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 8,845,191 \r\n \r\n3,023,152 $ 2,769,853 $ \r\n \r\n6,654,512 \r\n \r\n1,233,565 \r\n \r\n2,137,924 \r\n \r\n675,237 \r\n \r\n101,806 \r\n \r\n159,519 \r\n \r\n172,804 \r\n \r\n$ 21,610,626 $ 4,162,937 $ \r\n \r\n$ 163,000 \r\n162 \r\n \r\n8,845,191 5,956,005 7,888,077 2,137,924 \r\n675,237 261,487 172,804 \r\n \r\n163,162 $ 25,936,725 \r\n \r\n$ 13,552,159 \r\n \r\n570,702 214,171 426,986 356,255 967,429 193,148 1,618,264 821,167 \r\n44,166 89,371 71,465 118,576 1,002,846 \r\n3,506 $ \r\n \r\n8,042,943 \r\n \r\n37,515 \r\n \r\n10 611 \r\n \r\n$ \r\n \r\n$ 20,098,337 $ 8,042,943 $ \r\n \r\n$ 1,512,289 $ -3,880,006 $ \r\n \r\n$ 13,552,159 \r\n \r\n570,702 214,171 426,986 356,255 967,429 193,148 1,618,264 821,167 \r\n44,166 89,371 71,465 118,576 1,002,846 8,046,449 \r\n \r\n163,000 \r\n \r\n37,515 173,611 \r\n \r\n163,000 $ 28,304,280 \r\n \r\n162 $ -2,367,555 \r\n \r\n$ \r\n \r\n826,135 \r\n \r\n$ \r\n \r\n-826, 135 \r\n \r\n$ \r\n \r\n-826,135 $ \r\n \r\n826,135 \r\n \r\n$ \r\n \r\n686,154 $ -3,053,871 $ \r\n \r\n7,098,827 \r\n \r\n7,241,886 \r\n \r\n$ \r\n$ 162 $ 51,390 \r\n \r\n826,135 -826, 135 \r\n0 -2,367,555 14,392,103 \r\n \r\nFund Balances - Ending \r\n \r\n$ 7,784981 $ 4,188,015 $ \r\n \r\n51 552 $ 12,024,548 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2004 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \r\nCapital Lease Payments \r\n \r\n$ -2,367,555 \r\n \r\n$ 8,153,522 -621,376 \r\n \r\n7,532,146 70,121 \r\n \r\n37 515 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ ====5=,2=7=2=,2=27= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS JUNE 30, 2004 \r\n \r\nEXHIBIT\"G\" \r\n \r\nASSETS Cash and Cash Equivalents Investments \r\nCertificate of Deposit Accounts Receivable. Net \r\nOther \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\nNET ASSETS Held in Trust for Private Purposes \r\nTotal Liabilities and Net Assets \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n235 $ \r\n \r\n146,402 \r\n \r\n70,482 33 200 \r\n \r\n$ \r\n \r\n146.637 $ =~10:;,,;;3a,;;,6~82~ \r\n \r\n$ _ ___;1-=-0=3-=-68=2=- \r\n \r\n$ _ ___;1c...:4=6-=-63\"-'7'- \r\n \r\n$ \r\n \r\n146,637 $===,,;1~0;;;.3,;;;68~2;,,, \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 10 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30. 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nADDITIONS Contributions Donors Investment Earnings Interest Total Additions \r\nDEDUCTIONS Scholarships Change in Net Assets \r\nNet Assets - Beginning \r\nNet Assets - Ending \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n146.402 \r\n \r\n1,935 \r\n \r\n$ \r\n \r\n148,337 \r\n \r\n1,700 \r\n \r\n$ \r\n \r\n146,637 \r\n \r\n0 \r\n \r\n$ ==1=46='=63=7= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 11 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Rabun County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Rabun County Board of Education. \r\nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\n \r\n- 13 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for all financial resources of the School District, except those resources required to be accounted for in another fund. \r\n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. \r\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment of general longterm principal, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund types: \r\n Private Purpose Trust fund reports trust arrangements under which principal is to be invested and preserved intact with the resultant income to be used to provide awards or scholarships. \r\n Agency funds account for assets held by the School District as an agent for various scholarship funds and Principal's accounts. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be \r\n- 14 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\navailable if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nRESTATEMENT OF PRIOR YEAR NET ASSETS - BEGINNING OF YEAR \r\nIn the initial year of implementation of GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, the School District's capitalization policy was adopted with a capitalization threshold of $5,000 for land improvements, buildings and equipment and any amount for land purchases. As of July 1, 2003, the School District modified the threshold for capitalization of land, land improvements, buildings and equipment to $10,000. As a result of this policy change, net assets and associated accumulated depreciation at July 1, 2003, were decreased by $375,220 and $237,818, respectively. \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n- 15 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n \r\n(2) Obligations issued by the United States government, \r\n \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n \r\n(4) Obligations of any corporation of the United States government, \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Rabun County Board of Commissioners fixed the property tax levy for the 2003 tax digest year (calendar year) on October 16, 2003 (levy date). Taxes were due on December 20, 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 Rabun County Tax Commissioner bills and collects the property taxes for the School District 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 $8,845,191. \r\n \r\nThe tax millage rate levied for the 2003 tax year (calendar year) for the Rabun County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n7.4856 mills \r\n \r\n- 16 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSALES TAXES \r\nLocal Option Sales Tax revenue, at the fund reporting level, during the fiscal year amounted to $2,924,053 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation of the School District. \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,932,853 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nINVENTORIES \r\nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\n- 17 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\n$ \r\n \r\n10,000 \r\n \r\nNIA \r\n \r\n$ \r\n \r\n10,000 20 to 80 years \r\n \r\n$ \r\n \r\n10,000 10 to 80 years \r\n \r\n$ \r\n \r\n10,000 3 to 14 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nGENERAL OBLIGATION BONDS \r\n \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \r\n \r\nNote 3: DEPOSITS \r\n \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. \r\n \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n \r\n- 18 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 3: DEPOSITS \r\n \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2004, the bank balances were $14,862,279. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2004, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 276,729 \r\n \r\n2 \r\n \r\n6,188,425 \r\n \r\n3 \r\n \r\n8,397,125 \r\n \r\nTotal \r\n \r\n$ 14,862.279 \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\n- 19 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\nTotal Capital Assets Not Being Depreciated \r\n \r\nBalances July I, 2003 (Restated) \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2004 \r\n \r\n$ 644,500 \r\n \r\n$ \r\n \r\n1,759,484 $ 8,046,047 \r\n \r\n$ 2,403,984 $ 8,046,047 $ \r\n \r\n0 $ 644,500 9,805,531 \r\n0 $ 10,450,031 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 22,584,680 1,700,548 $ 1,464,186 \r\n \r\n$ 107,475 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n4,897,01 I 1,319,953 \r\n838,251 \r\n \r\n451,558 97,397 72 421 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 18,694,199 $ -513 901 $ \r\n \r\nGovernmental Activity Capital Assets - Net $ 21,098.183 $ 7,532,146 $ \r\n \r\n0 $ 22,584,680 1,808,023 1,464,186 \r\n5,348,569 1,417,350 \r\n910,672 \r\n0 $ 18,180,298 \r\n0 $ 28,630.329 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2004, are as follows: \r\n \r\nGovernmental Funds \r\n \r\nBuildings Less: Accumulated Depreciation \r\n \r\n$ 341,902 68,380 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\n$====2~73~-~52=2 \r\n \r\nInstruction Support Services \r\nBusiness Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 517,493 \r\n \r\n$ \r\n \r\n3,212 \r\n \r\n1,333 \r\n \r\n98,562 \r\n \r\n103,107 776 \r\n \r\n$ 621,376 \r\n \r\n- 20 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST) is reported as restricted assets in the Statement ofNet Assets because its use is limited by statutory provisions. Restricted assets at June 30, 2004, were as follows: \r\n \r\nDistrict-wide Capital Projects SPLOST \r\n \r\nDebt Service Funds \r\n \r\nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \r\n \r\n$ 1,686,500 $ $ 1,037,969 \r\n \r\n51,552 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2004, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From General Fund \r\n \r\nDistrict-wide Capital Projects \r\n \r\n$======8==26-,1==3==5 \r\n \r\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. \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, or property damage, including safety \r\n \r\n- 21 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nengineering and other loss prevention and control techniques, and to administer one or more groups ofself-insurance funds, including the processing and defense ofclaims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake) and general liability (including coverage for sexual harassment, molestation and abuse). Payment of excess insurance for the system varies by line of coverage. \r\n \r\nThe School District has elected to self-insure for all losses related to motor vehicle liability. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $400,000 loss per occurrence, up to $2,000,000. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ 100,000 $ 100,000 \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Rabun County Board of Education has entered into two lease agreements as lessee for a copier and energy saving equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\n- 22 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2001 \r\n \r\n3.26% \r\n \r\n$ 5.000.000 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2004, were as follows: \r\n \r\nGovernmental Funds \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nObligation \r\n \r\nLeases \r\n \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2003 \r\n \r\n$ 217,142 $ 5,000,000 $ 5,217,142 \r\n \r\nDeductions Payments \r\n \r\n37 515 \r\n \r\n37 515 \r\n \r\nBalance June 30, 2004 \r\n \r\n$ 179,627 $ 5,000.000 $ 5,179.627 \r\n \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$ \r\n \r\n39 467 $ 1,605,000 $ 1,644,467 \r\n \r\nAt June 30, 2004, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCagital Leases \r\n \r\nPrincigal \r\n \r\nInterest \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincigal \r\n \r\nInterest \r\n \r\n2005 2006 2007 2008 2009 \r\n \r\n$ \r\n \r\n39,467 $ \r\n \r\n41,290 \r\n \r\n40,829 \r\n \r\n43,131 \r\n \r\n14 910 \r\n \r\n8,658 $ I,605,000 $ \r\n \r\n5,695 \r\n \r\n1,665,000 \r\n \r\n4,416 \r\n \r\n1,730,000 \r\n \r\n2,115 \r\n \r\n171 \r\n \r\n136,838 83,538 28,199 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 179 627 $ \r\n \r\n21 055 $ 5,000.000 $ 248 575 \r\n \r\nNote 10: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $222,387 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\n- 23 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 10: ON-BEHALF PAYMENTS \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $220,682 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $1,705 \r\n \r\nNote 11: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2004, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\nSA0lS-719-144 High School Practice Field \r\n \r\n$ 2,031,696 $ 208,981 \r\n \r\n137,063 \r\n \r\n$ 2~240~677 $ 137!063 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \r\nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 13: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\n- 24 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 13: RETIREMENT PLANS \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2004 2003 2002 \r\n \r\n100% 100% 100% \r\n \r\n$ 1,001,469 $ 945,350 $ 941,683 \r\n \r\n- 25 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30 2004 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \r\nCapital Outlay Debt Service \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n8,111,945 $ \r\n \r\n8,111,945 $ \r\n \r\n8,845,191 \r\n \r\n2,400,000 \r\n \r\n2,520,000 \r\n \r\n3,023,152 \r\n \r\n6,649,729 \r\n \r\n6,428,600 \r\n \r\n6,654,512 \r\n \r\n1,395,796 \r\n \r\n2,271,507 \r\n \r\n2,137,924 \r\n \r\n353,675 \r\n \r\n353,675 \r\n \r\n675,237 \r\n \r\n90,500 \r\n \r\n90,500 \r\n \r\n101,806 \r\n \r\n69 042 \r\n \r\n69,042 \r\n \r\n172,804 \r\n \r\n$ \r\n \r\n19 070,687 $ \r\n \r\n19 845,269 $ \r\n \r\n21,610,626 \r\n \r\n$ \r\n \r\n13,559,075 $ \r\n \r\n14,271,752 $ \r\n \r\n13,552,159 \r\n \r\n546,242 165,665 436,618 280,747 1,043,291 201,481 1,266,168 833,023 \r\n22,100 70,700 \r\n970,577 80,000 \r\n \r\n565,185 266,694 436,618 399,960 1,043,291 201,481 1,268,168 871,639 \r\n22,100 73,000 \r\n974,577 80,000 \r\n \r\n570,702 214,171 426,986 356,255 967,429 193,148 1,618,264 821,167 \r\n44,166 89,371 71,465 118,576 1,002,846 \r\n3,506 48 126 \r\n \r\n$ \r\n \r\n19,475 687 $ \r\n \r\n20 474,465 $ \r\n \r\n20,098,337 \r\n \r\n$ \r\n \r\n-405,000 $ \r\n \r\n-629, 196 $ \r\n \r\n1,512,289 \r\n \r\n$ \r\n \r\n5,000 $ \r\n \r\n5,000 \r\n \r\n$ \r\n \r\n-826, 135 \r\n \r\n$ \r\n \r\n5 000 $ \r\n \r\n5,000 $ \r\n \r\n-826 135 \r\n \r\n$ \r\n \r\n-400,000 $ \r\n \r\n-624, 196 $ \r\n \r\n686,154 \r\n \r\n4 908,788 \r\n \r\n4 920,279 \r\n \r\n7,098 827 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n4 508 788 $ \r\n \r\n4 296,083 $ ===7==78=4=9=8=1= \r\n \r\nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\nSee notes to the basic financial statements. \r\n- 27 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \r\nTotal U.S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education English Language Acquisition Grants Enhancing Education Through Technology Program Improving Teacher Quality State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Vocational Education - Basic Grants to States \r\nTotal U.S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n(2) 817 975 \r\n817,975 \r\n \r\n10.550 10.665 \r\n \r\nNIA N/A \r\n$ \r\n \r\n52,847 (3) \r\n870 822 \r\n \r\n* 84.027 * 84.173 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\n$ \r\n \r\n362,669 20 757 \r\n383,426 \r\n \r\n84.365 84.318 84.367 84.298 84.010 * 84.287 84.048 \r\n \r\nN/A N/A N/A N/A N/A N/A N/A \r\n$ \r\n \r\n14,059 10,559 104,240 12,690 420,708 525,036 28 699 \r\n1499417 \r\n \r\nTotal Federal Financial Assistance \r\nN/A = Not Available \r\n \r\n$ ===2==37=0=\"2=3==9 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) The amounts shown for the Food Donation Program represents the Federally assigned value of non monetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($114,668) were not maintained separately and are included in the 2004 National School Lunch Program. \r\n(3) Funds earned on the National Forest Reserve Funds Program, in the amount of $70,888, do not require reporting of expenditures. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Rabun County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 28 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2004 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program 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 111 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 Sparsity Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Food Services Vocational Education Austerity Reduction Other State Programs 4-8 After School Program Health Insurance Mentor Teachers National Teacher Certification Preschool Handicapped Program Statewide K-3 Reading Program Student Information Systems - Conversion Student Information Systems - Reporting \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n414,159 \r\n \r\n91,037 \r\n \r\n1,075,083 \r\n \r\n110,594 \r\n \r\n534,289 \r\n \r\n23,134 \r\n \r\n257,276 \r\n \r\n583,204 \r\n \r\n564,764 \r\n \r\n270,418 \r\n \r\n57,914 208,551 387,090 \r\n90,816 35,392 52,329 22,529 65,168 79,429 140,195 43,968 26,184 \r\n \r\n243,751 359,900 381,616 \r\n \r\n347,388 80,998 19,500 58,705 8,188 9,008 44,491 58,338 13,946 \r\n-504,804 \r\n14,493 220,682 \r\n5,549 37,675 24,618 29,579 48,153 17,510 \r\n \r\n$ 414,159 91,037 \r\n1,075,083 110,594 534,289 23,134 257,276 583,204 564,764 270,418 \r\n57,914 208,551 387,090 \r\n90,816 35,392 52,329 22,529 65,168 79,429 140,195 43,968 26,184 \r\n243,751 359,900 381,616 \r\n347,388 80,998 19,500 58,705 8,188 9,008 44,491 58,338 13,946 \r\n-504,804 \r\n14,493 220,682 \r\n5,549 37,675 24,618 29,579 48,153 17,510 \r\n \r\n$ \r\n \r\n1,233,565 \r\n \r\n1,233,565 \r\n \r\n1 705 \r\n \r\n1,705 \r\n \r\n$ 6,654 512 $ \r\n \r\n1,233,565 $ 7,888 077 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2004 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nAcquisition, construction and equipping of a new elementary school, including necessary furnishings and equipment; the acquisition, construction and equipping of additional instructional, support and physical education facilities at existing schools, including the acquisition of necessary furnishings and equipment; and system-wide technology improvements \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 12,000,000 $ 13,236,985 $ 8,199,515 $ 2,361,716 Ongoing \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \r\n(3) The voters of Rabun County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2004 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) \r\n \r\nProgram \r\n \r\nMiddle Grades (6-8) Program \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nCategory I \r\n \r\nCategory II \r\n \r\nCategory Ill \r\n \r\nCategory IV \r\n \r\nCategory V \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\nEnglish Speakers of Other Languages (ESOL) \r\n \r\n726,581 $ 158,662 1,862,351 201,677 926,769 \r\n44,693 441,161 1,013,868 985,090 467,309 1,334,015 \r\n93,023 39,008 112,059 132,025 \r\n \r\n630,316 $ 178,973 2,369,854 230,117 1,079,228 \r\n65,800 534,335 1,212,533 1,626,417 571,087 \r\n54,722 436,009 837,577 \r\n45,603 1,301 \r\n142,463 55,073 \r\n169,090 157,881 \r\n \r\n42,735 $ 1,591 \r\n245,307 3,447 \r\n99,995 \r\n1,390 42,378 87,293 174,436 44,187 \r\n1,564 4,176 114,219 5,836 \r\n918 2,457 1,100 1,183 1,343 \r\n \r\n673,051 180,564 2,615,161 233,564 1,179,223 \r\n67,190 576,713 1,299,826 1,800,853 615,274 \r\n56,286 440,185 951,796 \r\n51,439 2,219 \r\n144,920 56,173 \r\n170,273 159,224 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n8,538,291 $ 10,398,379 $ \r\n \r\n875,555 $ \r\n \r\n11,273,934 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n242,481 44,962 \r\n \r\n355,832 18,003 \r\n \r\n42,793 27,415 \r\n \r\n398,625 45,418 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n8,825,734 $ 10,772,214 $ \r\n \r\n945, 763 $ ===1=1=,7=1=7.,9.,=7=7 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJune 16, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Rabun County Board of Education as of and for the year ended June 30, 2004, which collectively comprise Rabun County Board of Education's basic financial statements and have issued our report thereon dated June 16, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Rabun 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. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting 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 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. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. \r\n2004YB-10 \r\n \r\n Compliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Rabun County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nThis report is intended solely for the information and use of the management and members of the Rabun County Board of Education and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\nlb.~ \r\n \r\nRWH:as 2004YB-10 \r\n \r\nState Auditor \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nJune 16, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Rabun County Board of Education with the types ofcompliance requirements described in the US. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2004. Rabun County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Rabun County Board of Education's management. Our responsibility is to express an opinion on Rabun County Board of Education's compliance based on our audit. \r\nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Rabun 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 Rabun County Board of Education's compliance with those requirements. \r\n2004SA-10 \r\n \r\n In our opinion, the Rabun County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2004. \r\nInternal Control Over Compliance \r\nThe management of Rabun 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 Rabun 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 of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements oflaws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \r\nThis report is intended solely for the information and use ofthe management, members ofthe Rabun County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\nu),4.\\:k \r\n \r\nRWH:as 2004SA-10 \r\n \r\nState Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7191-03-01 \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2004 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Rabun County Board of Education's financial statements was unqualified. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Rabun County Board of Education did not disclose any reportable conditions related to the financial statements. \r\n3. Noncompliance Material to the Financial Statements The audit ofthe Rabun County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Rabun County Board of Education did not disclose any reportable conditions in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Rabun County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Rabun County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \r\n7. 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 84.287 Twenty-First Century Community Leaming Centers \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \r\n9. Low Risk Auditee The Rabun County Board ofEducation qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\n- 1- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2004 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2002-h2003","title":"Rabun County Board of Education, Clayton, 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, Rabun County, 34.88168, -83.40214"],"dcterms_creator":["Georgia. Department of Audits"],"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: Rabun County Board of Education, Clayton, Georgia, scheule 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 ... (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online resource); (Georgia Government Publications database, viewed June 27, 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":["Rabun County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Rabun County--Auditing--Periodicals.","Education--Georgia--Rabun County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Rabun County--fast--https://id.oclc.org/worldcat/entity/E39PBJt3VJPKFBPxFbFXxhD8YP","Georgia Government Documents--Serial"],"dcterms_title":["Rabun County Board of Education, Clayton, 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-br2-b2002-h2003"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2002-h2003"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"RABUN COUNTY BOARD OF EDUCATION \r\nCLAYTON# GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30# 2003 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n3 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n4 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n5 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n6 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n7 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n8 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n9 \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n11 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n25 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n26 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n28 \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n30 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n31 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \r\nMay 13, 2004 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Rabun 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 of the Rabun County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm1ons. \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective position ofthe governmental activities, each major fund, and the aggregate remaining fund information of the Rabun 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. \r\n2003-34ARL-11 \r\n \r\n As 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 and consolidated its individual school activity accounts for inclusion in the basic financial statements. These changes are in accordance with generally accepted accounting principles. \r\nAs described in Note 2, the Rabun County Board of Education has implemented a new financial reporting model as required by provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2003. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated May 13, 2004, on our consideration ofthe Rabun County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through ix and page 25 respectively, are not a required part of the basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Rabun County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated section 506-24. \r\nspectfully submitted, \r\n~ ~~ \r\n \r\nRWH:as 2003-34ARL-11 \r\n \r\nState Auditor \r\n \r\n RABUN COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\nIntroduction \r\nOur discussion and analysis of the Rabun County School District's financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2003. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. We encourage our readers to also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. The reader should also note that this fiscal year (FY 2003) is the School District's first year of implementation of GASB 34, a new reporting model for governmental entities. \r\nFinancial Highlights \r\nKey financial highlights for fiscal year 2003 are as follows: \r\n The School District implemented GASB 34 for fiscal year 2003. Due to this being the implementation year, many comparisons are not available in this report that will be available in fiscal year 2004. \r\n On the district-wide financial statements, the assets of the School District exceeded liabilities by $30.6 million. Of this amount, $6.8 million is unrestricted and is available for spending at the School District's discretion. \r\n The School District had slightly less than $18.9 million in expenses relating to governmental activities; only $9.2 million of these expenses are offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $14.4 million were adequate to provide the remaining funding for these programs. \r\n As stated above, General revenues accounted for $14.4 million or 61 % of all revenues totaling $23.7 million. Program specific revenues in the form of charges for services, grants and contributions accounted for the rest. \r\nOverview of the Financial Statements \r\nThis annual report consists of three parts; management's discussion and analysis (this section), the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the district-wide and fund financial statements. \r\nThe district-wide financial statements include the 'Statement of Net Assets' and 'Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \r\n \r\n RABUN COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The 'Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. The 'Fiduciary Funds' statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. In the case of the Rabun County School District, the General Fund, Capital Projects Funds, and Debt Service Funds are all considered to be major funds. The School District has no nonmajor funds as defined by GASB 34 for the purposes of this report. \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nDistrict-wide Statements \r\nSince Rabun County School District has no operations that have been classified as \"Business Activities\", the district-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the district-wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The 'Statement of Net Assets' and the 'Statement of Activities' provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net assets and any changes in those assets. The change in net assets is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, and other factors. \r\nThe 'Statement of Net Assets' and the 'Statement of Activities' reflects 100% of the School District's financial activities. \r\nFund Financial Statements \r\nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about only the School District's significant or major funds. As discussed previously, the School District has no nonmajor Funds as defined by GASB 34. \r\n11 \r\n \r\n RABUN COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\nGovernmental Funds: Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at yearend available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between government activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds is reconciled in the financial statements. \r\nFiduciary Funds: The School District is the trustee, or fiduciary, for assets that belong to others and school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the district-wide financial statements because it cannot use these assets to finance its operations. \r\nFinancial Analysis of the School District as a Whole \r\nRecall that the Statement of Net Assets provides the perspective of the School District as a whole. The reader can think of the School District's net assets as the difference between its assets (i.e., what the School District owns) and its liabilities (i.e., what the School District owes) at the end of a fiscal year. This balance represents one way to measure the School District's financial health or its financial position. In the case of the Rabun County School District, assets exceeded liabilities by $30.6 million at June 30, 2003. \r\nTo better understand the School District's actual financial position and ability to deliver services in future periods, the reader will need to review the various components of the net asset category. For example, of the $30.6 million of net assets, almost $5.0 million was restricted for continuation of Federal programs, debt service and completion on certain ongoing capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \r\nIn addition, the School District also had $18.6 million (net of related debt) invested in capital assets (e.g., land, buildings, and equipment). The School District uses these capital assets to provide educational services to students within geographic boundaries served by the School District. Because of the very nature and on-going use of the assets being reported in this component of net assets, it must be recognized that this portion of the net assets is not available for future spending. \r\nThe remaining balance of unrestricted net assets of $6.8 million may be used to meet the School District's ongoing obligations to citizens and creditors. \r\n111 \r\n \r\n RABUN COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\n \r\nTable 1 provides a summary of the School District's net assets for this fiscal year. Since this is the first year the School District has prepared financial statements following GASB 34, net asset comparisons to fiscal year 2002 are not available. \r\n \r\nTable 1 Net Assets \r\n \r\nGovernmental Activities Fiscal Year 2003 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$17,153,049 21,235,585 \r\n \r\nTotal Assets \r\n \r\n$38,388,634 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n$ 2,495,183 5,217,142 \r\n \r\nTotal Liabilities \r\n \r\n$ 7,712,325 \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\n$18,688,279 5,118,896 6,869,134 \r\n \r\nTotal Net Assets \r\n \r\n$30,676,309 \r\n \r\nTable 2 shows the Changes in Net Assets for this fiscal year. Since this is the first year the School District has prepared financial statements following GASB 34, revenue and expense comparisons to fiscal year 2002 are not available. \r\n \r\nIV \r\n \r\n RABUN COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\n \r\nTable 2 Change in Net Assets \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions \r\nTotal Program Revenues \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations For Debt Service Sales Taxes Local Option Sales Tax For Maintenance and Operations Special Purpose Local Option Sales Tax For Debt Service For Capital Projects Real Estate Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nTotal Revenues \r\nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Expenses \r\nIncrease in Net Assets \r\n \r\nGovernmental Activities Fiscal Year 2003 \r\n$ 566,560 8,725,392 \r\n$ 9,291,952 \r\n$ 8,552,909 5 \r\n2,811,522 \r\n163,000 2,356,763 \r\n106,112 349,570 146,710 \r\n$14,486,591 \r\n$23,778,543 \r\n$12,769,333 \r\n613,663 241,971 429,379 278,235 955,883 200,870 1,244,650 792,495 \r\n46,656 65,454 \r\n938,665 237,754 \r\n$18,815,008 \r\n$ 4,963,535 \r\n \r\nV \r\n \r\n RABUN COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\n \r\nGovernmental Activities \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. Since this is the first year the School District has prepared financial statements following GASB 34, cost of service comparisons for fiscal year 2002 are not available. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services Fiscal Year 2003 \r\n \r\nNet Cost of Services Fiscal Year 2003 \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$12,769,333 $ 6,561,824 \r\n \r\n613,663 241,971 429,379 278,235 955,883 200,870 1,244,650 792,495 \r\n46,656 65,454 \r\n \r\n343,417 100,204 252,644 30,964 573,054 200,870 853,240 322,549 46,656 \r\n-4,594 \r\n \r\n938,665 237,754 \r\n \r\n-6,242 10,716 237,754 \r\n \r\nTotal Expenses \r\n \r\n$18,815.008 $ 9,523.056 \r\n \r\nFinancial Analysis of the School District's Funds \r\n \r\nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $23.5 million and total expenditures of $22.5 million during fiscal year 2003. Included in the $22.5 million of expenditures was $2.3 million of Capital Outlay expenditures. These expenditures were funded primarily through a General Obligation Bond Issue dated 1998/2001, for which proceeds were received in a prior year. \r\n \r\nVI \r\n \r\n RABUN COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\n \r\nGeneral Fund Budgeting Highlights \r\n \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund of the School District is the General Fund. During the course of fiscal year 2003, the School District made no amendments to its original general fund budget. \r\n \r\nFor the General Fund, the final actual revenues of $20.7 million were over the final budgeted amounts of $18.7 million by $1.9 million. This difference (final actual vs. final budget) was primarily due to an increase in state revenues over final budget of $.3 million, property taxes collected in excess of the budget of $.8 million, sales tax collected in excess of the budget of $.6 million, charges for services over final budget of $.2 million and miscellaneous revenues over final budget by almost $.1 million. \r\n \r\nThe final budgeted expenditures of $19.1 million exceeded the actual expended amount of $18.5 million by $.5 million. This difference was due primarily to decrease to expenditures for Instruction and for Capital Outlay. \r\n \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\n \r\nCapital Assets \r\n \r\nAt fiscal year ended June 30, 2003, the School District had $28.5 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. Since this is the first year the School District has prepared financial statements following GASB 34, Capital Assets comparisons to fiscal year 2002 are not available. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities Fiscal Year 2003 \r\n \r\nLand Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\n \r\n$ 649,528 1,759,484 1,487,485 \r\n22,636,108 1,996,013 -7,293,033 \r\n \r\nTotal \r\n \r\n$21,235.585 \r\n \r\nAdditional information on the School District's Capital Assets can be found in the Notes to the Financial Statements \r\n \r\nVll \r\n \r\n RABUN COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\n \r\nDue to the ongoing growth in the county, at June 30, 2003, the School District was in the final phases of completing a new elementary school. This facility will open in January 2005. \r\n \r\nDebt \r\n \r\nAt fiscal year ended June 30, 2003, the School District had $5,000,000 in bonds outstanding, and $217,142 in other long-term debt. Table 5 summarizes the School District's debt for general obligation bonds and compensated absences outstanding. \r\n \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities Fiscal Year 2003 \r\n \r\nBonds Payable Capital Leases \r\n \r\n$ 5,000,000 217,142 \r\n \r\nTotal \r\n \r\n$ 5,217,142 \r\n \r\nAdditional information can be found on the School District's debt in the Notes to the Financial Statements \r\n \r\nCurrent Issues \r\n \r\nCurrently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations in future years are as follows: \r\n \r\n As was the case in the prior year, the State of Georgia is suffering from the effects of the prevailing unfavorable economic conditions. Total revenue collections for the State for the 2003 fiscal year were down roughly 3% compared to the previous period. This has forced the State's Office of Planning and Budget to continue reducing the budgets of the various government agencies. \r\n \r\n State QBE Revenue Reductions - During the current fiscal year the State of Georgia implemented a 2.5% QBE revenue formula funding reduction to all state school districts. This funding reduction carried forward into the fiscal year 2004. Additionally, because state revenues are falling well below the projected amounts, all state school districts have been warned to expect a 5% reduction of revenues for fiscal year 2005. Considering the stagnant economy of the past few years, these formula funding reductions will seriously affect the long-term financial stability of the School District. Despite these challenges, the Rabun County School District is strong financially and we remain optimistic about the ability of the School District to maximize all of the financial resources to provide a quality education to our students. \r\n \r\nVlll \r\n \r\n RABUN COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003  Capital Improvements - The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues and anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education. The School District regularly monitors anticipated capital outlay needs. Contacting the School District's Financial Management This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information contact Ms. Helen Wood, Finance Director of Rabun County School District, 41 Education Street, Clayton, Georgia 30525. You may also email your questions to Ms. Wood at hwood@rabun.k12.ga.us. \r\nlX \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2003 \r\nASSETS Cash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\nThe notes to the basic financial statements are an integral part of this statement. -3- \r\n \r\nEXHIBIT\"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n14,878,854 \r\n \r\n1,170,917 893,297 186,234 6,272 17,475 \r\n \r\n649,528 1,759,484 1,487,485 22,636,108 1,996,013 -7,293,033 \r\n \r\n$ ====38='=38=8=,6=34= \r\n \r\n$ \r\n \r\n454,552 \r\n \r\n1,539,643 \r\n \r\n406,025 \r\n \r\n94,963 \r\n \r\n37,515 5,179,627 \r\n \r\n$ \r\n \r\n7,712,325 \r\n \r\n$ \r\n \r\n18,688,279 \r\n \r\n143,337 134,977 51,390 4,789,192 6,869,134 \r\n \r\n$ \r\n \r\n30,676,309 \r\n \r\n$ ====38='=38=8=,6=34= \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30 2003 \r\n \r\nEXHIBIT\"B\" \r\n \r\nEXPENSES \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCHARGES FOR \r\n \r\nGRANTS AND \r\n \r\nSERVICES \r\n \r\nCONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\n \r\n$ 12,769,333 $ \r\n613,663 241,971 429,379 278,235 955,883 200,870 1,244,650 792,495 \r\n46,656 65,454 \r\n938,665 237 754 \r\n$ 18,815,008 $ \r\n \r\n114,694 $ 80,000 5,000 \r\n6,242 360,624 566,560 $ \r\n \r\n6,092,815 $ \r\n190,246 141,767 171,735 247,271 382,829 \r\n391,410 469,946 \r\n70,048 \r\n567,325 \r\n8,725,392 $ \r\n \r\n-6,561,824 \r\n-343,417 -100,204 -252,644 \r\n-30,964 -573,054 -200,870 -853,240 -322,549 \r\n-46,656 4,594 \r\n6,242 -10,716 -237 754 \r\n-9,523,056 \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Local Option Sales Tax For Maintenance and Operations Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Real Estate Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChanges in Net Assets \r\n \r\n$ \r\n \r\n8,552,909 \r\n \r\n5 \r\n \r\n2,811,522 \r\n \r\n163,000 2,356,763 \r\n106,112 349,570 146 710 \r\n \r\n$ \r\n \r\n14 486 591 \r\n \r\n$ \r\n \r\n4,963,535 \r\n \r\nNet Assets - Beginning of Year \r\n \r\n25 712 774 \r\n \r\nNet Assets - End of Year \r\n \r\n$ \r\n \r\n301676,309 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30. 2003 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Bus Replacement Continuation of Federal Programs Debi Service Inventories Capital Projects \r\nUnreserved Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 7,512,590 $ 7,314,874 $ \r\n \r\n477,154 893,297 186,234 \r\n6,272 17 475 \r\n \r\n428,000 \r\n \r\n51,390 $ 14,878,854 \r\n905,154 893,297 186,234 \r\n6,272 17475 \r\n \r\n$ 9,093,022 $ 7,742,874 $ \r\n \r\n51,390 $ 16,887,286 \r\n \r\n$ 454,552 1,539,643 $ \r\n$ 1,994,195 $ \r\n \r\n406,025 94,963 \r\n500,988 \r\n \r\n$ \r\n \r\n454,552 \r\n \r\n1,539,643 \r\n \r\n406,025 \r\n \r\n94963 \r\n \r\n$ 2,495,183 \r\n \r\n$ 143,337 117,501 \r\n$ 17,476 \r\n$ 7,241,886 \r\n \r\n$ 51,390 \r\n \r\n143,337 117,501 \r\n51,390 17,476 7,241,886 \r\n \r\n6,820,513 $ 7,098,827 $ 7,241,886 $ \r\n \r\n51,390 $ \r\n \r\n6,820,513 14,392,103 \r\n \r\n$ 9,093,022 $ 7,742,874 $ \r\n \r\n51,390 $ 16,887,286 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30. 2003 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \r\nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \r\nBonds Payable Capital Leases \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 14,392,103 \r\n \r\n$ 649,528 1,759,484 1,487,485 \r\n22,636,108 1,996,013 -7,293,033 \r\n \r\n21,235,585 \r\n \r\n265,763 \r\n \r\n$ -5,000,000 -217,142 \r\n \r\n-5,217,142 \r\n \r\n$ 30,676,309 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30. 2003 \r\n \r\nEXHIBIT\"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES} \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 8,280,336 \r\n \r\n$ \r\n \r\n2,917,634 $ 2,356,763 \r\n \r\n7,192,861 \r\n \r\n1,517,531 \r\n \r\n566,560 \r\n \r\n83,300 \r\n \r\n266,064 \r\n \r\n161 710 \r\n \r\n$ 20,719,932 $ 2,622,827 $ \r\n \r\n5 $ 163,000 \r\n206 \r\n \r\n8,280,341 5,437,397 7,192,861 1,517,531 \r\n566,560 349,570 161 710 \r\n \r\n163,211 $ 23,505,970 \r\n \r\n$ 12,611,723 \r\n \r\n$ 12,611,723 \r\n \r\n613,663 241,971 429,379 278,235 955,883 194,637 1,244,393 787,080 \r\n46,656 65,454 931,059 146,915 $ \r\n \r\n2,214,115 \r\n \r\n613,663 241,971 429,379 278,235 955,883 194,637 1,244,393 787,080 \r\n46,656 65,454 931,059 2,361,030 \r\n \r\n35,666 12,459 \r\n \r\n$ 1,500,000 225,296 \r\n \r\n1,535,666 237,755 \r\n \r\n$ 18,595,173 $ 2,214,115 $ 1,725,296 $ 22,534,584 \r\n \r\n$ 2,124,759 $ 408,712 $ -1,562,085 $ \r\n \r\n971,386 \r\n \r\n$ 164,746 $ 1,562,295 $ 1,727,041 \r\n \r\n$ -164 746 \r\n \r\n-1,562,295 \r\n \r\n-1,727,041 \r\n \r\n$ -164 746 $ -1,397,549 $ 1,562,295 $ \r\n \r\n0 \r\n \r\n$ 1,960,013 $ -988,837 $ \r\n \r\n210 $ \r\n \r\n971,386 \r\n \r\n5,138,814 \r\n \r\n8,230,723 \r\n \r\n51,180 \r\n \r\n13,420,717 \r\n \r\n$ 7,098,827 $ 7,241,886 $ \r\n \r\n51,390 $ 14,392,103 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2003 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \r\nBond Principal Retirements Capital Lease Payments \r\nTotal Long-Term Debt Repayments \r\n \r\n$ \r\n \r\n971,386 \r\n \r\n$ 2,852,814 -668,905 \r\n \r\n2,183,909 272,574 \r\n \r\n$ 1,500,000 35,666 \r\n \r\n1,535,666 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ =====4'=96=3=,5=3=5 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS JUNE 30, 2003 \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT G 11 11 \r\nAGENCY FUNDS $ ===88='=51=6= \r\n$===88='=51=6= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Rabun County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Rabun County Board of Education. \r\nDistrict-wide Statements: \r\nThe Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: \r\nThe 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. All remaining governmental funds are aggregated and reported as nonmajor funds. \r\n- 11 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \r\n District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation of major capital facilities. \r\n Debt Service Fund accounts for taxes (property and sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various scholarship funds and Principal's accounts. \r\nBASIS OF ACCOUNTING \r\nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund \r\n \r\n- 12 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nliability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\n \r\nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\n \r\nA substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2002 and ending in early June 2003. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2002 and ending in August 2003. State grants to fund the State's share of these contracts are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit costs and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. \r\n \r\nRESTATEMENT OF PRIOR YEAR FUND BALANCE - GENERAL FUND \r\n \r\nIn prior years, the financial activities of the School District's School Food Services Fund, Lottery Programs and Federal Programs were reported as Special Revenue Funds. These funds had a combined fund balance of $75,539 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$29,482 at July 1, 2002. This change is in accordance with generally accepted accounting principles. \r\n \r\nGeneral Fund Balance July 1, 2002 \r\n \r\n$ 5,033,793 \r\n \r\nAdd Funds Consolidated with General Fund: School Food Services Fund School Activity Account - Governmental Activity \r\n \r\n75,539 29,482 \r\n \r\nGeneral Fund Balance July 1, 2002 (Restated) \r\n \r\n$ 5,138.814 \r\n \r\n- 13 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nCHANGES IN ACCOUNTING PRINCIPLES \r\n \r\nThe Rabun County Board ofEducation has implemented a new financial reporting model as required by provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2003. \r\n \r\nThe provisions of GASB Statement No. 34 require the inclusion of a Statement ofNet Assets. The elements comprising Net Assets - Beginning include the following: \r\n \r\nGeneral Fund (Restated) July 1, 2002 Capital Projects Fund Debt Service Fund \r\n \r\n$ 5,138,814 8,230,723 51,180 \r\n \r\nGovernmental Funds (Restated) July 1, 2002 Capital Assets Accumulated Depreciation Property Tax Revenue Timing Differences Bonds Payable Capital Leases Payable \r\n \r\n$ 13,420,717 25,675,804 -6,624,128 -6,811 -6,500,000 -252,808 \r\n \r\nNet Assets Beginning (See Exhibit \"B\") \r\n \r\n$ 25,712,774 \r\n \r\nCASH AND CASH EQUIVALENTS \r\n \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\n- 14 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nPROPERTY TAXES \r\n \r\nThe Rabun County Board of Commissioners fixed the property tax levy for the 2002 tax digest year (calendar year) on December 21, 2001 (levy date). Taxes were due on December 20, 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 Rabun County Tax Commissioner bills and collects the property taxes for the School District and remits 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 $8,280,336 and for school bonds amounted to $5. \r\n \r\nThe tax millage rate levied for the 2002 tax year (calendar year) for the Rabun County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n8.303 mills \r\n \r\nSALES TAXES \r\n \r\nLocal Option Sales Tax revenue, at the fund reporting level, during the fiscal year amounted to $2,811,523 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation of the School District. \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,519,763 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost \r\n \r\n- 15 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nbased 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. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAny \r\n \r\nNIA \r\n \r\n$ \r\n \r\n5,000 20 to 80 years \r\n \r\n$ \r\n \r\n5,000 10 to 80 years \r\n \r\n$ \r\n \r\n5,000 3 to 14 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nGENERAL OBLIGATION BONDS \r\n \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \r\n \r\nNote 3: DEPOSITS \r\n \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \r\n \r\n- 16 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 3: DEPOSITS \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS At June 30, 2003, the bank balances were $15,712,691. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\nThe School District's deposits are classified by risk category at June 30, 2003, as follows: \r\n \r\n- 17 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 3: DEPOSITS \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 280,817 \r\n \r\n2 \r\n \r\n8,862,812 \r\n \r\n3 \r\n \r\n6,569,062 \r\n \r\nTotal \r\n \r\n$ 15,712,691 \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July I, 2002 \r\n \r\nIncreases \r\n \r\nBalances Decreases June 30, 2003 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 151,778 $ 497,750 \r\n \r\n$ 649,528 \r\n \r\n13,555,000 \r\n \r\n2,080,329 $ 13,875,845 \r\n \r\n1,759,484 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 13,706,778 $ 2,578,079 $ 13,875,845 $ 2,409,012 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 8,760,263 $ 13,875,845 $ \r\n \r\n1,866,873 \r\n \r\n129,140 \r\n \r\n1,341,890 \r\n \r\n145,595 \r\n \r\n0 $ 22,636,108 1,996,013 1,487,485 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n4,463,097 1,379,850 \r\n781,181 \r\n \r\n452,710 143,398 72 797 \r\n \r\n4,915,807 1,523,248 \r\n853,978 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 5,344,898 $ 13,481,675 $ \r\n \r\n0 $ 18,826,573 \r\n \r\nGovernmental Activity Capital Assets - Net $ 19,051.676 $ 16,059.754 $ 13,875.845 $ 21,235.585 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2003, are as follows: \r\n \r\n- 18 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nBuildings Less: Accumulated Depreciation \r\n \r\nGovernmental Funds \r\n$ 341,902 34,190 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nBusiness Administration \r\n \r\n$ \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nFood Services \r\n \r\n$===3==0=='7,==71==2 \r\n \r\n$ \r\n6,233 257 \r\n118,569 \r\n \r\n536,240 \r\n125,059 7,606 \r\n \r\n$==6==68.,..,9==0==5 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds, Georgia State Financing and Investment Commission (GSFIC) funds and property tax levied specifically for retirement ofoutstanding bond principal, interest and paying agent's fees (Debt Service Funds) are reported as restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2003, were as follows: \r\n \r\nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \r\n \r\nDistrict-wide Capital Projects \r\n \r\nBond \r\n \r\nSPLOST \r\n \r\nProceeds \r\n \r\nGSFIC \r\n \r\nDebt Service Funds \r\n \r\n$ 3,497,307 $ 3,320,511 $ \r\n \r\n$ 497,056 \r\n \r\n51,390 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2003, consisted of the following: \r\n \r\n- 19 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nTransfer to \r\n \r\nTransfers From \r\n \r\nDistrict-wide \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nFund \r\n \r\nProjects \r\n \r\nDistrict-wide Capital Projects Debt Service Funds \r\n \r\n$ 164,746 $ 1,562,295 \r\n \r\nTotal \r\n \r\n$ 164,746 $ 1,562,295 \r\n \r\nTransfers are used to move property tax revenues collected by the General Fund to (1) the Districtwide Capital Projects Fund as required match or supplemental funding source for capital construction projects, and to (2) transfer SPLOST funds collected by the District-wide Capital Projects Fund to the Debt Service Fund to cover principal and interest payments on bond issues issued in conjunction with the SPLOST referendum. \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $400,000 loss per occurrence, up to $2,000,000. \r\n \r\n- 20- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ 100,000 \r\n \r\n$ \r\n \r\n50,000 \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Rabun County Board of Education has entered into various lease agreements as lessee for copiers and energy saving equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2001 \r\n \r\n3.26% \r\n \r\n$ 5,000,000 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2003, were as follows: \r\n \r\nBalance July 1, 2002 \r\nRetroactive Restatement of Prior Year Balances \r\nBalance July 1, 2002 Restated \r\n \r\nGovernmental Funds \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nObligation \r\n \r\nLeases \r\n \r\nBonds \r\n \r\nTotal \r\n \r\n$ 261,474 $ 6,500,000 $ 6,761,474 \r\n \r\n-8,666 \r\n \r\n-8,666 \r\n \r\n$ 252,808 $ 6,500,000 $ 6,752,808 \r\n \r\nDeductions Debt Retired \r\n \r\n35,666 \r\n \r\n1,500,000 \r\n \r\n1,535,666 \r\n \r\nBalance June 30, 2003 \r\n \r\n$ 217,142 $ 5,000.000 $ 5,217.142 \r\n \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$ \r\n \r\n37,515 $ \r\n \r\n0 $ \r\n \r\n37,515 \r\n \r\n- 21 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nAt June 30, 2003, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30 \r\n2004 2005 2006 2007 2008 \r\nTotal Principal and Interest \r\n \r\nCapital Leases \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nGeneral Obligation \r\n \r\nDebt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n$ \r\n \r\n37,515 $ \r\n \r\n10,611 $ 1,605,000 $ \r\n \r\n163,000 \r\n \r\n39,467 \r\n \r\n8,658 \r\n \r\n1,665,000 \r\n \r\n136,838 \r\n \r\n41,290 \r\n \r\n5,695 \r\n \r\n1,730,000 \r\n \r\n83,538 \r\n \r\n40,829 \r\n \r\n4,416 \r\n \r\n28,199 \r\n \r\n58,041 \r\n \r\n2,286 \r\n \r\n$ \r\n \r\n217,142 $ \r\n \r\n31.666 $ 5.000.000 $ \r\n \r\n411.575 \r\n \r\nNote 10: ON-BEHALF PAYMENTS \r\n \r\nThe Board has recognized revenues and costs in the amount of$230,914 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $198,439 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $32,475 \r\n \r\nNote 11: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2003, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\nSA-0lS-719-144 \r\n \r\n$ 9,821,507 $ 1,370.628 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \r\n-22- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\n \r\nNote 13: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2003 2002 2001 \r\n \r\n100% 100% 100% \r\n \r\n$ 945,350 $ 941,683 $ 946,909 \r\n \r\n- 23 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \r\nCapital Outlay Debt Service \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nInventory - Net Change in Period \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n7,412,193 $ \r\n \r\n7,412,193 $ \r\n \r\n8,280,336 \r\n \r\n2,300,000 \r\n \r\n2,300,000 \r\n \r\n2,917,634 \r\n \r\n6,895,928 \r\n \r\n6,886,721 \r\n \r\n7,192,861 \r\n \r\n839,496 \r\n \r\n1,668,477 \r\n \r\n1,517,531 \r\n \r\n358,965 \r\n \r\n358,965 \r\n \r\n566,560 \r\n \r\n90,700 \r\n \r\n90,700 \r\n \r\n83,300 \r\n \r\n54042 \r\n \r\n54042 \r\n \r\n161 710 \r\n \r\n$ \r\n \r\n17,951,324 $ \r\n \r\n18,771,098 $ \r\n \r\n20,719,932 \r\n \r\n$ \r\n \r\n12,144,992 $ \r\n \r\n12,828,023 $ \r\n \r\n12,611,723 \r\n \r\n604,103 187,559 419,476 240,241 1,004,538 200,694 1,156,349 823,136 \r\n71,100 69,500 954,636 480,000 \r\n \r\n619,203 227,929 419,476 279,365 1,004,538 200,694 1,156,349 824,136 \r\n71,100 98,158 954,636 480,000 \r\n \r\n613,663 241,971 429,379 278,235 955,883 194,637 1,244,393 787,080 \r\n46,656 65,454 931,059 146,915 48125 \r\n \r\n$ \r\n \r\n18,356,324 $ \r\n \r\n19,163,607 $ \r\n \r\n18,595,173 \r\n \r\n$ \r\n \r\n-405 000 $ \r\n \r\n-392,509 $ \r\n \r\n2,124,759 \r\n \r\n$ \r\n \r\n5,000 $ \r\n \r\n5,000 \r\n \r\n$ \r\n \r\n-164 746 \r\n \r\n$ \r\n \r\n5000 $ \r\n \r\n5 000 $ \r\n \r\n-164 746 \r\n \r\n$ \r\n \r\n-400,000 $ \r\n \r\n-387,509 $ \r\n \r\n1,960,013 \r\n \r\n5,235,875 \r\n \r\n5,234,875 \r\n \r\n5,138,814 \r\n \r\n72 913 \r\n \r\n72 913 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n4,908,788 $ \r\n \r\n4,920,279 $===7,~09;;;;;8;g,8~27~ \r\n \r\nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \r\n \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 25- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \r\nTotal U.S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Grant Flow Through Preschool \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Enhancing Education Through Technology Improving Teacher Quality Title Ill Limited English Proficient TitleV Innovative Education Program Strategies Title VI Rural and Low Income Schools Vocational Education - Basic Grants to States High School Program Basic Grant \r\nTotal U.S. Department of Education \r\nTotal Federal Financial Assistance \r\nN/A = Not Available \r\n- 26- \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\nNIA \r\nN/A $ \r\n$ \r\n \r\n(2) 815 073 \r\n815,073 \r\n \r\n10.550 10.665 \r\n \r\nN/A N/A \r\n$ \r\n \r\n49,152 (3} \r\n864,225 \r\n \r\n84.173 84.027 84.173 \r\n \r\nN/A $ N/A N/A \r\n$ \r\n \r\n8,145 285,244 \r\n12 033 \r\n305,422 \r\n \r\n* 84.010 84.318 84.367 84.365 84.298 84.358 \r\n84.048 \r\n \r\nN/A N/A N/A N/A \r\nN/A \r\nN/A \r\nN/A \r\n$ \r\n \r\n420,976 12,099 \r\n101,273 18,662 13,409 42,401 \r\n27098 941 340 \r\n \r\n$ =====1,=80=5=,5=6=5 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"2\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($61,182) were not maintained separately and are included in the 2003 National School Lunch Program. \r\n(3) Funds earned on this program in the amount of $70,048 do not require reporting of expenditures. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Rabun County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the basic financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2003 \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program 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) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Food Services Vocational Education Austerity Reduction Other State Programs Health Insurance Mentor Teachers National Teacher Certification Preschool Handicapped Program Lottery Programs Computers in the Classroom Post Secondary Options \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nCONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program \r\n- 28- \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n477,320 \r\n \r\n99,468 \r\n \r\n1,128,765 \r\n \r\n162,920 \r\n \r\n571,943 \r\n \r\n45,904 \r\n \r\n243,135 \r\n \r\n644,713 \r\n \r\n598,211 \r\n \r\n276,831 \r\n \r\n16,666 227,104 362,615 \r\n98,639 15,064 64,651 23,723 63,783 59,041 148,088 49,502 27,085 \r\n \r\n247,271 374,155 391,410 \r\n \r\n365,394 89,061 19,000 59,819 8,674 14,263 61,182 21,447 \r\n-261,619 \r\n198,439 5,596 \r\n18,251 24,618 \r\n51,876 2,163 \r\n \r\n32,475 \r\n \r\n15,491 26,837 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2003 \r\nAGENCY/FUNDING OTHER Georgia Institute ofTechnology Student Information Systems \r\n \r\nSCHEDULE \"3\" \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n$ =====7='=1=9=2=8=61= \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\nAcquisition, construction and equipping of a new elementary school, including necessary furnishings and equipment; the acquisition, construction and equipping of additional instructional, support and physical education facilities at existing schools, including the acquisition of necessary furnishings and equipment; and system-wide technology improvements \r\n \r\n$ 12,000,000 $ 12,000,000 $ 2,022,311 $ \r\n \r\n339,405 Ongoing \r\n \r\nAcquisition, construction and equipping additional classrooms, instructional and support space at the middle/high school, renovating, equipping and modifying existing classrooms, instructional and support space at said school, providing for payment or reimbursement of the costs of rerouting and storm drainage improvements at said school, functional additional capital projects, including acquisition, construction and equipping additional classrooms, instructional and support space and remodeling and renovating existing classroom, instructional and support space at existing school facilities and paying expenses incident thereto \r\n \r\n8,000,000 \r\n \r\n13,602,000 \r\n \r\n417 099 \r\n \r\n13,185,392 Completed \r\n \r\n$ 20,000,000 $ 25,602,000 $ 2,439,410 $ 13,524,797 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Rabun County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) \r\n \r\nProgram \r\n \r\nMiddle Grades (6-8) Program \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nCategory I \r\n \r\nCategory II \r\n \r\nCategory Ill \r\n \r\nCategory IV \r\n \r\nCategoryV \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\nEnglish Speakers of Other Languages (ESOL) \r\n \r\n462,991 $ 97,365 \r\n1,109,080 155,423 \r\n558,533 42,868 \r\n245,315 613,708 609,545 274,203 726,755 \r\n63,584 23,025 63,501 58443 \r\n \r\n631,690 $ 181,291 2,069,573 278,373 1,048,429 \r\n70,805 476,904 1,165,541 1,522,081 570,864 \r\n51,531 396,357 846,195 \r\n44,176 11,924 145,323 52,820 166,191 101,660 \r\n \r\n20,125 $ 1,887 \r\n173,784 2,434 \r\n78,757 \r\n2,435 20,890 121,472 189,765 43,379 \r\n5,650 33,342 \r\n1,577 235 \r\n2,085 1,419 3,000 1 576 \r\n \r\n651,815 183,178 2,243,357 280,807 1,127,186 \r\n73,240 497,794 1,287,013 1,711,846 614,243 \r\n51,531 402,007 879,537 \r\n45,753 12,159 147,408 54,239 169,191 103,236 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n5,104,339 $ 9,831,728 $ \r\n \r\n703,812 $ \r\n \r\n10,535,540 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n145,809 27 085 \r\n \r\n385,297 29,307 \r\n \r\n35,705 23,883 \r\n \r\n421,002 53190 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n5,277,233 $ 10,246,332 $ \r\n \r\n763,400 $ =::::1.;,1,i,;;0,:;;09;;,i,,7~3~2 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \r\nMay 13, 2004 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Rabun County Board of Education as of and for the year ended June 30, 2003, which collectively comprise Rabun County Board of Education's basic financial statements and have issued our report thereon dated May 13, 2004. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nCompliance \r\nAs part of obtaining reasonable assurance about whether Rabun County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Rabun County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \r\n2003-34YB-30 \r\n \r\n control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Rabun County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7391-03-01. \r\nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. \r\nThis report is intended solely for the information and use ofthe management, members ofthe Rabun County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~w:-B~ \r\n \r\nRWH:as 2003-34YB-30 \r\n \r\nState Auditor \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \r\nMay 13, 2004 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members ofthe Rabun County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance ofRabun County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to its major Federal program for the year ended June 30, 2003. Rabun County Board ofEducation's major Federal program is identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to its major Federal program is the responsibility of Rabun County Board of Education's management. Our responsibility is to express an opinion on Rabun County Board ofEducation's compliance based on our audit. \r\nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Rabun 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 Rabun County Board of Education's compliance with those requirements. \r\n2003SA-10 \r\n \r\n In our opinion, the Rabun County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to its major Federal program for the year ended June 30, 2003. \r\nInternal Control Over Compliance \r\nThe management of Rabun 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 Rabun 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 of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \r\nThis report is intended solely for the information and use ofthe management, members ofthe Rabun County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRWH:as 2003SA-10 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2003 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7191-01-01 FS-7191-02-01 \r\n \r\nFurther Action Not Warranted Previously Reported Corrective Action Implemented \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2003 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Rabun County Board of Education's financial statements was unqualified. \r\n \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Rabun County Board of Education disclosed a financial statement reportable condition related to the following control categories. \r\n \r\nCash and Cash Equivalents Revenues/Receivables/Receipts \r\n \r\nExpenditures/Liabilities/Disbursements \r\n \r\nThe reportable condition described above is not considered to be a material weakness. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit ofthe Rabun County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \r\n \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Rabun County Board of Education did not disclose any reportable conditions in internal control over major programs. \r\n \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Rabun County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Rabun County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \r\n \r\n7. Major Programs The Federal award audited as a major program is as follows: 84.0 IO Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies \r\n \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \r\n \r\n9. Low Risk Auditee The Rabun County Board ofEducation qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \r\n \r\n-I - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2003 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Reportable Condition Finding Control Number: FS-7191-03-01 Our examination ofthe Principal's accounts disclosed weaknesses in internal controls as discussed below: Cash and Cash Equivalents \r\nThe bank reconciliation function was not separated from the record keeping and voucher payment function. Revenues/Receivables/Receipts Deposit preparation was not separated from the record keeping and cash custody functions. Expenditures/Liabilities/Disbursements The check writing function was not separated from record keeping or processing of signed checks. These deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions, at the various school principal account sites and failure to ensure established controls were functioning as designed. Management should implement procedures to ensure that the key accounting functions ofcustody, record keeping and authorization be segregated. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2001-h2002","title":"Rabun County Board of Education, Clayton, 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, Rabun County, 34.88168, -83.40214"],"dcterms_creator":["Georgia. 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(online resource); (Georgia Government Publications database, viewed June 27, 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":["Rabun County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Rabun County--Auditing--Periodicals.","Education--Georgia--Rabun County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Rabun County--fast--https://id.oclc.org/worldcat/entity/E39PBJt3VJPKFBPxFbFXxhD8YP","Georgia Government Documents--Serial"],"dcterms_title":["Rabun County Board of Education, Clayton, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2001-h2002"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"... \r\n \r\n.., \r\n'. \r\n \r\n. .. ,z,..,, ' \r\n \r\n, ... , \r\n \r\n- \\ : \r\n 1 \r\n \r\n.. \r\n....... 1_,-., r };,l \r\n~ ), ,,.,. : \r\n. J \r\n........ ' \r\n,' L \r\n,. \r\n' - \r\n \r\n,..,, ......./, .. ' . ~ .-.\u003c\"/'. ' \r\n \r\n' - \r\n \r\ni' 'ir..' ,\\ ,,:,,.-t \r\n \r\n. , ' ,, \r\n \r\n, \r\n.., r \r\n \r\n~  : I J ,: \r\n \r\ne ' ',,~ \r\n \r\n,, 't.. ... \r\n \r\n.. ._,,. 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'.-.._,, RA.B,- U N1\":-C: O'cUiANYTTYo-NB\u003eOGAEROD.R:GQ'fIAE- DU' CA~.- T. ,I,ON_. 1- \r\n \r\n~ ,. \\ (  \r\n \r\n1 \r\nl' , \r\n \r\n: . /  \r\n \r\n.,   ..~. , , :I \" ), ' J .,. ,: ' \r\n \r\n,:\u003c_ ,., :. -.':' ~~- ,,. './ _.'.:RfP6Rf.'oN Atiorr.:'.. \u003e~-:. ' __' \r\n \r\n,  \"' \r\n-.' '1,','- I , \r\n \r\n. \\''' \r\n \r\nOf J, \r\n \r\n;;:.' :, \r\n \r\nTH'E FINANCIAL STATEM.EN,TS'.; . : _. ... , , \r\n \r\n...... \r\n \r\n''... ,,.,. /\", ;c fOR fHE ffSCAL ,YfA'(l fNOfD J'LJNf, '30,2002 ,'.: ':' ' \r\n \r\n \r\n \r\n~ ~~ ~ ..., \r\n \r\n , \r\n \r\n J .. ,,ic. \r\n \r\n I \r\n \r\n\"i \r\n \r\n1 ' \r\n \r\n\" \r\n \r\n, ~ \r\n \r\n' \r\n \r\n --.1.,... .. - .lo \r\n \r\n \\' , ,f \r\n \r\n _.. ,I ~ \r\n~ 1 \\ .., \r\n \r\n. .r., ,. ' \r\n \r\n,. ,\"1 \r\n. ' -~ , . 'r .. , .... .,.:. \r\n \r\n- \r\n. , ..., \r\n~\": ,..., ,.~.. ,, \r\n \r\nt,JI \r\n \r\n.,. ,L .. \r\n \r\n. 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J \r\n.''\\, , .-. .. \r\n \r\n;:_'_ J--.. \r\n \r\n., \r\n \r\n, '.r' \r\n \r\n..  :  ,, 't ' \r\n \r\n! . \r\n \r\n...... , \r\n \r\n,. ,. \r\n,. ,\"' . \r\n,'J. \r\n \r\n,. \r\n \r\n1,: .t \r\n \r\n RABUN COUNTY BbARD OF EDUCATION -TABLE OF CONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITIJRES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nGENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS - OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET \r\n \r\nALL FUND TYPES AND ACCOUNT GROUP \r\n \r\n2 \r\n \r\nB \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nALL GOVERNMENTAL FUND TYPES \r\n \r\n4 \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACI1JAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\n6 \r\n \r\nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\n7 \r\n \r\nADDmONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n18 \r\n \r\nF \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITTJRES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n20 \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n22 \r\n \r\nH \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITTJRES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n24 \r\n \r\nDEBT SERVICE FUND \r\n \r\nI \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n26 \r\n \r\nJ \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITTJRES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n27 \r\n \r\nK \r\n \r\nFIDUCIARY FUND TYPE \r\n \r\nCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\n \r\nAGENCY FUNDS \r\n \r\n28 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nADDmONAL FINANCIAL INFORMATION \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF EXPENDTI1JRES OF FEDERAL AWARDS \r\n \r\n31 \r\n \r\n2 SCHEDULEOFSTATEREVENUE \r\n \r\n33 \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n35 \r\n \r\nALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALTIY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\n4 \r\n \r\nBY PROGRAM \r\n \r\n36 \r\n \r\n5 \r\n \r\nBY SITE \r\n \r\n37 \r\n \r\nSECTIONil \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN \r\nACCORDANCE wrrn GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE wrrn REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE wrrn \r\n0MB CIRCULAR A-133 \r\n \r\nSECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n RussELL W. H1NmN \r\nSTATE AUDITOR \r\n\u003c04) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nFebruary 12, 2003 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \r\nand Superintendent and Members ofthe Rabun County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying general-purpose financial statements ofthe Rabun County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Rabun County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \r\nWe conducted our audit in accordance with 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 opm1on. \r\nAs described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \r\n \r\n2002ARL-13 \r\n \r\n * The general-purpose financial statements of the Board of Education did not contain a \r\nGeneral Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. \r\n* School activity accounts maintained at the individual schools are not included in the \r\ngeneral-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. \r\nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \r\nIn our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Rabun County Board ofEducation as of June 30, 2002, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated February 12, 2003, on our consideration ofthe Rabun County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts _and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Rabun County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through K) 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 procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \r\n2002ARL-13 \r\n \r\n A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \r\n \r\nRWH:gp 2002ARL-13 \r\n \r\nState Auditor \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\nCOMBIN!;D BALANCE SHEET \r\nALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2002 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\nAmount Available in Debt Service Fund \r\nAmount to be Provided in Future Years For Payment of. Bond Debt Capital Lease Agreements \r\n \r\nGENERAL FUND \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ 5,158,341.77 $ \r\n \r\n67,92677 $ 7,929,373 41 \r\n \r\n1,519,638.04 \r\n \r\n132,981.20 \r\n \r\n447,853.47 \r\n \r\n11,996.91 5,479.12 \r\n \r\nTotal Assets \r\n \r\n$ 6,677,97981 $ 218,384 00 $ 8,377,226.88 \r\n \r\nbl~lblIIES ~1:2 FUND EQUITY \r\nLIABILITIES: \r\nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others capital Lease Agreements General Obl:gation Bonds Payable \r\nTotal Uabilibes \r\nFUNDECVIJY \r\nFund Balances Reserved For Bus Replacement Funds For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Proiects Unreserved Undesignated \r\nTotal Fund Equ:ty \r\n \r\n$ \r\n \r\n395,286.64 $ \r\n \r\n1,248,900.17 \r\n \r\n33,400.69 109,216 41 \r\n227.59 $ \r\n \r\n129,881 86 16,621 92 \r\n \r\n$ 1,644,186.81 $ 142,844 69 $ \r\n \r\n146,503 78 \r\n \r\n$ \r\n \r\n167,430.00 \r\n \r\n$ \r\n4,866,363.00 $ 5,033,793 00 $ \r\n \r\n11,996.91 5,479.12 \r\n$ \r\n \r\n6,904,363 59 1,326,359.51 \r\n \r\n58,063.28 75,539 31 $ \r\n \r\n0 00 8,230,723 10 \r\n \r\nTotal LlabihtJes and Fund Equ:ty \r\n \r\n$ 6,677,979.81 $ 218,384.00 $ 8,377,226 88 \r\n \r\nThe notes to the general-purpose financial statements are an :ntegral part of th:s statement. -2- \r\n \r\n EXHIBIT\"A\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\n$ \r\n \r\n51,180.09 \r\n \r\nFIDUCIARY FUND TYPE \r\nAGENCY FUNDS \r\n \r\nACCOUNT GROUP \r\nGENERAL LONG-TERM \r\nDEBT \r\n \r\nTOTALS \r\n \r\n{Memorandum On!):} \r\n \r\nJUNE 301 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ 13,206,822.04 $ 6,460,437.41 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2,100,472.71 \r\n \r\n2,092,315.45 \r\n \r\n$ 51,18009 \r\n \r\n11,996.91 5,479.12 \r\n51,180.09 \r\n \r\n12,913.46 5,295.19 \r\n50,745.30 \r\n \r\n6,448,819.91 261.47444 \r\n \r\n6,448,819.91 26147444 \r\n \r\n2,899,254.70 302,110.92 \r\n \r\n$ \r\n \r\n51,180.09 $ \r\n \r\n0.00 $ 6,761,474.44 $ 22,086,245.22 $ 111823,072 43 \r\n \r\n$ \r\n \r\n6,302.85 \r\n \r\n$ \r\n \r\n6,302.85 $ \r\n \r\n14,353.84 \r\n \r\n428,687 33 \r\n \r\n363,164.36 \r\n \r\n1,358, 116.58 \r\n \r\n1,205,347.80 \r\n \r\n227.59 \r\n \r\n2,079.79 \r\n \r\n129,881.86 \r\n \r\n197,481.98 \r\n \r\n16,621.92 \r\n \r\n-6,302.85 \r\n \r\n-6,302.85 \r\n \r\n49,384.50 \r\n \r\n$ 261,474.44 \r\n \r\n261,474.44 \r\n \r\n302,110.92 \r\n \r\n6,500,000 00 \r\n \r\n6,500,000.00 \r\n \r\n2,950,000 00 \r\n \r\n$ \r\n \r\n000 $ 6,761,474 44 $ 8,695,009.72 $ 5,083,923 19 \r\n \r\n$ \r\n \r\n51,180.09 \r\n \r\n000 \r\n \r\n$ \r\n \r\n51,180.09 \r\n \r\n$ \r\n \r\n51180 09 $ \r\n \r\n$ \r\n \r\n167,430.00 $ \r\n \r\n106,491.00 \r\n \r\n51,180.09 \r\n \r\n50,745.30 \r\n \r\n11,996 91 5,479.12 \r\n6,904,363 59 1,326,359.51 \r\n4,924,426.28 \r\n$ 13,391,235 50 $ \r\n \r\n12,91346 5,295.19 \r\n1,465,941.94 21,900 00 \r\n5,075,862.35 \r\n6,739,149 24 \r\n \r\n0 00 $ 6,761,47444 $ 22,086,245.22 $ 11,8231072.43 \r\n \r\n-3- \r\n \r\n --------------------------------------- ----- \r\nRABUN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2002 \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Othet Support Services Food Services Operation \r\nCapital Outlay Debt Service \r\nPrincipal Interest Paying Agent Fees \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USl;;S} \r\nCapital Leases Proceeds from General Obligation Bonds \r\nPar Value Operating Transfers In Operabng Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Penod Donated Commod1bes Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ 6,734,403.85 $ 69,491.80 \r\n8,707,552 99 247,691.71 \r\n$ 15,759,140.35 $ \r\n \r\n123,807.01 1, 160,862.25 \r\n353,606.45 \r\n1,638,275.71 \r\n \r\n$ 10,669,810.33 $ \r\n446,984.68 159,097.74 401,166.31 251,199.38 900,524.68 172,691.41 995,631.36 679,228.81 65,254.12 61,203.26 \r\n5,023.54 273,802.98 \r\n40,636.48 13,208.92 \r\n \r\n640,925.16 58,280.54 32,728.25 7,660.97 \r\n76.16 13,15501 851,004.43 \r\n \r\n$ 15,135,464.00 $ \r\n \r\n$ \r\n \r\n623,676.35 $ \r\n \r\n1,603,830 52 3444519 \r\n \r\n$ $ -413,734.80 \r\n$ -413,734 80 $ \r\n \r\n$ \r\n \r\n209,941.55 $ \r\n \r\n4,823,851.45 \r\n \r\n23,618.09 \r\n23,618.09 \r\n58,06328 18,208.65 \r\n-916.55 183_93 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ 5,033,793.00 $-===-75:,;i;,5~3;;;;,9.~31~ \r\n \r\nThe notes to the general-purpose finanaal statements are an integral part of this statement. -4- \r\n \r\n EXHIBIT\"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTALS (Memorandum Only) \r\nYEAR ENDED JUNE 30, 2002 JUNE 30, 2001 \r\n \r\n$ \r\n \r\n195,205.60 \r\n \r\n$ 7,053,416.46 $ 6,678,658.45 \r\n \r\n1,230,354.05 \r\n \r\n997,708.57 \r\n \r\n830,019.61 $ 1,626,285.79 \r\n \r\n11,163,858.39 \r\n \r\n10,959,017.76 \r\n \r\n181,947.30 \r\n \r\n407.89 \r\n \r\n783,653.35 \r\n \r\n826,875.13 \r\n \r\n$ 1,207,172.51 $ 1,626,693.68 $ 20,231,282.25 $ 19,462,259.91 \r\n \r\n$ 11,310,735.49 $ 10,197,992.85 \r\n \r\n$ \r\n \r\n49,025.00 \r\n \r\n163,884.96 \r\n \r\n505,265.22 191,825.99 401,166.31 258,860.35 900,524.68 221,716.41 995,631.36 679,304.97 78,409.13 61,203.26 856,027.97 437,687.94 \r\n \r\n480,332.77 251,298.64 354,086.98 254,353.08 907,725.64 181,213.20 963,284.96 725,054.51 44,152.69 \r\n56,613.46 843,506.82 1,377,134.20 \r\n \r\n$ 1,450,000.00 175,463.89 795.00 \r\n \r\n1,490,636.48 188,672.81 795.00 \r\n \r\n1,383,952.86 188,707.09 \r\n \r\n$ \r\n \r\n212,909 96 $ 1,626,258 89 $ 18,578,463.37 $ 18,209,409.75 \r\n \r\n$ \r\n \r\n994,262.55 $ \r\n \r\n434 79 $ 1,652,818 88 $ 1,252,850 16 \r\n \r\n$ 5,000,000 00 390,116.71 \r\n$ 5,390,116 71 \r\n$ 6,384,379.26 $ 1,846,343.84 \r\n \r\n$ \r\n$ 5,000,000.00 413,734 BO -413,734.80 \r\n$ 51000,000 oo $ \r\n \r\n14,400.00 \r\n774,297.46 -774 297 46 \r\n14,400.00 \r\n \r\n434 79 $ 50,745.30 \r\n \r\n6,652,818 BB $ 6,739,149.24 \r\n \r\n1,267,25016 5,469,229.17 \r\n \r\n-916 55 183 93 \r\n \r\n3,010.01 -34010 \r\n \r\n$ 8,230,723 10 $ \r\n \r\n51 180 09 $ 13,391.235.50 $ 6,739,149 24 \r\n \r\n-5- \r\n \r\n RABUN COUNJY BOARD OF EDUCATION COMBINED STATEMENT OF RE\\/ENUES EXPENPITlJRES AND CHANGES IN FUND BALANCES \r\nBUDGET AND ACTUAL - \u003cNON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \r\nYEAR ENDED JUNE 30 2002 \r\n \r\nEXHIBIT\"C\" \r\n \r\nGENERAL FUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\n \r\n$ 6,426,678.95 $ 6,734,403 85 \r\n \r\n90,000.00 \r\n \r\n69,491.80 \r\n \r\n7,738,014 00 \r\n \r\n8,707,552 99 \r\n \r\n165,000 00 \r\n \r\n247 691 71 \r\n \r\nTotal Revenues \r\n \r\n$ 14,419,692.95 $ 15,759.140 35 \r\n \r\nEXPENDITURES \r\n \r\nCurrent Instruction Support 5el'VIC8S Pupil 5ervrces Improvement of Instructional Services Educational Media SeMces General Admlnlstrabon School Adm1111strabon Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support 5eMC8S Other Support 5el'VIC8s Food Services Operabon \r\nCaprtal Outlay DebtSel'VIOII \r\n \r\n$ 10,603,4TT.50 $ 10,669,610.33 \r\n \r\n481,185 00 154,107.00 376,59400 255,586 00 894,431.00 181,863 00 1,083,841.00 697,13200 35,00000 59,000.00 \r\n1,000 00 280,00000 \r\n \r\n446,98468 159,097.74 401,166 31 251,199 38 900,52468 172,691 41 995,631 36 679,228 81 \r\n65,25412 61,203.26 \r\n5,023 54 273,802.98 \r\n53 84540 \r\n \r\nTotal Expenditures \r\n \r\n$ 15.103.216 50 $ 15,135,464 00 \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\n$ -883.523.55 $ 623.676 35 \r\n \r\nOTHER FJNANCJNG SOURCES (USES! \r\nOther Sources Other Uses \r\n \r\n$ -50,373 00 $ -413 734 80 \r\n \r\nTotal Other Financing Sources (Uses) \r\n \r\n$ -50,373.00 $ -413 734 80 \r\n \r\nExcess of Revenues and Other F1nanang Sources over (under) Expendrtures end Other Financing Uses $ -733,896.55 $ \r\n \r\n209,941.55 \r\n \r\nFUND BA~NCE JUl,Y l 200] \r\n \r\n4,769,972 13 \r\n \r\n4,823,851 45 \r\n \r\nAdJustments Food Inventory - Net Change m Penod \r\nDonated Commodllles Purchased Food \r\n \r\n-2,371 08 \r\n \r\nFUND BALANCE JUNE 30 2002 \r\n \r\n$ 41033.704 50 $ 5 033 793 00 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\n$ 148,217.00 $ 123,807 01 1,074,741 00 1,160,862.25 \r\n \r\n359.115 00 \r\n \r\n353.60645 \r\n \r\n$ 1,582,073 00 $ 1,638.275.71 \r\n \r\n$ 657,215.00 $ 640,92516 \r\n \r\n44,825 00 13,662.00 \r\n \r\n58,280 54 32,728.25 \r\n \r\n32,599 00 \r\n \r\n7,660.97 \r\n \r\n5,407 00 \r\n \r\n7616 13,15501 \r\n \r\n871,904 00 \r\n \r\n851,004 43 \r\n \r\n6.834 00 \r\n \r\n$ 1,632,446 00 $ 1,603,830 52 \r\n \r\n$ -50.373 00 $ 34 445 19 \r\n \r\n$ 50,373 00 $ 23,618 09 \r\n \r\n$ 50,373 00 $ 23 618 09 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n20,294 82 \r\n \r\n58,063.28 18,208 65 \r\n \r\n-916 55 183 93 \r\n$ 201294 82 s ___1,_5..,53_9_3_1_ \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement -6- \r\n \r\n RABUN COUNfY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe Rabun County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nFUND ACCOUNTING \r\nThe School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \r\nGeneral Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. \r\nAlthough \"school activity accounts\" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. \r\nThe general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educational activities. Governmental Fund Types include: \r\nGENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \r\n \r\n-7- \r\n \r\n RABUN COUNfY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \r\nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \r\nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. \r\nFIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: \r\nAGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \r\nACCOU}Vf GROUP \r\nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. \r\nBASIS OF ACCOUNTING \r\nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \r\nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \r\nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \r\nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \r\n \r\n-8- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO 1HE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property truces, sales truces and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property truces, local option sales truces, intergovernmental grants and donations. Revenue for property truces is recognized in the fiscal year for which the truces are levied. Revenue from sales truces is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nExpenditures are generally recognized when the related fund liability is incurred. \r\nA substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. State grants to fund the State's share of t)iese contracts are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. \r\nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \r\nBUDGET \r\nThe Rabun County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \r\nThe budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\n-9- \r\n \r\n ------------------------------------------ \r\n \r\nRABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nCASH AND CASH EQUIVALENTS \r\n \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with. original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Rabun County Board ofCommissioners fixed the property tax levy for the 2001 tax digest year (calendaryear) on September 20, 2001 (levy date). Taxes were due on January 11, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Rabun County Tax Commissioner bills and collects the property truces for the School District and remits truces collected to the School District. Property true revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $6,133,171.64 and for school bonds amounted to $26.90. \r\n \r\nThe tax millage rate levied for the 2001 true year (calendar year) for the Rabun County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n~mills \r\n \r\nSALES TAXES \r\n \r\nLocal Option Sales True revenue during the fiscal year amounted to $2,516,227.75 and was recorded in the General Fund. Local Option Sales True is to be used for the maintenance and operation ofthe School District. \r\n \r\nSpecial Purpose Local Option Sales True revenue during the year amounted to $2,456,278.50 and is to be used for capital outlay for educational purposes or debt service. This sales true was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\n- 10 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2002 \r\n \r\nNote 1: Sll.1MARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nINVENTORIES \r\nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as 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 th_ey are a component of net current assets. \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these b~nds is recorded in the General Long-Term Debt Account Group. \r\nINTERFUND TRANSACTIONS \r\nThe School District has the following types of interfund transactions: \r\nReimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \r\nOperating transfers are recorded for all interfund transactions other than reimbursements. \r\nMEMORANDUM ONLY -TOTAL COLUMNS \r\nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. lnterfund eliminations have not been made in the aggregation of this data. \r\nNote 2: DEPOSITS \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not \r\n- 11 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2002 \r\n \r\nNote 2: DEPOSITS \r\nbeen secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $14,034,101.90. The amounts of the total bank balances are classified into three categories of credit risk: \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\n \r\n- 12 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 2: DEPOSITS \r\n \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2002, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 1,359,201.31 \r\n \r\n2 \r\n \r\n9,612,937.74 \r\n \r\n3 \r\n \r\n3,061,962.85 \r\n \r\nTotal \r\n \r\n$14.034.101.90 \r\n \r\nNote 3: NON-MONETARY TRANSACTIONS \r\n \r\nThe Scho_ol District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \r\n \r\nNote 4: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\n- 13 - \r\n \r\n RABUN COUNfY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO TIIB GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 4: RISK MANAGEMENT \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $350,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ 100,000.00 $ 50,000.00 \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Rabn County Board of Education has entered into various lease agreements as lessee for computer equipment, copiers and energy savings equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPmpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 1998 General Government - Series 2001 \r\n \r\n4.00% - 4.10% 3.26% \r\n \r\n$ 1,500,000.00 5,000,000.00 \r\n \r\n$ 6,500,000.00 \r\n \r\nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows: \r\n \r\n- 14 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT 11D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2001 \r\n \r\n$ 302,110.92 $ 2,950,000.00 $ 3,252,110.92 \r\n \r\nAdditions G.O.Bonds \r\n \r\n5,000,000.00 5,000,000.00 \r\n \r\nDeductions Debt Retired \r\n \r\n40,636.48 1.450,000.00 1.490.636.48 \r\n \r\nBalance June 30, 2002 \r\n \r\n$ 261,474.44 $ 6.500.000,00 $ 6,761,474.44 \r\n \r\nAt June 30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFis~al Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal Debt \r\n \r\n2003 2004 2005 2006 2007 2008 - 2012 \r\n \r\n$ 54,845.40 $ 1,724,500.00 $1,779,345.40 \r\n \r\n49,793.40 \r\n \r\n163,000.00 \r\n \r\n212,793.40 \r\n \r\n48,403.40 1,741,838.50 1,790,241.90 \r\n \r\n47,885.40 1,748,537.50 1,796,422.90 \r\n \r\n45,245.40 1,758,199.00 1,803,444.40 \r\n \r\n59.427.20 \r\n \r\n59,427.20 \r\n \r\nTotal Principal and Interest $ 305,600.20 $ 7.136.075.00 $ 7,441,675.20 \r\n \r\nDeduct: Imputed Interest \r\n \r\n44,125.76 \r\n \r\nNet Present Value of Future \r\nMinimum Lease Payments $ 261,474.44 \r\n \r\nNote6: ON-BEHALFPAYMENTS \r\n \r\nThe School District has recognized revenues and expenditures in the amount of $214,052.77 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\n- 15 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2002 \r\n \r\nNote 6: ON-BEHALF PAYMENTS \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $187,010.77 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$27,042.00 \r\n \r\nNote 7: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2002, together with funding available: \r\n \r\nProject \r\n. \r\nMiddle School/High School Renovations \r\nSA0IS-719-144 \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n$ 191,525.24 325.000.00 $ 1.370.628.00 \r\n \r\n$ 516,525.24 $ 1,370,628.00 \r\n \r\nThe amounts described in this note are not reflected in the general-purpose financial statements. \r\n \r\nNote 8: CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 9: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System 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 \r\n \r\n- 16 - \r\n \r\n RABUN COUNfY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL.PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 9: RETIREMENT PLANS \r\n \r\nSystem of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2002 2001 2000 \r\n \r\n100% 100% 100% \r\n \r\n$ 941,682.94 $ 946,909.29 $ 873,818.05 \r\n \r\n- 17 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable \r\nTotal Liabilities \r\nFUND EQUITY Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity \r\nTotal Liabilities and Fund Equity \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n120,851.52 $ \r\n \r\n0.00 \r\n \r\n11,996.91 51479.12 \r\n \r\n$ \r\n \r\n138.327.55 $--=-===-==0=00= \r\n \r\n$ \r\n \r\n15,235.84 \r\n \r\n47,552.40 \r\n \r\n$ \r\n \r\n62}88.24 \r\n \r\n$ \r\n \r\n11,996.91 \r\n \r\n5,479.12 \r\n \r\n581063.28 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n75.539.31 $ \r\n \r\n0.00 \r\n \r\n$ 1381327.55 s==-==o=.o=o= \r\n \r\nSee notes to the general-purpose financial statements. -18- \r\n \r\n EXHIBIT\"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 301 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n120,851.52 $ \r\n \r\n61,973.41 \r\n \r\n$ \r\n \r\n132,981.20 \r\n \r\n132,981.20 \r\n \r\n135,349.31 \r\n \r\n11,996.91 5,479.12 \r\n \r\n12,913.46 5,295.19 \r\n \r\n$ \r\n \r\n132,981.20 $ \r\n \r\n0.00 $ \r\n \r\n271,308.75 $-==2_1=5=.5=3-1.=37= \r\n \r\n$ \r\n \r\n52,924.75 \r\n \r\n18,164.85 \r\n \r\n61,664.01 \r\n \r\n227.59 \r\n \r\n$ \r\n \r\n132,981.20 \r\n \r\n$ \r\n \r\n52,924.75 $ \r\n \r\n33,400.69 \r\n \r\n109,216.41 \r\n \r\n227.59 \r\n \r\n76,327.25 28,059.20 91,893.75 \r\n1,042.52 \r\n \r\n$ \r\n \r\n195,769.44 $ \r\n \r\n197,322.72 \r\n \r\n$ \r\n \r\n11,996.91 $ \r\n \r\n12,913.46 \r\n \r\n5,479.12 \r\n \r\n5,295.19 \r\n \r\n$ \r\n \r\no.oo s____o_._oo_ \r\n \r\n58,063.28 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n0.00 $ \r\n \r\n75,539.31 $ ___1_8,._,2_08_._6_5_ \r\n \r\n$ \r\n \r\n132,981.20 $ \r\n \r\n0.00 $ \r\n \r\ns 211,3oa.1s =-===2...1..s.=.,s=31_.3=7= \r\n \r\n-19- \r\n \r\n RABUN COUNlY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent lnstrudion Support Services Pupil Services Improvement of lnstrudional Services Educational Media Services General Administration Student Transportation Central Support Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOperating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\nFUND BALANCE JUNE 30 \r\nSee notes to the general-purpose financial statements. \r\n- 20- \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n63,138.00 $ \r\n \r\n470,423.26 \r\n \r\n353,606.45 \r\n \r\n$ \r\n \r\n887,167.71 $ \r\n \r\n60,669.01 60,669.01 \r\n \r\n$ \r\n \r\n60,669.01 \r\n \r\n$ \r\n \r\n851,004.43 \r\n \r\n$ \r\n \r\n851,004.43 $ \r\n \r\n$ \r\n \r\n36,163.28 $ \r\n \r\n60,669.01 0.00 \r\n \r\n$ \r\n \r\n21,900.00 \r\n \r\n$ \r\n \r\n21,900.00 \r\n \r\n$ \r\n \r\n58,063.28 $ \r\n \r\n0.00 \r\n \r\n18,208.65 \r\n \r\n0.00 \r\n \r\n-916.55 183.93 \r\n \r\n$ \r\n \r\n75,539.31 s==-==-==o~-~oo= \r\n \r\n EXHIBIT\"F\" \r\n \r\nFEDERAL \r\nPROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 301 2002 \r\n \r\nJUNE 301 2001 \r\n \r\n$ \r\n \r\n690,438.99 \r\n \r\n$ \r\n \r\n$ \r\n \r\n690.438.99 $ \r\n \r\n$ 0.00 0.00 $ \r\n \r\n123,807.01 $ 1,160,862.25 \r\n353,606.45 \r\n1.638.275.71 $ \r\n \r\n284,122.00 994,190.70 376,325.67 \r\n1.654.638.37 \r\n \r\n$ \r\n \r\n578,538.06 $ \r\n \r\n58,280.54 32,728.25 \r\n \r\n7,660.97 76.16 \r\n13,155.01 \r\n \r\n$ \r\n \r\n690,438.99 $ \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n1,718.09 $ \r\n1,718.09 $ -1 718.09 $ \r\n \r\n640,925.16 $ \r\n58,280.54 32,728.25 \r\n7,660.97 76.16 \r\n13,155.01 851.004.43 \r\n1,603,830.52 $ \r\n34,445.19 $ \r\n \r\n689,668.78 \r\n16,079.32 83,223.70 \r\n950.00 23,303.72 \r\n34,053.79 842_442.15 \r\n1,689,721.46 \r\n-35,083.09 \r\n \r\n$ \r\n \r\n1,718.09 $ \r\n \r\n23,618.09 $ \r\n \r\n6,706.56 \r\n \r\n-1 841.59 \r\n \r\n$ \r\n \r\n1 718.09 $ \r\n \r\n23,618.09 $ \r\n \r\n4 864.97 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n58,063.28 $ \r\n \r\n-30,218.12 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n18,208.65 \r\n \r\n45,756.86 \r\n \r\n-916.55 183.93 \r\n \r\n3,010.01 -340.10 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n75,539.31 $ =-===18=,2=0=8=65= \r\n \r\n- 21 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002 \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY LIABILITIES \r\nContrads Payable Retainages Payable \r\nTotal Liabilities \r\n: \r\nFUND EQUITY Fund Balances Reserved For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity \r\nTotal Liabilities and Fund Equity \r\n \r\nREGULAR \r\n \r\nBOND PROCEEDS \r\n \r\n$ \r\n \r\n0.00 $ 7,050,867.37 \r\n \r\n$ \r\n \r\n0.00 $ 7,050,867.37 \r\n \r\n$ \r\n \r\n129,881.86 \r\n \r\n16,621.92 \r\n \r\n$ \r\n \r\n146,503.78 \r\n \r\n$ 6,904,363.59 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ 6,904,363.59 \r\n \r\n$ \r\n \r\n0.00 $ 7,050,867.37 \r\n \r\nSee notes to the general-purpose financial statements. \r\n-22- \r\n \r\n EXHIBIT\"G\" \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 301 2001 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n878,506.04 $ 7,929,373.41 $ 1,615,170.49 \r\n \r\n447,853.47 \r\n \r\n447.853.47 \r\n \r\n428,655.33 \r\n \r\n$ \r\n \r\n0.00 $ 1,326,359.51 $ 8,377,226.88 $ 2,043,825.82 \r\n \r\n$ \r\n \r\n129,881.86 $ \r\n \r\n197,481.98 \r\n \r\n16,621.92 \r\n \r\n$ \r\n \r\n146,503.78 $ _ _1.;.;9;.;.7.,.,4.;;.81.;.;.9.;a.;8a.. \r\n \r\n$ 6,904,363.59 \r\n \r\n$ 1,326,359.51 \r\n \r\n1,326,359.51 $ 1,465,941.94 \r\n \r\n21,900.00 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n358,501.90 \r\n \r\n$ \r\n \r\n0.00 $ 1,326.359.51 $ 8,230,723.10 $ 1,846,343.84 \r\n \r\n$ \r\n \r\n0.00 $ 1,326,359.51 $ 8,377,226.88 $ 2,043,825.82 \r\n \r\n- 23 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002 \r\n \r\nREVENUES \r\nState Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Support Services Business Administration \r\nCapital Outlay Building and Building Improvements \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds from General Obligation Bonds Par Value \r\nOperating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFUND BALANCE JUNE 30 \r\n \r\nREGULAR \r\n \r\nBOND PROCEEDS \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n81,130.93 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n81,130.93 \r\n \r\n$ \r\n \r\n49,025.00 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n169,868.92 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n218,893.92 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n-137,762.99 \r\n \r\n$ 5,000,000.00 \r\n \r\n2,042,126.58 \r\n \r\n$ \r\n \r\n-358,501.90 \r\n \r\n$ \r\n \r\n-358,501.90 $ 7,042,126.58 \r\n \r\n$ \r\n \r\n-358,501.90 $ 6,904,363.59 \r\n \r\n358,501.90 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ 6,9041363.59 \r\n \r\nSee notes to the general-purpose financial statements. \r\n- 24- \r\n \r\n EXHIBIT\"H\" \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ \r\n \r\n195,205.60 \r\n \r\n$ \r\n \r\n$---=195-,2-05.60 $ \r\n \r\n$ 830,019.61 100,816.37 \r\n930,835.98 $ \r\n \r\n195,205.60 830,019.61 $ 181,947.30 \r\n1,207,172.51 $ \r\n \r\n941,934.23 139A03.16 \r\n1,081,337.39 \r\n \r\n$ _ _ _-..5....,..9a..8...3.96 $ $ _ _ _-_ 5,9_83.96 $ $ _ _ _20_ U8_9.56 $ \r\n \r\n$ 0.00 0.00 $ 930,835.98 $ \r\n \r\n49,025.00 163,884.96 $ 212,909.96 $ 994,262.55 $ \r\n \r\n1,101,688.85 1,101,688.85 \r\n-20,351.46 \r\n \r\n$ 5,000,000.00 \r\n \r\n2,042,126.58 $ \r\n \r\n962,285.69 \r\n \r\n$ \r\n \r\n-223,089.56 $ -1,01oi418.41 \r\n \r\n-1,652,009.87 \r\n \r\n-192,853.20 \r\n \r\n$ \r\n \r\n-223,089.56 $ -1,01oi418.41 $ 5,390,116.71 $ \r\n \r\n769,432.49 \r\n \r\n$ \r\n \r\n-21,900.00 $ -139,582.43 $ 6,384,379.26 $ \r\n \r\n749,081.03 \r\n \r\n21,900.00 \r\n \r\n1,465,941.94 \r\n \r\n1,846,343.84 \r\n \r\n1,097,262.81 \r\n \r\n$ \r\n \r\n0.00 $ 1,326,359.51 $ 8,230,723.10 $ \r\n \r\n- 25 - \r\n \r\n RABUN COUNlY BOARD OF EDUCATION COMBINING BALANCE SHEET \r\nDEBT SERVICE FUND \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT\"!\" \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable \r\nTotal Assets \r\nFUND EQUITY Fund Balances \r\nReserved For Debt SeMce \r\nUnreserved Undesignated \r\nTotal Fund Equrty \r\n \r\nPROPERTY TAXES FOR BOND DEBT \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 301 2001 \r\n \r\n$ 51,180.09 $ \r\n \r\n0.00 $ \r\n \r\n51,180.09 $ \r\n \r\n50,740.96 \r\n \r\n4.34 \r\n \r\n$ 51,180.09 $ \r\n \r\n0.00 $ \r\n \r\ns___ 51 1ao.09 \r\n \r\n5_01_45_._3o_ \r\n \r\n1 \r\n \r\n1 1111111 \r\n \r\n$ 51,180.09 \r\n \r\n$ \r\n \r\n0.00 $ _ _ _ _0_._00_ \r\n \r\n51,180.09 $ 000 \r\n \r\n50,745.30 0.00 \r\n \r\n$ 51,180.09 $ \r\n \r\n000 $ \r\n \r\ns___ 51 1ao 09 \r\n \r\n50.,1_4_5_.3_o \r\n \r\n1 \r\n \r\n1 \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n- 26- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUE~. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nDEBT SERVICE FUND \r\nYEAR ENDED JUNE 30, 2002 \r\n \r\nEXHIBIT \"J\" \r\n \r\nREVENUES \r\nTaxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nDebtSeMce Pnncipal Interest Paying Agent Fees \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nFUND BALANCE JUbY 1 \r\n \r\nPROPERTY TAXES FOR BOND DEBT \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 \r\n \r\n$ \r\n \r\n26.90 $ 1,626,258.89 $ 1,626,285.79 $ 1,524,243.12 \r\n \r\n407.89 \r\n \r\n407.89 \r\n \r\n2,796.90 \r\n \r\n$ \r\n \r\n434.79 $ 1,626,258.89 $ 1,626,693.68 $ 1,527,040.02 \r\n \r\n$ 1,450,000.00 $ 1,450,000.00 $ 1,350,000.00 \r\n \r\n175,463.89 \r\n \r\n175,463.89 \r\n \r\n174,225.00 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n795.00 \r\n \r\n79500 \r\n \r\n$ \r\n \r\n0.00 $ 1,626,258.89 $ 1,626,258 89 $ 1,524,225.00 \r\n \r\n$ \r\n \r\n434.79 $ \r\n \r\n0.00 $ \r\n \r\n434.79 $ \r\n \r\n2,815.02 \r\n \r\n50,745 30 \r\n \r\n0.00 \r\n \r\n50,745 30 \r\n \r\n47,930.28 \r\n \r\nFUND BALA'NCE JUNE 30 \r\n \r\n$ 51,180.09 $ \r\n \r\n0.00 $ \r\n \r\n51,180.09 $=,,,,,,;;50===,7=45=3=0= \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n- 27 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\nCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\nEIQUCIARY FUND TYPE - AGENCY FUNDS \r\nYEAR ENDED JUNE 30, 2002 \r\n \r\nEXHIBIT\"K\" \r\n \r\nBREWER SCHOLARSHIP \r\nASSETS Cash and Cash Equrvalents \r\n \r\nBALANCE \r\n \r\nBALANCE \r\n \r\nJULY 1, 2001 ADDITIONS DEDUCTIONS JUNE 30, 2002 \r\n \r\n$ \r\n \r\n-291.25 $ 11162.15 $ \r\n \r\n800.00 $ \r\n \r\n70.90 \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ \r\n \r\n-291.25 s U62 15 s \r\n \r\n800.00 s____10,_..,9o..,. \r\n \r\nCARY SUTTLE SCHOLARSHIP \r\nASSETS Cash and Cash Equivalents \r\n \r\n31000.00 $ _ _ _ _o._oo... \r\n \r\nLIABILITIES Funds Held for Others \r\nHARRIS SCHOLARSHIP ASSETS \r\nCash and Cash Equivalents \r\n \r\ns_____o._oo... s 31000.00 $ \r\n \r\n$ \r\n \r\n-92.49 $ 118 18 $ \r\n \r\n250 oo s___-_2_24,_..,31= \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ \r\n \r\n-92 49 $ 118.18 $ \r\n \r\n250.00 s___-_2_24_._31_ \r\n \r\nJ O KING SCHOLARSHIP \r\nASSETS Cash and Cash Equivalents \r\n \r\n$ \r\n \r\n7774 $ \r\n \r\n0.00 $ \r\n \r\n0 00 s____77.....,74.., \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ \r\n \r\n7774 $ \r\n \r\n000 $ \r\n \r\n0.00 $ _ _ __,77;,,,,;,,74.., \r\n \r\nLAKE RABUN ASSOCIATION/CLAYTON TRIBUNE SCHOLARSHIP FOUNDATION FUND \r\nASSETS Cash and Cash Equivalents \r\n \r\n$ 9 874 34 $ \r\n \r\n0 00 $ \r\n \r\n-321125 66 \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ \r\n \r\n9 874 34 $ \r\n \r\n000 $ \r\n \r\n- 28- \r\n \r\n RABUN COUNTY BOARD Of EDUCATION \r\nCOMBINING STATEMENT Of CHANGES IN ASSETS AND LIABIUTIES FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2002 \r\n \r\nEXHIBIT \"K\" \r\n \r\nMUSIC/ART SCHOLARSHIP FOUNDATION FUND ASSETS \r\nCash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\nPANELL SCHOLARSHIP ASSETS \r\nCash and Cash Equrvalents \r\nLIABILITIES Funds Held for Others \r\nPARKIN/KRIVSKY SCHOLARSHIP ASSETS \r\nCash and Cash Equ:valents \r\nLIABILITIES Funds Held for Others \r\nRABUN COUNTY SCHOLARSHIP FOUNDATION ASSETS \r\nCash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\nWILDER SCHOLARSHIP FOUNDATION ASSETS \r\nCash and Cash Equ:valents \r\nLIABILITIES Funds Held for Others \r\n \r\nBALANCE JULY 11 2001 \r\n \r\nADDITIONS \r\n \r\nDEDUCTIONS \r\n \r\nBALANCE JUNE 30, 2002 \r\n \r\n$ \r\n \r\n849.90 $ \r\n \r\n0.00 $ \r\n \r\n0 00 $ \r\n \r\n849.90 \r\n \r\n$ \r\n \r\n849.90 $ \r\n \r\n0.00 $ \r\n \r\no.oo s ____84_9_.9_o~ \r\n \r\n$ 20,500.13 $ \r\n \r\n000 $ 20,soo 13 s _ _ _ _o._oo_ \r\n \r\n$ 20,500.13 $ \r\n \r\n0.00 $ 20,soo.13 s _ _ _ _o-oo_ \r\n \r\n$ \r\n \r\n1,000 00 $ 1,000.00 $ \r\n \r\no.oo s _ _ _2.,_0_0.,o_oo..,, \r\n1 \r\n \r\n$ \r\n \r\n1,000.00 $ 1,000.00 $ \r\n \r\no oo s_-.:2-,0-:0.0._oo::.. \r\n \r\n$ 15,163.60 $ 27,770.00 $ 20.soo oo s ___22_,4_3_3_.6o_ $ 15.163.60 $ 27.770.00 $ 20,soo oo s_-==2.2..4_3..,3.6..=0 \r\n \r\n$ \r\n \r\n1,100.00 $ 1,000 00 $ \r\n \r\n2 soo oo s _ _ _-4..,;,;;,o_o _oo... \r\n1 \r\n \r\n$ \r\n \r\n1,100.00 $ 1,000 00 $ \r\n \r\n2 soo oo s____-4~o~o~oo_, 1 \r\n \r\n-29- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\nCOMBINING STATEMENT orr CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE -AGENCY FUNDS \r\nYEAR ENDED JUNE 30, 2002 \r\n \r\nEXHIBIT \"K\" \r\n \r\nW!LblAM L BBOOKSHIBE SCHOLARS!::!IP ASSETS \r\ncash and cash Equivalents \r\nLIABILITIES Funds Held for Others \r\nTOTAl,5 - AGENCY FUNDS \r\nASSETS Cesh and cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nBALANCE \r\n \r\nBALANCE \r\n \r\nJULY 1, 2001 ADDITIONS DEDUCTIONS JUNE 30, 2002 \r\n \r\n$ 11202.53 $ 312 45 $ \r\n \r\n500.00 $ \r\n \r\n101498 \r\n \r\n$ t20253 $ 312 45 $ \r\n \r\n500.00 $ _ _1_0_1_4_98_ \r\n \r\n$ 491384.50 $ 341362.78 $ 901050.13 s_ _-6_13_0_2_s5.., \r\n$ 491384.50 $ 341362.78 $ 901050.13 $ _ _-6_13_0_2_s5_ \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n- 30- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\nSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2002 \r\n \r\nSCHEDULE 1 \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nAgriculture, U. S Department of Child Nutribon Cluster Pass-Through From Georgia Department of Education Food and Nutrttlon Program Food Services School Breakfast Program National School Lunch Program \r\n \r\n10.553 10.555 \r\n \r\nNIA $ 94,706.52 \r\n \r\nNIA \r\n \r\n325,847.98 $ \r\n \r\n(2) 801,135.67 (3) \r\n \r\nTotal Child Nutnllon Cluster \r\n \r\n$ 420,554.50 $ \r\n \r\n801,135.67 \r\n \r\nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food D1strlbution Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \r\nTotal U S. Department of Agriculture \r\n \r\n10.550 10.665 \r\n \r\nNIA \r\n \r\n49,868.76 \r\n \r\nNIA \r\n \r\n69,491.80 \r\n \r\ns $ 539,915 06 \r\n \r\n49,868.76 (4) 851,004.43 \r\n \r\nEducation, U. S. Department of Speaal Education Cluster Pass-Through From Georgia Department of Education lndrviduals with Olsabilrties Education Ad Part B - Speaal Education Flow Through Preschool \r\n \r\n84.027 84173 \r\n \r\nNIA \r\n \r\ns $ 233,353 23 \r\n \r\nNIA \r\n \r\n23,313.02 \r\n \r\n233,353.23 23,313.02 \r\n \r\nTotal Speaal Education Cluster \r\n \r\n$ 256,666.25 $ \r\n \r\n256,666.25 \r\n \r\nOther Programs \r\n \r\nPass-Through From Georgia Department of Education \r\n \r\nElementary and Secondary Education Ad Title I Grants to Local Educational Agencies \r\n \r\n. 84.010 \r\n \r\nNIA \r\n \r\nTitle II \r\n \r\nEisenhower Professional Development \r\n \r\n84.281 \r\n \r\nNIA \r\n \r\nTitle VI Innovative Education Program Strategies Class Size Reduction \r\n \r\n. 84.298 84.340 \r\n \r\nNIA NIA \r\n \r\nVocational Education - Basic Grants to States \r\n \r\nHigh School Program \r\n \r\nBasic Grant \r\n \r\n84.048 \r\n \r\nNIA \r\n \r\n326,846 74 17,500.00 11,892.00 52,373.00 \r\n25,161.00 \r\n \r\n326,846.74 17,500.00 11,892.00 52,373 00 \r\n25,161.00 \r\n \r\nTotal U S. Department of Education \r\n \r\n$ 690,438 99 $ \r\n \r\n690,438.99 \r\n \r\nTotal Federal Financial Assistance \r\nNIA = Not Available \r\n \r\n$ 1,230,354 05 $ 1,541,443 42 \r\n \r\n 31  \r\n \r\n RABUN COUNTY BOARD,OF.. EDUCAJ10N \r\nSCHEDULE OFEXPEN0)jruRES,0F~F.EDERAL AWARDS \r\n.. - YEARENIDED Jl!INE~30,:2002 \r\n \r\nSCHEDULE \"1\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary ass1Stance for donated commodities recerved and/or consumed by the system dunng the current fiscal year. \r\n(2) Expenditures for the School Breakfast Program were not maintained separately and are Included In the 2002 National School Lunch Program. \r\n(3) Expenditures for this program Include State, and/or Other Funds. Expenditures are not maintained by fund source. \r\n(4) Funds earned on this program do not require reporting of expenditures. \r\nMajor Programs are Identified by an asterisk (*) In front of the CFDA number. \r\nThe School [llstrld dl~not provide Federal Assistance to any Subreciplent. \r\nThe accompanying schedule of ~ndrtures of Federal awards Includes the Federal grant activity of the Rabun County Board of Education and Is presented on the modified acaual baSIS of accounting which Is the basis of accounting used In the presentation of the general-purpose financial statements \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n- 32- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\nSCHEDULE OF STATE REVENUE \r\nYEAR ENDED JUNE 30, 2002 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS EducatJon, Georgia Department of Quality Basic Educallon Direct Instructional Cost Kmdergarten Program Kindergarten Program - Earty Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Otsabllitles Category I Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Twenty Days Addlbonal Instruction Indirect Cost Categorical Grants Pupil Transportation ~egular Bus Replacement Sparsity Nurslng Services Principal Supplements Vocabonal Supervisors Deferred SUmmer Salaries (Pnor Year) Deferred Summer Salaries (Current Year) Food SeMces Vocational Education Other State Programs Apprenticeship Program Health Insurance Mentor Teachers Nabonal Teacher Cerbficatlon Post Secondary Opbons Preschool Handicapped Program Speaal Educabon Low lnadence Grant Statewide 4-8 After School Statewide Reading Program K-3 Lottery Programs Assistlve Technology Computers In the Classroom \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction PrOjeCls \r\nOffice of Treasury and Fiscal Services Pubhc School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 375,465.00 84,623.00 985,156.00 109,449.00 473,282.00 23,644.00 765,399.00 681,752.00 257,074.00 \r\n693,567.00 51,24300 18,741.00 61,896.00 54,858.00 \r\n143,841.00 24,959.00 44,899.00 985,247.00 \r\n \r\n379,247.00 111,873.00 \r\n20,000.00 59,819.00 9,018.00 14.263.00 -857,237 .83 801,965.00 \r\n$ 14,790.96 \r\n \r\n63,138.00 \r\n \r\n2,000.00 181,010.n \r\n4,131 00 4,903.00 \r\n49500 23,550.00 38,836.00 31,817.00 25,987.95 \r\n \r\n7,019 01 53,650.00 \r\n \r\n$ 375,465.00 84,623.00 985,156.00 109,449.00 \r\n473,282.00 23,644.00 765,399.00 \r\n681,752.00 257,074.00 \r\n693,567.00 51,243.00 18,741.00 61,896.00 54,858.00 \r\n143,841.00 24,959.00 44,699.00 \r\n985,247.00 \r\n379,247.00 111,873.00 \r\n20,000.00 59,819.00 \r\n9,016.00 14,263.00 -857,237.83 801,965.00 63,138.00 14,790.96 \r\n2,000.00 1s1,010.n \r\n4,131.00 4,903.00 \r\n495.00 23,55000 38,836.00 31,817.00 25,987.95 \r\n7,019.01 53,65000 \r\n \r\n27,042 00 \r\n \r\n$ 195,205.60 \r\n \r\n195,205.60 27,042.00 \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n$ 6.734.403.85 $ 123.807 01 $ 195,205 60 S 7,053,416 46 - 33- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\nSCHEDULE OF APPRoVEP LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30 2002 \r\n \r\nSCHEDULE 3 \r\n \r\nPROJECT \r\nAcquisition, construction and equIppIng of a new \r\nelementary school, Including necessary fum1shrngs and equipment, the acquIsrbon, construction and equipping of addrbOnal 1nstructronal, support or physical education facilrbes at eXtStrng schools, Including the acqulSrtlon of necessary fumrshmgs and equipment and system-wide technology improvements \r\nAcqursrtlon, construction and equipping addltional classrooms, 1nstruct1onal and support space at the mlddlelh1gh school, renovating, equipping and modifying ex1strng classrooms, rnstructronal and support space at said school, provtdrng for payment or reimbursement of the costs of rerouting and storm drainage Improvements at said school, functronal addrbonal caprtal Pl'Of8cls rndudmg acquisition, constructron and equipping additional classrooms, lnstructronal and support space and remodeling and renovating eXtStlng classroom, mstructronal and support space at existing school, faclhtres and paying expenses Incident thereto \r\n \r\nORIGINAL ESTIMATED \r\nCOST(1l \r\n \r\nCURRENT ESTIMATED COSTS(2l \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS(3l \r\n \r\n$ 12,000,000 00 $ 12,000,000 00 $ 339,404 85 \r\n \r\n8,000,000 00 13,600,000 00 \r\n \r\n120,225 00 s 13,065,166 55 \r\n \r\nPROJECT STATUS Ongoing \r\nOngoing \r\n \r\n$ 2010001000 00 $ 2516001000 00 s 4591629.85 s 1310651166 55 \r\n \r\n(1) The School D1stnct's ongrnal cost estimate as specified rn the resolution calling for the Imposition of the Local Optron Sales Tax \r\n(2) The School D1stnc1's current estimate of total cost for the proJects Includes an cost from Pl'Of8CI Inception to completion \r\n(3) The voters of Rabun County approved the lmposrbo11 of a 1% sales tax to fund the above projects and retire associated debl Amounts expended for these proJects may rnclude sales tax proceeds, state, local property taxes and/or other funds over the hfe of the proJects \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n 35- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION GENERAL FUND - CUALITYBASIC EDUCATION PROGRAM COBEI \r\nALLOTMENTS'ANID.EXPEN01TURES - BY PROGRAM \r\nYEAR ENDED JUNE 30, 2002 \r\n \r\nSCHEDULE 4 \r\n \r\nDESCRIPTION \r\nDirect lnstructJonal 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 Bementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Mlddle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Dlsabllltles Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedlal Education Program Alternative EducatJon Program Engllsh Speakers of Other Languages (ESOL) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professlonal Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n639,015.00 $ 624,381.65 $ \r\n \r\n25,001.99 $ \r\n \r\n649,383 64 \r\n \r\n144,022.00 \r\n \r\n142,394.50 \r\n \r\n1,6n.40 \r\n \r\n144,071.90 \r\n \r\n1,676,664.00 1,845,450.20 \r\n \r\n170,178.88 \r\n \r\n2,015,629.08 \r\n \r\n186,274.00 \r\n \r\n197,590.70 \r\n \r\n2,798.39 \r\n \r\n200,389.09 \r\n \r\n804,476.00 \r\n \r\n878,672.44 \r\n \r\n107,466.03 \r\n \r\n986,138.47 \r\n \r\n41,256.00 441,765.00 860,887.00 1,160,293.00 437,521.00 1,180,400.00 \r\n87,210.00 31,896.00 105,342.00 93,362.00 \r\n \r\n81,442.43. 497,019.29 1,020,843.91 1,582,464.69 533,051.16 \r\n27,809.30 352,631.n 786,565.09 \r\n13,442.18 33,839.84 130,227.96 30,943.20 115,801.52 122,008.04 \r\n \r\n2,272.61 23,324.68 85,809 85 216,891.83 58,648.04 \r\n110.69 5,123.28 40,672.11 2,838.10 \r\n799.30 6,661.15 1,043.00 7,283 16 1,825.00 \r\n \r\n83,715.04 520,343.97 1,106,653.76 1,799,356.52 591,699.20 \r\n27,919.99 357,755.05 827,237.20 \r\n16,280.28 34,639.14 136,889.11 31,986 20 123,084 68 123,833.04 \r\n \r\n$ \r\n \r\ns 7,890,383.00 9,016,579.87 $ 760,425.49 $ 9,777,005 36 \r\n \r\n244,806.00 42,4TT.OO \r\n \r\n345,674.37 20,023.45 \r\n \r\n40,438.53 40,542.26 \r\n \r\n3_86,112.90 60,565 71 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n8,177,666.00 S 9,382,27769 $ 841,406.28 $ 10,223,683.97 \r\n \r\n(1) Comprised of State Funds plus Local FIV8 MIii Share. \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n- 36- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002 \r\n \r\nSCHEDULE \"5\" \r\n \r\nRabun County Middle School Rabun County High School . Clayton Elementary School Rabun Gap Community School South Rabun Elementary School Central Office (Altemative Education Program) \r\nTOTAL \r\n(1) Comprised of State Funds plus Local Five Mill Share. \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\n$ \r\n \r\n1,153,258.00 $ \r\n \r\n1,280,500.32 \r\n \r\n2,062,963.00 \r\n \r\n3,048,526.03 \r\n \r\n1,631,569.00 \r\n \r\n1,935,104.72 \r\n \r\n1,136,709.00 \r\n \r\n1,313,234.15 \r\n \r\n1,800,542.00 \r\n \r\n1,971,533.72 \r\n \r\n1051342.00 \r\n \r\n2281106.42 \r\n \r\n$ \r\n \r\n7,8901383.oo $ ==9==?.n.,.,o=o=5=.36= \r\n \r\nSee notes to the general-purpose financial statements. - 37 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n w. RUSSEi.i. \r\n \r\nH1r-.TON \r\n \r\nSTATE AUDITOR \r\n \r\n(404) 6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street. S.W. Suite 214 Atlanta, Georgia 30334-8400 \r\nFebruary 12, 2003 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements ofRabun County Board ofEducation as ofand for the year ended June 30, 2002, and have issued our report thereon dated February 12, 2003. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nCompliance \r\nAs part of obtaining reasonable assurance about whether Rabun County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Rabun County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \r\n2002YB-41 \r\n \r\n control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Rabun County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7191-02-01. \r\nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7191-02-01 to be a material weakness. \r\nThis report is intended solely for the information and use ofthe management, members ofthe Rabun County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\n \r\nRWH:gp 2002YB-41 \r\n \r\nRus 11 W. Hinton State Auditor \r\n \r\n Russi,:1.1. \\V. Hrr..ToN \r\nSTATE AUDITOR (404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Wa!\u003ehmgton Street. S. W.. Sune 214 Atlanta, Georgia 30334-8400 \r\nFebruary 12, 2003 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance ofRabun County Board ofEducation with the types ofcompliance 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, 2002. Rabun County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Rabun County Board of Education's management. Our responsibility is to express an opinion on Rabun County Board of Education's compliance based on our audit. \r\nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States 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 Rabun 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 Rabun County Board of Education's compliance with those requirements. \r\n2002SA-10 \r\n \r\n In our opinion, the Rabun County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2002. \r\nInternal Control Over Compliance \r\nThe management of Rabun 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 Rabun 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 of expressin_g our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \r\nThis report is intended solely for the information and use ofthe management, members ofthe Rabun County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~~-~.:.:k. \r\nRWH:gp 2002SA-10 \r\n \r\n SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7191-00-01 FS-7191-01-01 FS-7191-01-02 \r\n \r\nFurther Action Not Warranted Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7191-01-01 \r\n \r\nWe concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the School District has decided not to pursue the recording ofgeneral fixed assets on the financial statements. We are working towards meeting this requirement by fiscal year 2003. \r\n \r\n SECTIONN FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 2002 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Rabun County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Rabun County Board of Education disclosed a financial statement reportable condition related to the following control category. \r\nGeneral Fixed Assets \r\nThe reportable condition described above is considered to be a material weakness. \r\n3. Noncompliance Material to the Financial Statements The audit ofthe Rabun County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs 'f?e audit report for the Rabun County Board of Education did not disclose any reportable conditions in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Rabun County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Rabun County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n7. Major Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.340 Elementary and Secondary Education Act - Title VI - Class Size Reduction \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The Rabun County Board ofEducation qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \r\n- 1- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 2002 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7191-02-01 The Rabun 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 ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. Manag~ent's Response: We concur with this recommendation. Due 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. We are working towards meeting this requirement by fiscal year 2003. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2000-h2001","title":"Rabun County Board of Education, Clayton, 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, Rabun County, 34.88168, -83.40214"],"dcterms_creator":["Georgia. Department of Audits"],"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: Rabun County Board of Education, Clayton, Georgia, scheule 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 ... (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online resource); (Georgia Government Publications database, viewed June 27, 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":["Rabun County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Rabun County--Auditing--Periodicals.","Education--Georgia--Rabun County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Rabun County--fast--https://id.oclc.org/worldcat/entity/E39PBJt3VJPKFBPxFbFXxhD8YP","Georgia Government Documents--Serial"],"dcterms_title":["Rabun County Board of Education, Clayton, 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-br2-b2000-h2001"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b2000-h2001"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":", , .,r ~  ,, ... \r\n \r\n J  \\ .... ~ ~. \r\n \r\n:_'., _':~.'~I.-.'~ \\_  \r\n \r\n,. \r\n': \r\n \r\n. .. \r\n \r\n, - , ~--f \r\nC, I '   ' ...... \r\n \r\n.. ,_., -~~- \r\n \r\n'I \r\n \r\n1, \r\n \r\n': \r\n...,: \r\n. - _-. f,' \r\n \r\n. .. - . ' ..,,; \r\n \r\n~ ,~ - \r\n \r\n,, .,,. \r\n \r\n1 \r\n \r\n- ' \r\n \r\n,1 f ... \r\n \r\n'~~ ~:_~~(~,  : ;. \u003e \r\n \r\n~ i-  \r\n \r\n. ~ . . \r\n \r\n. \r\n \r\n........,.,_._ \r\n \r\n, \r\n; \r\n \r\n-~. -~-/,-,.. \r\n \r\n, \r\n \r\nt- ; ... , ~: ',1, \r\n \r\n--,- . ~ ~  \r\n \r\n:  \r\n \r\n\"l\" , ,,. \r\n \r\n' ' \r\n \r\n. .. ..... . ' - \"~ (' 1.. :  - ~ \r\n \r\nt. ' \r\n_} \r\n \r\n~ ' :  \r\n- ,.'. \r\n \r\n:I: ~,,, :  ~- l.,. \r\n \r\n. -,'. \r\n \r\n, ' f' \r\n:,, \r\n.....' \r\n\\: \r\n \r\n.,..,, \r\n 1 \r\n.. , : ..:. ,, , . \r\n  I/~ t 1\"' \r\n-,-:.,.,,~ .:,::.' \r\n \r\n_!,- \r\n \r\n.. '. \r\n \r\n.,' ,. \r\n \r\n.,._, \r\n \r\n E.XHIBIT\"A\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nFIDUCIARY FUND TYPE \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n50,740.96 $ \r\n \r\n49,384.50 \r\n \r\n4.34 \r\n \r\nACCOUNT GROUP \r\nGENERAL LONG-TERM \r\nDEBT \r\n \r\nTOTALS \r\n \r\n{Memorandum Onl:i'.l \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ 6,460,437 41 $ 5,230,030.TT \r\n \r\n2,092,315 45 \r\n \r\n2,271,295.10 \r\n \r\n$ \r\n \r\n50,745.30 \r\n \r\n12,913.46 5,295.19 \r\n50,745.30 \r\n \r\n9,903.45 5,635.29 \r\n47,93028 \r\n \r\n2,899,254.70 302,110.92 \r\n \r\n2,899,254.70 302,110 92 \r\n \r\n4,252,069.72 321,663 78 \r\n \r\n$ \r\n \r\n50,74530 $ \r\n \r\n49,384 50 $ 312521110.92 $ 11 18231072.43 $ 1211381528.39 \r\n \r\n$ \r\n \r\n14,353.84 $ \r\n \r\n36,99643 \r\n \r\n363,164.36 \r\n \r\n394,791.66 \r\n \r\n1,205,347.80 \r\n \r\n1,174,869.TT \r\n \r\n2,079.79 \r\n \r\n197,481.98 \r\n \r\n304,307.10 \r\n \r\n52,64016 \r\n \r\n$ \r\n \r\n49,384.50 \r\n \r\n49,384 50 \r\n \r\n84,030.32 \r\n \r\n$ \r\n \r\n302,110.92 \r\n \r\n302,110.92 \r\n \r\n321,663.78 \r\n \r\n2,950,000 00 \r\n \r\n2,950,000.00 \r\n \r\n4,300,000.00 \r\n \r\n$ \r\n \r\n49,384.50 $ 3,252,110.92 $ 5,083,923.19 $ 6,669~99.22 \r\n \r\n$ \r\n \r\n50,745.30 \r\n \r\n000 \r\n \r\n$ \r\n \r\n50,74530 \r\n \r\n$ \r\n \r\n106,491.00 $ \r\n \r\n114,329 00 \r\n \r\n50,745.30 \r\n \r\n47,930.28 \r\n \r\n12,913.46 5,295.19 \r\n1,465,941.94 21,900.00 \r\n \r\n9,90345 5,635.29 716,860.91 21,900.00 \r\n \r\n5,075,862.35 \r\n \r\n4,552,670.24 \r\n \r\n$ 6,739,149.24 $ 5,469,229 17 \r\n \r\n$ \r\n \r\n50.745.30 $ \r\n \r\n49,384.50 $ 312521110.92 $ 11,823,072.43 $ 12,138,528.39 \r\n \r\n.3. \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2001 \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Admm1stration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \r\nCapital OuUay Debt Service \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES IUSES) \r\nCapital Leases Operabng Transfers In Operabng Transfers Out \r\nTotal Other Finanang Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commod1bes Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ 6,394,536.45 $ 3,517.87 \r\n8,492,840.41 308,349.40 \r\n$ 15,199,244.13 $ \r\n \r\n284,122.00 994,190.70 \r\n376,325.67 \r\n1,654,638.37 \r\n \r\n$ 9,508,324.07 $ \r\n464,253.45 168,074.94 353,136.98 231,049.36 907,725.64 181,213.20 963,284.96 725,054.51 \r\n10,098.90 56,613.46 \r\n1,064.67 275,445.35 \r\n33,952.86 14,482.09 \r\n$ 13,893,774.44 $ \r\n$ 1,305,469.69 $ \r\n \r\n689,668.78 16,079.32 83,223.70 950.00 23,303.72 \r\n34,053.79 842,442.15 \r\n1,689,721.46 -35.083.09 \r\n \r\n$ \r\n \r\n14,400.00 \r\n \r\n$ \r\n \r\n-774.297.46 \r\n \r\n$ -759,897.46 $ \r\n \r\n4,864.97 4 864.97 \r\n \r\n$ \r\n \r\n545,572.23 $ \r\n \r\n4,278,279.22 \r\n \r\n-30,218.12 45,756.86 \r\n \r\n3,010.01 -340.10 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ 4,823,851.45 $ ===1~85,2,:08~.6;;;;5;;,. \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement -4- \r\n \r\n EXHIBIT\"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nYEAR ENDED \r\n \r\nJUNE 301 2001 \r\n \r\nJUNE 301 2000 \r\n \r\n$ 6,678,658.45 $ 5,792,897.56 \r\n \r\n997,708.57 \r\n \r\n1,000,349.83 \r\n \r\n$ \r\n \r\n941,934.23 $ 1,524,243.12 \r\n \r\n10,959,017.76 \r\n \r\n9,956,739.04 \r\n \r\n139,403.16 \r\n \r\n2,796.90 \r\n \r\n826,875.13 \r\n \r\n724,296.87 \r\n \r\n$ 1,081,337.39 $ 1,527,040.02 $ 19,462,259.91 $ 17,474,283.30 \r\n \r\n$ 10,197,992.85 $ 9,314,371.76 \r\n \r\n$ 1,101,688.85 \r\n \r\n480,332.77 251,298.64 354,086.98 254,353.08 907,725.64 181,213.20 963,284.96 725,054.51 \r\n44,152.69 56,613.46 843,506.82 1,377,134.20 \r\n \r\n586,560.98 208,367.58 337,537.60 239,433.94 804,812.16 152,185.25 872,738.04 634,747.21 \r\n30,585.60 52,135.13 825,022.16 6,428,090.05 \r\n \r\n$ 1,350,000.00 174,225.00 \r\n \r\n1,383,952.86 188,707.09 \r\n \r\n32,991.56 '191,530.84 \r\n \r\n$ 1.101,688.85 $ 1,524,225.00 $ 18,209,409.75 $ 20,711,109.86 \r\n \r\n$ \r\n \r\n-20,351.46 $ \r\n \r\n2,815.02 $ 1,252,850.16 $ -3,236,826.56 \r\n \r\n$ \r\n \r\n769,432.49 \r\n \r\n$ \r\n \r\n769,432.49 \r\n \r\n$ \r\n \r\n749,081.03 $ \r\n \r\n1,097,262.81 \r\n \r\n$ \r\n \r\n14,400.00 \r\n \r\n774,297.46 $ 2,845,687.50 \r\n \r\n-774,297.46 \r\n \r\n-2,845.687 .50 \r\n \r\n$ \r\n \r\n14400.00 $ \r\n \r\n0.00 \r\n \r\n2,815.02 $ 47,930.28 \r\n \r\n1,267,250.16 $ -3,236,826.56 \r\n \r\n5,469,229.17 \r\n \r\n8,709,905.76 \r\n \r\n3,010.01 -340.10 \r\n \r\n-4,836.98 986.95 \r\n \r\n$ 1,846,343.84 $ \r\n \r\n50,745.30 $ 6,739,149.24 $ 5,469,229.17 \r\n \r\n-5- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nBUDGET AND ACTUAL /NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \r\nYEAR ENDED JUNE 30 2001 \r\n \r\nEXHIBIT \"C\" \r\n \r\nGENERAL FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS) \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\n \r\n$ 6,038,951.29 $ 6,394,536.45 \r\n \r\n75,000.00 \r\n \r\n3,517.87 \r\n \r\n7,243,880.00 \r\n \r\n8,492,840.41 \r\n \r\n135,00000 \r\n \r\n308,349.40 \r\n \r\n$ 13,492,831.29 $ 15,199,244 13 \r\n \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General AdminIstrat1on School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \r\nCapital Outlay Debt Service \r\nTotal Expenditures \r\n \r\n$ 9,415, 137.00 $ 9,508,324.07 \r\n \r\n415,626.00 141,022.00 347,289.00 303,326.00 861,447.00 154,362.00 1,039,252.00 702,506.00 \r\n13,000.00 58,700.00 \r\n900.00 300,000.00 \r\n49,521.00 \r\n \r\n464,253.45 168,074.94 353,136.98 231,049.36 907,725.64 181,213.20 963,284.96 725,054.51 \r\n10,098.90 56,613.46 \r\n1,064.67 275,445.35 \r\n48434 95 \r\n \r\n$ 13,802,088 00 $ 13,893,TT4 44 \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\n$ -309,256.71 $ 1,305,469.69 \r\n \r\nOTHER FINANCING SOURCES /USES} \r\n \r\nOther Sources Other Uses \r\n \r\n$ \r\n \r\n5,000.00 $ \r\n \r\n14,400.00 \r\n \r\n-TT4129746 \r\n \r\nTotal Other Finanang Sources (Uses) \r\n \r\n$ \r\n \r\n5,000.00 $ -759,897.46 \r\n \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ \r\n \r\n-304,256 71 $ \r\n \r\n545,572.23 \r\n \r\nFUND BALANCE JULY 1. 2000 \r\n \r\n3,998,386.76 \r\n \r\n4,278,279.22 \r\n \r\nAdjustments Food Inventory - Net Change in Penod \r\nDonated Commod1t1es Purchased Food \r\n \r\nFUND BALAN!:.1;;; ,!UNE aQ. 2001 \r\n \r\n$ 316941130 05 $ 418231851 45 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS) \r\n \r\n$ 257,982.00 $ 284,122.00 \r\n \r\n981,933 00 \r\n \r\n994,190.70 \r\n \r\n370,275.00 \r\n \r\n376,32567 \r\n \r\n$ 1,610,190 00 $ 1,654,638.37 \r\n \r\n$ 694,540.00 $ 689,668.78 \r\n \r\n12,000.00 TT,128.00 \r\n950.00 33,399.00 \r\n \r\n16,079.32 83,223 70 \r\n950.00 23,303.72 \r\n \r\n30,700.00 1,618.00 \r\n843,287.68 \r\n \r\n34,053.79 842,442.15 \r\n \r\n6,833.75 \r\n \r\n$ 1,700,456 43 $ 1,689,721.46 \r\n \r\n$ -90,266 43 $ -35,083.09 \r\n \r\n$ \r\n \r\n4,864.97 \r\n \r\n$ \r\n \r\n486497 \r\n \r\n$ -90,266.43 $ -30,218.12 \r\n \r\n56,487.65 \r\n \r\n45,756 86 \r\n \r\n2,745.86 \r\n \r\n3,010.01 -340.10 \r\n \r\n$ -311032 92 $ \r\n \r\n181208.65 \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement. -6- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2001 \r\n \r\n. \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe Rabun County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity 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 1s a primary government and consists of all the organizations that compose its legal entity. \r\nFUND ACCOUNTING \r\nThe School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \r\nGeneral Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a Gen~ral Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. \r\nAlthough \"school activity accounts\" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. \r\nThe general-purpose financial statements account for allState, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include: \r\nGENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \r\n \r\n-7- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \r\n \r\nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \r\n \r\nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. \r\n \r\nFIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: \r\n \r\nAGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other \r\n \r\nfunds, governments, or individuals. \r\n \r\n \r\n \r\nACCOUNT GROUP \r\n \r\nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. \r\n \r\nBASIS OF ACCOUNTING \r\n \r\nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \r\n \r\nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \r\n \r\nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \r\n \r\nGovernmental funds are accounted for using the modified accrual basis of accounting under which: \r\n \r\n-8- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nExpenditures are generally recognized when the related fund liability is incurred. \r\nA substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Employment contracts for these employment periods typically 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 \r\nshare of these contracts are disbursed to the School District in the same twelve month period. In \r\naccordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. \r\nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \r\nBUDGET \r\nThe Rabun County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \r\nThe budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\n-9- \r\n \r\n RABUN COUNTY BOA.RD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nCASH AND CASH EQUIVALENTS \r\n \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Rabun County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 3, 2000 (levy date). Taxes were due on December 20, 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 Rabun County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $5,981,812.67 and for school bonds amounted to $18.12. \r\n \r\nThe tax millage rate levied for the 2000 tax year (calendar year) for the Rabun County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n6.828 mills \r\n \r\nSALES TAXES \r\n \r\nLocal Option Sales Tax revenue during the fiscal year amounted to $2,458,420.99 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation ofthe School District. \r\n \r\nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $2,466,159.23 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $769,399.32 has been collected or on December 31, 2002 , whichever occurs first. \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amo~ts do not constitute \"available spendable resources\" even though they are a component of net current assets. \r\n \r\nGENERAL OBLIGATION BONDS \r\n \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. \r\n \r\nINTERFUND TRANSACTIONS \r\n \r\nThe School District has the following types of interfund transactions: \r\n \r\nReimbursements ofexpenditures initially made from a fund that are properly applicable to another \r\n \r\nfund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the \r\n \r\nfund that is reimbursed. \r\n \r\n \r\n \r\nOperating transfers are recorded for all interfund transactions other than reimbursements. \r\n \r\nMEMORANDUM ONLY -TOTAL COLUMNS \r\n \r\nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications. \r\n \r\n- 11 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 2: DEPOSITS \r\n \r\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 S~ction 45:.s-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \r\n \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\n(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n \r\n(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\nCATEGORIZATION OF DEPOSITS \r\n \r\n. \r\n \r\nAt June 30, 2001, the bank balances were $4,727,943.82. The amounts ofthe total bank balances are \r\n \r\nclassified into three categories of credit risk: \r\n \r\n- 12 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nGENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS - OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET \r\n \r\nALL FUND TYPES AND ACCOUNT GROUP \r\n \r\n2 \r\n \r\nB \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nALL GOVERNMENTAL FUND TYPES \r\n \r\n4 \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\n6 \r\n \r\nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\n7 \r\n \r\nADDmONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n18 \r\n \r\nF \r\n \r\nCOMB~G STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n20 \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n22 \r\n \r\nH \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n24 \r\n \r\nDEBT SERVICE FUND \r\n \r\nI \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n26 \r\n \r\nJ \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n27 \r\n \r\nK \r\n \r\nFIDUCIARY FUND TYPE \r\n \r\nCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\n \r\nAGENCY FUNDS \r\n \r\n28 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 2: DEPOSITS \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust :\" partment or agent but not in the School District's name.) \r\n \r\nThe School Distric; . . ~posits are classified by risk category at June 30, 2001, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 445,959.62 \r\n \r\n2 \r\n \r\n4,281,984.20 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$4,727,943.82 \r\n \r\nNote 3: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \r\n \r\nNote 4: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\n- 13 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2001 \r\n \r\nNote 4: RISK MANAGEMENT \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ _100,000.00 $ 50,000.00 \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Rabun County Board of Education has entered into various lease agreement~ as lessee for computer equipment, copiers and energy savings equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 1998 \r\n \r\n4.00%-4.10% $ 2,950.000.00 \r\n \r\nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: \r\n \r\n- 14 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 200 I \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2000 . \r\n \r\n$ 314,713.78 $4,300,000.00 $4,614,713.78 \r\n \r\nRetroactive Restatement of Prior Year Balances \r\n \r\n6,950.00 \r\n \r\n0.00 \r\n \r\n6,950.00 \r\n \r\nBalance July 1, 2000 Restated \r\n \r\n$ 321,663.78 $4,300,000.00 $ 4,621,663.78 \r\n \r\nAdditions Capital Leases \r\n \r\n14,400.00 \r\n \r\n14,400.00 \r\n \r\nDeductions Debt Retired \r\n \r\n. 33,952.86 1,350,000.00 1,383,952.86 \r\n \r\nBalance June 30, 2001 \r\n \r\n$ 302,110.92 $2,950,000.00 $ 3.252.110.92 \r\n \r\nAt June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal Debt \r\n \r\n2002 2003 2004 2005 2006 2007 -2011 \r\n \r\n$ 54,845.40 $ 1,570,225.00 $ 1,625,070.40 \r\n \r\n54,845.40 1,561,500.00 1,616,345.40 \r\n \r\n49,793.40 \r\n \r\n49,793.40 \r\n \r\n48,403.40 \r\n \r\n48,403.40 \r\n \r\n46,985.40 \r\n \r\n46,985.40 \r\n \r\n105,572.60 \r\n \r\n105,572.60 \r\n \r\nTotal Principal and Interest $ 360,445.60 $ 3.131.725.00 $3,492,170.60 \r\n \r\nDeduct: Imputed Interest \r\n \r\n58,334.68 \r\n \r\nNet Present Value ofFuture Minimum Lease Payments $ 302.llQ.92 \r\n \r\n- 15 - \r\n \r\n RABUN COUNfY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2001 \r\n \r\nNote 6: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and expenditures in the amount of $245,737.60 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $188,483.00 \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $21,324.60 \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$35,930.00 \r\nNote 7: CONTINGENT LIABILITIES \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nNote 8: SUBSEQUENT EVENTS \r\nOn September 18, 2001, the voters of Rabun County voted in favor of a Special Purpose Local Option Sales Tax Referendum for educational purposes. The imposition ofthe tax approved by the voters, as stated on the Official Ballot of Rabun County, is as follows: \r\n\"Shall a one percent sales and use tax be imposed in Rabun County for a period oftime not to exceed 20 calendar quarters, commencing upon the expiration ofthe special one percent sales and use tax currently being levied in Rabun County, and for the raising of not more than $12,000,000.00 for the purpose ofproviding funds to pay or to be applied toward the cost of the acquisition, construction and equipping of a new elementary school, including necessary furnishings and equipment; the acquisition, construction and equipping of additional instructional, support and physical education facilities at the existing schools; renovations and improvements at existing schools, including the acquisition of necessary furnishings and equipment; and system-wide technology improvements, the maximum cost of such projects not to exceed $12,000,000.00. \r\n \r\n- 16 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 8: SUBSEQUENT EVENTS \r\n \r\nIf imposition ofthe tax is approved by the voters, such vote shall also constitute approval of \r\n \r\nthe issuance of general obligation debt of the }--.abun County School District in the principal \r\n \r\namount of$5,000,000.00 for the above purposes.\" \r\n \r\n \r\n \r\nNote 9: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2001 2000 1999 \r\n \r\n100% 100% 100% \r\n \r\n$ 946,909.29 $ 873,818.05 $ 854,137.78 \r\n \r\n- 17 - \r\n \r\n ' RABUN COUNTYBOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL ~EVENOE FUND JUNE 30, 2001 \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable Inventories \r\nFood Donated Commodities Purchased Food \r\nTotal Assets \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n61,973.41 $ \r\n \r\n0.00  \r\n \r\n12,913.46 51295.19 \r\n \r\n$ \r\n \r\n801182.06 $====0==00= \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABIL,.ITIES \r\nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \r\nTotal Fund Equity \r\nTotal Liabilities and,Fund Equity \r\n \r\n$ \r\n \r\n14,078.73 \r\n \r\n47,894.68 \r\n \r\n$ \r\n \r\n61.973.41 \r\n \r\n$ \r\n \r\n12,913.46 \r\n \r\n5,295.19 \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n181208.65 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n801182.06 $=====0=00= \r\n \r\nSee notes to the general-purpose financial statements. - 18 - \r\n \r\n EXHIBIT\"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\n61,973.41 $ \r\n \r\n91,375.53 \r\n \r\n$ \r\n \r\n134,264.20 $ \r\n \r\n1,085.11 \r\n \r\n135,349.31 \r\n \r\n175,351.79 \r\n \r\n12,913.46 5,295.19 \r\n \r\n9,903.45 5,635.29 \r\n \r\n$ \r\n \r\n134,264.20 $ \r\n \r\n1 085.11 $ \r\n \r\n215,531.37 $ ==2=8=2=,2=66.,,..=06= \r\n \r\n$ \r\n \r\n75,242.14 $ \r\n \r\n13,980.47 \r\n \r\n43,999.07 \r\n \r\n1,042.52 \r\n \r\n$ \r\n \r\n134,264.20 $ \r\n \r\n1,085.11 $ 1 085.11 $ \r\n \r\n76,327.25 $ 28,059.20 91,893.75 \r\n1,042.52 \r\n197,322.72 $ \r\n \r\n128,371.96 26,735.08 81,402.16 \r\n236,509.20 \r\n \r\n$ \r\n \r\n12,913.46 $ \r\n \r\n5,295.19 \r\n \r\n9,903.45 5,635.29 \r\n \r\n$ \r\n \r\n0.00 $ _ _ _ _o___._o_o__ \r\n \r\n0.00 \r\n \r\n30,218.12 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n18,208.65 $ ____4_5__\"\"7\"'--5_6_.8....6.__ \r\n \r\n$ \r\n \r\n134,264.20 $ \r\n \r\n1 085.11 $ \r\n \r\n215,531.37 $=====2=8=2=,2=66==06= \r\n \r\n- 19 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Central Support Services Other Support Services Food Services Operation \r\nTo~I Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES} \r\nOperating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\nFUND BALANCE JUNE 30 \r\nSee notes to the general-purpose financial statements. \r\n-20- \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n60,550.00 $ \r\n \r\n178,686.00 \r\n \r\n416,634.43 \r\n \r\n335,039.60 \r\n \r\n$ \r\n \r\n812,224.03 $ \r\n \r\n178,686.00 \r\n \r\n$ \r\n \r\n178,686.00 \r\n \r\n$ \r\n \r\n842,442.15 \r\n \r\n$ \r\n \r\n842,442.15 $ \r\n \r\n178,686.00 \r\n \r\n$ \r\n \r\n-30,218.12 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n-30,218.12 $ \r\n \r\n0.00 \r\n \r\n45,756.86 \r\n \r\n0.00 \r\n \r\n3,010.01 -340.10 \r\n \r\n$ \r\n \r\n18,208.65 $====0==00= \r\n \r\n EXHIBIT\"F\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 301 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\n$ \r\n \r\n577,556.27 \r\n \r\n$ \r\n \r\n577,556.27 $ \r\n \r\n44,886.00 $ 41,286.07 861172.07 $ \r\n \r\n284,122.00 $ 994,190.70 376,325.67 \r\n1,6541638.37 $ \r\n \r\n166,565.88 988,430.78 341,654.88 \r\n1,4961651.54 \r\n \r\n$ \r\n \r\n426,554.80 $ \r\n \r\n16,079.32 74,773.05 \r\n950.00 23,303.72 \r\n \r\n34,053.79 \r\n \r\n$ \r\n \r\n575,714.68 $ \r\n \r\n$ \r\n \r\n1 841.59 $ \r\n \r\n84,427.98 $ 8,450.65 \r\n92,878.63 $ -6,706.56 $ \r\n \r\n689,668.78 $ \r\n16,079.32 83,223.70 \r\n950.00 23,303.72 \r\n34,053.79 \r\n842,442.15 \r\n1,689,721.46 $ \r\n-35,083.09 $ \r\n \r\n573,559.42 \r\n7,758.06 76,853.35 2,500.00 35,272.87 \r\n550.00 20,832.00 \r\n957.13 824,122.16 \r\n1,542,404.99 \r\n-45,753.45 \r\n \r\n$ \r\n \r\n$ \r\n \r\n-1,841.59 \r\n \r\n$0 \r\n \r\n-1,841.59 $ \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n6,706.56 $ 6,706.56 $ \r\n \r\n6,706.56 $ -1 841.59 \r\n4,864.97 $ \r\n \r\n1,841.59 1,841.59 \r\n \r\n0.00 $ 0.00 \r\n \r\n-30,218.12 $ 45,756.86 \r\n \r\n-43,911.86 93,518.75 \r\n \r\n3,010.01 -340.10 \r\n \r\n-4,836.98 986.95 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n181208.65 $ ===4=5=17=56=.=86= \r\n \r\n- 21 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY LIABILITIES \r\nContracts Payable Retainages Payable \r\nTotal Liabilities FUND EQUITY \r\nFund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity \r\nTotal Liabilities and Fund Equity \r\n \r\nREGULAR \r\n \r\nBOND PROCEEDS \r\n \r\n$ \r\n \r\n358,501.90 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n358,501.90 $ =======0-=00= \r\n \r\n$ \r\n \r\n358,501.90 $ _ _ _ _:::,:0.::.;00=-. \r\n \r\n$ \r\n \r\n358,501.90 $ _ _ _ _0:::,:.::.;00=-. \r\n \r\n$ \r\n \r\n358,501.90 $=====0=00== \r\n \r\nSee notes to the general-purpose financial statements. -22- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nADDIDONAL FINANCIAL INFORMATION \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\n4 \r\n \r\nBY PROGRAM \r\n \r\n5 \r\n \r\nBY SITE \r\n \r\nPage \r\n31 33 35 36 37 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n EXHIBIT\"G\" \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT \r\nCOMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nJUNE 301 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\n219,381.98 $ 1,037,286.61 $ 1,615,170.49 $ 1,028,957.69 \r\n \r\n428,655.33 \r\n \r\n428,655.33 \r\n \r\n425,252.38 \r\n \r\n$ \r\n \r\n219,381.98 $ 1,465,941.94 $ 2,043,825.82 $ 1,454,210.07 \r\n \r\n$ \r\n \r\n197,481.98 \r\n \r\n$ _ _1~9...;..7i..;.,4..;;..81.;.;..9;;..;;8'-- \r\n \r\n$ \r\n \r\n197,481.98 $ \r\n \r\n304,307.10 \r\n \r\n52,640.16 \r\n \r\n$ \r\n \r\n197,481.98 $ _ _3_5_6_,94_7_.2_6_ \r\n \r\n$ 1,465,941.94 $ 1,465,941.94 $ \r\n \r\n716,860.91 \r\n \r\n$ \r\n \r\n21,900.00 \r\n \r\n21,900.00 \r\n \r\n21,900.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n358,501.90 \r\n \r\n358,501.90 \r\n \r\n$ \r\n \r\n21,900.00 $ 1,465,941.94 $ 1,846,343.84 $ 1,097,262.81 \r\n \r\n$ \r\n \r\n219,381.98 $ 1,465,941.94 $ 2,043,825.82 $ 1,454,210.07 \r\n \r\n- 23- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001 \r\n \r\nREVENUES Taxes Other Funds Total Revenues \r\nEXPENDITURES Capital Outlay Building and Building Improvements \r\nExcess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES} \r\nOperating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources \r\nover (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 \r\nFUND BALANCE JUNE 30 \r\n \r\nREGULAR \r\n \r\nBOND PROCEEDS \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n358.501.90 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n358.501.90 $ ====0==00= \r\n \r\nSee notes to the general-purpose financial statements. - 24- \r\n \r\n EXHIBIT \"H\" \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30 1 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ _ _1.;.;;3;.,;;;9.L,;,4=0=3.'-'--16~ $ _ _1.;.;3.;;.9i..;.,4.;.;03;.;.1.;.;;.. \r\n \r\n941,934.23 $ 941,934.23 $ \r\n \r\n941,934.23 $ 139,403.16 \r\n1,081,337.39 $ \r\n \r\n2,190,374.05 102,309.17 \r\n2,292,683.22 \r\n \r\n$ 1,101,688.85 $ _ _ _ _0==00~ $ 1,101,688.85 $ 6,349,260.17 \r\n \r\n$ \r\n \r\n-962,285.69 $ \r\n \r\n941,934.23 $ \r\n \r\n-20,351.46 $ -4,056,576.95 \r\n \r\n$ \r\n \r\n962,285.69 \r\n \r\n$ \r\n \r\n962,285.69 $ 8,615,498.12 \r\n \r\n$ \r\n \r\n-192,853.20 \r\n \r\n-192,853.20 \r\n \r\n-5,771,652.21 \r\n \r\n$ \r\n \r\n962,285.69 $ \r\n \r\n-192,853.20 $ \r\n \r\n769,432.49 $ 2,843,845.91 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n749,081.03 $ \r\n \r\n749,081.03 $ -1,212,731.04 \r\n \r\n21,900.00 \r\n \r\n716,860.91 \r\n \r\n1,097,262.81 \r\n \r\n2,309,993.85 \r\n \r\n$ \r\n \r\n21,900.00 $ 1,465,941.94 $ 1,846,343.84 $ 1,097,262.81 \r\n \r\n- 25- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001 \r\n \r\nEXHIBIT\"!\" \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable \r\n \r\nPROPERTY TAXES FOR BOND DEBT \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ 50,740.96 $ \r\n \r\n0.00 $ \r\n \r\n50,740.96 $ \r\n \r\n47,925.59 \r\n \r\n4.34 \r\n \r\n4.34 \r\n \r\n4.69 \r\n \r\nTotal Assets \r\n \r\n$ 50,745.30 $ \r\n \r\n0.00 $ \r\n \r\n50,745.30 $ ===4==7'=93=0=.2=8= \r\n \r\nFUND EQUITY \r\nFund Balances Reserved For Debt Service Unreserved Undesignated \r\n \r\n$ 50,745.30 \r\n \r\n$ \r\n \r\n0.00 $ ______0._0_0_ \r\n \r\n50,745.30 $ 0.00 \r\n \r\n47,930.28 0.00 \r\n \r\nTotal Fund Equity $ 50,745.30 $ \r\n \r\n0.00 $ \r\n \r\n50,745.30 $ ===4=7'=93..,0....2...8.= \r\n \r\nSee notes to the general purpose financial statements. -26- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nDEBT SERVICE FUND YEAR ENDED JUNE 30, 2001 \r\n \r\nEXHIBIT \"J\" \r\n \r\nREVENUES \r\nTaxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nDebt Service Principal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nOperating Transfers Out \r\nExcess of Revenues over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\n \r\nPROPERTY TAXES FOR BOND DEBT \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 \r\n \r\n$ \r\n \r\n18.12 $ 1,524,225.00 $ 1,524,243.12 $ \r\n \r\n2,796.90 \r\n \r\n2,796.90 \r\n \r\n$ 2,815.02 $ 1,524,225.00 $ 1,527,040.02 $ \r\n \r\n45.57 2 77047 \r\n2,816.04 \r\n \r\n$ 1,350,000.00 $ 1,350,000.00 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n174,225.00 \r\n \r\n174,225.00 $ 174,225 00 \r\n \r\n$ \r\n \r\n0.00 $ 1,524,225.00 $ 1,524,225 00 $ 174,225.00 \r\n \r\n$ 2,815.02 $ \r\n \r\n0.00 $ \r\n \r\n2,815.02 $ -171,408.96 \r\n \r\n$ 2,815.02 $ 47,930.28 \r\n \r\n-2,266,237.95 \r\n \r\n0.00 $ 0.00 \r\n \r\n2,815.02 $ -2,437,646.91 \r\n \r\n47,930.28 \r\n \r\n2,485,577.19 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ 50,745.30 $ \r\n \r\n0.00 $ \r\n \r\n50,745.30 $===a4=7=,9=30=2=8= \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n-27- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\nFIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2001 \r\n \r\nEXHIBIT \"K\" \r\n \r\nBREWER SCHOLARSHIP \r\nASSETS Cash and Cash Equivalents \r\n \r\nBALANCE JULY 11 2000 \r\n \r\nADDITIONS \r\n \r\nDEDUCTIONS \r\n \r\nBALANCE JUNE 30, 2001 \r\n \r\n$ 29,059.89 $ 1,548.86 $ \r\n \r\n30,900.00 $ =======-2..,9..,1.=25.,,, \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ 29,059.89 $ 1,548.86 $ \r\n \r\n30,900.00 $===-2=9=1=.25== \r\n \r\nCARY SUTTLE SCHOLARSHIP \r\nASSETS Cash and Cash Equivalents \r\n \r\n$ \r\n \r\n0.00 $ 3,000.00 $ \r\n \r\n31000.00 $====o=.o=o= \r\n \r\nLIABILITIES Funds Held for Others \r\nHARRIS SCHOLARSHIP ASSETS \r\nCash and Cash Equivalents \r\n \r\n$ \r\n \r\n0.00 $ 3,000.00 $ \r\n \r\n31000.00 $====0=.0..0... \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n157.51 $ \r\n \r\n250 00 $===-=92=.4=9= \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n157.51 $ \r\n \r\n250.00 $======-9=2-=49== \r\n \r\nJ. 0. KING SCHOLARSHIP \r\nASSETS Cash and Cash Equivalents \r\n \r\n$ \r\n \r\n77.74 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $====7,..7..,74= \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ \r\n \r\n77.74 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ ====7=7=-.7=4 \r\n \r\nLAKE RABUN ASSOCIATION/CLAYTON TRIBUNE SCHOLARSHIP FOUNDATION FUND \r\nASSETS Cash and Cash Equivalents \r\n \r\n$ -1,125.66 $ 54,000.00 $ \r\n \r\n43,000.00 $===9=8=7=4.=34= \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ -1,125.66 $ 54,000.00 $ \r\n \r\n43,000.00 $ ===9=,8=7=4..,34= \r\n \r\n-28- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\nFIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2001 \r\n \r\nEXHIBIT\"K\" \r\n \r\nMUSIC/ART SCHOLARSHIP FOUNDATION FUND \r\nASSETS Cash and Cash Equivalents \r\n \r\nBALANCE JULY 11 2000 \r\n \r\nADDITIONS \r\n \r\nDEDUCTIONS \r\n \r\nBALANCE JUNE 30, 2001 \r\n \r\n$ \r\n \r\n3,349.90 $ 2,000.00 $ \r\n \r\n4,500.00 $ =====84=9=.9=0= \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ \r\n \r\n3,349.90 $ 2,000.00 $ \r\n \r\n4,500.00 $ =====84=9~.9=0= \r\n \r\nPANELL SCHOLARSHIP \r\nASSETS Cash and Cash Equivalents \r\n \r\n$ 24,035.13 $ \r\n \r\n000 $ \r\n \r\n3,535.00 $=====2=0=,5=00===13== \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ 24,035.13 $ \r\n \r\n000 $ \r\n \r\n3,535.00 $ =====2=0=,5,..00;.;1..3= \r\n \r\nPARKIN/KRIVSKY SCHOLARSHIP \r\nASSETS Cash and Cash Equivalents \r\n \r\n$ \r\n \r\n2,000.00 $ 1,000.00 $ \r\n \r\n2,000.00 $===1=,0=00...0..0.... \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ \r\n \r\n2,000.00 $ \r\n \r\n1,000 00 $ \r\n \r\n2,000.00 $ ===1=,0=0~0-=00== \r\n \r\nRABUN COUNTY SCHOLARSHIP FOUNDATION \r\nASSETS Cash and Cash Equivalents \r\n \r\n$ 23,666.09 $ 22,247.51 $ \r\n \r\n30,750.00 $ ===1=5=1,=63~.6=0= \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ 23,666 09 $ 22,247.51 $ \r\n \r\n30,750.00 $==1=5=,1=63;;..6=0== \r\n \r\nWILDER SCHOLARSHIP FOUNDATION \r\nASSETS Cash and Cash Equivalents \r\n \r\n$ \r\n \r\n1,300 00 $ 1,300 00 $ \r\n \r\n1,500.00 $===1=,1=00===00... \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ \r\n \r\n1,300.00 $ 1,300.00 $ \r\n \r\ns 1,500.00 ===1=1,=00=.o=o= \r\n \r\n- 29- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\nFIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 2001 \r\n \r\nEXHIBIT\"K\" \r\n \r\nWILLIAM L. BROOKSHIRE SCHOLARSHIP ASSETS \r\nCash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\nTOTALS -AGENCY FUNDS ASSETS \r\nCash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nBALANCE JULY 11 2000 \r\n \r\nADDITIONS \r\n \r\nDEDUCTIONS \r\n \r\nBALANCE JUNE 30, 2001 \r\n \r\n$ \r\n \r\n1,667.23 $ \r\n \r\n535.30 $ \r\n \r\n1,000.00 $ ===1=2=02.,,5=3= \r\n \r\n$ \r\n \r\n1,667.23 $ \r\n \r\n535.30 $ \r\n \r\n1,000.00 $===1=\",2=02=.5=3= \r\n \r\n$ 84,030.32 $ 85,789.18 $ 120,435.00 $=====49..,,3=84==50= $ 84,030.32 $ 85,789.18 $ 120,435.00 $==49.,.,3..,84==50= \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 30- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2001 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nAgnculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program \r\n \r\n. 10.553 . 10.555 \r\n \r\nNIA $ 80,226.27 \r\n \r\nNIA \r\n \r\n288,021.62 $ \r\n \r\n(2) 794,055.61 (3) \r\n \r\nTotal Child Nutrition Cluster \r\n \r\n$ 368,247.89 $ \r\n \r\n794,055 61 \r\n \r\nOther Programs \r\n \r\nPass-Through From Georgia Department of Education \r\n \r\nFood and Nutrition Program \r\n \r\nFood Services \r\n \r\nFood Distnbution Program (1) \r\n \r\n10.550 \r\n \r\nNIA \r\n \r\nPass-Through From Office ofTreasury and Fiscal Services \r\n \r\nNational Forest Reserve Funds \r\n \r\n10.665 \r\n \r\nNIA \r\n \r\n48,386 54 3,517.87 \r\n \r\n48,386.54 (4) \r\n \r\nTotal U. S. Department of Agriculture \r\n \r\n$ 420,152.30 $ \r\n \r\n842,442.15 \r\n \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Flow Through Preschool \r\n \r\n84.173 84.027 84.173 \r\n \r\nNIA \r\n \r\n$ \r\n \r\n7,258.54 $ \r\n \r\nNIA \r\n \r\n167,690.52 \r\n \r\nNIA \r\n \r\n22,607.33 \r\n \r\n7,258.54 166,735.23 22,607.33 \r\n \r\nTotal Special Education Cluster \r\n \r\n$ 197,556.39 $ \r\n \r\n196,601.10 \r\n \r\nOther Programs \r\n \r\nPass-Through From Georgia Department of Education \r\n \r\nElementary and Secondary Education Act \r\n \r\nTitle I \r\n \r\nGrants to Local Educational Agenaes \r\n \r\n84.010 \r\n \r\nNIA \r\n \r\nTitle II \r\n \r\nEisenhower Professional Development \r\n \r\n84.281 \r\n \r\nNIA \r\n \r\nTitle VI \r\n \r\nInnovative Education Program Strategies \r\n \r\n84.298 \r\n \r\nNIA \r\n \r\nClass Size Reducllon \r\n \r\n84.340 \r\n \r\nNIA \r\n \r\nVocational Education - Basic Grants to States \r\n \r\nHigh School Program \r\n \r\nBasic Grant \r\n \r\n84.048 \r\n \r\nNIA \r\n \r\n288,734.88 16,000.00 11,872.00 41,797.00 \r\n21,596.00 \r\n \r\n287,848.58 16,000.00 11,872.00 41,797 00 \r\n21,596.00 \r\n \r\nTotal U. S. Department of Education \r\n \r\n$ 5TT,556.27 $ \r\n \r\n575,714.68 \r\n \r\nTotal Federal Financial Assistance \r\nNIA = Not Available \r\n \r\n$ 997,708.57 $ 1,418,156.83 \r\n \r\n- 31 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXF?ENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"1\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. \r\n(2) Expenditures for the School Breakfast Program W!ilre not maintained separately and are Included rn the 2001 Nallonal School Lunch Program. \r\n(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. \r\n(4) Funds earned on this program do not require reporting of expenditures. \r\nMajor Programs are Identified by an asterisk (*) In front of the CFDA number. \r\nThe School District did not provide Federal Assistance to any Subreclpient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Rabun County Board of Education and 1s presented on the modified accrual basis of accounting which is the basis of accounting used in the presentallon of the general-purpose financial statements. \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n- 32- \r\n \r\n SECTION I FINANCIAL \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle 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) Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Innovative Programs Mentoring Program Mentor Teachers PayforPerlorrnance Preschool Handicapped Program Remedial Summer School Special Education Low Incidence Grant Teachers' Retirement Lottery Programs Computers in the Classroom vocational Technology \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n349,485.00 \r\n \r\n77,407.00 \r\n \r\n1,008,746.00 \r\n \r\n93,846.00 \r\n \r\n511,454.00 \r\n \r\n243,569.00 \r\n \r\n487,495.00 \r\n \r\n711,536.00 \r\n \r\n221,746.00 \r\n \r\n4,499.00 201,607.00 371,415.00 \r\n31,637.00 9,710.00 \r\n46,081.00 31,605.00 62,403.00 68,710.00 144,557.00 36,785.00 999,935.00 \r\n \r\n$ 349,485.00 \r\n77,407.00 1,008,746.00 \r\n93,846.00 511,454.00 243,569.00 487,495.00 711,536.00 221,746.00 \r\n4,499.00 201,607.00 371,415.00 \r\n31,637.00 9,710.00 \r\n46,081.00 31,605.00 62,403.00 68,710.00 144,557.00 36,785.00 999,935.00 \r\n \r\n362,894.00 104,798.00 \r\n59,711.00 8,901.00 11,453.00 \r\n-1,083,033.00 857,237.83 \r\n$ \r\n16,993.73 \r\n \r\n60,550.00 \r\n \r\n1,925.47 188,483.00 \r\n5,000.00 6,500.00 2,934.00 4,985.00 31,466.00 2,427.82 14,819.00 21,324.60 \r\n \r\n43,686.00 135,000.00 \r\n \r\n362,894.00 104,798.00 \r\n59,711.00 8,901.00 11,453.00 \r\n-1,083,033.00 857,237.83 60,550.00 16,993.73 \r\n1,925.47 188,483.00 \r\n5,000.00 6,500.00 2,934.00 4,985.00 31,466.00 2,427.82 14,819.00 21,324.60 \r\n43,686.00 135,000.00 \r\n \r\n35,930.00 \r\n \r\n35,930.00 \r\n \r\n- 33- \r\n \r\n RABUN COUNTY,BOARD-OF EDUCATION SCHEDUt,E,OF STATE REVENUE YEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\nCONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n25,558.00 \r\n \r\n$ \r\n \r\n25,558.00 \r\n \r\n$ _ _44~1_sa_s_.o_o_ \r\n \r\n44,886.00 \r\n \r\n$ 6,394,536.45 $ 284,122.00 $ 6,678,658.45 \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n-34- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30 2001 \r\n \r\nSCHEDULE \"3\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST(1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nAcquis1bon, construcbon and equipping add1bonal \r\n \r\nclassrooms, instrucbonal and support space at the \r\n \r\nmIddle/h1gh school, renovabng, equIppIng and \r\n \r\nmodifying exIsbng classrooms, instrucbonal and \r\n \r\nsupport space at said school, providing for paymen \r\n \r\nor reimbursement of the costs of reroubng and \r\n \r\nstorm drainage improvements at said school, \r\n \r\nfuncbonal add1bonal capital pro1ects including \r\n \r\nacquIsIbon, construcbon and equipping addIbonal \r\n \r\nclassrooms, instrucbonal and support space and \r\n \r\nremodeling and renovating existing classroom, \r\n \r\ninstrucbonal and support space at ex1sbng school, \r\n \r\nfacihbes and paying expenses incident thereto \r\n \r\n$ aI000I000 oo $ 1316001000 00 $ \r\n \r\n1,2751913 85 $ 111909,533 77 \r\n \r\nPROJECT STATUS \r\nOngoing \r\n \r\n(1) The School o,stncrs onginal cost esbmate as specified in the resolubon calling for the ,mposrtJon of the Local Opbon Sales Tax \r\n(2) The School Distncrs current esbmate of total cost for the project Includes all cost from project incepbon to complebon \r\n(3) The voters of Rabun County approved the Imposition of a 1% sales tax to fund the above pro1ect and rebre associated debt Amounts expended for the proJect may include sales tax proceeds, state, local property taxes and/or other funds over the life of the proiect. \r\n \r\nSee notes to the general-purpose finanaal statements \r\n \r\n 35. \r\n \r\n RABUN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM CQBEl \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2001 \r\n \r\nSCHEDULE \"4\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (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 Enghsh Speakers of Other Languages (ESOL) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n564,901.00 $ 554,610.01 $ 12,539.91 $ 567,149.92 \r\n \r\n125,119.00 \r\n \r\n126,952.12 \r\n \r\n1,709.98 \r\n \r\n128,662.10 \r\n \r\n1,630,521.00 1,751,899.28 \r\n \r\n117,735.54 \r\n \r\n1,869,634.82 \r\n \r\n151,691.00 \r\n \r\n163,980.52 \r\n \r\n2,274.11 \r\n \r\n166,254.63 \r\n \r\n826,706.00 \r\n \r\n906,426.n \r\n \r\n45,115.55 \r\n \r\n951,542.32 \r\n \r\n393,701.00 \r\n \r\n411,464.33 \r\n \r\n16,183.28 \r\n \r\n427,647.61 \r\n \r\n787,979.00 \r\n \r\n957,331.22 \r\n \r\n114,052.11 \r\n \r\n1,071,383.33 \r\n \r\n1,150,116.00 1,495,131.41 \r\n \r\n161,392.84 \r\n \r\n1,656,524.25 \r\n \r\n358,427.00 \r\n \r\n476,480.87 \r\n \r\n91,539.26 \r\n \r\n568,020.13 \r\n \r\n1,000,326.00 \r\n \r\n37,414.90 \r\n \r\n37,414.90 \r\n \r\n168,700.58 \r\n \r\n4,044.28 \r\n \r\n172,744 86 \r\n \r\n741,099 11 \r\n \r\n48,299.65 \r\n \r\n789,398.76 \r\n \r\n82,091.07 \r\n \r\n3,263.37 \r\n \r\n85,354.44 \r\n \r\n27,914.61 \r\n \r\n170.60 \r\n \r\n28,085.21 \r\n \r\n74,485.00 \r\n \r\n112,210.03 \r\n \r\n6,194.28 \r\n \r\n118,404.31 \r\n \r\n51,086.00 \r\n \r\n51,504.48 \r\n \r\n1,073.00 \r\n \r\n52,577.48 \r\n \r\n100,867.00 \r\n \r\n131,577.10 \r\n \r\n2,803.36 \r\n \r\n134,380.46 \r\n \r\n111,061 00 \r\n \r\n110,080.26 \r\n \r\n2,539.47 \r\n \r\n112,619.73 \r\n \r\n$ \r\n \r\n7,326,986.00 $ 8,306,868.67 $ 630,930.59 $ 8,937,799.26 \r\n \r\n233,659.00 59457 00 \r\n \r\n304,616.93 36,427.44 \r\n \r\n41,345.67 29,685.64 \r\n \r\n345,962.60 66,113.08 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n7,620,102.00 $ 8,647,913.04 $ 701,961 90 $ 9,349,874.94 \r\n \r\n(1) Compnsed of State Funds plus Local Five Mill Share. \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 36- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY SITE . YEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"5\" \r\n \r\nSITE Rabun County Middle School Rabun County High School Clayton Elementary School Rabun Gap Community School South Rabun Elementary School Central Office (Alternative Education Program) \r\nTOTAL \r\n(1) Comprised of State Funds plus Local Five Mill Share. \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\n$ \r\n \r\n1,017,861.00 $ \r\n \r\n1,332,142.37 \r\n \r\n1,851,268.00 \r\n \r\n.2, 722,652.55 \r\n \r\n1,610,674.00 \r\n \r\n1,772,138.78 \r\n \r\n1,126,932.00 \r\n \r\n1,295 ,441.58 \r\n \r\n1,619,384.00 \r\n \r\n1,680,635.36 \r\n \r\n100,867.00 \r\n \r\n134,788.62 \r\n \r\n$ \r\n \r\n7,326,986.00 $ ====8,=9=37=,7=9=9.=2=6 \r\n \r\nSee notes to the general-purpose financial statements. - 37- \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n RussELL W. H1NTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S W., Suite 2 I4 Atlanta, Georgia 30334-8400 \r\nMay 17, 2002 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education  \r\nREPORT :;N COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTii'::: BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORD:\u003c'.::lCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements ofRabun County Board ofEducation as ofand for the year ended June 30, 2001, and have issued our report thereon dated May 17, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nCompliance \r\nAs part of obtaining reasonable assurance about whether Rabun County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that\" are required to be reported under Government Auditing Standards. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Rabun County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \r\n2001YB-41 \r\n \r\n control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operatiqn 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 Rabun County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7191-01-01. \r\nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7191-01-01 to be a material weakness. \r\nThis report is intended solely for the information and use ofthe management, members ofthe Rabun County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n--:::\u003e,, .,.,00 ~-~ \r\n~~ell W. Hinton State Auditor \r\nRWH:as 2001YB-41 \r\n \r\n RussELL W. H1NTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Wa!.hington Street. S W., Suite 214 Atlanta, Georgia 30334-8400 \r\nMay 17, 2002 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH \r\no:r,..m CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance ofRabun County Board ofEducation with the types ofcompliance 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, 2001. Rabun County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its maj'or Federal programs is the responsibility of Rabun County Board of Education's management. Our responsibility is to express an opinion on Rabun County Board of Education's compliance based on our audit. \r\nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government \r\nAuditing Standards, issued by the Comptroller General ofthe United States; and o:r,..m Circular A- \r\n133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and \r\no:r,..m Circular A-133 require that we plan and perform the audit to obtain reasonable assurance \r\nabout 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 Rabun 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 Rabun County Board of Education's compliance with those requirements. \r\n2001SA-10 \r\n \r\n In our opinion, the Rabun County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001. \r\nInternal Control Over Compliance \r\nThe management of Rabun 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 Rabun 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 of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \r\nThis report is intended solely for the information and use ofthe management, members ofthe Rabun County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~lD~ \r\nRussell W. Hinton State Auditor \r\nRWH:as 2001SA-10 \r\n \r\n RussE1.L W. H1NTON \r\nSTATE AUDITOR (404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nMay 17, 2002 \r\n \r\nHonorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying general-purpose financial statements ofthe Rabun 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 Rabun County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \r\nWe conducted our audit in accordance with 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 ~y management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm1on. \r\nAs described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \r\n \r\n2001ARL-13 \r\n \r\n SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 \r\n \r\nPRIOR YEAR FINANCIAL STATEl\\fENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7191-99-01 FS-7191-00-01 \r\n \r\nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nGENERAL FIXED ASSETS \r\n \r\nFailure to Maintain General Fixed Assets Account Group \r\n \r\nFinding Control Number: FS-7191-00-01 \r\n \r\n \r\n \r\nWe are aware ofthis situation and are working towards meeting this requirement by fiscal year 2003. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2001 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Rabun County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The au~t report for the Rabun County Board of Education disclosed a :financial statement reportable condition related to the following control category. \r\nGeneral Fixed Assets \r\nThe reportable condition described above is considered to be a material weakness. \r\n3. Noncompliance Material to the Financial Statements The audit ofthe Rabun County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Rabun County Board of Education did not disclose any reportable conditions in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Rabun County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Rabun County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The Rabun County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.  \r\n- 1- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 2001 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7191-01-01 \r\nThe Rabun 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 ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. \r\nManagement's Response: \r\nWe are aware ofthis situation and are working towards meeting this requirement by fiscal year 2003. \r\nBUDGET PREPARATION/EXECUTION Failure to Adopt a Balanced Budget Nonmaterial Noncompliance Finding Control Number: FS-7191-01-02 \r\nAn examination of the School District's budget revealed that the School District failed to adopt a balanced budget for the Special Revenue Fund. Chapter 32 of the Financial Management for Georgia Local Units ofAdministration (FMGLUA) issued by the Georgia Department ofEducation states in part: \r\n\"The budget must be balanced for all budgeted funds. Total anticipated revenues should equal total estimated expenditures. In the event anticipated revenues are insufficient to fund anticipated expenditures, a portion of the unreserved fund balance from the previous years must be used to fund the shortfall. In the event there is insufficient unreserved fund balance from previous years to fund anticipated expenditures, then such expenditures must be reduced to equal anticipated revenues plus available fund balance.\" \r\nThis condition occurred because management neglected the specific limitations imposed upon the School District by the Georgia Department of Education. Appropriate procedures should be implemented by the School District to ensure that the adopted budget is balances as required. \r\n-2- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 2001 Il FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS BUDGET PREPARATION/EXECUTION Failure to Adopt a Balanced Budget Nonmaterial Noncompliance Finding Control Number: FS-7191-01-02 Management's Response: Steps have been taken to correct this problem due to our low fund balance in School Food Service. The general fund will be offsetting some of those expenditures. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-3- \r\n \r\n * The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. \r\n* School activity accounts maintained at the individual schools are not included in the \r\ngeneral-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. \r\nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \r\nIn our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Rabun CountyBoard ofEducation as of June 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated May 17, 2002, on our consideration ofthe Rabun County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Rabun County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through K) 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 procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \r\n2001ARL-13 \r\n \r\n A copy ofthis report has been filed as a per available to the press ofthe State, as provi . 6-24. \r\n \r\n::t record in the office ofthe State Auditor and made _. by Official Code ofGeorgia Annotated Section 50- \r\nRespectfully submitted, \r\n~W-~~ \r\n \r\nRWH:as 2001ARL-13 \r\n \r\nState Auditor \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \r\nALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2001 \r\n \r\nASSETS \r\nCash arid Cash Equivalents \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\nAmount Available m Debt Service Fund \r\nAmount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements \r\n \r\nGENERAL FUND \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ 4,745,141.46 \r\n \r\n$ 1,615,170 49 \r\n \r\n1,528,306.47 $ 135,349.31 \r\n \r\n428,65533 \r\n \r\n12,913.46 5,295.19 \r\n \r\nTotal Assets \r\n \r\n$ 6.273A47.93 $ 153,557.96 $ 2,043,825.82 \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Reta1nages Payable Funds Held for Others Capital Lease Agreements General Obligabon Bonds Payable \r\nTotal Liabilibes \r\nFUND EQUITY \r\nFund Balances Reserved For Bus Replacement Funds For Debt Service For Inventories Food Donated Commodibes Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n$ \r\n \r\n335,105.16 \r\n \r\n1, 113,454.05 \r\n \r\n1,037.27 \r\n \r\n14,353.84 28,059.20 91,893.75 \r\n1,042.52 $ \r\n \r\n197,481.98 \r\n \r\n$ 1.449.596.48 $ 135.349 31 $ \r\n \r\n197.481.9~ \r\n \r\n$ \r\n \r\n106,491.00 \r\n \r\n$ \r\n4.717.360.45 $ 4.823.851 45 $ \r\n \r\n12,913 46 5,295.19 $ \r\n0.00 \r\n18,208.65 $ \r\n \r\n1,465,941.94 21,900.00 \r\n358.501.90 \r\n1.846.343 84 \r\n \r\nTotal L1abilibes and Fund Equity \r\n \r\n$ 612731447.93 $ 1531557.96 $ 2:0431825.82 \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement. 2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b1999-h2000","title":"Rabun County Board of Education, Clayton, Georgia, report on audit of 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, Rabun County, 34.88168, -83.40214"],"dcterms_creator":["Georgia. Department of Audits"],"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: Rabun County Board of Education, Clayton, Georgia, scheule 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 ... (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Rabun County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online resource); (Georgia Government Publications database, viewed June 27, 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":["Rabun County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Rabun County--Auditing--Periodicals.","Education--Georgia--Rabun County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Rabun County--fast--https://id.oclc.org/worldcat/entity/E39PBJt3VJPKFBPxFbFXxhD8YP","Georgia Government Documents--Serial"],"dcterms_title":["Rabun County Board of Education, Clayton, Georgia, report on audit of 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-br2-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-br2-b1999-h2000"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n \r\nGA \r\n \r\nA 8 oo \r\n \r\n \r\n \r\n.. R I \r\n \r\n2io \r\n \r\nR2 \r\n \r\n)99\u003c:j-2000 \r\n \r\no D 0 \r\nOo 000000 0 \r\n1776 \r\n \r\nI \r\nRABUN COUNTY BOARD OF EDUCATION \r\nCLAYTON, GEORGIA \r\n \r\nREPORT ON AUDIT \r\n \r\nOF THE FINANCIAL STATEMENTS \r\n \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2000 \r\n \r\n \r\n \r\nRussell W. Hinton State Auditor \r\n \r\n RABUN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \r\n \r\nPage \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nGENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS - OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET \r\n \r\nALL FUND TYPES AND ACCOUNT GROUP \r\n \r\n2 \r\n \r\nB \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nALL GOVERNMENTAL FUND TYPES \r\n \r\n4 \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\n7 \r\n \r\nD  NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\n8 \r\n \r\nADDffiONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n18 \r\n \r\n. F \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n20 \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n22 \r\n \r\nH \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n24 \r\n \r\nDEBT SERVICE FUND \r\n \r\nI \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n26 \r\n \r\nJ \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n27 \r\n \r\nK \r\n \r\nFIDUCIARY FUND TYPE \r\n \r\nCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILI'I'IES \r\n \r\nAGENCY FUNDS \r\n \r\n28 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nADDIDONAL FINANCIAL INFORMATION \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nANALYSIS OF YJ.JJ ~JJ \r\n \r\nEXPENDITURE REQUIREMENTS \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \r\n \r\n4 \r\n \r\nOVERALL \r\n \r\n5 \r\n \r\nBYPROGRAM \r\n \r\nPage \r\n30 32 33 35 36 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDI'I'ING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \r\n \r\nSECTION ill \r\nAUDI'IEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n oY..E \r\n \r\n \r\n \r\n'It'. \r\n \r\n\\C) \r\n \r\n \r\n \r\n \r\n \r\n,,.l-:  \r\n \r\n:.,,-  \r\n \r\nW. RussELI, \r\n \r\nH1NTON \r\n \r\nSTATE AUDITOR \r\n \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street. S. W.. Suite 214 Atlanta. Ge\u003cirgia 30334-8400 \r\nJanuary 23, 2001 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Rabun County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying general purpose financial statements ofthe Rabun 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 Rabun County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \r\nWe conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfor rn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \r\nAs described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \r\n* The general purpose financial statements ofthe Board did not contain a General Fixed \r\nAssets Account Group to account for property and equipment owned by the Board which should be included to conforrn to generally accepted accounting principles. \r\n2000ARL-13 \r\n \r\n  \r\n \r\n* School activity accounts maintained at the individual schools are not included in the \r\ngeneral purpose financial statements. To confu11n to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. \r\nThe aggregate effects on the general purpose financial statements of these variances or omissions have not been deter1nined, but are believed to be material. \r\nIn our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Rabun County Board ofEducation as of June 30, 2000, and the results of its operations for the year then ended, in confo11nity with generally accepted accounting principles. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated January 23, 2001, on our consideration of the Rabun County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit perfo1111ed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nOur audit was perfo1med for the purpose of fo11ning an opinion on the general purpose financial statements of the Rabun County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through K) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of \r\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 \r\ngeneral purpose financial statements. Such info11nation 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. \r\nA copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \r\nRespectfully submitted, \r\n \r\nRWH:jb 2000ARL-13 \r\n \r\nL\u003cJ. \r\nRu sell W. Hinton \r\nState Auditor \r\n \r\n RABUN COUNfY BOARD OF EDUCATION \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \r\nALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2000 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\nAmount Available in Debt Service Fund \r\nAmount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements \r\n \r\nGENERAL FUND \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ 4,069,117.17 \r\n \r\n$ 1,028,957.69 \r\n \r\n1,670,686.24 $ \r\n \r\n175,351.79 \r\n \r\n425,252.38 \r\n \r\n9,903.45 5,635.29 \r\n \r\nTotal Assets \r\n \r\n$ 5,739,803.41 $ \r\n \r\n190,890.53 $ ==1-,4=54==,2=10==07.., \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others Capital Lease Agreements General Obligation Bonds Payable \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Bus Replacement Funds For Debt Service For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n$ \r\n \r\n368,056.58 \r\n \r\n1,093,467.61 \r\n \r\n36,996.43 26,735.08 81,402.16 \r\n$ \r\n \r\n304,307.10 52,640.16 \r\n \r\n$ 1,461,524.19 $ \r\n \r\n145I133.67 $ _ _.:,35:.:6:.,.,9:..4.:..:7..::.2::.::6~ \r\n \r\n$ \r\n \r\n114,329.00 \r\n \r\n$ \r\n4,163,950.22 $ 4,278,279.22 $ \r\n \r\n9,903.45 5,635.29 \r\n$ \r\n \r\n716,860.91 21,900.00 \r\n \r\n30,218.12 \r\n \r\n358,501.90 \r\n \r\n45,756.86 $ __1:..i;,0:..:9:..:.7..r.:,2:.;::6::;2.=.8.,_1 \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ 5,739,803.41 $ 190,890.53 $ \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. -2- \r\n \r\n1,454,210.07 \r\n \r\n EXHIBIT \"A\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nFIDUCIARY FUND TYPE \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n47,925.59 $ \r\n \r\n84,030.32 \r\n \r\n4.69 \r\n \r\nACCOUNT GROUP \r\nGENERAL LONG-TERM \r\nDEBT \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ 5,230,030.77 $ 8,768,614.45 \r\n \r\n2,271,295.10 \r\n \r\n2,070,056.81 \r\n \r\n$ \r\n \r\n47,930.28 \r\n \r\n9,903.45 5,635.29 \r\n47,930.28 \r\n \r\n14,740.43 4,648.34 \r\n2,485,577.19 \r\n \r\n4,252,069.72 314 713.78 \r\n \r\n4,252,069.72 314 713.78 \r\n \r\n1,814,422.81 347,705.34 \r\n \r\n$ \r\n \r\n47,930.28 $ \r\n \r\n84,030.32 $ 4,614,713.78 $ 12,131,578.39 $ 15,505,765.37 \r\n \r\n$ \r\n \r\n36,996.43 $ \r\n \r\n197,583.01 \r\n \r\n394,791.66 \r\n \r\n314,067.39 \r\n \r\n1,174,869.77 \r\n \r\n1,157,153.82 \r\n \r\n92.24 \r\n \r\n304,307.10 \r\n \r\n52,640.16 \r\n \r\n404,260.15 \r\n \r\n$ \r\n \r\n84,030.32 \r\n \r\n84,030.32 \r\n \r\n74,997.66 \r\n \r\n$ \r\n \r\n314,713.78 \r\n \r\n314,713.78 \r\n \r\n347,705.34 \r\n \r\n4,300,000.00 \r\n \r\n4,300,000.00 \r\n \r\n4,300,000.00 \r\n \r\n$ \r\n \r\n84,030.32 $ 4 713.78 $ 6,662,349.22 $ 6,795,859.61 \r\n \r\n \r\n \r\n$ \r\n \r\n47,930.28 \r\n \r\n0.00 $ _ _ _4\"'-7-'-\",9-\"-30-\"\"'.2=8-- \r\n \r\n$ \r\n \r\n114,329.00 $ \r\n \r\n73,304.00 \r\n \r\n47,930.28 \r\n \r\n2,485,577.19 \r\n \r\n9,903.45 5,635.29 716,860.91 21,900.00 \r\n \r\n14,740.43 4,648.34 1,284,282.89 21,900.00 \r\n \r\n4,552,670.24 \r\n \r\n4,825,452.91 \r\n \r\n$ 5,469,229.17 $ 8,709,905.76 \r\n \r\n$ \r\n \r\n47,930.28 $ \r\n \r\n84,030.32 $ 4,614,713.78 $ 12,131,578.39 $ 15,505,765.37 \r\n \r\n-3- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \r\nCapital Outlay Debt Service \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nCapital Leases Operating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ 5,626,331.68 $ \r\n11,919.05 7,766,319.42 \r\n277,562.35 \r\n \r\n166,565.88 988,430.78 \r\n341,654.88 \r\n \r\n$ 13,682,132.50 $ _ _1'-l,.4,.;..;;9..;;;.6..6;;.;,:...51.;..;..5;;;_4'- \r\n \r\n$ 8,740,812.34 $ \r\n \r\n573,559.42 \r\n \r\n578,802.92 131,514.23 335,037.60 204,161.07 804,812.16 152,185.25 872,188.04 634,747.21 \r\n9,753.60 51,178.00 \r\n900.00 78,829.88 \r\n \r\n7,758.06 76,853.35 \r\n2,500.00 35,272.87 \r\n550.00 \r\n20,832.00 957.13 \r\n824,122.16 \r\n \r\n32,991.56 17,305.84 \r\n \r\n$ 12,645,219.70 $ _ _1.:.i.;5, ~4:..:2i..4.:.,.::.04..:..:.=.:99:;_ \r\n \r\n$ 1,036,912.80 $ _ _....;-4..::.5z7.:.:.:,:,:53::..:..4. ..:..;:5:;_ \r\n \r\n$ \r\n$ _ _--\"5-'-79;;..,-'-44..;..;9;;.;..5:;.:5:.... \r\n \r\n1,841.59 \r\n \r\n$ \r\n \r\n-579,449.55 $ _ _ _1.:.z.::.84.:.'.:.:.1.5:.:9:.. \r\n \r\n$ \r\n \r\n457,463.25 $ \r\n \r\n3,820,815.97 \r\n \r\n-43,911.86 93,518.75 \r\n \r\n-4,836.98 986.95 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ 4,278,279.22 $ ===4=5i,;.,7~56~.8=6= \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. -4- \r\n \r\n EXHIBIT \"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ 2,190,374.05 $ 102,309.17 \r\n$ 2,292,683.22 $ \r\n \r\n$ \r\n45.57 2 770.47 \r\n \r\n5,792,897.56 $ 1,000,349.83 9,956,739.04 \r\n724,296.87 \r\n \r\n7,281,346.81 984,829.42 \r\n9,064,252.60 790,318.89 \r\n \r\n2,816.04 $ 17,474,283.30 $ 18,120,747.72 \r\n \r\n$ 9,314,371.76 $ 8,536,138.90 \r\n \r\n$ 6,349,260.17 \r\n \r\n586,560.98 208,367.58 337,537.60 239,433.94 804,812.16 152,185.25 872,738.04 634,747.21 \r\n30,585.60 52,135.13 825,022.16 6,428,090.05 \r\n \r\n592,496.00 163,577.63 318,263.00 222,111.09 785,703.50 138,252.02 1,213,733.68 576,217.61 23,200.92 55,906.17 780,681.86 4,413,344.67 \r\n \r\n_ _ _ _ _ _ $ _ _ _17_4..._,2_2___5__._o__o___ \r\n \r\n32,991.56 191,530.84 \r\n \r\n32,161.28 237,491.29 \r\n \r\n$ 6,349,260.17 $ \r\n \r\n174,225.00 $ 20,711,109.86 $ 18,089,279.62 \r\n \r\n$ -4,056,576.95 $ \r\n \r\n-171,408.96 $ -3,236,826.56 $ \r\n \r\n31,468.10 \r\n \r\n \r\n \r\n$ 2,843,845.91 \r\n------ $ \r\n$ 2,843,845.91 $ \r\n \r\n$ -2,266,237.95 \r\n-2,266,237.95 $ \r\n \r\n$ \r\n2,845,687.50 -2,845,687.50 \r\n \r\n367,162.00 366,486.56 \r\n-366,486.56 \r\n \r\no.oo $ _ _3_6_7.._1,_6__2_._oo_ \r\n \r\n$ -1,212,731.04 $ -2,437,646.91 $ -3,236,826.56 $ \r\n \r\n2,309,993.85 \r\n \r\n2,485,577.19 \r\n \r\n8,709,905.76 \r\n \r\n398,630.10 8,306,050.45 \r\n \r\n-4,836.98 986.95 \r\n \r\n4,709.05 516.16 \r\n \r\n$ 1,097,262.81 $ \r\n \r\n47,930.28 $ 5,469,229.17 $ 8,709,905.76 -5- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nBUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \r\nYEAR ENDED JUNE 30. 2000 \r\n \r\nEXHIBIT \"C\" \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \r\nCapital Outlay Debt Service \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1, 1999 \r\nAdjustments Food Inventory - Net Change in Period \r\nDonated Commodities Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS) \r\n \r\n$ 5,244,586.46 $ 5,626,331.68 \r\n \r\n75,000.00 \r\n \r\n11,919.05 \r\n \r\n7,088,523.00 \r\n \r\n7,766,319.42 \r\n \r\n23,000.00 \r\n \r\n277,562.35 \r\n \r\n$ 12,431,109.46 $ 13,682,132.50 \r\n \r\n$ 8,469,422.00 $ 8,740,812.34 \r\n \r\n594,494.00 194,857.00 327,989.00 215,221.00 807,487.00 145,343.00 996,596.00 606,725.00 \r\n12,000.00 60,068.00 \r\n900.00 205,000.00 \r\n45,266.00 \r\n \r\n578,802.92 131,514.23 335,037.60 204,161.07 804,812.16 152,185.25 \r\n872,188.04 \r\n634,747.21 9,753.60 \r\n51,178.00 900.00 \r\n78,829.88 \r\n50,297.40 \r\n \r\n$ 12,681,368.00 $ 12,645,219.70 \r\n \r\n$ -250,258.54 $ 1,036,912.80 \r\n \r\n$ -579 449.55 $ -579,449.55 \r\n \r\n$ -250,258.54 $ 457,463.25 \r\n \r\n3,767,739.98 \r\n \r\n3,820,815.97 \r\n \r\n-230.25 \r\n \r\nFUND BALANCE JUNE 30. 2000 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS) \r\n \r\n$ 133,039.88 $ 166,565.88 \r\n \r\n982,179.00 \r\n \r\n988.430.78 \r\n \r\n310,450.00 \r\n \r\n341 654.88 \r\n \r\n$ 1,425,668.88 $ 1,496,651.54 \r\n \r\n$ 560,506.88 $ 573,559.42 \r\n \r\n14,700.00 52,462.00 \r\n2,500.00 27,738.00 \r\n \r\n7,758.06 76,853.35 \r\n2,500.00 35,272.87 \r\n \r\n550.00 \r\n \r\n12,584.00 1,618.00 \r\n803,277.09 \r\n \r\n20,832.00 957.13 \r\n824,122.16 \r\n \r\n6 318.00 \r\n \r\n$ 1,481,703.97 $ 1,542,404.99 \r\n \r\n$ -56,035.09 $ _ _;;-4c::c5...:.7.:c53::.;..4.:.:5=- \r\n \r\n$ \r\n \r\n1,841.59 \r\n \r\n$ ---'-1c:;.84-'-1\"\".5;:.::9;... \r\n \r\n$ -56,035.09 $ -43,911.86 \r\n \r\n96,570.99 \r\n \r\n93,518.75 \r\n \r\n-4,836.98 986.95 \r\n \r\n$ \r\n \r\ns _ 40,535.90 \r\n \r\n_,4_,5..,,7.,56_..8_6_ \r\n \r\n \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. \r\n-7- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nn.JNE 30, 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe Rabun County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity. \r\nFUND ACCOUNTING \r\nThe Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \r\nGeneral Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confo11r1 to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. \r\nAlthough ''school activity accounts'' are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confo1111 to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. \r\nThe general purpo_se financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: \r\n \r\nGENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \r\n \r\n-8- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \r\nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \r\nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-te11n principal, interest and paying agent fees. \r\nFIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a \r\ntrustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: \r\nAGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \r\nACCOUNT GROUP \r\nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. \r\nBASIS OF ACCOUNTING \r\nThe accounting and financial reporting treatment applied to a fund is dete1mined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \r\nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Te1111 Debt Account Group. \r\nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \r\nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \r\n \r\n-9- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be determined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. \r\nExpenditures are generally recognized when the related fund liability is incurred. \r\nA substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1999 and ending in early June 2000. Employment contracts for these employment periods typically 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 are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. \r\nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \r\nBUDGET \r\nThe Rabun County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \r\nThe budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. \r\n- 10 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info11nation available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Rabun County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 7, 1999 (levy date). Taxes were due on January 14, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Rabun County Tax Commissioner bills and collects the property taxes for the Board of Education and remits the taxes collected to the Board. \r\n \r\nThe tax millage rate levied for the 1999 tax year (calendar year) for the Rabun County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n6.842 mills \r\n \r\nSALES TAXES \r\n \r\nLocal Option Sales Tax revenue during the fiscal year amounted to $2,229,212.31 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation of the Board. \r\n \r\nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $2,190,374.05 and was recorded in the Capital Projects Fund. The State will te11ninate collection of this tax once an additional $3,235,558.55 has been collected or on December 31, 2002, whichever occurs first. \r\n. \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES \r\n \r\n. \r\n \r\nInventories of donated food commodities used in the preparation of meals are reported on the \r\n \r\nCombined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported \r\n \r\non the Combined Balance Sheet at cost first-in, first-out. Donated food commodities are recorded as \r\n \r\nrevenues and expenditures at the time commodity items are received. Purchased foods inventories \r\n \r\nare recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet \r\n \r\n- 11 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nfor donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute ''available spendable resources\" even though they are a component of net current assets. \r\nGENERAL OBLIGATION BONDS \r\nThe Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in 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 ofthese bonds is recorded in the General Long-Te11n Debt Account Group. \r\nINTERFUND TRANSACTIONS \r\nThe Board has the following types of interfund transactions: \r\nReimbursements ofexpenditures initially made from a fund that are properly applicable to another \r\nfund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \r\nOperating transfers are recorded for all interfund transactions other than reimbursements. \r\nMEMORANDUM ONLY -TOTAL COLUMNS \r\nTotal columns on the general purpose financial statements are captioned ''Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present .financial position or results ofoperations in confo11nity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \r\nNote 2: DEPOSITS \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than \r\n11 Opercent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, \r\nwaive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \r\n- 12 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\n, \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 2: DEPOSITS \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(I) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal lntt:tmediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $6,624, I 06.04. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) \r\nThe Board's deposits are classified by risk category at June 30, 2000, as follows: \r\n \r\n- 13 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2000 \r\n \r\nNote 2: DEPOSITS \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 700,805.65 \r\n \r\n2 \r\n \r\n5,258,043.90 \r\n \r\n3 \r\n \r\n665,256.49 \r\n \r\nTotal \r\n \r\n$ 6,624,106.04 \r\n \r\nNote 3: NON-MONETARY TRANSACTIONS \r\n \r\nThe Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned \r\nvalue. See Note 1 - Inventories \r\n \r\nNote 4: RISK MANAGEMENT \r\n \r\nThe Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. \r\n. \r\nThe Board has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years. \r\n \r\nThe Board has elected to self-insure for all losses related to and natural disaster. The Board has not experienced any loss related to this risk in the past three years. \r\n \r\nThe Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Board has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\nThe Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nThe Board has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\n- 14 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 4: RISK MANAGEMENT \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ 100,000.00 $ 50,000.00 \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The Rabun County Board of Education has entered into various lease agreements as lessee for computer equipment, copiers and energy saving equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 1998 \r\n \r\n4.00% - 4.10% $ 4,300,000.00 \r\n \r\nThe changes in General Long-Terrn Debt during the fiscal year ended June 30, 2000, were as follows: \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 1999 \r\n \r\n$ 347,705.34 $4,300,000.00 $ 4,647,705.34 \r\n \r\nDeductions Payments \r\n \r\n32,991.56 - - - - \r\n \r\n32,991.56 \r\n \r\nBalance June 30, 2000 \r\n \r\n$ 314,713.78 $4,300,000.00 $ 4,614,713.78 \r\n \r\nAt June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\n- 15 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2000 \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nFiscal Year Ending June 30 \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal Debt \r\n \r\n2001 \r\n \r\n2002 \r\n \r\n2003 \r\n \r\n2004 \r\n \r\n2005 \r\n \r\n \r\n \r\n2006 - 2010 \r\n \r\n$ 46,526.95 $ 1,524,225.00 $ 1,570,751.95 \r\n \r\n50,297.40 1,570,225.00 1,620,522.40 \r\n \r\n50,297.40 1,561,500.00 1,611,797.40 \r\n \r\n45,245.40 \r\n \r\n45,245.40 \r\n \r\n45,245.40 \r\n \r\n45,245.40 \r\n \r\n149,918.00 \r\n \r\n149,918.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 387,530.55 $ 4,655,950.00 $ 5,043,480.55 \r\n \r\nDeduct: Imputed Interest \r\n \r\n72,816.77 \r\n \r\nNet Present Value of Future Minimum Lease Payments $ 314,713.78 \r\n \r\nNote 6: ON-BEHALF PAYMENTS \r\n \r\nThe Board has recognized revenues and expenditures in the amount of $227,279.22 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $170,237.62 \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $20,317.60 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Emplo)1ees Retirement (PSERS) Employer's Cost In the amount of $36,724.00 \r\n \r\nNote 7: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available: \r\n \r\n- 16 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 7: SIGNIFICANT COMMITMENTS \r\n \r\nProiect  \r\nRabun County Middle and High Schools Additions and Renovations 99/98S-719-022 \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n$ 965,466.64 $ 195.205.60 \r\n \r\nThe amounts described in this note are not reflected in the general purpose financial statements. \r\n \r\nNote 8: CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant te11ns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 9: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBWIONS REQUIRED AND MADE \r\n \r\n, \r\n \r\nEmployees of the Board who are covered by TRS are required by State statute to contribute 5% of \r\n \r\ntheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates \r\n \r\nadopted by the TRS Board of Trustees in accordance with State statute and as advised by their \r\n \r\nindependent actuary. The required employer contribution rate is 11.29% and employer contributions \r\n \r\nfor the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2000 1999 1998 \r\n \r\n100% 100% 100% \r\n \r\n$ 873,818.05 $ 854,137.78 $ 762,758.92 \r\n \r\n- 17 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND \r\nJUNE 30, 2000 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n91,375.53 $ \r\n \r\n0.00 \r\n \r\n9,903.45 5,635.29 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n106,914.27 $ ====0==00= \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n14,124.61 \r\n \r\n47,032.80 \r\n \r\n$ _ _..,:6:..:.1i..1:.-,=-57:.:.4..:..;1~ \r\n \r\n$ \r\n \r\n9,903.45 \r\n \r\n5,635.29 \r\n \r\n30,218.12 $ _ _ _ _=0--=-00~ \r\n \r\n$ \r\n \r\n45,756.86 $ _ _ _ _0.:.:.=.;00~ \r\n \r\n$ \r\n \r\n106,914.27 $ ====o=.o=o= \r\n \r\nSee notes to the general purpose financial statements. - 18 - \r\n \r\n EXHIBIT \"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n91,375.53 $ \r\n \r\n118,591.67 \r\n \r\n$ \r\n \r\n167,823.84 $ \r\n \r\n7,527.95 \r\n \r\n175,351.79 \r\n \r\n370,130.55 \r\n \r\n9,903.45 5,635.29 \r\n \r\n14,740.43 4,648.34 \r\n \r\n$ \r\n \r\n167,823.84 $ \r\n \r\n7,527.95 $ \r\n \r\n282,266.06 $ ==5=0=8=1,=10==99= \r\n \r\n$ \r\n \r\n120,844.01 $ \r\n \r\n12,610.47 \r\n \r\n34,369.36 \r\n \r\n$ \r\n \r\n167,823.84 $ \r\n \r\n7,527.95 $ 7,527.95 $ \r\n \r\n128,371.96 $ 26,735.08 81,402.16 \r\n \r\n316,174.68 16,064.44 82,260.88 92.24 \r\n \r\n236,509.20 $ _ _4_1_4..._,5--'-9_2._24_ \r\n \r\n$ \r\n \r\n9,903.45 $ \r\n \r\n14,740.43 \r\n \r\n5,635.29 \r\n \r\n4,648.34 \r\n \r\n$ \r\n \r\n0.00 $ - - - - -0.0-0 \r\n \r\n30,218.12 \r\n \r\n74,129.98 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n45,756.86 $ _ _ _9_3.._,5_18_._75_ \r\n \r\n$ \r\n \r\n167,823.84 $ \r\n \r\n7,527.95 $ \r\n \r\n282,266.06 $ \r\n \r\n508,110.99 \r\n \r\n======= \r\n \r\n-19- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Central Support Services Other Support Services Food Services Operation \r\nDebt Service Principal Payments Interest Payments \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nOperating Transfers In \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n55,966.00 $ \r\n \r\n398,933.93 \r\n \r\n325,310.37 \r\n \r\n65,713.88 \r\n \r\n$ \r\n \r\n780,210.30 $ _ __;6:.;:5'-'--7',...:.1=3.=88;;;_ \r\n \r\n$ \r\n \r\n65,713.88 \r\n \r\n$ \r\n \r\n824,122.16 \r\n \r\n$ \r\n \r\n824,122.16 $ _ __;6;;..;;5..l.,;7.,....;.1.;;_;3'.;;;..88\"- \r\n \r\n$ \r\n \r\n-43,911.86 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n-43,911.86 $ \r\n \r\n0.00 \r\n \r\n93,518.75 \r\n \r\n0.00 \r\n \r\n-4,836.98 986.95 \r\n \r\nFUND BALANCE JUNE 30 \r\nSee notes to the general purpose financial statements. - 20 - \r\n \r\n$ \r\n \r\n45,756.86 $ =====0.=00= \r\n \r\n EXHIBIT \"F\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n44,886.00 \r\n \r\n$ \r\n \r\n589,496.85 \r\n \r\n- - - - - - $ _ _ _1.;.;6.:.;,3;..;.4.;.;4..;;..51-'-- \r\n \r\n$ \r\n \r\n634,382.85 $ \r\n \r\n16,344.51 $ \r\n \r\n166,565.88 $ 988,430.78 341,654.88 \r\n1,496,651.54 $ \r\n \r\n121,906.79 957,438.42 313,579.69 \r\n1,392,924.90 \r\n \r\n$ \r\n \r\n491,501.03 $ \r\n \r\n7,758.06 76,853.35 \r\n2,500.00 35,272.87 \r\n550.00 20,832.00 \r\n957.13 \r\n \r\n$ \r\n \r\n636,224.44 $ \r\n \r\n$ \r\n \r\n-1,841.59 $ \r\n \r\n16,344.51 $ \r\n16,344.51 $ 0.00 $ \r\n \r\n573,559.42 $ \r\n7,758.06 76,853.35 \r\n2,500.00 35,272.87 \r\n550.00 20,832.00 \r\n957.13 824,122.16 \r\n1,542,404.99 $ \r\n-45,753.45 $ \r\n \r\n534,422.14 \r\n10,611.63 32,452.59 \r\n30,512.54 70.00 \r\n13,764.12 2,180.90 779,782.14 \r\n12,704.62 180.65 \r\n1,416,681.33 \r\n-23,756.43 \r\n \r\n1,841.59 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n0.00 $ 0.00 \r\n \r\n1 841.59 \r\n-43,911.86 $ 93,518.75 \r\n-4,836.98 986.95 \r\n \r\n-23,756.43 112,049.97 \r\n4,709.05 516.16 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n45,756.86 $ =======9=3=,5=1=8=.=7=5= \r\n \r\n- 21 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND \r\nJUNE 30, 2000 \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable \r\n \r\nTotal Assets \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nContracts Payable Retainages Payable \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\n \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\nREGULAR \r\n \r\nBOND PROCEEDS \r\n \r\n$ \r\n \r\n358,501.90 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n358,501.90 $ = = = = =0.0=0 \r\n \r\n$ \r\n \r\n358,501.90 $ - - - - -0.0-0 \r\n \r\n$ \r\n \r\n3sa,so1.9o $ _ _ _ _.;;.;o.;;_oo\"--- \r\n \r\n$ \r\n \r\n358,501.90 $ ========0.=00= \r\n \r\nSee notes to the general purpose financial statements. \r\n- 22 - \r\n \r\n EXHIBIT \"G\" \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n378,847.26 $ \r\n \r\n291,608.53 $ 1,028,957.69 $ 2,714,254.00 \r\n \r\n425,252.38 \r\n \r\n425,252.38 \r\n \r\n$ \r\n \r\n378,847.26 $ \r\n \r\n716,860.91 $ 1,454,210.07 $ 2,714,254.00 \r\n \r\n$ \r\n \r\n304,307.10 \r\n \r\n52,640.16 \r\n \r\n$ - - -35~ 6,94-7.2-6 \r\n \r\n$ \r\n \r\n304,307.10 \r\n \r\n52,640.16 $ _ _4..;..;_04_.;;,2_6_0__._15'-- \r\n \r\n$ \r\n \r\n356,947.26 $ _ _4_0_4..,_,2_60_._15_ \r\n \r\n$ \r\n \r\n716,860.91 $ \r\n \r\n716,860.91 $ 1,284,282.89 \r\n \r\n$ \r\n \r\n21,900.00 \r\n \r\n21,900.00 \r\n \r\n21,900.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n358,501.90 \r\n \r\n1,003,810.96 \r\n \r\n$ \r\n \r\n21,900.00 $ \r\n \r\n716,860.91 $ 1,097,262.81 $ 2,309,993.85 \r\n \r\n$ \r\n \r\n378,847.26 $ \r\n \r\n716,860.91 $ 1,454,210.07 $ 2,714,254.00 \r\n \r\n- 23 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES State Funds Taxes Other Funds Total Revenues \r\nEXPENDITURES Capital Outlay Building and Building Improvements Total Expenditures \r\nExcess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) \r\nOperating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources \r\nover (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\nREGULAR \r\n \r\nBOND PROCEEDS \r\n \r\n$ \r\n \r\n7 551.58 $ -----=5.i..:.7.=.84.:..:.:::;30=- \r\n \r\n$ \r\n \r\n7,551.58 $ _ ____;;.5.i.;.,7.;;.84.;.;.3:.:0:.. \r\n \r\n$ \r\n \r\no.oo $ _ _ ___;oaa.a.o::.:o:.. \r\n \r\n$ \r\n \r\no.oo $ _ _ ___;oaa.a.o::.:o:.. \r\n \r\n$ \r\n \r\n7,551 .58 $ _ ___:::.5i..:..7.:::;84.:..:;.3:;.:0;_ \r\n \r\n$ \r\n \r\n-652,860.64 $ -1,290,067.19 \r\n \r\n$ \r\n \r\n-652,860.64 $ -1,290,067.19 \r\n \r\n$ \r\n \r\n-645,309.06 $ -1,284,282.89 \r\n \r\n1,003,810.96 \r\n \r\n1,284,282.89 \r\n \r\n$ \r\n \r\n358,501.90 $ ====-=--==-o=.o=o= \r\n \r\nSee notes to the general purpose financial statements. \r\n-24- \r\n \r\n EXHIBIT \"H\" \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ 1,776,560.40 \r\n \r\n$ 2,190,374.05 $ 2,190,374.05 \r\n \r\n88,973.29 \r\n \r\n102,309.17 \r\n \r\n204,674.49 \r\n \r\n$ \r\n \r\n0.00 $ 2,279,347.34 $ 2,292,683.22 $ 1,981,234.89 \r\n \r\n$ 6,349,260.17 $ $ 6,349,260.17 $ $ -6,349,260.17 $ \r\n \r\n0.00 $ 6,349,260.17 $ 4,258,720.55 0.00 $ 6,349,260.17 $ 4,258,720.55 2,279,347.34 $ -4,056,576.95 $ -2,277,485.66 \r\n \r\n$ 6,349,260.17 $ 2,266,237.95 $ 8,615,498.12 $ 2,818,802.66 \r\n \r\n-3,828,724.38 \r\n \r\n-5, 771,652.21 \r\n \r\n-2,452,316.10 \r\n \r\n$ 6,349,260.17 $ -1,562,486.43 $ 2,843,845.91 $ _ ____;3::.::6:..::c6.z..:,4.:a.86::.o.;:;.;56=- \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n716,860.91 $ -1,212,731.04 $ -1,910,999.10 \r\n \r\n21,900.00 \r\n \r\n0.00 \r\n \r\n2,309,993.85 \r\n \r\n4,220,992.95 \r\n \r\n$ \r\n \r\n21,900.00 $ \r\n \r\n716 860.91 $ 1,097,262.81 $ 2,309,993.85 \r\n \r\n \r\n \r\n-25- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000 \r\n \r\nEXHIBIT \"I\" \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable \r\n \r\nPROPERTY TAXES FOR BOND DEBT \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n47,925.59 $ \r\n \r\n0.00 $ \r\n \r\n47,925.59 $ 2,158,030.37 \r\n \r\n4.69 \r\n \r\n4.69 \r\n \r\n327,546.82 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n47,930.28 \r\n \r\n$ 0.00 - -- - - -- \r\n \r\n-------- \r\n \r\n$ \r\n \r\n47,930.28 \r\n------ - \r\n \r\n$ \r\n \r\n2,485,577.19 \r\n \r\nFUND EQUITY \r\nFund Balances Reserved For Debt Service Unreserved Undesig nated \r\n \r\n$ \r\n \r\n47,930.28 $ \r\n \r\n0.00 \r\n \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n47,930.28 $ \r\n------ \r\n \r\n0.00 $ \r\n0.00 \r\n \r\n47,930.28 $ 2,485,577.19 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 $ \r\n \r\n47,930.28 $ \r\n-------- \r\n \r\n2,485,577.19 \r\n \r\nSee notes to the general purpose financial statements. - 26- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nDEBT SERVICE FUND YEAR ENDED JUNE 30, 2000 \r\n \r\nEXHIBIT \"J\" \r\n \r\nREVENUES Taxes Other Funds Total Revenues \r\nEXPENDITURES Debt Service Interest \r\nExcess of Revenues over (under) Expenditures OTHER FINANCING USES \r\nOperating Transfers Out Excess of Revenues over (under) Expenditures \r\nand Other Financing Uses FUND BALANCE JULY 1 \r\nFUND BALANCE JUNE 30 \r\n \r\nPROPERTY TAXES FOR BOND DEBT \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 \r\n \r\n$ \r\n \r\n45.57 $ \r\n \r\n2 770.47 \r\n \r\n$ \r\n \r\n2 816.04 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n45.57 $ 2 770.47 \r\n \r\n1,898,353.58 64,256.35 \r\n \r\n2,816.04 $ 1,962,609.93 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n174,225.00 $ \r\n \r\n174,225.00 $ _-=21-'-'7-'-',7-\"-8-'-\"1.2=5'- \r\n \r\n$ \r\n \r\n2,816.04 $ \r\n \r\n-174,225.00 $ \r\n \r\n-171,408.96 $ 1,744,828.68 \r\n \r\n-2,266,237.95 \r\n \r\n-2,266,237.95 \r\n \r\n$ \r\n \r\n2,816.04 $ -2,440,462.95 $ -2,437,646.91 $ 1,744,828.68 \r\n \r\n45114.24 \r\n \r\n2,440,462.95 \r\n \r\n2,485,577.19 \r\n \r\n740 748.51 \r\n \r\n$ \r\n \r\n47,930.28 $ \r\n \r\n0.00 $ \r\n \r\n47,930.28 $ 2,485,577.19 \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n 27- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\nFIDUCIARY FUND TYPE AGENCY FUNDS YEAR ENDED JUNE 30, 2000 \r\n \r\nEXHIBIT \"K\" \r\n \r\nBREWER SCHOLARSHIP \r\nASSETS \r\nCash and Cash Equivalents \r\n \r\nBALANCE JULY1,1999 \r\n \r\nADDITIONS \r\n \r\nDEDUCTIONS \r\n \r\nBALANCE JUNE 30, 2000 \r\n \r\n$ \r\n \r\n29,559.89 $ \r\n \r\n0.00 $ \r\n \r\n500.00 $ ===29;,i;,0=5=9.8..9.., \r\n \r\nLIABILITIES \r\nFunds Held for Others \r\nCARY SUTTLE SCHOLARSHIP ASSETS \r\nCash and Cash Equivalents \r\n \r\n$ \r\n \r\n29,559.89 $ \r\n \r\n0.00 $ \r\n \r\n~-----.. 500.00 $ \r\n \r\n29,059.89 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n3,000.00 $ \r\n \r\n3 000.00 $ _ _ _ _ _o._oo,.., \r\n \r\nLIABILITIES \r\nFunds Held for Others \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n3,000.00 $ \r\n \r\n3,000.00 $ _ _ _ _o_.o_o= \r\n \r\nJ. 0. KING SCHOLARSHIP \r\nASSETS \r\nCash and Cash Equivalents \r\n \r\n$ \r\n \r\n77.74 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ _ _ _.....,77_.7_4_ \r\n \r\nLIABILITIES \r\n \r\nFunds Held for Others \r\n \r\n$ \r\n \r\n' \r\nLAKE RABUN ASSOCIATION/CLAYTON TRIBUNE SCHOLARSHIP FOUNDATION FUND \r\n \r\nASSETS \r\n \r\nCash and Cash Equivalents \r\n \r\n$ \r\n \r\nLIABILITIES \r\n \r\nFunds Held for Others \r\n \r\n$ \r\n \r\nMUSIC/ART SCHOLARSHIP FOUNDATION FUND \r\n \r\nASSETS \r\n \r\nCash and Cash Equivalents \r\n \r\n$ \r\n \r\n77.74 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ _ _ _.....,77_.7_4_ \r\n \r\n1 894.18 $ \r\n \r\n22,000.00 $ \r\n \r\ns ____ 251019.84 \r\n \r\n-1_1_2_5.,66,... \r\n \r\n1 894.18 $ \r\n \r\n22,000.00 $ \r\n \r\ns_ _ _ 251019.84 \r\n \r\n-1_1_2.,56.,..6 \r\n \r\n4,349.90 $ \r\n \r\n0.00 $ \r\n \r\n1 000.00 $ _ _ _3..,,34_9._90_ \r\n \r\nLIABILITIES \r\nFunds Held for Others \r\n \r\n$ \r\n \r\n4 349.90 $ \r\n \r\n0.00 $ \r\n \r\n1 000.00 $ ____3.,.,34_9_.9_o_ \r\n \r\nPANELL SCHOLARSHIP \r\nASSETS \r\nCash and Cash Equivalents \r\n \r\n$ \r\n \r\n23,985.13 $ \r\n \r\n50.00 $ \r\n \r\ns _ _ _ o.oo \r\n \r\n2_4.,_,o..,35_._13_ \r\n \r\nLIABILITIES \r\nFunds Held for Others \r\n \r\n$ \r\n \r\n23,985.13 $ \r\n \r\n-28- \r\n \r\n50.00 $ \r\n \r\ns ___ o.oo \r\n \r\n24..,,o.,.3..,5._13_ \r\n \r\n RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\nFIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 2000 \r\n \r\nEXHIBIT \"K\" \r\n \r\nPARKIN/KRIVSKY SCHOLARSHIP \r\n \r\nASSETS Cash and Cash Equivalents \r\n \r\nBALANCE JULY1,1999 \r\n \r\nADDITIONS \r\n \r\nDEDUCTIONS \r\n \r\nBALANCE JUNE 301 2000 \r\n \r\n$ \r\n \r\n2,000.00 $ \r\n \r\n1,000.00 $ \r\n \r\n1 000.00 $ _ _...2.._,0_00_.o_o_ \r\n \r\nLIABILITIES  Funds Held for Others \r\n \r\n$ \r\n \r\n2,000.00 $ \r\n \r\n1,000.00 $ \r\n \r\nRABUN COUNTY SCHOLARSHIP FOUNDATION \r\n \r\nASSETS \r\n \r\nCash and Cash Equivalents \r\n \r\n$ \r\n \r\n11441.09 $ \r\n \r\n21,475.00 $ \r\n \r\n1 000.00 $ _ _ _2_10==0_0_.o_o s,250.00 $ _ _ _2_3._,6..,66..,.0.,.9.., \r\n \r\nLIABILITIES Funds Held for Others \r\nWILDER SCHOLARSHIP FOUNDATION ASSETS \r\nCash and Cash Equivalents \r\n \r\n$ \r\n \r\n11441.09 $ \r\n \r\n21,475.00 $ \r\n \r\n91250.00 $ _ _ _23.1,6_6_6..,.09.,. \r\n \r\n$ \r\n \r\n700.00 $ \r\n \r\n1,100.00 $ \r\n \r\n500.00 $ _ _ _1_,3_0_0..0..0..., \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ \r\n \r\n700.00 $ \r\n \r\n1 100.00 $ \r\n \r\n500.00 $ _ _ _1_3_0_0..,.0.0.. \r\n \r\nWILLIAM L. BROOKSHIRE SCHOLARSHIP \r\nASSETS Cash anci Cash Equivalents \r\n \r\n$ \r\n \r\n989.73 $ \r\n \r\n1 677.50 $ \r\n \r\n1,000.00 $ _ _ _1_6_6,...7.,..23.,. \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ \r\n \r\n989.73 $ \r\n \r\n1 677.50 $ \r\n \r\n1,000.00 $ _ _....1._6_61_.2_3_ \r\n \r\nTOTALS -AGENCY FUNDS ASSETS \r\nCash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\n \r\n$ \r\n \r\n74 997.66 $ \r\n \r\n50,302.50 $ \r\n \r\n41 1269.84 $ _ _ _8_4_,o..,Jo..,._32_ \r\n \r\n$ \r\n \r\n74 997.66 $ \r\n \r\n50,302.50 $ \r\n \r\n41 1269.84 $ _ _ _84_,_o_3o_.3_2_ \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n-29- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2000 \r\n \r\nSCHEDULE 1 \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services \r\n \r\nSchool Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A $ N/A \r\n$ \r\n \r\n86,302.70 266,770.64 $ \r\n353,073.34 $ \r\n \r\n(2) \r\n778,261.57 (3) \r\n778,261.57 \r\n \r\nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \r\nTotal U.S. Department of Agriculture \r\n \r\n10.550 10.665 \r\n \r\nN/A N/A \r\n$ \r\n \r\n45,860.59 \r\n \r\n45,860.59 \r\n \r\n11,919.05 \r\n \r\n(4) \r\n \r\n410,852.98 $ _ _8;;.:2:..;4.,_1;,c.:2,:;2.\"\"-16=- \r\n \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Flow Through Preschool \r\nTotal Special Education Cluster \r\n \r\n84.173 84.027 84.173 \r\n \r\nNIA $ NIA NIA \r\n$ \r\n \r\n4,929.00 $ 135,326.34 20,108.16 \r\n160,363.50 $ \r\n \r\n4,929.00 136,281.63 (3) 20,108.16 \r\n161,318.79 \r\n \r\nOther Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Vocational Education - Basic Grants to States High School Program Basic Grant \r\nTotal U. S. Department of Education \r\n \r\n84.010  \r\n84.281 84.298 84.340 84.276 \r\n84.048 \r\n \r\nNIA \r\n \r\n247,173.35 \r\n \r\n248,059.65 (3) \r\n \r\nNIA \r\n \r\n16,000.00 \r\n \r\n16,000.00 \r\n \r\nNIA \r\n \r\n11,689.00 \r\n \r\n11,689.00 \r\n \r\nNIA \r\n \r\n38,633.00 \r\n \r\n38,633.00 \r\n \r\nNIA \r\n \r\n95,955.00 \r\n \r\n95,955.00 \r\n \r\nNIA \r\n$ \r\n \r\n19,683.00 \r\n \r\n19,683.00 \r\n \r\n589,496.85 $ _ _5_9_1-'--',3-'-3.8..._44_ \r\n \r\nTotal Federal Financial Assistance \r\nN/A = Not Available \r\n \r\n$ 1,000,349.83 $ 1,415,460.60 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2000 \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. \r\n(2) Expenditures for the School Breakfast Program were not maintained \r\nseparately and are included in the 2000 National School Lunch Program. \r\n(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. \r\n(4) Funds earned on this program do not require reporting of expenditures. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe Board did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of Federal Awards includes the Federal Grant Activity of the Rabun County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. \r\n \r\nSCHEDULE \"1\" \r\n \r\n \r\n \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n- 31 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\nGRANTS \r\n \r\nEducation, Georgia Department of \r\n \r\nQuality Basic Education General and Career Education Programs \r\n \r\n$ 5,073,908.00 \r\n \r\nSpecial Education Programs \r\n \r\n930,107.00 \r\n \r\nRemedial Education Program \r\n \r\n45,983.00 \r\n \r\nMedia Center Programs \r\n \r\n210,777.00 \r\n \r\nStaff Development Programs \r\n \r\n54,070.00 \r\n \r\nIndirect Cost \r\n \r\n1,305,804.00 \r\n \r\nPupil Transportation \r\n \r\nRegular \r\n \r\n331,949.00 \r\n \r\nBus Replacement \r\n \r\n98,849.00 \r\n \r\nLimited English Speaking \r\n \r\n37,687.00 \r\n \r\nMiddle School Incentive Program \r\n \r\n113,172.00 \r\n \r\nSpecial Instructional Assistance \r\n \r\n74,999.00 \r\n \r\nIn-School Suspension \r\n \r\n36,474.00 \r\n \r\nMid-term Adjustment \r\n \r\n51,301.00 \r\n \r\nCounselors Grades 4 and 5 \r\n \r\n23,502.00 \r\n \r\nTechnology Specialist \r\n \r\n28,842.00 \r\n \r\nLocal Five Mill Share \r\n \r\n-3,232,419.00 \r\n \r\nDeferred Summer Salaries (Prior Year) \r\n \r\n-1,004,032.00 \r\n \r\nDeferred Summer Salaries (Current Year) \r\n \r\n1,083,033.00 \r\n \r\nFood Services \r\n \r\n$ \r\n \r\nVocational Education \r\n \r\n10,258.00 \r\n \r\nOther State Programs \r\n \r\nAlternative Program \r\n \r\n42,627.00 \r\n \r\nAt-Risk Summer School Program \r\n \r\n4,303.33 \r\n \r\nHealth Insurance \r\n \r\n170,237.62 \r\n \r\nMentoring Program \r\n \r\n7,400.00 \r\n \r\nMentor Teacher Program \r\n \r\n3,888.00 \r\n \r\nPreschool Handicapped Program \r\n \r\n29,002.00 \r\n \r\nRemedial Summer School Program \r\n \r\n2,318.13 \r\n \r\nTeachers' Retirement \r\n \r\n20,317.60 \r\n \r\nLottery Programs \r\n \r\nAssistive Technology \r\n \r\nComputers in the Classroom \r\n \r\n$ 5,073,908.00 \r\n930,107.00 45,983.00 \r\n210,777.00 54,070.00 \r\n1,305,804.00 \r\n \r\n55,966.00 \r\n \r\n331,949.00 98,849.00 37,687.00 \r\n113,172.00 74,999.00 36,474.00 51,301.00 23,502.00 28,842.00 \r\n-3,232,419.00 -1,004,032.00 1,083,033.00 \r\n55,966.00 10,258.00 \r\n \r\n42,627.00 4,303.33 \r\n170,237.62 7,400.00 3,888.00 \r\n29,002.00 2,318.13 \r\n20,317.60 \r\n \r\n12,713.88 53,000.00 \r\n \r\n12,713.88 53,000.00 \r\n \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\n36,724.00 \r\n \r\n36,724.00 \r\n \r\nCONTRACTS Education, Georgia Department of Georgia's Reading Challenge Program Reading First Program \r\n \r\n35,250.00 \r\n \r\n44,886.00 \r\n \r\n35,250.00 44,886.00 \r\n \r\n$ 5,626,331.68 $ \r\nSee notes to the general purpose financial statements. - 32 - \r\n \r\n166,565.88 $ 5,792,897.56 \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30. 2000 \r\n \r\nSCHEDULE \"3\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS \r\n \r\nAcquisition, construction and equipping additional \r\n \r\nclassrooms, instructional and support space at the \r\n \r\nmiddle/high school, renovating, equipping and \r\n \r\nmodifying existing classrooms, instructional and \r\n \r\nsupport space at said school, providing for payment \r\n \r\nor reimbursement of the costs of rerouting and \r\n \r\nstorm drainage improvements at said school, \r\n \r\nfunctional additional capital projects including \r\n \r\nacquisition, construction and equipping additional \r\n \r\nclassrooms, instructional and support space and \r\n \r\nremodeling and renovating existing classroom, \r\n \r\ninstructional and support space at existing school \r\n \r\nfacilities and paying expenses incident thereto \r\n \r\n$ \r\n \r\n8,000,000.00 $ \r\n \r\n11,000,000.00 $ 6,523,485.17 $ 5,386,048.60 \r\n \r\n(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Rabun County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n- 33- \r\n \r\n RABUN COUNTY BOARD OF EDUCATION \r\n \r\nSCHEDULE \"4\" \r\n \r\nANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL \r\n \r\nGENERAL FUND -QUALITY BASIC EDUCATION PROGRAMS \r\n \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nMinimum Expenditure Requirements (Total Allotment) \r\nExpenditures on Combined Program Basis Salaries (1) (2) Operations \r\nLess: Expenditures for Media Center Programs in Excess of Total Media Allotment \r\nExpenditures per Audit \r\n \r\nFOURTEEN WEIGHTED AND MEDIA CENTER \r\nPROGRAMS \r\n \r\n100/o TEST FOR \r\nOPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \r\n \r\n$ \r\n \r\n6,301,813.00 $ _ _ _,_1_7_7_...,..7...;;;2~8.;..;..0..;..0 \r\n \r\n$ \r\n \r\n7,444,403.04 \r\n \r\n522,874.12 $ _ _ _48_2_._,0_2_0_.1_1 \r\n \r\n$ \r\n \r\n7,967,277.16 \r\n \r\n-112,957.18 $ _ _ _7.:..;.,8..;..54...:..,3_1_9_.9_8 \r\n \r\nAmount of Underexpenditure for Total Allotment \r\n \r\n$ \r\n \r\no.oo $=====o=.o=o \r\n \r\nNote: (1) Salary accruals (July and August 2000 Deferred Salaries) reported \r\nas expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. \r\n(2) Salary accruals (July and August 1999 Deferred Salaries) reported \r\nas expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. \r\n' \r\n \r\nSee notes to the general purpose financial statements. \r\n- 35 - \r\n \r\n RABUN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 \r\n \r\nGENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs \r\nSPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Category V (*) Sub-Total - Regular Category VI (Gifted)(*) \r\nTotal Special Education Programs REMEDIAL EDUCATION PROGRAM C*l \r\nTotal Fourteen Weighted Programs MEDIA CENTER PROGRAMS \r\nSalaries Operations \r\nTotal Media Center Programs \r\n \r\nTotal Fourteen Weighted and Media Center Programs \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF \r\n \r\nREQUIRED \r\n \r\nORIGINAL \r\n \r\n% \r\n \r\nORIGINAL \r\n \r\nMID-TERM \r\n \r\n$ \r\n \r\n571,866.00 \r\n \r\n$ \r\n \r\n514,679.40 $ \r\n \r\n-24,875.00 \r\n \r\n1,480,050.00 \r\n \r\n1,332,045.00 \r\n \r\n-4,665.00 \r\n \r\n$ 2,051,916.00 90 $ 1,846,724.40 $ \r\n \r\n-29,540.00 \r\n \r\n700,167.00 90 \r\n \r\n630,150.30 \r\n \r\n34,652.00 \r\n \r\n1,012,659.00 90 \r\n \r\n911,393.10 \r\n \r\n-19,857.00 \r\n \r\n634,061.00 90 \r\n \r\n570,654.90 \r\n \r\n12,176.00 \r\n \r\n405,503.00 90 \r\n \r\n364,952.70 \r\n \r\n9,520.00 \r\n \r\n269,602.00 90 \r\n \r\n242,641.80 \r\n \r\n13,838.00 \r\n \r\n$ 5,073,908.00 \r\n \r\n$ 4,566,517.20 $ _ _.,:2:..:;0\"7\",..:;89::...::.00::.. \r\n \r\n$ \r\n \r\n843,150.00 \r\n \r\n$ \r\n \r\n758,835.00 $ \r\n \r\n35,228.00 \r\n \r\n$ \r\n \r\n843,150.00 90 $ \r\n \r\n758,835.00 $ \r\n \r\n35,228.00 \r\n \r\n86,957.00 90 \r\n \r\n78,261.30 \r\n \r\n-29,169.00 \r\n \r\n$ \r\n \r\n930,107.00 \r\n \r\n$ \r\n \r\ns 837,096.30 -----=6c:.:.o:..:;5.::.9:..:;o::..o \r\n \r\n$ \r\n \r\n45,983.00 90 $ \r\n \r\n41,384.70 $ - - - -12',9-50-.0-0 \r\n \r\n$ 6,049,998.00 \r\n \r\n$ 5,444,998.20 $ - - - -39',7-98-.0-0 \r\n \r\n$ \r\n \r\n171,326.00 90 $ \r\n \r\n154,193.40 $ \r\n \r\n39,451.00 100 \r\n \r\n39,451.00 \r\n \r\n849.00 391.00 \r\n \r\n$ \r\n \r\n210,777.00 \r\n \r\n$ \r\n \r\n193,644.40 $ _ ____;1..:::,2::...;4c;;;0~.0\"'-0 \r\n \r\n$ 6,260,775.00 \r\n \r\n$ 5,638,642.60 $ ~--41=,0=3~8;,;;.0=0 \r\n \r\nSTAFF DEVELOPMENT PROGRAMS \r\nCost of Instruction Professional Development \r\n \r\n$ \r\n \r\n17,558.00 \r\n \r\n36,512.00 \r\n \r\n$ \r\n \r\n17,558.00 $ \r\n \r\n36,512.00 \r\n \r\n168.00 0.00 \r\n \r\nTotal Staff Development Programs \r\n(*) Identifies Fourteen Weighted Programs. \r\n(1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. \r\nSee notes to the general purpose financial statements. \r\n \r\n$ \r\n \r\n54,070.00 100 $ \r\n \r\n54,070.00 $=-==16=8=.0=0 \r\n \r\n(2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are Included on this analysis as required by program guidelines. \r\n \r\n- 36 - \r\n \r\n SCHEDULE \"5\" \r\n \r\nEDUCATION TOTAL \r\nREQUIRED \r\n \r\nACTUAL EXPENDITURES \r\n \r\nSALARIES (1)(2) \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nAMOUNT OF UNDEREXPENDITURE \r\nFOR REQUIRED ALLOTMENT \r\n \r\n$ \r\n \r\n489,804.40 $ \r\n \r\n1,327,380.00 \r\n \r\n$ 1,817,184.40 $ \r\n \r\n664,802.30 \r\n \r\n891,536.10 \r\n \r\n582,830.90 \r\n \r\n374,472.70 \r\n \r\n256,479.80 \r\n \r\n$ 4,587,306.20 $ \r\n \r\n596,282.07 $ 1,604,784.97 \r\n2,201,067.04 $ \r\n882,875.98 1,234,638.10 \r\n921,397.24 369,085.41 380,268.58 5,989,332.35 $ \r\n \r\n20,477.59 $ \r\n \r\n616,759.66 \r\n \r\n82,068.10 \r\n \r\n1,686,853.07 \r\n \r\n102,545.69 $ 2,303,612.73 $ \r\n \r\n48,603.14 \r\n \r\n931,479.12 \r\n \r\n90,366.30 \r\n \r\n1,325,004.40 \r\n \r\n83,745.71 \r\n \r\n1,005, 142.95 \r\n \r\n18,323.42 \r\n \r\n387,408.83 \r\n \r\n51,203.51 \r\n \r\n431,472.09 \r\n \r\n394,787.77 $ 6,384,120.12 \r\n \r\n0.00 0.00 0.00 0.00 0.00 0.00 \r\n \r\n$ \r\n \r\n794,063.00 \r\n \r\n$ \r\n \r\n$ \r\n \r\n794,063.00 $ \r\n \r\n49,092.30 \r\n \r\n$ \r\n \r\n843,155.30 $ \r\n \r\n$ \r\n \r\n54,334.70 $ \r\n \r\n$ 5,484,796.20 $ \r\n \r\n38,307.65 $ \r\n269,860.19 547,857.10 \r\n59,254.34 40,062.11 \r\n955,341.39 $ \r\n108,474.16 \r\n1,063,815.55 $ \r\n107,134.97 $ \r\n7.160,282.87 $ \r\n \r\n878.56 $ \r\n3,734.08 69,955.88 \r\n3,747.47 657.73 \r\n \r\n39,186.21 273,594.27 617,812.98 \r\n63,001.81 40,719.84 \r\n \r\n78,973.72 $ 1,034,315.11 \r\n \r\n6,585.40 \r\n \r\n115,059.56 \r\n \r\n85,559.12 $ 1,149,374.67 \r\n \r\n1,673.22 $ ---'-10-8-,8-0-8-.1'9- \r\n482,020.11 $ 7,642,302.98 \r\n \r\n0.00 0.00 \r\n0.00 \r\n \r\n$ \r\n \r\n155,042.40 $ \r\n \r\n284,120.17 \r\n \r\n$ \r\n \r\n284,120.17 \r\n \r\n39,842.00 - - - - - - $ _ _ _4_0_,_8__54_._01_ \r\n \r\n40,854.01 \r\n \r\n$ \r\n \r\n194,884.40 $ \r\n \r\n284,120.17 $ \r\n \r\n-------- 40,854.01 $ \r\n \r\n324,974.18 \r\n \r\n0.00 0.00 \r\n \r\n$ 5,679,680.60 $ \r\n \r\n7,444,403.04 $ \r\n \r\ns....,_ _ _ _ 522,874.12 $ 1,9s1.211.1s \r\n \r\n....,....,0..0..0.., \r\n \r\n$ \r\n \r\n17,726.00 \r\n \r\n36,512.00 \r\n \r\ns =======54:i,i,ii,2.3..8_.o. .o,. \r\n \r\n$ \r\n \r\n39,439.74 $ \r\n \r\n39,439.74 \r\n \r\n14,855.70 \r\n \r\n14,855.70 \r\n \r\n-----------= $ \r\n \r\n54,295.44 $ \r\n \r\n54,295.44 $ \r\n \r\n0.00 \r\n \r\n 37  \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n 0 Y...c;; I!' \r\n \r\n-~' : : . \r\n \r\n..:,~,.-,. ' ' \r\n \r\nRussELL W. H1NTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street. S.W.. Suite 214 Atlanta, Gec\u003ergia 3()334-84()() \r\nJanuary 23, 2001 \r\n \r\nHonorable Roy E. Barnes, Governor \r\n \r\nMembers of the General Assembly \r\n \r\nMembers of the State Board of Education \r\n \r\nand \r\n \r\n \r\n \r\nSuperintendent and Members of the \r\n \r\nRabun County Board of Education \r\n \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\nLadies and Gentlemen: \r\n \r\nWe have audited the financial statements ofRabun County Board ofEducation as ofand for the year \r\nended June 30, 2000, and have issued our report thereon dated January 23, 2001. This report was \r\nqualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Go\\.ernment Auditing Standards, issued by the Comptroller General of the United States. \r\n \r\nCompliance \r\n \r\nAs part of obtaining reasonable assurance about whether Rabun County Board of Education's financial statements are free of material misstatement, we perfo1111ed 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 of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \r\n \r\nInternal Control Over Financial Reporting \r\n \r\nIn planning and perfo11ning our audit, we considered Rabun County Board of Education's internal control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control \r\n \r\n2000YB-40 \r\n \r\n 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 Rabun County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7191-00-01. \r\nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of perfo11ning their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above, is considered to be a material weakness. \r\nThis report is intended solely for the infu11nation and use of management, members of the Rabun County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\n, , - -R.e...s. pectfully submitted, \r\n \r\nRWH:jb 2000YB-40 \r\n \r\nRu sell W. Hinton State Auditor \r\n \r\n w. RUSSELL \r\n \r\nHINTON \r\n \r\nSTATE AUDITOR \r\n \r\n(404) 6562174 \r\n \r\n0 !...!? \r\n \r\n.\"'f'~-o:::- \r\n \r\n~:;C\u003e-) \r\n \r\n171b \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washingtcin Street, S.W.. Suite 214 Atlanta. Georgia 30334-8400 \r\n \r\nJanuary 23, 2001 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members ofthe Rabun County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance ofRabun County Board ofEducation with the types ofcompliance \r\nrequirements 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 \r\nJune 30, 2000. Rabun County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofRabun County Board ofEducation's management. Our responsibility is to express an opinion on Rabun County Board of Education's compliance based on our audit. \r\n \r\nWe conducted our.audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the \r\nComptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that \r\nwe plan and perfu11n 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 \r\nmajor Federal program occurred. An audit includes examining, on a test basis, evidence about the \r\nRabun County Board ofEducation's compliance with those requirements and perfo11ning such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal dete1mination on Rabun County Board of Education's compliance with those requirements. \r\n \r\n2000SA-10 \r\n \r\n In our opinion, the Rabun County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000. \r\nInternal Control Over Compliance \r\nThe management of Rabun 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 Rabun 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 dete1111ine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the no11nal course of perfo11ning their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \r\nThis report is intended solely for the information and use of management, members of the Rabun County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:jb 2000SA-10 \r\n \r\nsell W. Hinton State Auditor \r\n \r\n SECTION III AUDl'l'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7191-98-01 FS-7191-99-01 \r\n \r\nResolved - Further Action Not Warranted Unresolved - See Corrective Action/Responses \r\n \r\n \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7191-99-01 \r\n \r\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. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2000 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Rabun County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Rabun County Board of Education disclosed a financial statement reportable condition related to the following control category. \r\nGeneral Fixed Assets \r\nThe reportable condition described above is considered to be a material weakness. \r\n3. Noncompliance Material to the Financial Statements The audit ofthe Rabun County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Rabun County Board of Education did not disclose any reportable conditions in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Rabun County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Rabun County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \r\n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program \r\n8. Type ''A'' Program Dollar Threshold The dollar threshold for type ''A'' programs was $300,000.00. \r\n9. Low Risk Auditee The Rabun County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education. \r\n- 1- \r\n \r\n  \r\nRABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 2000 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-7191-00-01 The Rabun County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fo11nal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. 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